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  IV. TRADE POLICIES BY SECTOR 
(1) OVERVIEW  
1. Argentina is a major producer of agricultural goods, notably cereals and livestock products.  
At the international level, it is striving for greater  liberalization of trade in agricultural products, and 
the agricultural negotiations are one of its main in terests in the WTO.  In general, support for the 
agricultural sector is limited in Argentina:  the support notified falls within the Green Box, tobacco 
being the one exception.  Tariff protection for ag ricultural products is lower than that for 
manufactures (ISIC classification):  in 2012, it was 7.2% compared to an overall average of 11.4%.  Argentina has no tariff quotas at the multilateral level, but it does apply preferential tariff quotas for certain agricultural products. 
2. Mining is open to private Argentine and foreign investors.  While mining activities are 
coordinated by the Federal Government, the provi nces may define their own policies and manage 
their mining resources, as well as collect mining royalties.  There are export duties on mining products at a rate that ranges from 5 to 10%.  The mining sector benefits from a series of fiscal incentives which Argentina has notif ied to the WTO.  Since May 2012, mining companies in receipt 
of these tax benefits must use Argen tine companies to ship their goods. 
3. Argentina is Latin America's fourth largest pr oducer of crude oil and has the third largest 
reserves of natural gas.  Export duties on crude oil exports vary according to international oil prices, 
but the minimum is 45%.  For exports of natural gas,  the rate is 100% and for propane gas it is 45%.  
As a result of increased domestic demand and a drop in production, Argentina has been a net importer 
of natural gas since 2008.  In May 2012, following the nationalization of the company Yacimientos 
Petrolíferos Fiscales (YPF), new principles were  introduced for Argentina's hydrocarbons policy, 
including the integration of national and interna tional public and private capital for exploration and 
exploitation of conventional and non-conventional hydrocarbons and th e generation of an exportable 
surplus of hydrocarbons. 
4. Over the period 2006-2011, real GDP in the manufacturing sector grew at an average annual 
rate of 6%.  Increased production has been accompan ied by a sharp rise in the level of utilization of 
installed capacity, which was 78.9% in April 2012, five percentage points above the 2006 level.  
Border measures applied in the manufacturing sector  include tariffs, non-automatic import licensing, 
and the use of contingency measures, notably anti- dumping duties.  The simple average MFN tariff in 
the manufacturing sector was 11.7% in 2011, with ra tes ranging from 0 to 35%.  During the period 
under review, a sizeable group of manufactures remained subject to a non-automatic import licensing 
requirement.  Furthermore, duty of 5% is still payable on the export of most manufactures. 
5. The main feature of the electricity sector is  the strong presence of foreign companies.  
Argentina covers most of its energy supply need s from its own resources.  The majority of 
hydroelectric power stations operate under concessi ons granted by the National State or provincial 
states, mostly to private firms, although the two bi-national hydroelectric power stations are owned by 
the Argentine National State and the counterpart fo reign State (Paraguay and Uruguay, respectively).  
Argentina is interconnected to the Brazilian, Paragu ayan, Uruguayan and Chilean electricity grids.  
Policy for the electricity sector is intended to prom ote sustainable development, encouraging the use 
of renewable energy.  Pursuant to Argentina's legisl ation, the end-user market has been divided into a 
regulated segment (end users) and another open to  competition (large users).  In the regulated 
segment, the distributor holding the concession is guaranteed a monopoly and tariffs are regulated.  
Large users are free to procure electricity on the market. Argentina WT/TPR/S/277 
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  6. Argentina undertook commitments in six of the 12 sectors specified in the GATS.  
It participated in the extended negotiations on telecommunications and ratified the Fourth Protocol;  it 
also took part in the extended negotiations on fina ncial services, but did not present any new offer. 
7. Since November 2000, all telecommunications services have been provided on a competitive 
basis.  Nevertheless, fixed telephony continues to be dominated by the two "traditional operators", 
whose contracts were declared under renegotiation in 2002 because they had not readjusted their rates.  
Rates for other telecommunications services may be determined freely. 
8. Argentina's financial sector has adequate levels  of solvency.  In 2011, the rate of paid-up 
capital was 15.5% of credit-risk weighted assets, 62% above the regulatory requir ement.  All financial 
groups have maintained an amount of paid-up capital in excess of the minimum regulatory 
requirements.  Argentina's legislation does not lay down any restrictions concerning the nationality of 
investors wishing to invest in the domestic fi nancial system or on the transactions which the 
institutions in which they invest may conduct.  Fi nancial institutions with foreign capital operating in 
Argentina receive national treatment, in accordance with Argentine legislation.  Foreign insurance 
companies, however, are granted national treatme nt based on the principle of reciprocity.  
Prior authorization based on timeliness and expediency  is required to operate in the insurance market.  
Insurance to cover risks that might occur in Arge ntine territory may only be taken out with firms 
established in Argentina.  Insurance premiums are subj ect to a tax, with a higher rate applicable to 
firms established abroad. 
9. Domestic air and shipping services (cabotage) are reserved for Argentine companies, 
although waivers may be granted.  Airports are State-owned but concessions have been given to 
private companies or consortiums for the management of the major airports.  Most ports are privately 
managed, but six of them, including the port of Buenos Aires, remain under State management. 
10. In general terms, the exercise of a profession in Argentina is not regulated;  what is regulated 
is the curriculum for awarding diplomas for professi ons whose exercise could run counter to the 
public interest, placing the health, safety, rights, property or education of the population directly at 
risk.  With regard to professional services, profes sional qualifications obtained abroad have to be 
revalidated by an Argentine university.  Argentin a has undertaken specific commitments on a number 
of professional services under the GATS, including legal, accounting, engineering and architectural services. 
11. Argentina's legislation recognizes the tourism sector as being one of national interest.  
Accordingly, in 2010 the Ministry of Tourism was created in order to reinforce and intensify 
government action in the sector, which may be  given general or specific incentives. 
(2) A
GRICULTURE , FORESTRY , FISHING AND RELATED PROCESSING ACTIVITIES  
(i) Agriculture and food processing 
(a) Main features and objectives 
12. Agriculture is a sector of key importance for Argentina because of the scale of its production 
and the impact on exports and GDP in general.  Argentina has a solid comparative advantage in 
agriculture, especially cereal and livestock produc tion.  Agriculture's share of GDP (including 
livestock and forestry, but not food processing) was 9. 6% in 2011 in current peso terms.  This figure 
to a large extent reflects the sharp increase in pri ces of agricultural products as the sector's share WT/TPR/S/277 Trade Policy Review 
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  of GDP in real terms was only 4.3% that year.  In March 2012, agriculture, livestock, hunting and 
forestry directly provided 5.6% of total jobs, and a further 5.4% of the working population was 
employed in processing food, bevera ges and tobacco.  Agricultural exports are dominated by oilseed, 
livestock and cereal products (see also Chapter I(3)). 
13. The main agricultural products are soyabeans, maize, wheat, sunflowers, sorghum, vines, 
lemons, apples, rice and livestock (essentially beef cattle).  Argentina is one of the world's leading 
producers of sunflower seed oil, soyabeans and soyabean oil, honey, lemons and beef. 
14. The Ministry of Agriculture, Livestock and Fish eries (MAGyP) is responsible for drawing up 
and implementing agricultural policy.  The MAGy P's Unit for Rural Change (UCAR) manages the 
Ministry's external financing portfolio, using programmes and projects to promote and facilitate 
equitable development in rural areas.1  The Federal Council for Agriculture (CFA), created by 
Law No. 23.843, enacted on 26 September 1990, is an advisory and consultative body for the Executive on all matters concerning the agricultural and fisheries sector referred to it because of their 
impact on regional or provincial economies.  The CFA is chaired by the MAGyP and has committees 
both by region and by activity.   The functioning and number of these committees may lead to 
coordinated action by national and provincial public  sectors in accordance with the definition and 
execution of agricultural and fisheries policies. 
15. At the international level, Argentina advocates continuation of the agri cultural reform process 
agreed in the Uruguay Round and has on many occasi ons reiterated its concern at the lack of progress 
in the Doha Round negotiations and at the erosion of  market access through growing use of technical 
barriers.
2  Argentina is a founding member of the Cair ns Group and its position is to move ahead with 
the Doha Round, continuing the reform of ag riculture launched during the Uruguay Round.  
Argentina considers that the agricultural negotiatio ns are key in assessing the results of the Round in 
terms of development and in ensuring food security. 
(b) Policy instruments 
Border measures 
16. In 2012, tariff protection for agricultural pr oducts was 7.2% (ISIC Rev.2 Major Group 111) 
compared to 11.7% for manufactures (ISIC Major Di vision 3) (see also Chapter III(2)(iv)).  Taking 
into account the WTO definition of agriculture, wh ich includes agro-industrial products, the average 
tariff rises to 10.1%.  By WTO category, protection is higher than average for dairy produce (18.6%), 
sugar and confectionery (17.6%), beverages, alcohol and tobacco ( 16.9%), coffee and tea (13.7%) and 
cereals and cereal preparations (11.7%), whereas it is  lower than average for imports of cotton (6.3%), 
animals and products of animal origin (7.9%), oilseed s, fats and oils and bypr oducts (7.9%), and fruit, 
vegetables and garden produce (9.2%). 
17. Additional import duties are imposed on imports of  sugar of any origin, which may result in a 
decrease or increase in the ad valorem  rate applied.  Trade in sugar within MERCOSUR is not duty 
free, so it is one of the two exceptions to fre e trade within MERCOSUR, the other being the 
automotive industry. 
                                                      
1 Online information from UCAR.  Vi ewed at:  http://www.ucar.gob.ar. 
2 WTO document WT/MIN(11)/S T/19 of 16 December 2011. Argentina WT/TPR/S/277 
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  18. Argentina has no tariff quotas at the multilateral le vel.  It does, however, apply preferential 
tariff quotas for certain agricultural products under regional trade agreements.  For example, under 
Economic Complementarity Agreement (ECA) No. 6, Argentina grants Mexico a reciprocal quota of 
10,000 tonnes for canned peaches in syrup or bottled  peaches in water with added sugar or other 
sweetener or syrup.  Under ECA No. 59, Argentina grants Colombia a quota of 441 tonnes for 
chewing gum and chocolate;  and gives Ecua dor quotas of 100 tonnes (for chewing gum) and 
US$100,000 for natural plant-based foods processe d from wheat germ, soyabeans and seaweed, 
except for milk flour.  In 2011 and 2008, respectivel y, a tariff preference of 100% was given for these 
goods so these restrictions no longer applied. 
19. Law No. 21.453 of 8 October 1976 and amendments thereto govern export of the agricultural 
products specified therein.  Export duty is pa yable on these products and ranges from 5 to 35% 
(Table IV.1 and Chapter III(3)(ii)). 
Table IV.1 
Rates of export duty on the main agricultural products and byproducts covered by Law No. 21.453 
NCM Product Export duty (%) 
1001.10.90  Durum wheat, except for sowing 23 
1001.90.90 Wheat, other, except for sowing 23 
1005.90.10 Maize, other, in grainsa 20 
1005.90.90 Maize, other, except for grains 20 
1101.00.10 Wheat flour 13 
1201.00.90 Soyabeans, except for sowing 35 
1206.00.90 Sunflower seeds, except for sowingb, c 32 
1208.10.00 Soyabean flour 32 
1507.10.00 Crude soyabean oil 32 
1507.90.11 Refined soyabean oil, in containers 32 
1507.90.19 Refined soyabean oil, in bulk 32 
1507.90.90 Soyabean oil, other 32 
1512.11.10 Sunflower seed oil 30 
1512.19.11 Refined sunflower or safflow er seed oil, in containers 30 
1512.19.19  Refined sunflower or safflower seed oil, other 30 
1517.90.10 Mixtures of refined oils, in containersd32 
1517.90.90 Mixtures, food preparations and other products containing soyabean oile 20 
1901.20.00 Mixes and doughs for the preparation of bakers' waresf5 
1901.90.90 Other flour- or starch-based preparationsf 5 
2304.00.10 Soyabean flour and "pellets" 32 
2304.00.90 Soyabean cake and expellers 32 
2306.30.10 Sunflower seed cake, flour and "pellets" 30 
2306.30.90 Sunflower seed expellers 30 
a Except pisingallo maize, which is subject to 5% export duty. 
b Except confectionery-type sunflower seed, which is subject to 10% export duty. 
c Except shelled sunflower seed, whic h is subject to 5% export duty. 
d Only mixtures which contain soyabean oil. e Except mixtures, food preparations and other products containing soyabean oil. 
f Except wheat-flour based preparations (excluding dough in disk s or other similar solid form and mixes for making cakes, spong e 
cakes and similar pastry products, in containers of a net content of 1 kg or less), with additives  and/or ingredients, which ar e 
subject to 18% export duty. 
Source : Ministry of the Economy and Public Finance (2012), Tributos Vigentes en la República Argentina a Nivel 
Nacional  (updated to 30 June 2012).  Viewed at:  http ://www.mecon.gov.ar/sip/dni af/tributos_vigentes.pdf. 
 
20. Between March 2006 and March 2008, the Ar gentine Government took measures to 
guarantee supplies of beef.  For this purpose, in March 2006, the authorities imposed an 180-day ban on beef exports.
3  In May 2006, this export ban was lifted and replaced by an export quota for the 
                                                      
3 Resolutions Nos. 114/2006 of 8 March 2006 and 210/2006 of 30 March 2006.  The NCM tariff 
headings concerned were:  0102.90.90, 0201.10.00 , 0201.20.10, 0201.20.20, 0201.20.90, 0201.30.00, 
0202.10.00, 0202.20.10, 0202.20.20, 0202.20.90, 0202.30.00, 1602.50.00, 1602.90.00 (beef) and 1603.00.00 
(beef). WT/TPR/S/277 Trade Policy Review 
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  period 1 October 2006 to 30 November 2006, corres ponding to 40% of exports during a reference 
period (1 June to 30 November 2005).4  Resolution No. 935 of 29 November 2006 of the former 
Ministry of the Economy and Production (MEP) dete rmined a monthly export quota for the period 
between 1 December 2006 and 31 May 2007 corres ponding to 50% of the total average monthly 
physical volume exported during the reference peri od, comprising 1 January to 31 December 2005, 
for goods falling under the NCM tariff headings liste d in the Annex to the Resolution.  Resolution 
No. 367/2007 extended the provisions in Resolution No. 935/2006 up to 31 December 2007 and Resolution No. 24/2007 further extended them  to 31 March 2008.  There have been no 
further extensions. 
21. Under an April 2008 framework agreement between the Government and the various 
operators in the meat production chain, the quotas were replaced by a requirement that exporters 
should be registered.  Resolution No. 6 of 2 Ma y 2008 provided that opera tions falling under specific 
NCM tariff headings must be registered in the Re gister of Export Operations (ROE), introduced by 
MEP Resolution No. 31 of 27 January 2006, under the responsibility of the National Office for the 
Control of Agricultural Trade (ONCCA).  In setti ng out the reasons for registration, the Resolution 
stated that it was an appropriate tool for normal an d regular monitoring of supplies, particularly for 
so-called "mass consumption" beef cuts. 
22. In its most recent notification to the WT O, covering the period 2008-2009, Argentina 
indicated that it did not grant any export subsidies for agricultural exports during this period.
5 
23. A special registration requirement applies to th e export and/or import of certain agricultural 
products.  For example, exporters and importers of animals, plants , reproductive and/or propagation 
material, products, byproducts and/ or derivatives of animal or plant origin or goods containing 
ingredients of animal and/or plant origin among their components must be registered in the relevant SENASA register (see Chapter III(2)(ix)).  Exporters  of wine and must have to be listed in the 
Register of Exporters at the National Grape-Growi ng and Wine Production Institute, and exporters of 
food products must be enrolled in the National Register of Food Products (RNPA), kept by the 
National Food Institute (INAL). 
24. Special registration requirements also apply to  the export (and import) of grains, meat and 
dairy produce.  ONCCA, an autonomous and decentr alized body attached to the MAGyP and created 
by Decree No. 1.343/96, was responsible for controlli ng strict compliance with the marketing rules in 
the agricultural sector until 2011.  It was also in char ge of enrolling operators in the relevant registers, 
authorizing them to operate on a commercial basis,  and for dealing with foreign trade instruments 
according to the various subsectors of productio n, as well as for drawing up and publishing 
benchmark prices for beef cattle and pigs and admi nistering the Hilton Quota.  Decree No. 192/2011 
of 24 February 2011 dissolved ONCCA (see Chap ter III(3)(i)) and its responsibilities, budgetary 
allocations, goods, assets and personnel were transferred to the MAGyP.
6 
                                                      
4 Resolution No. 397/2006 of 26 May 2006.  The quota applied to the following NCM tariff headings:  
0102.90.90, 0201.10.00, 0201.20.10, 0201.20.20, 0201.2 0.90, 0201.30.00, 0202.10.00, 0202.20.10, 0202.20.20, 
0202.20.90 and 0202.30.00. 
5 WTO document G/AG/N/ARG/29 of 27 April 2010. 
6 Decree No. 192/2011 amended the Law on Ministries (text harmonized by Decree No. 438 of 
12 March 1992) and the amendments thereto in order to include among the MAGyP's responsibilities control of 
compliance with the marketing rules in the agricultura l sector in order to ensure transparency and free 
competition for these activities, taking all the measures required for this purpose throughout Argentina, and to Argentina WT/TPR/S/277 
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  25. Producers of grains and oilseeds must record their inventories in the Register of Grain 
Inventories, pursuant to Resolution No. 684/2008.  This Register is currently kept by the MAGyP 
following the dissolution of ONCCA.  The purpose of  the Register is to have available the 
information needed to formulate agricultural policies and it includes stocks of grains and oilseeds that 
have not yet entered the commercial chain.  The INAL keeps the RNPA.  All goods produced in 
Argentina exclusively for export must be recorded in the Register.  If an exporter that is also a 
producer wishes to obtain an RNPA certificate exclusively for exports, it must first register the establishment where the good is produced in the Nationa l Register of Establishments (RNE).  If the 
exporter is not the producer, it must have an RNE e xporter's certificate as well  as an RNE producer's 
certificate in order to be registered in the RNPA. 
26. Exports of grains and oilseeds (NCM tariff headings 1001.10.90 (meslin wheat and durum 
wheat (except for sowing)), 1001. 90.90 (meslin wheat, other (excep t for sowing)), and 1005.90.10 
(maize) must be registered in the ROE ("ROE Green"), as prescribed by ONCCA Resolution No. 543/2008 and amendments thereto and by La w No. 21.453 of 8 October 1976 and amendments 
thereto.  The latter Law, the supplementary text Law No. 26.351 of 16 January 2008, and Decrees Nos. 1.177 of 10 July 1992 and 654 of 19 April 2002 introduced registration of foreign sales for 
products of agricultural origin through a system  of sworn declarations of sales abroad.  
The "ROE Green" was establis hed so that the volume of exports of agricultural products could be 
known with certainty and immediately, thereby ensu ring that there was no impact on normal supplies 
for the domestic market, and also to be able to fo llow up foreign trade in these products more closely.  
ONCCA Resolution No. 543/2008 and amendments  and supplements thereto determine the 
requirements for such procedures, as well as the need  to guarantee supplies of wheat and maize for the 
domestic market, whose volume amount to 6.5 and 8 million tonnes, respectively.  These figures stayed the same for the 2009/2010 and succeeding seasons.
7  The exportable net balance is the product 
of what remains from total production for the 2009 /2010 and succeeding seasons plus that remaining 
from the previous season, domestic supply needs, estimates of seeds needed for the next sowing 
season and needs to cover various c ontingencies.  Developments rela ting to production, supplies and 
marketing of wheat and maize are monitored regularly.  In 2011, 6,150,126 tonnes were authorized under the "ROE Green". 
27. It is a prior and mandatory requirement to be  enrolled in the ROE ("ROE Red"), created by 
MEP Resolution No. 31/2006, before being able to ex port beef.  The objective is to ensure the orderly 
functioning of the beef market and the transparency of export transactions in light of their increase.  
Subsequently, MEP Resolution No. 6/2008 supplement ed the former and gave ONCCA the task of 
implementing the aforementioned instrument.  ONCCA duly issued Resolutions Nos. 3.433/2008 and 6.687/2009, which introduced the procedures fo r controlling transactions so as to shorten and 
harmonize administrative deadlines.  Resolution No. 6.687/2009 also introduced other changes to implementation of the "ROE Red", including a decrease from 50% to 30% in the Export Production 
Reserve, as provided in Resolution No. 542/08, with seven higher-value cuts being excluded from this 
amount:  porterhouse steak, tenderloin, rump steak, prime rib, cap of rump roast, beef round and sirloin tip.  In 2011, 196,118 tonnes were authorized under the "ROE Red". 
                                                                                                                                                                     
make the MAGyP the authority for implementation of Decrees Nos. 1.343 of 27 November 1996 and 1.067 of 
31 August 2005, and their amending and supplementary regulations. 
7 The domestic supply levels for 2009/2010 come from the First Framework Ag reement for the Purpose 
of Promoting Exports of Wheat and Maize, signed in September 2008 by the Secretariat for Domestic Trade, the 
former Ministry of Production and ONCCA, on the one hand, and the Cereal Exporters' Centre and the 
Argentine Federation of the Milling Industry, on the other. WT/TPR/S/277 Trade Policy Review 
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  28. In order to comply with the Price Stabilizati on Programme for Dairy Produce intended for the 
Domestic Market, established by MEyP Resoluti on No. 61/2007, and guarantee domestic supplies of 
dairy produce, a register of contracts for fo reign sales of dairy produce ("ROE White") was 
introduced.  By means of Resolution No. 6.686/2009, ONCCA implemented the "ROE White", on which every person wishing to export or import dairy produce must be registered.  Joint Resolution 
Nos. 2.662 and 7.178/2009 of the Federal Public  Revenue Administration (AFIP) and ONCCA 
authorized computerization of "ROE White" forma lities through the MARÍA (SIM) computer system.  
Since August 2009, "ROE White" authorizations have  been subject to guarantees of a stock of 
25,000 tonnes of powdered milk to be kept by mi lk plants in order to guarantee supplies for the 
domestic market.  In 2011, 231,730 tonnes we re authorized under the "ROE White". 
Internal measures 
29. According to Argentina's latest notification to the WTO, submitted in September 2010 and 
covering the 2004/2005 and 2005/2006 seasons, domestic  support was granted for research, pest and 
disease control, training, extension and advisory services, inspection services, and infrastructure services and for regularization of land tenure in the province of Misiones in favour of producer 
occupiers.
8  Decoupled income support was granted to smallholders ( minifundistas ) (Agricultural 
Social Programme) and tobacco-growing families.  Fi nancial support has also been granted in cases of 
natural disasters and as structural adjustment a ssistance through support for investment.  All these 
Green Box measures amounted to Arg$169.9 and Ar g$248.8 million (1992 pesos) in 2005 and 2006, 
respectively.  The total AMS (granted for tobacco only) was Arg$74.9 million (1992 pesos) 
in 2005-2006. 
30. Resolution No. 38/2008 of the Secretariat for Do mestic Trade, which amended the previous 
Resolution No. 1/2006, determines the selling price to  the public of certain cuts of beef (for mass 
consumption), together with ex-factory prices a nd reference prices for various categories of live 
animals and for bovine meat.9  Resolution No. 38/2008 reflects the commitment made in 2008 by the 
National Government and various representatives of the meat industry and the meat trade to 
harmonize prices for the sale of various cuts of bovi ne meat.  The purpose of this agreement is to 
guarantee supplies and stabilize domestic prices for cuts for mass consumption, untying them from 
rising price trends for other cuts, mainly for export.10  Resolution No. 38/2008 indicates that, in order 
to achieve this objective, it is necessary to main tain and/or increase the exportable surplus to the 
extent that increased production and slaughter so pe rmit.  The measure was taken in exercise of the 
powers conferred by Law No. 20.680 of 25 June 1974 (Law on Supply and Repression of 
Speculation) and amendments thereto, Decr ee No. 2.284 of 31 October 1991, ratified by 
Law No. 24.307 of 30 December 1993 and Decree No. 877 of 12 July 2006.11 
                                                      
8 WTO document G/AG/N/ARG/30 of 18 October 2010. 
9 Resolution No. 38/2008 of 11 March 2008.  Viewed at:  http://infoleg.mecon.gov.ar/ 
infolegInternet/anexos/135000-139999/138565/norma.htm. 
10 The argument put forward in the Resolution is that normal and regular supplies of so-called "mass 
consumption" cuts of beef, at agreed prices, is on e of the key components for compliance with policies to 
improve income distribution. 
11 Article 2 of Law No. 20.680 provided that the National Executive, either on its own or through 
officials and/or bodies, may issue regulations governing marketing, intermediation, distribution and/or 
production relating to the selling or buying, bartering or leasing of movable goods, works and services (including their direct or indirect raw materials and inputs) to be used for health, food, clothing, hygiene, 
housing, sports, culture, transport, heating, refrigeration, leisure, as well as any other movable goods or services 
that directly or indirectly cater to th e population's common or everyday needs. Argentina WT/TPR/S/277 
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  31. For tobacco producers, there is a system of mi nimum prices financed by the Special Tobacco 
Fund (FET), created in 1972 under the National Tobacco Law, Law No. 19.800 of 23 August 1972, and financed in part by resources earned from the co llection of 7% of the total selling price of each 
packet of cigarettes to the public.  Pursuant to Ar ticle 28 of this Law, 80% of the FET's resources are 
distributed among the provinces.  For the purpose of this Review, the authorities emphasized that this 
support remained within the limit of the subsidi es bound by Argentina in the WTO.  The MAGyP sets 
the FET price (which includes the surcharge and an  additional tax for specific projects in some 
regions) for different varieties of tobacco.  The f unds are transferred to the provinces in proportion to 
the gross value of each province's output.  The remain ing 20% of the Fund's income is used to finance 
specific projects aimed at the restructuring, divers ification and modernization of tobacco production.
12  
The provinces pay the "FET price" to producers th rough the provincial governments or the bodies 
designated by them and carry out the aforementioned pr ojects.  In order to be eligible, producers must 
be registered annually in the National Register of Tobacco Producers. 
32. The Bank of the Argentine Nation (BNA) has special credit lines for the agricultural and 
livestock sector.  Financing at a lower rate of interest is provided for various purposes including 
sowing, for working capital and investment and the purchase of agricultural machinery.13  
The MAGyP's rate of interest may be up to 6 pe rcentage points lower annually (Table IV.2).  
Beneficiaries of some programmes also receive a lower rate from the BNA. 
Table IV.2 
Special BNA lines of credit for the agricultural sector 
Programme User Purpose Terms 
Financing for the dairy sector 
 Dairy farmers and dairy 
MSMEs. Broad scope investment: 
- Dairy farmers:  building or extension of 
facilities or infrastructure;  purchase of 
machinery manufactured in Argentina or 
imported if not available locally;  improvement and expansion of herds;  buying of adjacent or nearby fields of an area not 
exceeding 20% of the existing farm;  
software;  investment-related working capital (for up to 20% of the total loan) 
- Dairy MSMEs:  building, modernization 
and/or extension of facilities, building of ripening rooms and/or storage facilities, salting rooms, purchase of machinery, 
manufactured in Argentina or imported if not 
available locally, investment-related working capital (not exceeding 20% of the total loan). 
Working capital. Amounts: 
- Investment:  assessed on a case-by-case basis.  
The percentage of support may be up to 100% 
of the amount requested.  For the purchase of 
adjacent or near by fields, the amount of the 
purchase or valuation may not exceed Arg$800,000. 
- Working capital:  dairy farmers:  the maximum 
per user is 1.5 times the average monthly invoicing by the farmer over the previous 
12 months for the sale of milk or Arg$300,000, 
whichever is lower.  For small or medium-sized dairy industries:  the maximum per user is Arg$500,000. 
Terms: 
- Investment:  up to 8 years. - Working capital:  up to 24 months. 
Special terms for the production of cattle and meat (Segment II)
 Farmers of beef cattle, pigs 
and poultry and other meat species, including 
cooperative associations. Investment (building, adaptation or extension of 
facilities or infrastructure, purchase of new machinery or equipment manufactured in 
Argentina or imported if not available locally);  
genetic improvement and purchase of breeding animals;  production of fodder and balanced feed;  treatment of effluent. 
Working capital.  Amounts: 
- Investment:  assessed on a case-by-case basis,, 
with a maximum of up to Arg$800,000 for a 
term of up to 5 years. 
- Working capital:  not exceeding 20% of the total 
investment, for a term of up to 5 years. 
- Development costs:  not exceeding 
Arg$300,000 for a term of up to 12 months. 
                                                      
12 Online information from the Investment Promotion Agency , Incentivos a la Inversión en Argentina .  
Viewed at:  http://www.inversiones.gov.ar/ documentos/incentivos_inversion%20.pdf. 
13 Online information from the BNA, Líneas de crédito para el sector agropecuario .  Viewed at:  
http://www.bna.com.ar/agro/ag_creditos.asp. WT/TPR/S/277 Trade Policy Review 
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  Programme User Purpose Terms 
Special terms for agricultural production and value added at origin
 Micro, small and 
medium-sized farmers 
and/or agroindustrial 
companies throughout Argentina in any form of 
company or single-member 
companies, including brokers, service providers and cooperative 
associations. Broad scope investment (building, adaptation or 
extension of facilities and rural infrastructure, 
purchase of new agricultural or agroindustrial 
equipment, purchase of machinery, equipment and facilities for setting up or upgrading local 
processing lines, application of a system to 
improve environmental treatment of contaminating residues, facilities and equipment for dealing with adverse weather conditions).  Maximum amount and percentage of support: 
- Investment:  the percentage of support may be 
up to 100% of the amount requested. 
- Investment-related working capital:  up to 20% 
of the total. 
Term:  up to 10 years. 
Financing of pig farming  
 Companies engaged in pig 
farming, throughout 
Argentina, in any form of 
company or single-member company. Broad scope investment for pig farming. 
Investment-related working capital. 
Development costs. Term: 
- Investment:  up to 7 years. 
- Investment-related working capital:  up to 
5 years. 
- Development costs:  up to 24 months. Interest:  first 3 years;  16% TNA, bonus of 1 p.p.a. 
for compliance.  As of the fourth year and until the 
end of the term, variable interest rate:  Buenos Aires Deposits of Large Amount Rate (BADLAR) plus a fixed margin of 5 p.p.a. 
Amount:  Arg$10 million per user combined for all 
purposes. - Investment:  the percentage of support may be 
up to 100% of the amount requested. 
- Investment-related working capital:  may not 
exceed 20% of the amount of the loan to be 
invested. 
- Development costs:  up to 100% of the needs 
without exceeding the maximum. 
Special terms for financing fruit-growing:  pears and apples
 MSMEs, agricultural 
cooperative associations 
and fruit farms engaged in production and/or services related to the growing of 
pears and apples. Broad scope fixed investment and working 
capital in the unit for facilities packaging and 
processing pears and apples.  Broad scope fixed investment and working capital in fresh fruit plants and industrialization.  Facilities and 
equipment for dealing with adverse weather 
conditions and hazards in fruit orchards.  Term: 
- Investment:  up to 5 years. 
- Development costs:  1 year. Percentage of support: - Investment:  assessed on a case-by-case basis. 
- Investment-related working capital:  up to 20% 
of the amount to be invested. 
- Development costs:  up to 100% but not 
exceeding Arg$150,000. 
- For all purposes, the amount to be invested, the 
working capital and the investment-related working capital at a reduced rate of interest 
from the MAGyP may not exceed per company 
or economic group:  pear and apple growers:  Arg$500,000, packaging and processing plants:  Arg$1,500,000;  and cooperative associations:  
Arg$3,000,000. 
Special terms for sowing grain 2012/2013 season  
 Cereal and oilseed MSMEs 
eligible for credit 
according to the rules of 
the BCRA and the BNA. Development costs for sowing and related costs 
for growing maize, grain sorghum, wheat and 
sunflowers. Type:  in pesos. 
Maximum amount:  up to Arg$150,000 
per producer. 
Term:  up to 270 days. - For maize, grain sorghum and sunflowers:  
period for agreeing on operations, from 
1 June 2012 to 31 December 2012;  time-limit 
for operations, up to 30 June 2013. 
- For wheat:  date for agreeing on operations, 
from 1 April 2012 to 31 August 2012;  
time-limit for operations, 1 March 2013. Argentina WT/TPR/S/277 
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  Programme User Purpose Terms 
Financing of investment in production for micro, small and medium-sized enterprises.  Special terms for the purchase of domesti cally 
manufactured agricultural machinery  
 Agricultural producers 
throughout Argentina, 
including rural contractors and cooperative 
associations engaged in 
primary activities, with the exclusion of brokers. Purchase of new agricultural machinery 
manufactured in Argentina, and appearing on the 
price lists of authorized firms.  Amount:  the incentive applies for up to 
Arg$500,000. 
Term:  up to 60 months. Interest rate:  15% TNA.  Depending on the region, 
an additional bonus of 2 p.p.a (Norte Grande) plus 
a bonus for payment within the term:  Norte Grande:  0.5 p.p.a;  rest of the country:  1 p.p.a. The MAGyP also gives a further bonus of 4 p.p.a. and 
the BNA an additional 2 p.p.a.  
Source : Online information from the BNA, Líneas de crédito para el sector agropecuario .  Viewed at:  
http://www.bna.com.ar/ag ro/ag_creditos.asp. 
 
33. The MAGyP conducts a series of programmes to finance and promote agriculture through its 
UCAR.  The main one is the Provincial Ag ricultural Services Programme (PROSAP), which 
implements public investment projects at provinc ial and national levels in order to increase the 
coverage and quality of rural infrastructure and agrifood services.  PROSAP also finances projects 
that facilitate adjustment of agricultural production to market demand as regards quantity, quality and 
safety, and encourages increased value added in the sector's production chains.14  In particular, it 
funds initiatives to make small and medium-sized agricultural producers and agroindustrial and 
services micro, small and medium-sized enterprises (MSMEs) throughout Argentina more competitive, either for groups involved in the sam e production chain or to enhance the impact of 
public investment projects.  PROSAP is a Federa l programme, but is carried out on the basis of 
strategies drawn up by provincial governments with  the objective of developing regional economies, 
focusing on the agrifood sector and paying particular  attention to small and medium-sized producers. 
34. Between 2006 and 2011, over US$455 million were disbursed under PROSAP, with 
financing from the Inter-American Developm ent Bank (IaDB) and the World Bank for over 
70 projects.  In April 2008, the first loan contract for a CCLIP (Conditional Line of Credit for Investment Projects) was signed for an amount of US$200 million and a term of four years for 
implementation.  In March 2009, a US$300 million lo an was also obtained from the World Bank for a 
term of six years.  The IaDB has mainly funded pr ojects related to new tools such as the development 
of clusters, whereas the World Bank primarily supports regional development and transfer of 
innovation initiatives. 
35. For public investment projects to be funded through PROSAP, the provinces must have a 
Provincial Strategy for the Agrifood Sector, a law on debt that enables the provincial authorities to 
have access to PROSAP financing, have their debt capacity formalized by the Secretariat for Finance 
and prove that the province has the counterpart resources for each project to be implemented. 
36. The Rural Development Project for the No rth-Western Provinces (PRODERNOA) is a 
programme for investment in production and ser vices in rural areas which facilitates access to the 
resources available to small farmers and vulnerabl e groups in the provinces of Catamarca, Tucumán 
and La Rioja.  PRODERNOA provides technical and financial assistance, assists in project 
management and training in order to expand and di versify existing farms, foster technological change, 
provide capital for small production units and businesses  and facilitate integration into markets.  
The aim of the technical assistance is to raise prod uctivity in agricultural, agroindustrial and other 
non-agricultural rural economic activities, build  the capacity for self-management and the 
                                                      
14 Online information from the MAGyP, PROSAP:  Definición y Objetivos del Programa .  Viewed at:  
http://www.prosap.minagri.gob.ar. WT/TPR/S/277 Trade Policy Review 
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  organization of beneficiaries and in cite better business management and links to markets.  The goal of 
the financial assistance is to finance investment and the incorporation of production and marketing 
technology into PRODERNOA-approved project s.  PRODERNOA completed its work 
on 31 December 2011, having disbursed US$20.6 million. 
37. The goal of the Patagonia Rural Developmen t Project (PRODERPA) is to lessen the 
vulnerability of the poor rural population in the region to social, production and environmental 
conditions and help to raise their living standa rds by building up assets for rural development with 
gender equality, paying special attention to  indigenous communities and young people, and 
sustainable use of natural resources.  It is bein g implemented in the provinces of Chubut, Neuquén, 
Río Negro and Santa Cruz and is financed by funds  from the National Government, the International 
Fund for Agricultural Development (IFAD) and provincial counterparts.  PRODERPA finances 
investment for collective use by organizations and associative projects for investment in sustainable 
fixed assets intended for production/marketing or the supply of production/business services, either 
through non-repayable financial support or through loans, depending on the beneficiary's profile.  
There is also a Working Capital Fund for Organizations (FOCO), which provides PRODERPA 
beneficiaries with non-repayable capital, and a Promotion Fund to provide the necessary working 
capital under the production development and ma rket access plans.  PRODERPA includes a 
contingency fund to finance the reorganization of farming or associative activities affected by adverse 
circumstances, as well as initiatives to devel op small infrastructural works, by means of 
non-repayable contributions. 
38. The Inclusive Rural Development Programme (PRODERI) was launched in 2012 and is a 
Government initiative financed in part by IFAD fo r the purpose of improving the social situation and 
productiveness of poor rural families and raising their incomes by increasing production, integration 
into value chains and the creation of work opport unities.  The Programme is one of national scope, 
giving priority to provinces in the North-West and centre of Argentina, and is for a period of six years.  The total amount of funds employed is US$116 million, of which US$57.9 million are in 
the form of IFAD loans (US$50 million from the Spanish Trust Fund and US$7.9 million 
from IFAD's own resources), while a further US$58.1 million are funds contributed by the Argentine National State. 
39. MAGyP Resolution No. 302/2012 created the Sing le Register of Operators in the Food 
Processing Chain, to replace the Single Register  of Operators in the Food and Agriculture 
Commercial Chain, set up by ONCCA Resolution No. 7.953 of 1 December 2008, which was 
repealed.  The Register covers the markets for dair y produce, grains, meat and livestock, and poultry. 
40. The Wheat Plus and Maize Plus progr ammes were implemented through ONCCA 
(Decree No. 2.315/2008) in order to further in creased production of these crops in Argentina by 
granting direct fiscal incentives such as tax deductions.  The programme s were implemented once 
only during the 2008/2009 season, with basic pr oduction (PB) set at 13 million tonnes of wheat 
and 15 million tonnes of maize.  Any production su rplus in excess of the PB was called Production 
Plus (PP) and was the subject of fiscal incentives. 
41. The compensation scheme is a mechanism to boos t development of agricultural activities and 
to stabilize food prices on the domestic market.  The compensation consists of non-repayable support, 
decoupling domestic prices from those on international markets in such a way that the products 
covered by the scheme are sold at local prices on the domestic market.  The scheme's basis is MEP 
Resolution No. 9/2007 of 11 January 2007, which set up a mechanism to grant subsidies through 
industrialists and operators which sell wheat, mai ze, sunflower-seed and soyabean-based products on Argentina WT/TPR/S/277 
 Page 133 
 
 
  the domestic market.  The eligibility criteria and the documents required differ according to the 
activity, as do the periods during which the scheme applies.  The following activities are covered by 
the compensation scheme:  dairy farmers (Arg$0.20/litre);  breeding of Friesian calves;  dairy industry;  wheat flour mills;  wheat growers;  feed lots;  pig farmers;  poultry refrigeration plants;  and maize flour mills. 
42. The Dairy Farmers' Programme seeks to improve  marketing conditions for smaller farms.  
Dairy farmers with average daily production of less than 12,000 litres receive non-repayable support, 
which is currently Arg$0.20/litre of milk for the first 3,000 litres produced.  The programme is 
governed by SAGyP Resolution No. 513/2009 and is aimed at boosting the sector's sustained growth, raising farmers' incomes, guaranteeing supplies fo r the domestic market, generating fair prices for 
products for mass consumption and reinforcing the Argentine dairy industry's integration in the 
international market.  To be eligible for this programme, dairy farmers must belong to bodies that 
have signed the Framework Agreement of 30 July 20 09 with the authorities or have acceded to it on 
an individual basis. 
43. The purpose of the compensation scheme for the dairy industry, regulated by ONCCA 
Resolution No. 1.984/2007, is to guarantee domestic supplies of dairy products for mass consumption 
at fair prices and in adequate quantities.  Compensa tion is therefore given on the basis of the price per 
litre of raw milk to be used to produce dairy produc ts for sale on the domestic market.  The aim is to 
decouple domestic prices from international prices and promote sustained growth of the dairy sector, 
raising incomes for those working in the industry.  In  order to be eligible for the scheme, the producer 
must be properly registered as a processor or seller (of its own brand) of da iry products.  For this 
scheme, as for the preceding one, compensation is de termined on the basis of 85% of sales to the 
domestic market and is calculated as the difference between the selling price on the domestic market 
and a price determined by a MAGyP Resolution. 
44. ONCCA Resolution No. 2.240/09 regulates the compensation scheme for breeding Friesian 
calves, under which one-off compensation of Arg$200 is given per male Friesian calf coming from a 
dairy farm (farm producing milk) and born on the same farm.  The maximum number of calves for 
which compensation may be claimed is  equivalent to 47% of the total number of cows declared by the 
farm. 
45. The purpose of the compensation scheme fo r wheat growers, regulated by ONCCA 
Resolution No. 378/2007, is to ensure that wheat growers receive fair remuneration in relation to 
export values and to reconcile the interests of the va rious links in the agroindustrial chain.  To be 
eligible for the scheme, wheat growers must be enro lled in the Fiscal Register of Operators Trading in 
Grains and Pulses.  ONCCA Resolution No. 2. 242/09 and amendments thereto establish a 
compensation mechanism for wheat flour mills or milling users producing "000"-type flour and 
selling it on the domestic market to be used for mass consumption products.  Anyone seeking to 
obtain the compensation must first purchase the raw material from the producer at the "theoretical 
FAS price" determined for the date of the transaction.
15  On the basis of ONCCA 
                                                      
15 Market Value Circular No. 441/2012 determines  the theoretical FAS pr ice for the following 
products:  bread flour:  Arg$1,132/tonne;  maize:  Arg$978/tonne;  sunflower seeds:  Arg$1,545/tonne;  soyabeans:  Arg$1,817/tonne;  crude sunflower seed oil:  Arg$3,650/tonne;  crude soyabean oil:  
Arg$3,587/tonne.  The FAS is determined on the basis of the respective export pr ices, calculating the f.o.b. 
value ex Argentine ports for each product according to a calculation me thodology specified in SAGPyA 
Resolutions Nos. 331/2001 and 447/2006.  For cereals, wheat and maize, the methodology is based on the f.o.b. 
price for grain, whereas for sunflower seeds and soyabeans, it is based on the f.o.b. prices for the oil and the 
pellets.  Once the f.o.b. price ex Argentine ports has been determined, the FAS theoretical price is obtained by WT/TPR/S/277 Trade Policy Review 
Page 134 
 
 
  Resolution No. 2.897/2010, wheat mills and/or milling users producing "0000"-type flour for the 
domestic market in 1 kg packages for domestic  consumption are covered by the scheme.  
ONCCA Resolution No. 328/2007 give s similar incentives for maize mills  in support of the price of 
maize flour, meal or grits intended for the domestic market.  The scheme compensates for the difference between the product's market value and the domestic supply price, expressed in tonnes for 
quantities going to the domestic market.  The compen sation is determined monthly, after the end of 
the month, and the amount is the difference be tween the market price regularly published by 
the MAGyP, pursuant to SAGyP Resolution No. 42 of 18 January 2007, and the domestic supply price determined in MEP Resolution No. 19 of 12 January 2007 and amendments thereto. 
46. ONCCA Resolution No. 746/2007 provides the legal framework for poultry slaughterhouses, 
which must be registered in the Register of Agricultural Slaughterhouses.  The authorities have 
pointed out that the existence of this Register fac ilitates application of measures to improve sanitary 
control of poultry farms and slaughterhouses.  The scheme allows poultry farmers to buy a certain 
volume of maize grains and/or soyabeans intended so lely for feeding poultry at a subsidized price 
calculated as the difference between the theoretical  FAS price, regularly published by the MAGyP for 
maize and soyabeans, and the domestic s upply price determined in a resolution.
16  The subsidy 
available to each poultry farmer is determined a nd paid monthly, after the end of each month. 
47. ONCCA Resolution No. 1.378/2007 and amendments  thereto provide the legal framework for 
the scheme applicable to feed-lot cattle farmers.  The beneficiari es are farms engaged in fattening 
feed-lot cattle using only feed composed of ma ize grains and other co mponents for subsequent 
slaughter and sale on the domestic market, whether bred on the farm, bought or as a service to third 
parties.  The beneficiaries must be enrolled in the Register of Cattle Fattening Establishments.  
The volume to be compensated is determined according to a rate of 7 kg of maize/daily per animal for 
converting feed into meat. 
48. Table IV.3 shows that the incentives unde r the compensation schemes amounted to 
Arg$10,580 million over the period 2007- 2011 (some US$2,956 million at the average exchange rate 
during this period).  The main beneficiaries were wh eat flour mills (35.6% of the total), the feed-lots 
programme (20.7%), poultry refrigeration pl ants (19.8%) and dairy farmers (10.4%). 
                                                                                                                                                                     
deducting all the costs incurred during the export process (fobbing costs), which include costs relating to export 
duties and customs costs, purchase of the goods on the domestic market, loading and unloading, storage, phytosanitary inspection, use of the quay, processing cost s, etc.  The calculation is made in US dollars and the 
figure obtained is converted into pesos at the BNA's dollar buying rate. 
16 To determine the volume to be subsidized, the rate for converting feed into meat for maize grains and 
soyabeans and the average weight of each animal slaughtered is calculated according to the following 
coefficients:  1.81 kg of maize per kg of meat and 0.81 kg of soyabeans per kg of meat.  The average slaughter 
weight is determined as 2.2 kg per animal slaughtered. Argentina WT/TPR/S/277 
 Page 135 
 
 
  Table IV.3 
Compensation schemes in the agricultural sector :  resolutions approved and amounts, 2007-2011 
Heading Total number of resolutions approved Amount (Arg$) 
Feed-lots 961 2,195,367,371.59 
Poultry refrigeration plants 443 2,100,080,898.39 
Maize flour mills 40 23,181,734.25 
Wheat flour mills 1,036 3,771,093,250.49 
Small and medium-sized wheat a nd maize growers 671 33,953,248.98 
Wheat growers 313 345,350,837.74 
Dairy farmers 267 1,097,211,468.99 
Dairy farmers breeding calves 312 10,413,600.00 
Dairy industry 181 616,091,959.74 
Oil industry 24 282,200,831.61 
"0000" flour mills  4 15,317,175.60 
Source : MAGyP. 
 
(ii) Forestry 
49. The MAGyP is the body responsible for drawing up and implementing forestry plans, 
programmes and policies, for coordinating and reco nciling the interests of the National Government, 
the provinces and the various subsectors.17  The Secretariat for Agriculture, Livestock and 
Fisheries (SAGyP), which is part of the MAGy P, assists with the implementation of plans, 
programmes and policies for the forestry subsector, in  coordination with provincial governments.  The 
objective of the National Agricultural Technology In stitute (INTA) is to contribute towards the 
competitiveness of forestry and industrial forestry  throughout Argentina.  SENASA and the National 
Seed Institute (INASE), which also come under the M AGyP, have responsibility for forest health and 
control and inspection of seeds in forest nurseries. 
50. The Forestry Production Directorate, attached to  the National Directorate of Agricultural and 
Forestry Production in SAGyP's Undersecretariat fo r Agriculture, assists in formulating and carrying 
out the responsibilities defined, administers Law No. 25.080 on Investment in Cultivated Woodland 
and its current extension, Law No. 26.432 (see below)  It also monitors compliance from the technical, 
legal and accounting standpoint.  The Forestry Production Directorate helps to coordinate the project for sustainable management of natural resources implemented by the MAGyP, together with the 
Secretariat for the Environment and Sustainable Development (SAyDS) and the sustainable forest 
plantations component of the National Parks Admi nistration, with a loan from the World Bank. 
51. The legal framework governing the forestry s ubsector comprises the Law on Promotion of 
Forestry Activity (Law No. 13.273, approved by Decree No. 710/95 of 13 November 1995);  the Fiscal Stability Law (Law No 24.857 of 6 August 1997, as amended);  the Law on Investment in 
Cultivated Woodland (Law No. 25.080 of 16 December 1998), its extension (Law No. 26.432 of 26 November 2008) and its implementing Decree No. 133/99;  and Resolutions Nos. 610/99, 
152/00, 22/01, 220/07, 390/07, 102/2010, 91/11, 810/11 and 281/12, inter alia . 
52. Argentina has notified the WTO that its forest ry legislation allows for the payment of 
subsidies.
18  The total non-repayable amounts disbursed as economic support notified for the 
period 2006-2010 amounted to Arg$286 million (roughly US$84.5 million at the average exchange 
rate during the period). 
                                                      
17 Online information from the MAGyP:  Producción forestal .  Viewed at:  
http://64.76.123.2 02/new/0-0/forestacion /direccion/direc2.htm. 
18 WTO document G/SCM/N/220/ARG of 10 February 2012. WT/TPR/S/277 Trade Policy Review 
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  53. Under the Law on Promotion of Forestry Activit y (Law No. 13.273), the subsidies are granted 
in the form of customs exemptions.  Decree No. 710/95 provides for the payment of a set amount per hectare to the owners of cultivated forest s.  The Fiscal Stability Law (Law No 24.857 
of 6 August 1997, as amended) provides fiscal stab ility for all forestry activities and any exploitation 
of forests covered by Law No. 13.273. 
54. The Law on Investment in Cultivated Woodland es tablishes incentives to be granted by the 
National State in order to promote harmonious deve lopment of the forestry subsector.  The activities 
promoted include the planting of woodland, its ma intenance, management, irrigation, protection and 
harvesting, research and development, as well as timb er processing, when these all form part of an 
integrated forestry undertaking.  The MAGyP's SA GyP is the implementing authority.  The term of 
the Law was originally ten years as of its enactment and publication in the Official Journal 
on 19 January 1999, but Law No. 26.432 of 29 Dece mber 2008 extended it for a further ten years.  
The Law provides fiscal incentives su ch as exemption from stamp duty, fiscal stability for all taxes 
except for VAT for 30 to 50 years, advance refund of VAT and early amortization of the costs incurred for accounting purposes when calc ulating income/profits tax (IG). 
55. The Law on Investment in Cultivated Woodlan d also provides for the refund of VAT on 
certain goods and services intended for investment in forestry.  Non-repayable economic support is 
provided for planted forests covering no less than 500 hectares (700 hectares in Patagonia) based on a 
scale set out in Law No. 25.080;  this incentive is  also available for for estry activities (pruning, 
thinning and management of after-growth).  Both Argentine investors and foreign investors domiciled 
in Argentina are eligib le for these incentives. 
56. Resolution No. 102/2010 gave a 10% increase in payment of the economic support 
established by Law No. 25.080, amended by Law No. 26.432, for planting and fortification of native 
woodland comprising native and exotic  species of high commercial value. 
(iii) Fisheries 
57. The Federal Law on Marine Fishing or Law No . 24.922 of 6 January 1998, its implementing 
Decree No. 748/99 and amendments thereto,  Law No. 25.470 of 18 September 2001, and 
Law No. 26.386 of 28 May 2008, constitutes the le gal basis regulating fishing in Argentina. 
58. The MAGyP's Undersecretariat for Fishing and Aquaculture is responsible for implementing 
Argentina's fisheries policy.  The Federal Council of  Fisheries (CFP) was created by the Federal Law 
on Marine Fishing and is responsible for developing national fisheries policy.
19  The State has 
exclusive dominion and jurisdiction over all livi ng resources present in Argentina's Exclusive 
Economic Zone (EEZ)20 and on the Argentine continental shelf as of 12 nautical miles;  living 
resources in Argentina's internal waters and the te rritorial sea adjacent to its coastlines, extending up 
to 12 nautical miles, fall under the dominion of  the provinces on the seaboard.  The Continental 
Fishing and Aquaculture Commission (CPCyA) was set  up at the initiative of the Undersecretariat for 
Fishing and Aquaculture, within the framework of  the Federal Council for Agriculture (CFA), by 
Resolution No. 9 of 11 November 2004.  The basic objective of the CPCyA is to harmonize integrated 
management policies at the level of the catchment basin for the sustainable and responsible use of 
continental fisheries resources.  The Commission is chaired by the Undersecretariat for Fishing and 
Aquaculture and comprises the seven provinces along the Paraná River:  Misiones, Chaco, Formosa, 
                                                      
19 Law No. 24.922 of 9 D ecember 1998, partially enact ed on 12 January 1998. 
20 The EEZ extending 200 miles from the baselines. Argentina WT/TPR/S/277 
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  Corrientes, Santa Fe, Entre Ríos and Buenos Air es, together with one representative from SAyDS and 
one from SENASA. 
59. The Federal Law on Marine Fishing provides th at living marine resources in marine areas 
under Argentine jurisdiction may only be exploited by  natural persons domiciled in Argentina or legal 
persons under private law established and operating in  accordance with Argentine law.  Vessels used 
for fishing in Argentina's EEZ must be listed in the national register and fly the national flag.  Catches 
must also be unloaded from fishing vessels in Argentine ports, except in cases of force majeure  and 
subject to authorization.  The captains and officers must be of Argentine nationality.  75% of the remaining crew members must be Argentine or fo reigners with over ten years of proven permanent 
residence in Argentina.  The Federal Law provides for waivers from the national flag requirement in 
certain circumstances, for example on the basis of international treaties approved by law on the 
catching of unexploited or under-exploited species. 
60. Pursuant to the provisions in the Federal Law, an  authorization from the relevant authority is 
required in order to engage in fishing.  In additi on, a fishing quota must be allocated or a fishing 
permit obtained if the species is not subject to a quota.  The authorization may be in the form of:  (i) a fishing permit entitling Argentine-registered vessels to engage in commercial fishing for the 
purpose of extracting living species from waters under Ar gentine jurisdiction;  (ii) a permit to fish on 
the high seas, entitling Argentine-registered vess els to engage in commercial fishing on the 
continental shelf, outside the EEZ, on the high seas or  in the waters of third countries with a licence;  
(iii) a temporary fishing permit granted to bareboa t chartered vessels and foreign-registered vessels 
operating under the special conditions prescribed in the Federal Law;  and (iv) a fishing authorization, 
allowing limited quantities of marine living resources to be caught for the purposes of scientific or 
technical research. 
61. Fishing permits are granted for a period of up to ten years and to a specific vessel.  When 
granting permits, the Federal Council of Fisheries must, by law, give priority to:  vessels with a majority of Argentine crew;  vessels built in Argentin a;  and the most recently built ships.  Permits 
may be extended for up to 30 years for a particular vessel owned by a company with processing 
facilities in Argentine national territory and whic h process and prepare fisheries products in these 
facilities on a continuous basis. 
62. Under the Treaty of Rio de la Plata and the Corresponding Maritime Boundary, approved by 
Law No. 20.645 of 18 February 1975, Argentina a nd Uruguay share a common marine fishing zone in 
which vessels registered in both countries may operate. 
(3) M
INING AND HYDROCARBONS  
(i) Main features 
63. In 2011, mining and quarrying accounted for 3.1%  of the GDP.  In 2011, 517,500 workers 
were employed in the sector, versus 196,000 in 200 6:  36,000 worked in metallurgical plants, 21,000 
in the oil and gas industry, 16,000 in minera l extraction, and 7,000 in the cement industry.21  Exports 
of mining products totalled some US$8,300 million in  2010 (including fuels).  Mining activities are 
                                                      
21 Online information from the MEFP, Información Económica al Día .  Viewed at:  
http://www.mecon.gov.ar/peconomica/basehome/infoeco.html. WT/TPR/S/277 Trade Policy Review 
Page 138 
 
 
  mostly in private hands, both fo reign and national;  there are onl y two State-owned enterprises in 
the sector.22 
64. Argentina is the fourth largest producer of cr ude oil in Latin America.  Its oil output has 
enabled it to be self-sufficient since the 1980s.  Output, however, fell each year during the period 
under review, from 38.37 million m3 in 2006 to 33.23 million m3 in 2011.23  These figures are 
markedly below those for the peak year of produc tion, 1998, when output reached 49.15 million m3.24  
Exports of oil fell over the peri od under review, from 5.63 million m3 in 2006 to 3.43 million m3 
in 2011.  These levels are far below the level of exports in 2001, which am ounted to 16.36 million m3. 
65. Proven reserves of oil amount to 400 million m3.  Argentina's network of pipelines is 
over 6,000 km. long.  There are ten oil refi neries with total capacity of over 600,000 bpd.25  
The hydrocarbons sector absorbs 22% of total foreign investment in Argentina.  Most crude oil and 
natural gas production is in the hands of multina tional companies.  The main player in the 
hydrocarbons market is YPF, which was rena tionalized by the State in 2012 (see below). 
66. Natural gas production declined during th e period under review, from 51.8 million m3 in 2006 
to 45.5 million m3 in 2011, while demand grew, so imports ha ve increased.  Argentina has been a net 
importer of natural gas since 2008, mainly from the Pl urinational State of Bolivia.  In 2011, imports 
amounted to 6.9 million m3, compared to 1.67 million m3 in 2006.  Exports, on the other hand, fell 
from 6.3 million m3 in 2006 to less than 213,000 m3 in 2011 because of increased domestic demand 
and higher export duty on natural gas, from 45% to 100% in 2008 (see below).  About one third of the 
supplies to the Argentine market is  for industrial consumption, another third goes to the electricity 
industry, some 20% is for household use, 9% for the production of natural gas for vehicles (NGV) and 
the rest for other uses.  Gas distribution is in  the hands of nine private licence-holders, whilst 
two private companies control transportation.  Argentina is linked by pipeline to neighbouring 
countries, through which it both exports natural gas to Chile and imports gas from the Plurinational State of Bolivia.  The Governme nt has reacted with measures revolving around an 
Energy Plan, and leading, inter alia , to the creation of an Electronic Gas Market (MEG).
26 
                                                      
22 Yacimientos Mineros de Agua de Dionisio (YMAD) and Fomento Minero de Santa Cruz. 
23 According to the Argentine Oil and Gas Institute (IAPG), there was a 55% increase in the number of 
wells actually operating.  Nevertheless, despite more investment in secondary re covery and in drilling new 
wells, average output per well fell by 51%, from 9.2 m3 to 4.5 m3 (online information from IAPG, Producción 
de Petróleo:  Anual .  Viewed at:  http://www.iapg.org.ar/esta disticasnew/produccionoilanualpais2.htm). 
24 Online information from the IAPG, Producción de petróleo:  datos históricos .  Viewed at:  
http://www.iapg.org.ar/estadisticasnew/historicospetroleopais2.htm. 
25 Bahía Blanca (Petrobras), with output capacity of 9,500 bpd of gasoline and 13,200 bpd of other 
products;  Campana (ESSO, 84,500 bpd), Campo Durán (REFINOR, 32,000 bpd);  Dock Sud (City of Buenos 
Aires, SHELL/DAPSA, 11 0,000 bpd), La Plata (YPF, 189,000 bpd) , Luján de Cuyo (YPF, 105,500 bpd), Plaza 
Huincul (Neuquén, Petrolera Argentina, 37,190 bpd);  San Lorenzo (Santa Fe.  Cristóbal López, 38,000 bpd);  
M&C Petrol (Río Negro).  The tenth refinery, Refinadora Neuquina SA (RENESA), started production in 
February 2012 (online information from ECYT-AR, Destilerías de petróleo en Argentina .  Viewed at:  
http://cyt-ar.com.ar/cyt-ar/index.php/Destiler por ci entoC3 por cientoADas_de_petr por cientoC3 por 
cientoB3leo_en_Argentina). 
26 The creation of the MEG follows the line established in Decree No. 2.731/93, which underscores the 
need to "ensure the existence of a competitive market with conditions allowing optimum price formation, to the 
benefit of consumers" (see also online inform ation from the Electronic Gas Market at:  
http://www.megsa.com.ar). Argentina WT/TPR/S/277 
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  (ii) Mining (excluding hydrocarbons) 
67. The legal framework for mining has not changed to any great degree since the previous 
Review of Argentina;  it includes the Mining Code , approved by Decree No. 456/97 of 21 May 1997, 
and Law No. 24.196 (Mining Investment Law), its amendment (Law No. 25.429 of 1 June 2001), and 
its implementing regulations contained in Decree No. 26.86/93, as amended by Decree 
No. 1.089/2003 of 7 May 2003.  It further includes Law No. 24.224 of 8 July 1993 (Mining 
Reorganization), Law No. 24.228 of 26 July 19 93 (Federal Mining Agreement), Law No. 24.498 
of 14 June 1995 (Mining Upgrading), Law No. 24.523 of 9 August 1995 (National Mining Trade 
System), and Law No. 24.585 of 1 November 1995 (environmental protection for mining activities). 
68. The exploitation and exploration of mines, con cessions and other relevant acts are deemed to 
be of public utility.  The main outline of Argen tina's mining policy can be found in the 2004 National 
Mining Plan.  More recently, policies have be en adopted to boost the creation of business 
opportunities for companies in the sector, together  with an import substitution process for the inputs 
and services used (see below). 
69. Pursuant to the Mining Code, mines are the pr ivate property of the nation or the provinces, 
depending on where they are situated (Article 7).  Nevertheless, individuals are given the right to 
prospect for mines, operate and utilize them as owners.  Although the Federal Government 
coordinates mining activities, the provinces are re sponsible for drawing up their own policies and 
managing their mining resources. 
70. The Mining Code provides that the holder of a mining concession is the owner of an in rem 
property right, comparable to an ownership right.  This right given by the concession is exclusive, not 
time-bound, assignable by contract or following death, and may be mortgaged.  No fee is payable for 
the granting of a mining concession, but a regular ro yalty must be paid in order to keep it.  
The decision on the concession depends on the categor y of mine.  Mines in the first substance 
category (the larger metal-bearing, non-metal bear ing, solid mineral fuel and geothermal source 
mines) are attributed to their discoverer.  Mi nes in the second substan ce category (metal-bearing 
substances not included in the first category, salt, sa ltpetre and peat mines) are usually attributed to 
the owner of the land and, if he does not take up th e preference, to the discoverer.  Mines in the third 
substance category (rock for construction) belong  exclusively to the owner of the land.  Any 
Argentine or foreign natural or legal person with capacity to acquire rights may become the owner of 
mining exploration and exploitation rights for the s ubstances that may be conceded in the first and 
second categories. 
71. Exploration concessions are granted for 500-hectare units or fractions thereof and may be for 
up to 10,000 hectares.  The same person may not own more than 20 concessions in any one province, in other words 200,000 hectares.  Concessions may be joint or individual.  The owner of the 
concession must submit a minimum work plan to the mining authority.  The maximum time-limit allowed for exploration is 1,100 days for each 10,000-hectare concession.  The concession may be 
annulled ex officio or at the request of a party if the work plan submitted is not respected.  A one-off 
royalty has to be paid for exploration at the tim e the application is submitted;  the amount is Arg$400 
per 500-hectare unit or fraction thereof.  National,  provincial and municipa l regulations give tax 
exemption for five years as of the date of regist ration of the mine for the exploitation of minerals, 
including their marketing.  This incentive is combin ed with others provided by the laws to promote 
mining (see below). WT/TPR/S/277 Trade Policy Review 
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  72. Mining concession holders must pay an annual operating royalty to the National State or 
provincial state granting the concession for it to remain in force.  This royalty is paid twice a year in 
two equal instalments.  The amount, which starts to be payable as of the fourth year of the mine's 
registration, is currently determined by La w No. 24.224 on Mining Reorganization and is fixed 
according to the category of mine.  The rate is  Arg$80 annually for mines in the first category 
and Arg$40 for those in the second category.27  In addition to paying the mining royalty, in order to 
retain the concession, the holder must invest no l ess than 300 times the value of the annual royalty 
payable for the concession in fixed assets for the mine 's operation.  This investment must be made 
within five years, with 20% invested in each of the first two years and the balance in the remaining 
three years. 
73. The provinces have their own procedural regulati ons for exercise of the rights regulated in the 
Mining Code.  Likewise, the terms and methods for calculating and paying provincial royalties are 
subject to provincial regulations.  Law No. 24.196 on Mining Investment sets a ceiling of 3% of the 
value of the mineral at the pith ead for provinces following this law.28  In October 2012, in addition to 
the royalty fixed by the National Government, seven  provinces (Catamarca, Chubut, Jujuy, La Pampa, 
Salta, San Juan and Santa Cruz) imposed royalties inversely to the mineral's value added in the 
provincial territory.  Over and above the royalties applicable, Law No. 24.224 of 8 July 1993 provides 
that companies in the sector must pay a "mining royalty" comprising a fixed amount per mine and an additional amount for every 100 m
2 explored. 
74. Duty is payable on the export of mining pro ducts.  Resolution No. 11/2002 of the former 
Ministry of the Economy and Infrastructure determ ined export duties of 5 and 10% for a series of 
goods, including metal minerals and their concentrates. 
75. Resolution No. 762 of the former Ministry of the Economy and Public Works and Services 
(MEyOySP) of 8 July 1993 and its amendment No. 479 of 23 April 1998 established a special drawback regime for exports of mineral substa nces and specified byproducts included in the NCM 
that meet certain criteria and had received certificates of origin from the Undersecretariat for Mining, 
pursuant to Resolution No. 130 of 13 August 1993 of the former Secretariat for Mining. 
76. Argentina has several incentiv e mechanisms for the mining sector.  During the period under 
review, it notified the WTO that it uses various laws  as instruments for granting subsidies (in different 
forms) to the mining sector.
29  According to Argentina's notificati ons, the purpose of those laws is to 
encourage mining activities so as to further the country 's development, ensure the rational exploitation 
of mining resources, generate empl oyment and diversify regional economies.  The subsidies granted 
by Argentina are mostly in the form of tax reductions and exemptions (Laws Nos. 10.273 
and 24.196), fiscal stability (Law No. 24.196) or tax waivers (Law No. 24.228).  The incentives granted under Law No. 22.095 ceased to apply in 2008.  The legislation does not set any time-limit for 
the other programmes.  Argentina's notifications show that the amounts disbursed to promote mining 
                                                      
27 Online information from the National Secretariat for Mining, Principales Aspectos de la Legislación 
Minera Argentina .  Viewed at:  http://www.min eria.gov.ar/codigominero.htm. 
28 "Mineral at the pithead" is deemed to be the mineral extracted , transported and/or amalgamated prior 
to any form of processing. 
29 The laws notified during the period under review included the following:  Law No.10.273;  
Law No. 22.095, which ended in 2008;  Decree No. 554/81;  Law No. 24.196;  Decree No. 1.591/93;  
Law No. 24.228;  Law No. 24.402;  Decree No. 2.686/93;  Decree No. 779/95;  Decree No. 216/96;  Decree No. 1.343/99;  Decree No. 349/00;  Decree No. 1.188/01;  Decree No. 1.089/03;  and AFIP General 
Resolution No. 2.019/06 (WTO documents G/SCM/N/1 55/ARG of 10 April 2008 and G/SCM/N/220/ARG 
of 10 February 2012). Argentina WT/TPR/S/277 
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  over the period 2006-2010 added up to a total of  Arg$893.01 million (around US$264 million at the 
average exchange rate for that period), of wh ich Arg$795.67 million were for incentives granted 
under Law No. 24.196 (Table IV.4).30 
Table IV.4 
Amounts disbursed to promote mining, 2006-2010 
(Arg$ million) 
 2006 2007 2008 2009 2010 Total 
Law No. 24.196 75.1 82.0 156.31 230.98 251.28 795.67 
Tax reductions 30.5 18.3 22.9 73.9 23.5 95.2 
Law No. 22.095a 1.6 0.54 0.0 0.0 0.0 2.14 
Total 107.2 108.84 179.21 304.88 274.78 893.01 
a Terminated in 2008. 
Source : Secretariat for Mining, Ministry of Federa l Planning, Public Inve stment and Services. 
 
77. Estimates of the tax costs of MEFP economic promotion schemes, including estimates of the 
income foregone because of the granting of incentiv es, show that, in the case of Law No. 24.196, the 
tax cost amounted to Arg$390.5 million (som e US$105.5 million) in 2009 and Arg$452.3 million 
(US$116 million) in 2010.31  In 2011, this figure rose to Arg$506.5 million (US$123.5 million).32  
The tax cost represented 0.03% of GDP. 
78. Incentives under Law No. 10.273 are available for mines given to individuals under 
concessions.  All natural persons domic iled in Argentina and legal persons incorporated in the country 
or authorized to act within its territory who ar e engaged in mining activities are eligible for the 
incentives under Law No. 24.196.  Law No. 24.228 calls on the provinces to eliminate taxes on 
mining activities from their legislation. 
79. The majority of the fiscal incentives given to the mining sector are granted under 
Law No. 24.196.  This Law sets the rules for the fisc al treatment of investment in mining, except for 
hydrocarbons, cement production and sand for construction.  It grants fiscal stability for all taxes 
for 30 years for investment in the sector as of the da te of submission of the relevant feasibility study.33  
Capital investment in projects benefits from the optional regime for writing off the IG over 
three years.  Capital goods and special equipmen t, components and spare parts for such goods and 
inputs imported for use in mining operations are ex empt from import duties, including the statistical 
fee.34  The Law allows for a 100% deduction of the IG on all sums invested in expenditure on 
                                                      
30 WTO documents G/SCM/N/155/ARG of 10 April 2008 and G/SCM/N/220/ARG 
of 10 February 2002. 
31 Tax cost means the amount of income which the Treasury foregoes when granting any tax treatment 
that differs from the general regime in the tax laws, in order to encourage specific activities, zones, taxpayers or 
consumption (see Ministry of the Economy and Public Finance, 2012b). 
32 Of the total tax cost in 2011 (Arg$506.5 million), Arg$145.3 million corresponded to incentives 
related to the IG, Arg$202.7 million to exemptions from various taxes, Arg$141.7 million to exemptions from 
import taxes, and Arg$16.8 million to exemptions from export taxes (see Ministry of the Economy and Public 
Finance, 2012b). 
33 According to the provisions in Law No. 24.196, fi scal stability applies to all taxes, meaning direct 
taxes, levies and tax contributions, payable by the companies registered, as well as tariffs and other import or 
export duties.  Fiscal stability implies that the companies engaged in mining under the Investment Regime in Law No. 24.196 will not see their overall tax burden increased. 
34 If these goods are re-exported or transferred to another activity not covered by Law No. 24.196, the 
duties, taxes and levies applicable at that time must be paid. WT/TPR/S/277 Trade Policy Review 
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  determining the technical and ec onomic feasibility of projects and a 200% deduction of exploration 
costs for the purpose of calculating this tax.35 
80. Beneficiaries of the mining investment scheme under Law No. 24.196 are exempt from the 
tax on assets as of the fiscal year in which they enro lled in the register of beneficiaries kept by the 
Secretariat for Mining. 
81. Mining investment in exploration projects and direct expenditure (on Argentine or imported 
goods and services), on prospection, exploration, mine ralogical testing and applied research for which 
VAT has not been refunded within one year also benefit from a special scheme for advance refund of 
this tax.  This scheme is automatic and is subject  to verification and control by the Secretariat for 
Mining and by AFIP-DGI;  it is governed by Article 14 bis of the Mining Investment Law, enacted by 
Law No. 25.429 of 1 June 2001.  Beneficiaries must  be enrolled in the Mining Investment Law's 
Register at the National Mining Directorate in the Secretariat for Mining. 
82. Resolution No. 12/2012 of 14 May 2012 of the Secretariat for Mining makes it compulsory 
for companies in receipt of benefits under Law No. 24.196 to use Argentine co mpanies to ship their 
exports of minerals or byproducts by sea,  river, land or air (see section (6)(v)).36  If the goods have to 
be transhipped prior to reaching their final destina tion, the cargo preference has to be considered for 
each leg, unless the cargo cannot be transported by Argentine companies eith er because there is no 
hold space or vessel, vehicle or aircraft available, or there are international bilateral or multilateral agreements between Argentina and other countries. 
83. The foregoing is part of the overall polici es for implementing measures to encourage the 
supply of inputs, goods and services by local firms.  Accordingly, in April 2011, the Mining Approval 
Committee was set up for the purpose of creating business opportunities for local mining supply 
companies by substituting imports of machinery, equi pment and spare parts, services and inputs, as 
indicated in the preamble to Resolution No. 12/2012 of the Secretariat for Mining.
37  The Mining 
Approval Committee is a working committee in which the Secretariat for Mining, the Secretariat for 
Industry and Trade, the Argentine Chamber of Mining Services (CASEMI), the Argentine Chamber 
of Mining Entrepreneurs (CAEM), the Argentine Mining Workers' Association (AOMA) and mining 
operators, public mining companies and supplie rs throughout Argentina all participate. 
84. The first Mining Approval Committee was convened in April 2012 by the Secretariat for 
Mining, especially to approve the national inputs and services to be used in mining so as to boost their 
purchase in Argentina and substitute imports for ove r Arg$1,400 million.  Through this mechanism, 
the idea is to approve products of Argentine origin by certifying them so that they can meet demand 
by mining exploration and production undertakings .  The Committee also a ssesses needs for inputs 
and services for mining projects in order to identify opportunities for developing  new local suppliers.  
In other words, matching demand to current and pot ential national supply, on the one hand and, on the 
                                                      
35 For this purpose, each year, with in 30 days of the time-limit for su bmitting the sworn declaration of 
IG, those registered under the scheme in Law No. 24.196 must submit a sworn declaration indicating the work 
and the investment actually carried out. 
36 Pursuant to Resolution No. 12/2012, a company is deemed to be an Argentine company if its purpose 
is river, overseas, land or air transport, if it has b een incorporated accordin g to the laws of the 
Argentine Republic and has its head office in Argentina. 
37 MEP, Secretariat for Mining, Mining Activities, Resolution No. 12/2012.  Viewed at:  
http://www.cda-argentina.org.ar/index. php?option=com_content&view=artic le&id=11435:resolucion-nd-12201
2-secretaria-de-mineria&catid=54&Itemid=90.  This Resolution can also be viewed at:  
http://infoleg.gov.ar/infolegInternet/anexos/195000-199999/197941/norma.htm. Argentina WT/TPR/S/277 
 Page 143 
 
 
  other, meeting demand with Argentine products as far as possible.  It is hoped in this way to create 
more business opportunities for Argentine companies,  especially SMEs supplying local mines, and to 
encourage investment in new national services undertakings.38 
(iii) Hydrocarbons 
(a) Legal framework 
85. The Secretariat for Energy in the Ministry of Federal Planning, Public Investment and 
Services (MPFIPS) is responsible for proposing, coordinating, implementi ng and monitoring national 
policy in the energy sector.39  The MPFIPS' Undersecretariat for Fuels is in charge of proposing, 
coordinating, implementing and monitoring natio nal hydrocarbons policy.  The MPFIPS also 
regulates the gas industry. 
86. The main regulatory framework for the explor ation and exploitation of hydrocarbons includes 
the Mining Code, Law No. 12.161 of 21 March 1935,  and Law No. 26.154 of 11 October 2006, which 
introduced promotional schemes for the explor ation and exploitation of hydrocarbons.  
Law No. 17.319 of 23 June 1967 (Hydrocarbons Law) remains in force for permits and concessions 
already granted and for processing, transportation and foreign trade in hydrocarbons. 
87. Law No. 24.145 of 24 September 1992 and th e subsequent 1994 co nstitutional reform 
transferred to the provinces the control of hydrocarb ons reserves situated on their territory.  Two types 
of regime are therefore currently in force in the hydrocarbons sector:  on the one hand, the permits and 
concessions granted exclusively by the Federal G overnment, which remain under Federal jurisdiction 
and are governed by Law No. 17.319, of nationa l scope;  and, on the other, contracts under 
provincial jurisdiction. 
88. Companies operating under the Hydrocarbons Law must pay royalties of up to 12% for 
natural gas and petroleum exploitation.  These roya lties are paid to the various provinces, except for 
those corresponding to offshore areas, which ar e collected by the National State.  The amount 
collected in 2011 was US$339.7 million for crude oil, US$62.9 million for natural gasoline, condensate and liquefied petroleum gas (LPG), and US$360.9 million for natural gas.  Concessions 
operated under Law No. 17.319 are also s ubject to an annual fee per surface unit. 
89. Law No. 25.943 of 2 November 2004 (Law on Energía Argentina S.A.) created the company 
Energía Argentina S.A . (ENARSA) to be responsible, either alone or through third parties or jointly 
with third parties, for the surveying, exploration and exploitation of solid, liquid and/or gaseous 
hydrocarbons reserves, the transport, storage, di stribution, marketing and processing of such products 
and their direct and indirect byproducts, as well as for providing the public service of transporting and 
distributing natural gas and for the generation, trans port, distribution and marketing of electric power.  
ENARSA has ownership of exploration permits and exploitation concessions for all Argentina's 
marine areas not subject to prior permits or concessions .  It may intervene in th e market to prevent the 
abuse of a dominant position caused by the emergence of monopolies or oligopolies. 
90. Law No. 26.741, published on 7 May 2012 (Law on  Yacimientos Petrolíferos Fiscales) lays 
down the following principles for Argentina's current  hydrocarbons policy:  encouraging the use of 
                                                      
38 Online information from the MPFIPS, Primera mesa de 
homologación para intensificar el compra nacional en minería .  Viewed at:  
http://www.minplan.gov.ar/notas/53 8-primera-mesa-homologacin-intensificar-el-compre-nacional-minera. 
39 Online information from the MEP, Secretariat for Mining.  Viewed at:  http://mineria.mecon.gov.ar. WT/TPR/S/277 Trade Policy Review 
Page 144 
 
 
  hydrocarbons and their byproducts as a factor for development and increased competitiveness;  the 
conversion of hydrocarbons resources in proven reser ves and their exploitation, and the replacement 
of reserves;  integration of national and internati onal public and private capital in strategic alliances 
for the exploration and exploita tion of conventional and non-conv entional hydrocarbons;  optimum 
use of investment and resources to achieve self-suffi ciency in hydrocarbons in the short, medium and 
long terms;  incorporation of new technologies a nd managerial methods that help to improve 
exploration and exploitation of  hydrocarbons;  promotion of the processing and marketing of 
hydrocarbons with high value-added;  and the defen ce of consumers' interests in relation to the price, 
quality and availability of hydrocarbons byproducts.  Another policy objective identified is to obtain 
surpluses of exportable hydrocarbons in orde r to improve the balance of payments. 
91. Law No. 26.741 declared self-sufficiency in h ydrocarbons to be a matter of national public 
interest, together with the exploration, expl oitation, processing, transport and marketing of 
hydrocarbons.  It also declared 51% of the assets of YPF S.A. and Repsol YPF Gas S.A. to be of 
public utility and therefore subject to expropriation.  The Law provided that 51% of the shares subject 
to expropriation in the companies YPF S.A. and Repsol YPF Gas S.A. should be transferred to the National State and 49% to the provinces be longing to the Federal Organization of 
Hydrocarbons-Producing States, in line with th e levels of hydrocar bons production and proven 
reserves in each of them.  It also  determined that the appointment of the directors of YPF S.A. to be 
nominated to represent the shares subject to expr opriation should be in proportion to the holdings of 
the National State and the provincial states and that a director should be appointed to represent the 
company's workers.  The Law also prescribed a ban on future transfer of shares without authorization 
from the National Congress, adopted by two-thirds of its members.  It provides for the legal and 
operational continuity of YPF S.A. and, in or der to comply with its objective and purpose, 
authorizes YPF S.A. to turn to external or in ternal funding sources and to enter into strategic 
associations, joint ventures, temporary associations  of companies or any type of business association 
or collaboration with other Argentine or forei gn public, private or semi-public companies. 
92. Law No. 26.741 also created the Federal Hy drocarbons Council to promote coordinated 
action by the National State and the provincial states on hydrocarbons policy.
40 
93. Pursuant to SE Resolution No. 1.679/2004 of  23 December 2004, production, marketing and 
refining companies or any other market operator wi shing to export liquid or gaseous hydrocarbons 
must register the operation(s) with the Nati onal Refining and Marketing Directorate of the 
Undersecretariat for Fuels in the Secretariat for Energy for prior approval.  Registration is a 
mandatory requirement for export of these products.  Authorization has to be obtained from the 
Secretariat for Energy for the export of crude oil and requires prior proof that demand from all the refineries authorized to operate in  Argentina has been duly met or that local refineries have been 
given the opportunity to buy the crude oil. 
94. According to the provisions in Law No. 25.5 61 of 6 January 2002 (Public Emergency and 
Exchange Regime Reform Law), export duty  is payable on exports of hydrocarbons 
(Chapter III(3)(ii)).
41  The export duty on exports of crude o il varies according to international oil 
                                                      
40 The Council is composed of the MEFP, the MPFIPS, the Ministry of Labour, Employment and 
Social Security and the Ministry of Industry, through their respective office holders, and of representatives of the provinces and the Autonomous City of Buenos Aires (CABA). 
41 Title IV, Article 6, of Law No. 25.561 of 6 Januar y 2002 introduced export duty for hydrocarbons for 
a period of five years.  Law No. 26.217 of 16 January 2007 extended it for a further five years. Argentina WT/TPR/S/277 
 Page 145 
 
 
  prices and is governed by MEyP Resolution No. 394/2007.42  For exports of natural gas, the rate 
is 100% for tariff headings NCM 2711.11.00 and 2711. 21.00 and 45% for propane gas, with a special 
adjustment scheme.43  In the former case, the duty applicable  will be equal to the highest value of 
imports recorded during the current month, as this is  the basis on which the 100% rate is calculated.  
For LPG, the export duty is a minimum of 45% a nd varies depending on international price trends. 
95. Law No. 23.966 of 15 August 1991 and amendments  thereto provide that petroleum products 
are subject to the Fuels and Natural Gas Transfer Ta x (see below).  If the resulting tax is less than a 
certain minimum, that minimum must be paid.44  Law No. 26.074 of 9 January 2006 permits 
exemption from the Tax on Liquid Fuels and Natural Gas, the Tax on Gas Oil and any other special 
tax to be imposed in future on this fuel in the case of imports and sales of gas oil and diesel oil on the 
domestic market in order to meet peaks in demand.   Annual quotas are set for this purpose;  for 2012, 
Law No. 26.728 of 27 December 2011 (which a pproved the General Budget for the National 
Administration for the 2012 Financial Year) authorized the import of 7 million m3 of gas oil and 
diesel oil without payment of the Fuels and Natural Gas Transfer Tax and this volume may be increased by up to 20% depending on the assessment of needs to be conducted jointly by the Secretariat for Finance, attached to the Ministry  of the Economy and Public Finance (MEFP), and the 
Secretariat for Energy. 
96. Resolution No. 25/2006 of the Secretariat fo r Domestic Trade establishes rules on the 
marketing, intermediation, distribution and/or prod uction of gas oil, mainly intended to ensure the 
supply of liquid hydrocarbons and their by products (more specifically gas oil).
45  The Resolution 
requires refining companies and/or wholesale and/or retail sellers "to cover in a reasonably justified 
manner all demand for gas oil, in the amounts request ed from them in keeping with customary market 
practices".  The volumes marketed must be at least as much as those supplied in the same month of 
the preceding year, plus the positive correlation between increased demand for gas oil and the 
increase in GDP, cumulated from the reference month up to the current date.  The Secretariat for Domestic Trade was empowered to apply the procedures foreseen in Law No. 20.680 of 20 June 1974 
or Law on Supply and Repression of Sp eculation (see Chapter III(4)(ii)). 
                                                      
42 Pursuant to MEP Resolution No. 394/2007 of 15 November 2007, export duty of 45% applies to the 
hydrocarbons listed in Annex I to the said Resoluti on (NCM tariff heading 2709.00 and some items in 
sub-chapter 2710) when the price is lower than the refe rence price determined in the Resolution (US$60.9/barrel 
for crude oil;  rates ranging from US32 to US$252/barre l for other hydrocarbons of NCM heading 2710 listed in 
Annex I).  If the international price is the same as or above the benchmark, the amou nt of the export duty is 
calculated according to the following formula:  d = [(Pi-Vc)/Vc]*100, where:  d:  = export duty;  
Pi = international price;  VC = cut-of f value (reference price).  The rate a pplicable to crude oil (27.0910) also 
applies to the products listed in  Annex II, as appropriate. 
43 MEP Resolution No. 534/2006 of 14 July 2006 and the amendment thereto in MEP Resolution 
No. 127/2008.  For propane gas, if the international price is the same as or above the benchmark, the rate of export duty is calculated according to the following formula:   d = [(Pi-Vc)/Vc]*100, wher e:  d:  export duty;  
Pi = international price;  VC = cut-off value (reference  price).  If the international price is lower than the 
reference price, a rate of 45% applies. 
44 The minimum payable per litre is Arg$0.5375 on leaded or unleaded gasoline of over 92 octanes;  
Arg$0.5375 on other leaded or unleaded gasoline;  and Arg$0.15 on gas oil, diesel oil and kerosene. 
45 The preamble to MEyP Resolution No. 25/2006 indicates that the measures had been taken in 
response to instances of supply shortages at various stages in the marketing, intermediation, distribution and/or 
production of gas oil caused by imposition of quotas on wholesale and/or retail sellers by refining companies so 
that when these were exhausted, there was a shortage. WT/TPR/S/277 Trade Policy Review 
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  97. Under Decrees Nos. 1.381 of 1 November 2001 and 652/2002 of 19 April 2002, the 
production and import of petr ol and natural gas pay a Water Infr astructure Charge of Arg$0.05/litre of 
gasoline or cubic metre of gas.  Other taxes impos ed on hydrocarbons include the Tax on Liquid Fuels 
and Natural Gas (ICLGN), the Water Infrastructure Tax and the Special Tax on Gas Oil.  The ICLGN rate is 70% for petrol of less than 93 octanes, 62% for other petrol and 19% for gas oil.  In each case, 
the basis used to calculate the tax is the selling pr ice in service stations.  The rate of ICLGN for 
natural gas is 16%, based on the selling price.  The rate of the Water Infrastructure Tax, created by 
Law No. 26.181 of 19 December 2006, is 9% for natu ral gas and 5% for petrol, while the rate for the 
Special Tax on Gas Oil is 22%.  All fuels are subject  to VAT at a rate of 21%, applied on the selling 
price before tax. 
98. Law No. 24.076 of 20 May 1992 and supplementary  regulations govern the distribution and 
transportation of natural gas.  The Na tional Gas Regulatory Authority (ENARGAS)
46 is responsible 
for implementing and applying these rules.  ENARGAS approves the rates that may be charged for the regulated services and, pursuant to Law No. 24. 076, its objectives include protecting consumers' 
rights, promoting competitiveness in the markets for supply and demand of natural gas, and encouraging investment to guarantee long-term s upplies, focusing on more efficient operation of 
natural gas transport and distribution services and facilities and ensuring that the price for supplying 
natural gas to industry is the same as that at the international level in countries with similar resources 
and conditions.  Under this Law, no prior approval is required to  import natural gas, whereas all 
exports of natural gas have to be authorized by the Executive within 90 days of receiving the 
application so as not to affect domestic supplies. 
99. According to Laws Nos. 17.319 and 24.076, there are three basic branches in the gas industry:  
production, transport and distribution.  The producti on of natural gas is deregulated and producers are 
free to explore for gas, extract and sell it;  the Secr etariat for Energy is the implementing authority.  
The transport and distribution of gas through netw orks are regulated public services and authorized 
companies supplying these services are subject to the jurisdiction of the ENARGAS controller.  
The rate charged to consumers for gas is obtained by adding together the following components:  the 
price of the gas (production);  the gas hold-up;  the cost of transport
47;  distribution costs;  and taxes, 
levies and charges.  In turn, the price of the gas in cluded in this rate also has two components:  the 
price of gas at the point of en try into the transport system (PIST) and the accumulated daily 
differences (DDA).48 
100. Pursuant to the provisions in Law No. 25.561 on Public Emergency and supplementary rules, 
the contracts of privatized companies had to be renegotiated, including price setting and adjustment 
clauses.  By mid-2012, there had been renegotiations with only one company ( Gas Natural Ban S.A. ) 
out of the ten;  this company readjusted its rat es twice:  in 2005 and again in 2008.  The other 
                                                      
46 See also online information from ENARGAS.   Viewed at:  http://www.enargas.gov.ar. 
47 The transport costs are the charge s paid to authorized carriers for transporting the gas through gas 
pipelines from the point of entry into the transport system to the delivery point. 
48 The accumulated daily difference is the difference be tween the average real price of gas bought from 
each producer and each gas field and the PIST value.   The daily differences accumulate monthly and are 
adjusted using an interest rate, with the total being co-related to the adjustment in rates for the next period 
(online information from ECOGAS, Información tarifaria .  Viewed at:  
http://www.ecogas.com.ar/a ppweb/leo/inicio.php?sitio=cuyo_cuadros_tarifarios). Argentina WT/TPR/S/277 
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  distributors have not adjusted their rates since 2002 and the fees and charges they apply are the same 
as those in January 2002.49 
101. In 2004, the authorities and producers reached  agreement to harmonize well-head prices and 
the PIST for natural gas and to approve new tariff s cales, at the same time guaranteeing supplies to 
meet domestic demand.50  When this expired, an agreement wa s signed with natural gas producers for 
the period 2007-2011, endorsed by SE Resolution No. 599 of 13 June 2007.  This Resolution, to 
remain in effect until 31 December  2011, committed Argentine natural gas producers to give priority 
to supplying the domestic market (priority dema nd), undertaking to supply specified volumes of gas 
determined for each producer in Annex I to th e agreement and appearing in the aforementioned 
Resolution.  The failure of one particular field to  supply natural gas committed by a producer that had 
signed the 2007-2011 agreement, led to what are known as "Additional Injection Requirements" for 
this producer until it had first exhausted the volume corresponding to its exports and then the volume 
it had undertaken to supply to other consumers in  the domestic market, consumption which had not 
been included in the volumes committed.  SE Resolu tion No. 172/2011 extended the obligations to 
supply natural gas covered by the 2007-2011 ag reement until other measures are taken to 
replace them. 
102. In addition, in order to guarantee suppli es of natural gas, Decree No. 2.067/2008 
of 27 November 2008 was adopted, creating a trust fund for imports of natural gas and all those 
needed to supplement the injection of natural gas re quired to meet Argentina's needs.  The trust fund 
is financed from the following resources:  (i) the rates paid by users of regulated transport and/or distribution services, by consumers of gas which receive gas directly from producers without using 
the natural gas transport or distribution systems or by companies processing natural gas;  (ii) resources 
obtained under special loan programmes agreed with relevant national or inte rnational organizations 
or institutions;  and (iii) specific support schemes to be implemented by the sector's stakeholders. 
103. The purpose of SE Resolution No. 1.070/20 08 of 19 September 2008 was to reorganize 
well-head gas prices and to divide up house hold demand for natural gas.  SE Resolution 
No. 1.417/2008 determined the gas field price for consumption as of 1 November 2008 for those 
producers that had accepted the 2007-2011 agreemen t.  Accordingly, in November 2008 ENARGAS 
approved new rates for end consumers of natural gas and these were still in effect in June 2012.  
The new rates only applied to those producers that  had signed the supplementary agreement ratified 
by SE Resolution No. 1070/2008.  Distribution rates have remained unchanged since 2002.
51 
104. Law No. 26.020 of 9 March 2005 governs the regulatory regime for the processing and 
marketing of liquefied petroleum gas (LPG), its main objective being to guarantee regular, reliable 
and economic supplies of LPG to residential users in socially underprivileged sectors in Argentina 
that have no natural gas network service.  The Law authorizes the free import of LPG without any 
requirement other than compliance with the regula tions in effect and without the need for prior 
authorization, but it stipulates that the export of LPG is subject to guaranteeing domestic supplies and 
to authorization by the Executive. 
                                                      
49 Online information from ENARGAS, Tasas y Cargos .  Viewed at:  
http://www.enargas.gov.ar/_blank.php?iFrame= /Tarifas/Tasas/TasyCar _Dic1992_Actual.xls. 
50 Agreement on the Harmonization of Natural Gas Pr ice at the Point of Entry into the Transport 
System, signed on 2 April 2004 and in effect up to 31 December 2006, concluded pursuant to Decree No. 181 
of 13 February 2004, which gave the Secretariat for Energy the necessary powers. 
51 ENARGAS (2009), page 159. WT/TPR/S/277 Trade Policy Review 
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  105. Argentina's legislation also includes mech anisms to subsidize LPG consumption in 
low-income areas or where there are supply problems.  Decree No. 786/2002 set up the trust fund for subsidizing household consumption of natural gas and LPG, whether in containers or in bulk.  
The fund's objective is to finance:  the tariff compensation in the South of Argentina and the 
Department of Malargüe in the province of  Mendoza, payable to local distributors and 
sub-distributors of natural gas and LPG for applying  differential rates to household consumers;  and 
the sale for household use of cylinders, bottles or LPG in provinces in the Patagonia Region and the Department of Malargüe in the province of Mendoza.   The fund is financed by a small surcharge 
(Arg$0.004/m
3) for natural gas and by transfers from the G overnment.  The surcharge is not included 
in the price of the gas.  The total amount of the trust fund used to pay the current subsidy and 
compensation is determined in each budget. 
106. Decree No. 1.539/2008 of 19 September 2008 creat ed the National Programme for Household 
Consumption of Liquefied Petroleum Gas (LPG) in  Containers in order to lay down the terms 
permitting household users to buy bottled LPG at a set differential price.  The Programme provides 
for the use of trust fund resources to finance th e purchase of bottled LPG (in bottles or cylinders) by 
low-income users, introduced by Law No. 26.020.  The Law also provides that a differential regional 
price should be applied for household consumpt ion of LPG in 10 kg, 12 kg and 15 kg bottles 
throughout the provinces of Corrientes, Chaco, Form osa and Misiones, and the north of the province 
of Santa Fe, until this region obtains access to natural gas.  The fund is financed by contributions from 
producers of natural gas pursuant to the agre ement signed on 19 September 2008.  Resolution 
No. 277/2012 approved the addendums to the supplem entary agreement with natural gas producers 
for maintaining the trust fund. 
107. A Programme for Voluntary Renunciation of National State Subsidies has been in effect 
since 2011 and covers subsidies for gas, elect ricity and drinking water.  By June 2012, 
some 31,000 users had voluntarily renounced gas subsidies.52 
108. Argentina has signed several international agre ements on integrating energy, for example, 
with the Plurinational State of Bolivia (North-Eastern Argentine Gas Pipeline), with Brazil 
(Transitional Energy Exchange Agreement), with the Bolivarian Republic of Venezuela and Brazil 
(South American Gas Interconnector), and with the Bolivarian Republic of Venezuela and the 
Plurinational State of Bolivia (initiative to cr eate a multistate petroleum enterprise, PETROSUR). 
(b) Incentives 
109. Decree No. 1.396/2001 of 4 November 2001 declared the production and marketing of 
biodiesel for use as pure fuel or as a base for mixing with gas oil or as an additive to gas oil to 
be of national interest.  Some tax incentives are given to promote the use of biodiesel, for example, a ten-year waiver of the Liquid Fuels and Natural Gas Tax and exemption from the Presumed Minimum Income/Profits Tax for companies producing biodiesel. 
110. Law No. 26.093 of 19 April 2006 instituted the Regulatory and Promotion Scheme for the 
Sustainable Production and Use of Biof uels.  This scheme is to remain  in force for 15 years as of its 
approval.  All projects for establishing biofuel indu stries are eligible for the incentives given by the 
Law provided that:  they are established in Argentina;  they are owned by private or public or semi-public commercial companies or cooperative asso ciations incorporated in Argentina and given 
the exclusive right to develop the activity promoted by the Law;  the majority of their equity is 
                                                      
52 Online information from MINPLAN, Renuncia voluntaria al subsidio .  Viewed at:  
http://www.minplan.gov.ar/subsidios. Argentina WT/TPR/S/277 
 Page 149 
 
 
  contributed by the National State, the Autonomous  City of Buenos Aires (CABA), the provincial 
states, local authorities or natural or legal persons  engaged principally in agricultural production.  
A total fiscal quota for the promotional incentives is  determined each year and is allocated giving 
priority to small and medium-sized enterprises, farmers and the promotion of regional economies. 
111. The incentives under Law No. 26.093 include exemption from VAT and the IG on the 
purchase of capital goods or for undertaking the infrastructure work required for the project in 
question for as long as the scheme remains in effect.  In addition, goods to be used for projects approved by the implementing authority are not in cluded in the tax base for the Presumed Minimum 
Income/Profits Tax introduced by Law No. 25.063 .  Biodiesel and bioethanol produced by those 
implementing approved projects are not liable for the Water Infrastructure Charge introduced by 
Decree No. 1.381/2001 or the Liquid Fuels and Natural Gas Tax introduced by Law No. 23.966, 
harmonized text of 1998, or the tax on the import of gas oil introduced by Law No. 26.028.  Law No. 26.093 created the National Advisory Commission for Promoting the Sustainable Production and Use of Biofuels. 
112. According to estimates by the MEFP's Secretar iat for Finance, the costs in terms of tax 
revenue of implementing Law No. 26.09 3 amounted to Arg$713.1 million in 2010 
and Arg$1,677.8 million in 2011. 
113. Resolution No. 1.312/2008 of 1 December 2008 approved the regulations for the "Oil Plus" 
and "Refining Plus" Programmes introduced by Decree No. 2.014/2008 of 25 November 2008.  The purpose of these Programmes is to boost production and the incorporation of oil reserves and fuel 
production so as to meet all the energy needs of Ar gentina's domestic industry.  The "Refining Plus" 
Programme also provides a special incentive schem e for small non-integrated refiners.  Companies 
benefiting from these Programmes receive tax credit cer tificates issued by the Secretariat for Energy.  
These are granted when actual production exceeds basi c production, in other words, when there is 
"additional production".
53  The certificates may be used to pay export duty.  The Programmes are 
monitored and assessed by the Monitoring Commissi on for the "Oil Plus" and "Refining Plus" 
Programmes, created by Decree No. 2.014/2008. 
114. The incentive for oil production in the "Oil Pl us" Programme is calculated each quarter by 
multiplying, for the corresponding production, the per centage applicable as shown in Table IV.5 by 
the average amount of export duty for the quarter per barrel for the export of crude oil. 
Table IV.5 
Factors for determining the export tax on oil, pursuant to Resolution No. 1.312/2008 of the Secretariat for Energy 
("Oil Plus" Programme ) 
Actual price > basic price Basic production (%) Additional production (%) 
International price > US$60.90/barrel  8 55 
International price ≤ US$60.90/barrel  10 70 
Source : Resolution No. 1.312/2008 of the Secretariat for Energy. 
 
                                                      
53 Actual production (PE) is that achieved over one quarter.  Basic production (PB) for each quarter is 
calculated for each company acco rding to the average daily production du ring the first half of 2008 multiplied 
by the number of days in each quar ter.  To calculate each company's PB, the total number of concessions in 
which the company has a share is added up, with the corresponding percentages.  The difference between the PE 
and the PB is the additional production (PA).  To de termine the amount of the average export duty for the 
quarter, the average international price for the quarter is used, taking as a be nchmark the price of oil determined 
daily pursuant to Article 8 of Resolution No. 394 of 15 November 2007 of the former Ministry of the Economy 
and Production. WT/TPR/S/277 Trade Policy Review 
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  115. If the international price rises above US$60.90/ba rrel, a duty reduced by 8% is payable on 
basic production and 55% on additional production, whereas if the international price is the same or 
below US$60.90/barrel, a duty reduced by 10% is payable on basic production and 70% on additional 
production in order to maintain or even  increase production when prices are low.54  Another 
requirement for obtaining the incentive is that the reserve replenishment index for the preceding 
calendar year should exceed 0.8 or have increased  in comparison with the average for the three 
previous calendar years. 
116. Under the "Oil Plus" Programme, companies w ith additional production or with a reserve 
replenishment index over 0.8 and which export crude  oil in compliance with SE Resolution No. 1.679 
of 23 December 2004 and amendments thereto ma y be given additional tax credit certificates 
amounting to between 3% and 12% of the differen ce between the local price and the international 
price applicable to the export in question (net of export duty), subject to submission of the officially 
certified loading permit.  Incentives for building up reserves under the "Oil Plus" Programme are 
calculated annually by multiplying the percentage a pplicable as shown in Table IV.6 by the average 
amount of export duty on a barrel of crude oil duri ng the corresponding first quarter of each year, for 
the annual volume of proven reserves added by th e producer.  The higher the reserve replenishment 
index, the larger the deduction from export duty. 
Table IV.6 
Reserve replenishment index for determining additional tax cred it certificates, pursuant to Re solution No. 1.312/2008 of the 
Secretariat for Energy ("Oil Plus"  Programme) 
Reserve replenishment index Percentage 
International price > US$60.90/barrel In ternational price ≤ US$60.90/barrel 
Over 0.50 but less than 1.00  3 3 
1.00 or more but less than 1.25 6 6 
1.25 or more 10 12 
Source : Resolution No. 1.312/2008 of the Secretariat for Energy. 
 
117. To calculate the incentive, the total annual volume of proven reserves for each company may 
not exceed 50% of the actual annual production of oil.  Furthermore, only companies which have 
additional production during the period are eligib le.  The incentive becomes effective through the 
annual issue of assignable tax credit certificates at face  value, which may be used to pay export duty. 
118. The "Refining Plus" Programme is for new refine ry projects or for the expansion of refining 
capacity and/or conversion of an existing refinery together with its associated transport and storage 
facilities.  The purpose of the Programme is, in the first stage, to boost production of grade 1 and grade 2 gas oil, together with grade 2 petrol, according to the definition of these fuels given in 
Article 2 of SE Resolution No. 1.283 of 6 Septembe r 2006.  The incentive consists of a reduction in 
export duty through the use of a tax credit certificat e.  It is calculated quarterly by multiplying the 
average quarterly value of export duty on gas oil an d petrol per cubic metre by 50% of the annual 
additional production of the products notified for the project in cubic metres.
55  Each quarter, 50% of 
                                                      
54 For example, if the rate of export duty is 25%, the PB 100,000 barrels and the PA 50,000, the duty 
payable is [(0.92)*0.25/(1+0.25)], corresponding to 11.5% on the PB, and [(0.45)*0.25/(1+0.25)], 
corresponding to 5.63% on the PA. 
55 Additional production is the daily  average production under each pr oject put forward by companies 
in addition to the basic production of products (PBP) under the Programme.  For each company, the PBP is 
deemed to be the average daily production of grades 1 and 2 gas oil and grade 2 petrol during the month of 
highest production levels in the first half of 2008.  For mixtures, in order to calculate additional production, the principal raw material must have been produced by th e refinery concerned based on primary refining of crude 
oil or molecular transformation in the same refinery or in associated units.  The average quarterly international 
price of Unleaded 87 US Coast Gulf is used to determine the value of petrol and Diesel Nº 2 US Coast Gulf  that Argentina WT/TPR/S/277 
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  the total incentive is paid out depending on the progress made in the corresponding projects and the 
balance starts to be paid quarterly during the firs t year of production.  The total amount of incentives 
received may not exceed the total amount of investme nt in each project.  Small refineries, with the 
capacity to refine less than 30,000 m3 of crude oil each month, are give n an additional incentive at the 
time of export. 
119. Between 2008 and 2012, 26 investment project s took advantage of the "Refining Plus" 
Programme for total investment of US$2,660.9 million.56  It is estimated that, after conclusion of the 
projects, additional production under th e Programme amounted to 2.78 million m3 of gas oil 
and 2.954 million m3 of petrol. 
120. A scheme was introduced under the "Refini ng Plus" Programme to grant incentives to 
"non-integrated" small-scale refiners whose maximum monthly refining capacity was 30,000 m3 or 
less and which complied with certain requirements su ch as:  a geographical location far from the main 
markets and without direct access to a sea port;  the production processes generate large volumes of 
products not usable on the local market and produ ced continuously for the last two years from the 
entry of force of Resolution No. 1.312/2008;  and the products listed in Annex I to Resolution No. 394 
of 15 November 2007 of the former Ministry of  the Economy and Production are exported, either 
directly or through third parties, except for NCM tariff headings 2709.00.10 and 2709.00.90.  
The incentive consists of the issue of tax credit cer tificates for the difference between the export duty 
calculated in accordance with SE Resolution No. 394  of 15 November 2007 and export duty at a rate 
of 5%.  The scheme only applies if international oil prices are below US$80/barrel. 
121. SE Resolution No. 24/2008 of 6 March 2008 introduced the "Gas Plus" Programme to 
encourage new projects leading to increased production of natural gas.  In order to be eligible for this 
Programme, producers must have signed the 2007- 2011 Agreement with Producers of Natural Gas 
(SE Resolution No. 599 of 13 June 2007) or any ag reement that might replace it in the future, and 
must comply with the supply commitments determ ined therein, for all consumption segments.57  
The natural gas produced under the "Gas Plus" Programme  is not, however, consid ered to form part of 
the volume under the Agreement and its market value is  not subject to the price conditions stipulated 
in the Agreement.  Natural gas under the Gas Plus  arrangement may only be sold on the domestic 
market.  Its selling price may be freely determined and must take into account the related costs and a 
reasonable profit. 
122. Law No. 26.334 of 2 January 2008 introduced the Bioethanol Production Promotion Scheme, 
intended to encourage the establishment of value ch ains by integrating sugar cane producers and sugar 
cane mills in bioethanol production processes.  Law No. 26.123 of 24 August 2006 declared the 
development of technology, production, use and app lication of hydrogen as a fuel and energy source 
to be a matter of national interest and created the National Hydrogen Promotion Fund. 
                                                                                                                                                                     
of gas oil, with the rates set in Resolution No. 394 of 15 November 2007 of the former Ministry of the Economy 
and Production. 
56 Online information from the Secretariat for En ergy, "Refining Plus" Programme.  Viewed at:  
http://www.energia.gov.ar/contenidos/archivos/Reorgan izacion/informacion_del_me rcado/mercado_hidrocarbur
os/programas_plus/refino/exp_refino_plus.xls. 
57 Unless, pursuant to SE Resolution No. 1.031/2008, the applicant proves that it has exhausted every 
opportunity to increase the production of natural gas in its concessions and that the potential increased daily 
production of natural gas under the project covered by the "Gas Plus" Programme is at least 20% higher than the daily average production recorded for all its concession s during the preceding calenda r year.  It must also 
guarantee supplies of natural gas equal to the volume veri fied for the last calendar year preceding the application 
until the agreement expires. WT/TPR/S/277 Trade Policy Review 
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  (4) MANUFACTURING  
(i) Overview 
123. Manufacturing's share of GDP was 18.9% in  2011 (including food processing), compared 
to 19.4% in 2007, owing to some extent to the mo re rapid increase in other production activities such 
as agriculture and domestic trade.  Over the period 2006-2011, real GDP in the manufacturing sector 
grew at an annual average rate of 6%.  Following  six years of sustained growth, industrial GDP fell 
by 0.5% in 2009, affected by the global crisis.  In  2010, the industrial sector recovered and GDP rose 
by 9.8%.58  In 2011, the sector expanded at a real rate of 11%.59  Growth in production was 
accompanied by a substantial increase in the leve l of utilization of installed capacity, which 
was 78.9% in April 2012, five percentage poi nts above the 2006 level.  Productivity in the 
manufacturing sector rose at an annual rate of 6.3%  between the third quarter of 2006 and the third 
quarter of 2011.60  The increase was particularly rapid in the food processing industry and in the 
production of motor vehicles, but even more so in the leather and footwear branch. 
124. Most industrial activity takes places in four provinces:  Buenos Aires (53%), CABA (14%), 
Santa Fe (9%), and Córdoba (7%).  In 2011, manufact uring accounted for 20.2% of jobs in Argentina, 
with the food processing industry (28.47% of the sect or's total), textiles and made-up articles (9.3%) 
and chemicals (8%) providing the most jobs. 
125. During the period under review, there has been a rapid increase in both exports and imports of 
manufactures, but the rise in imports was somewhat higher.  In 2011, exports of manufactures (including processed food) amounted to US$28,916 million, following an annual increase of 14.3% between 2006 and 2011.  Exports of manufactures overall accounted for around one third of total 
exports (see Table AI.l).  The principal exports of manufactures were products of the automotive 
industry (35% of the total), chemicals and related products (20%), metal working (11%), and precious 
stones and metals (10%).  The exports of these four  groups of products were also the most dynamic 
during the period under review.  A large percenta ge of the manufactures exported come from huge 
conglomerates and multinational corporations, some of  which are majority foreign owned.  Many of 
the manufactures exported by the automotive sector , for example, use large quantities of imported 
inputs. 
126. Imports of manufactures, on the other hand, amounted to US$60,415 million in 2011, 
compared to US$30,394 million in 2006, with an annu al growth rate of 14.7%.  As imports increased 
more rapidly than exports, the manufacturing sector 's trade balance deteriorated and went from a 
deficit of US$14,787 million in 2006 to one of US$25,96 7 million in 2010.  The rapid growth in trade 
in manufactures continued in 2011.  Industrial e xports rose by 16% between the third quarter of 2010 
and the same quarter in 2011, driven in particular  by increased sales by the chemical industry and of 
processed metal products.  Imports likewise continued to increase more rapidly, by 31%, owing to a 
large extent to growth in imports of petrol eum products, chemicals and metallurgical products. 
                                                      
58 MEFP, Secretariat for Economic Policy, Undersecretariat for Economic Planning (2011). 
59 Online information from INDEC, Producto Interno Bruto (PIB):  Serie histórica .  Viewed at:  
http://www.indec.gov.ar/principal.asp?id_tema=2540.  Th e manufacturing industries which made the largest 
contribution to growth in 2011 were mechanical engineering, the automotive industry, non-metallic minerals, 
food and beverages, chemical substances and products. 
60 MEFP, Secretariat for Economic Policy and Development Planning (2012). Argentina WT/TPR/S/277 
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  127. The Ministry of Industry is responsible for c oordinating and promoting Argentina's industrial 
development policies so as to boost value added in all production chains, in cooperation with 
companies, workers, universities, non-governmental organizations, provincial governments and local authorities.  The Ministry works mainly through th ree Secretariats, each dealing with a particular 
strategic area.  The task of the Secretariat for Industry is to assist in defining industrial policy and in 
the design, financing and utilization of the tools ne eded to promote the development of industry.  
It also defines policies to foster investment and lines of financing for the industrial sector.  The Secretariat for Industrial Strategic Planning  deals with planning of medium- and long-term 
industrial policies and with implementing regional,  sectoral and value chain policies in order to 
enhance competitiveness and the percentage of value added.  The Secretariat for Small and 
Medium-Sized Enterprises and Regional Devel opment (SEPYME) defines the strategic policy 
guidelines for MSMEs.  It also coordinates special policies in support of international trade by MSMEs.  The Ministry of Industry also has two decentralized bodies:  (i) the National Institute of Industrial Technology (INTI), which is responsible for certifying sta ndards, technical specifications 
and quality, as well as the generation a nd transfer of industrial technology
61;  and (ii) the National 
Institute of Industrial Property (INPI). 
128. The Undersecretariat for Industry, attached to the Secretariat for Industry, is responsible for 
implementing the Sustainable Industrial Developm ent Project (DIS), launched in June 2008.  
The overall purpose of this Project is to promote industrial development within an environmentally 
sustainable framework, focusing on innovative pr oduction, more efficient production chains and 
regional balance.  Its activities are directed towards strengthening industrial production sectors, 
branches and/or activities through technical assistan ce and training activities, together with the 
dissemination and use of industrial development tools, schemes and programmes provided by the 
National State, more particularly in those regions of Argentina that are relatively less industrially developed.
62 
129. Several industrial activity-specific incentives are available to the manufacturing sector, for 
example, for the automotive and naval industries (see below). 
(ii) Trade measures and support measures 
130. Border measures are utilized to protect the manuf acturing sector and include the use of tariffs, 
non-automatic import licensing and contingency measu res, notably anti-dumping duties.  The simple 
average MFN tariff in the manufacturing sector (ISIC definition) was 11.7% in 2012, or 11.5% according to the WTO definition of non-agricultural products (see Chapter III(2)(iv)).  Tariffs range 
from 0 to 35%.  The highest average tariff s according to the WTO classification are on 
clothing (35%), textiles (22.7%), transport equipment (17.8%), footwear and leather articles (14.7%).  
During the period under review, imports of a larg e number of manufactures became subject to 
non-automatic import licensing.  Export of the majo rity of manufactures, on the other hand, still 
attracts duty of 5%. 
131. Argentina assists its manufacturing sector through horizontal fiscal incentive schemes 
(see Chapter III(4)(iii)), as well as export promotion schemes such as free export zones or temporary admission (see Chapter III(3)(iv)).  Special arrange ments also apply to the production of capital goods 
                                                      
61 Online information from the Ministry of Industry, El Ministerio .  Viewed at:  
http://www.industria.gob.ar/?page_id=12579. 
62 Online information from the Undersecretariat for Industry, Presentación institucional .  Viewed at:  
http://www.sub-industria.gob.ar/desarr olloindustrial/nombre-del-prorama. WT/TPR/S/277 Trade Policy Review 
Page 154 
 
 
  under the capital goods, information tec hnology and telecommunications scheme 
(see Chapter III(4)(iii)). 
132. The manufacturing sector can also benefit fro m special credit facilities for research and 
development projects and for technological devel opment and innovation through the Scientific and 
Technological Research Fund (FONCyT), the Arge ntine Technological Fund (FONTAR), the Trust 
Fund for Promotion of the Software Industry (FONSOFT), and the Argentine Sectoral Fund 
(FONARSEC), administered by the National Agency for the Promotion of Science and Technology, a national body attached to the Ministry of Scie nce, Technology and Productive Innovation, which 
promotes activities in these spheres (see Chapter III(4)(iii)). 
133. FONTAR is particularly important as it has incentive programmes that include lines of credit 
and the Tax Credit Programme.  The latter is intende d for natural or legal persons owning companies 
that produce goods and services and grants tax cred it certificates which can be deducted from the IG 
in an amount of up to 50% of the project's total budget.  It also sets quotas by region and potential beneficiaries compete for parts of the credit quota for their region.
63  FONTAR granted tax credits 
worth Arg$168 million over the peri od 2006-2010 to over 500 companies for close to 2,000 projects. 
134. The financial resources managed by FONTAR in support of the development of innovation 
projects come from national or international public or  private sources for general or specific purposes.  
In general, over the period 2003-2010, FONTAR approved 1,015 credits through several lines of credit.  The principal sectors that received FONT AR financing between 2003 and 2010 were business 
services, food and beverages, chemicals, and m achinery and equipment, which together accounted 
for 51% of the amounts disbursed.
64 
135. Small and medium-sized enterprises are eligible for a number of tax incentives 
(see Chapter III(4)(iii)).  They are also eligible for an interest subsidy scheme and can access credit 
facilities through Mutual Guarantee Societies (SGR).65 
136. The automotive industry is one of Argentina's major industries.  A number of agreements 
have been signed in this sector such as the 38th Additional Protocol to the Economic Complementarity 
Agreement (ECA No. 14) between Argentina and Brazil, the 31st Additional Protocol to ECA No. 35 
between Argentina and Chile, the 2nd Additional Protocol to the B ilateral Agreement with Uruguay 
(ECA No. 57) and the Agreement between MERCOSU R and Mexico (ECA No. 55).  Imports of cars 
and light utility vehicles from outside the MERCOSUR zone, together with imports of heavy commercial vehicles, are generally subject to a 35% tariff, with the exception of self-propelled 
agricultural and highway machinery, which pays 14%.  Autoparts are generally subject to a CET 
of 14%, except for those not produced in MERCOSUR;  these pay a CET of 2% pursuant to 
Resolution No. 497 of 23 July 2004, which establishes a list of products not manufactured in Argentina and has been updated several times,  the most recent being Resolution No. 25 of 
10 August 2010. 
137. Under the incentives scheme to improve the compet itiveness of local autoparts, established by 
Decree No. 774 of 5 July 2005, a benefit is granted for a maximum period of three years in the form 
of payment of a cash refund on the value of purch ases of autoparts with a maximum imported content 
                                                      
63 Online information from the National Agency for the Promotion of Science and Technology, 
FONTAR .  Viewed at:  http://www.agenc ia.gov.ar/spip.php?article456. 
64 National Agency for the Promotion of Science and Technology, Estadísticas FONTAR .  Viewed at:  
http://www.agencia.secyt.gov.a r/fontar_estadistica.php. 
65 Law No. 24.467 of 15 March 1995. Argentina WT/TPR/S/277 
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  of any origin of 30%.  Such parts must be inte nded for production and be purchased by manufacturers 
of cars, utility vehicles with a load capacity of up to  1,500 kg, trucks, chassis with or without cabs and 
buses, engines, gearboxes and axles with differentials.  To obtain this benefit, the firms must submit a project for the production of new units or new aut oparts.  This Decree provides that for motors, 
gearboxes and axles with differentials listed in  Annex II to the Decree, a refund corresponding 
to 8% of their ex-factory value before tax will be  paid during the first year in which the goods are 
produced, 7% in the second year and 6% in the third.  Under this D ecree, projects submitted by 
Fiat Auto in 2010 and Volkswagen in 2012 were approved.
66 
138. The automotive industry has been one of the main beneficiaries of the in-factory customs 
procedure (RAF) introduced by Decree No. 688/200 2 (see Chapter III(2)(iv)).  The RAF streamlines 
and expands the temporary admission procedure by allowing eligible companies to import specific 
goods and incorporate them in products for export,  re-export them without processing or import them 
for consumption without paying tax until the operations have been completed. 
139. The Automotive Agreement currently in force between Argentina and Brazil is incorporated 
into the 38th Additional Protocol to ECA No. 14, signed in July 2008, which repealed the previous 
Protocols and remains in force until 30 June 2014.67  Under the Agreement, automotive products are 
traded between the parties with a 100% tariff preferen ce, in other words, an intra-zone tariff of 0%, 
provided that they meet the origin requirements.  The regional content of these products must be a minimum of 60%.  The Agreement provides for the application of a 35% extra-zone tariff on cars, 
trucks and coachwork and 14% on tractors and machinery.  Autoparts not produced in MERCOSUR pay a tariff of 2%.  Autoparts not originating in MERCOSUR and used to manufacture vehicles are 
subject to a tariff of 8%.  In order to benefit from the Agreement, companies manufacturing vehicles 
must be enrolled in the relevant Register of Producers. 
140. The Agreement provides for overall quarterly monitoring of the flow of bilateral trade by 
country from 1 July 2008 to 30 June 2013.  Th ere is no maximum limit for exports, with 
a 100% preference margin as long as they remain within  the annual limits in the variation coefficients 
determined for exports (Flex).
68  Until 30 June 2013, if Argentina has a deficit in this bilateral trade, 
the ratio of import value to export value between th e parties must correspond to a Flex of not more 
than 1.95.  If there is a deficit for Brazil, the Fl ex may not exceed 2.50.  Af ter 1 July 2013, trade in 
automotive products between the parties will no longer be  subject to tariffs or quantitative restrictions. 
141. Under the 2nd Additional Protocol to the bilatera l Agreement with Uruguay (ECA No. 57), 
which came into force in 2008, Argentina gran ts duty-free access to Uruguayan exports of all 
products included in the tariff universe covered by th e Agreement, provided that they comply with the 
rules of origin established therein.  Cars and li ght commercial vehicles (with a load capacity of up 
to 1,500 kg), trucks and autoparts also benefit from duty-free access if they meet MERCOSUR's origin requirement (60%), and may also enter on pr eferential terms of origin (50%), but subject to 
quantity and value limits;  in 2006, these we re 20,000 units, 800 units and US$60 million, 
respectively.  These figures remained in eff ect for 2008 and subsequent years under the 2
nd Additional 
Protocol.  This determined a quota of 500 cars a nd armoured light commercial vehicles with a 100% 
                                                      
66 Resolution No. 89/2010 of the Secretariat for Industry, Trade and Small and Medium-Sized 
Enterprises and Resolution No. 14/2012 of the Secretariat for Industry. 
67 The Agreement applies to:  (a) cars and light utility vehicles (with a load capacity of up to 1,500 kg);  
(b) buses;  (c) trucks;  (d) road tractors for semi-traile rs;  (e) chassis with engines, including with cabs;  
(f) trailers and semi-trailers;  (g) coachwork and cabs;  (h) agricultural tractors, harvesters and self-propelled 
agricultural machinery;  (i) self-propelled highway machinery;  and (j) autoparts. 
68 The Flex limit regulates the volu me of imports allowed for each dolla r exported to the other country. WT/TPR/S/277 Trade Policy Review 
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  preference margin for vehicles imported fro m countries outside MERCOSUR by companies 
established in Uruguay and undergoing inward pr ocessing in these companies for the purpose of 
fitting armour plating. 
142. In September 2002, Mexico signed an agreement with MERCOSUR to create a free trade area 
for the automotive sector by 30 June 201169;  the agreement came into force in January 2003 and 
prescribes a transitional period for each MERCOSUR country and Mexico.70  In the case of 
Argentina, a tariff quota of 50,000 units was establishe d for cars, vehicles with a loaded vehicle gross 
weight of 8,845 kg or less, and motor vehicl es for the transport of ten or more persons.  
On 1 May 2006, free trade in these products came in to effect.  Trade in agricultural machinery was 
liberalized from the moment the agreement en tered into force.  Tariffs under NALADISA 
heading 8407.34.0071 were set at 0% from the date the agreem ent entered into force.  Other imported 
autoparts were subject to CET rates of 14, 16 and 18%, as the case may be.  Under the 4th Protocol to 
the Agreement, trade in automotive products included in paragraphs (a), (b) (e), (f) and (g) of the 
Agreement was liberalized as of 1 July 2011.  It is  specified that the provisions on origin and the 
technical regulations will continue to apply to all the goods covered by the Agreement, while the other 
access conditions laid down in the Bilateral Appe ndices and the Additional Protocols thereto will 
apply up until 31 December 2015.  The Protoc ol was signed on 9 September 2011 and was 
incorporated into Argentina's legislation by No te EMSUR S.G.  No. 122 of 29 September 2011 and 
the Joint Note of Argentina and Mexico - Notes Nos. 17/12 and 014/12, respectively. 
143. Decree No. 969 of 22 June 2012 suspended appli cation of ECA No. 55/02 for three years, 
including the Annexes thereto, together with Bilateral Appendix I on automotive trade between 
Argentina and Mexico.  In this Decree, the Argentin e Government justifies its decision on the basis of 
the conclusion of the 4th Additional Protocol to Appendix II (automotive trade between Brazil and 
Mexico) signed on 19 March 2012,  which determines quotas and national content requirements 
reciprocally for a period of three years for imports with a tariff of 0% for cars and light commercial vehicles.  According to Argentina, this amounts to  a violation of the procedures laid down in ECA 
No. 55 by depriving it of the right to object to amendment of the Appendix in question. 
144. In 2002, the 31
st Additional Protocol to ECA No. 35 was signed.  This established free trade 
between Argentina and Chile in cars;  light commercial vehicles (with a load capacity of up 
to 1,500 kg);  trucks;  road tractors for semi-trailers;  chassis with engines;  buses;  and autoparts, as from 2006. 
                                                      
69 Economic Complementarity Agreement (ECA) No . 55.  Viewed at:  http://www.aladi.org. 
70 Decree No. 4.458 of 5 November 2002. 
71 Reciprocating piston engines of a kind used for the propulsion of vehicles (other than parts of 
railway or tramway locomotives or  rolling stock) of a cylinder cap acity exceeding 1,000 cc.  In the 
2nd Additional Protocol to Appendix I to the Agreement, signed in 2007, it is provided that, if the Argentine 
Government finds that any Argentine company producing distributor gears classified under NALADISA tariff heading 8483.40.00;  drive axle parts under NALADISA heading 8708.60.00;  forks, levers, excentric gear or 
bolts for rear suspension systems, satellite and planet gear, hub and coil differential gear, gears and shafts for 
gearboxes, coupling hammers and sleeves for synchronizing gearboxes classified under NALADISA heading 8708.99.00 is affected as a result of the preferences given for th ese headings, the parties shall hold 
discussions that may lead to Argentina's temporary with drawal of the tariff prefer ence corresponding to the 
heading(s) affected contained in the list attached to the 2
nd Additional Protocol to Appendix I to the Agreement. Argentina WT/TPR/S/277 
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  (5) ELECTRICITY  
(i) Features of the sector and operation of the market 
145. In 2011, installed generating capacity w as 29,000 MW, of which over 58% depended on 
thermal resources (natural gas, gas oil and fuel o il), 38% was hydroelectric and 4% came from nuclear 
power stations.72  In the same year, 121,216 GWh was generated, of which 60.9% came from thermal 
resources, 32.4% was hydroelectric and 4.8% nuclear, with 2% being imported.73  The electricity 
sector is marked by the strong presence of foreign co mpanies.  Argentina covers most of its energy 
needs from its own resources.  Nearly all the hydr oelectric power stations are operated under National 
State or provincial state concessions, mostly given to private firms.  Two of the largest hydroelectric 
stations are bi-nationally owned:  one by the Ar gentine National State and Paraguay (Yacyretá);  and 
the other by Argentina and Uruguay (Salto Grande ).  Argentina has three nuclear power plants, 
although one is not yet in service.  Argentina is interconnected to the Brazilian, Paraguayan and 
Uruguayan electricity grids and to that of Norte Grande in Chile. 
146. Policy in the electricity sector promotes sustainable development, with a scheme to promote 
the use of renewable energy.  Under this scheme, a series of programmes has started to be implemented to promote the use of alternative sources of energy to generate electricity, for example, 
the GENREN Programme, which covers the pur chase of 895 MW of electricity generated from 
alternative sources, mainly wind power, for a period of 15 years.  The Law on Biofuels, described below, provides that, as of 2010, the liquid fuel consumed in Argentina must be mixed with biofuel (biodiesel and ethanol). 
147. In 1991, the Argentine electricity market was liberalized and divided into three segments:  
generation, distribution and transport, each with its own special features.  The State withdrew from its 
role as a stakeholder in the sector but remained the regulator.  All activities in the electricity sector are 
open to the private sector, although the distribution and transport of electric power is subject to 
regulation and a concession has to be obtained.  The expansion of the transport network, however, 
obeys market mechanisms.  The level of competiti on varies according to the segment.  Generation has 
been fully opened up to the privat e sector;  in 2011, 111 generators  were operating.  Although there 
were 78 distributors in that same year, two distribution firms (Edenor and Edesur) hold the concession in areas under Federal jurisdiction, in the area of the City de Buenos Aires and in Greater Buenos Aires, which represent a substantial pa rt of demand (roughly 44% of national demand from 
the grid).  The electric power transport segment is wholly in private hands under Federal jurisdiction 
concessions, 95% of high voltage electricity is carri ed by a single private company, the National High 
Voltage Electricity Transport Company (Transen er).  For the purposes of transport by trunk 
distribution, the country is divided up into six regional areas, each operated by a different trunk 
company (for the most part equipped with 132 kV lines and stations), which also hold Federal 
concessions.  Transener connects all the electricity s ubregions using 500 kV lines for the most part.  
There are also seven firms buying and selling electricity.
74 
                                                      
72 Information provided by the authorities and onlin e information from the Secretariat for Energy, 
Generación energía eléctrica, potencia instalada y potencia, generación y consumo de combustibles .  
Viewed at:  http://www.energia.gov.ar/contenidos /archivos/Reorganizacion/informacion_del_mercado/ 
publicaciones/mercado_el ectrico/estadisticosectorelectrico/2010 /parte1y2/genpotcombpanuario10.zip. 
73 Wholesale Electricity Market Mana gement Company (CAMMESA) (2012). 
74 Online information from CAMMESA, Institucional .  Viewed at:  
http://portalweb.cammesa.com/Pages/I nstitucional/defaultinstitucional.aspx. WT/TPR/S/277 Trade Policy Review 
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  148. The Wholesale Electricity Market Management Company (CAMMESA), a public limited 
company created by Decree No. 1.192 of 10 July 1992 on the basis of national load dispatching, is in 
charge of coordinating technical and economic di spatching operations, determining wholesale prices 
and handling economic transactions  through the Argentine Interconnection System (SADI).  
CAMMESA is a privately managed company of public interest, whose shares are 80% owned by 
operators in the Wholesale Electricity Market (MEM ) (20% by each of the generators, transporters, 
distributors and large users).  The Government ministry owns the remaining 20% and chairs the company. 
149. CAMMESA administers the MEM, oversees the operation of the forward market, estimates 
future power needs and ensures optimum functioni ng of the market in acco rdance with the rules 
determined by the Secretariat for Energy.  CAMM ESA's activities are deemed to be of national 
interest;  the provinces may not take action or impose taxes that might affect the achievement 
CAMMESA's objectives.  CAMMESA acts as the agent for various actors in the MEM for 
dispatching power and energy, using the transport facilities, and markets imported energy and power.  
Through the firm Emprendimientos Energéticos Bi nacionales S.A. (EBISA), CAMMESA sells energy 
coming from the bi-national energy undertakings a nd collects and administers the fees, payments or 
amounts owing for transactions among actors on the MEM. 
150. Almost all of Argentina's demand for electric power is supplied through the MEM, in which 
producers, transporters, distributors, large users and buyers/sellers all participate.  MEM is made up 
of:  a forward market, with contracts by volume, prices and terms freely agreed between buyers and sellers;  a spot market, with prices agreed by hour in line with the marginal short-term cost measured 
in the system's dispatching centre;  and a quarterly  stabilization scheme for prices forecast on the spot 
market to be used for buying by distributors.
75  Each quarter, the aggregate differences are 
re-allocated to the subsequent periods.76  MEM agents are generators, self-generators, co-generators 
and large users authorized by the Secretariat fo r Energy and those holding concessions to generate 
hydroelectricity, for transport or distribution, toge ther with distributors under provincial jurisdiction 
and companies in interconnected countries authorized to operate on the MEM. 
151. CAMMESA plans the operation of the SADI for half-yearly seasons in order to cover demand 
with a level of reserves agreed between the parties (economic load dispatching).  The hourly marginal 
price offered by producers is that paid on the spot market to generators of electricity and its average 
estimated price is the basic price on which the se lling price to distributors is calculated for their 
purchases on the spot market.  Distributors pay a pr ice differential that depends on where they are 
situated in the system and reflects losses in the tr ansport network.  Electricity distributors and 
generators pay transporters a fixed fee pe r connection and according to the transport 
network's capacity. 
152. Consumers of electric power linked to the SADI may buy the power to meet their demand in 
two ways:  through the distributor in their area or directly from a recognized MEM generator or 
dealer.  The second option is only available to large users in the MEM which fall into three categories 
defined according to their level of consumption:  major large users (GUMA), smaller large users 
                                                      
75 The MEM Stabilization Fund consists of a mechanism for stabilizing prices on a seasonal basis.  
A price at which distributors buy on the wholesale spot market for three months is approved.  The difference 
between the seasonal price determined and the spot market is covered by the Fund. 
76 Online information from CAMMESA, Procedimientos para la programación de la operación, el 
despacho de cargas y el cálculo de precios .  Viewed at:  
http://portalweb.cammesa.com /Pages/Institucional/Empresa/procedimientos.aspx. Argentina WT/TPR/S/277 
 Page 159 
 
 
  (GUME), and individual large users (GUPA).77  When a generator has supply contracts with a 
distributor or with a GUMA, it sells the volume agre ed in the contract on the forward market at the 
agreed prices;  any surplus is sold on the spot mark et at market prices.  Generators without contracts 
sell all their output on the spot market.  Small u sers (with demand of less than 30 kW) are customers 
of the distributors within a geographical area in wh ich the latter have exclusive rights and are subject 
to regulated tariffs. 
153. Electricity prices in Argentina are among the lo west in Latin America.  The average price 
in June 2012 was Arg$120/MWh (around US$0.027 per kWh).78  A surcharge is applied to the tariffs 
paid by wholesale market buyers, i.e., the distribut ors and large users.  This surcharge feeds the 
National Electric Power Fund (FNEE), in accord ance with Law No. 15.336 of 22 September 1960.79  
Under Resolution No. 1.872/2005, the surcharge is set at Arg$0.0054686/kWh and is updated each 
quarter.  This Resolution also provides for 79.44% of  total FNEE revenue to be used to finance the 
Subsidiary Fund for Regional End-User Tariff Comp ensation (60% of this percentage) and the Fund 
for the Development of Electricity in the Interior (40%).80  Of the remainder, 0.7% goes towards 
financing the development of wind power and 19. 86% to the Trust Fund for Federal Electrical 
Transport established by Resolution No. 657 of 3 December 1999 of the Secretariat for Energy. 
(ii) Legal and regulatory framework 
154. The Secretariat for Energy, attached to the M PFIPS, is responsible for the formulation and 
implementation of policies for the electricity sector.  The privatized sector is regulated by the National Electricity Regulatory Authority (ENRE), a self-governing body under the jurisdiction of the Secretariat for Energy.  ENRE is authorized to monitor compliance with Federal concession contracts 
by observing end-user tariffs in the areas operated by Edenor and Edesur.
81  Provincial distributors are 
regulated by their respective provincial authorities. 
155. CAMMESA, established by Decree No. 1.192/91, administers the MEM and is responsible 
for technical and economic dispatching, as well as  for coordinating the centralized operation of 
the SADI. 
                                                      
77 As a minimum, GUMA must have a demand for power for their own consumption of 1 MW or more 
at each physical connection point and energy demand of 4,380 MWh or more an nually.  They must also contract 
at least 50% of electricity demand with electricity generators or dealers on the fo rward market.  
The requirements for GUME are a mi nimum of 30 KW but less than 2,000 KW, while for GUPA the demand 
for power for own consumption must be 30 KW or more but less than 100 KW.  In both cases, 100% of the 
demand for electricity must be contracted on the MEM. 
78 Online information from CAMMESA.  Viewed a t:  http://portalweb.camme sa.com/default.aspx2006. 
79 Amended by Article 70 of Law No. 24.065 of 16 January 1992;  Article 5 of Law No. 25.019 
of 26 October 1998;  Article 74 of Law No. 25.401 of 4 January 2001;  and Article 1 of Law No. 25.957 
of 2 December 2004. 
80 The Subsidiary Fund for Regional End-User Tari ff Compensation is distributed among the provinces 
to prevent differences in provincial tariffs so that all the inhabitants of the same province pay the same tariff 
even when their supplies co me from costly sources and they are not connected to the national grid.  The Fund 
for the Development of Electricity in the Interior is in tended to finance new electric power lines.  According to 
the authorities, the FNEE is responsible for assisting pr ovinces with fewer resource s and more energy needs. 
81 Online information from ENRE.  Viewed at:  h ttp://www.enre.gov.ar/.  Until November 2011, it also 
supervised Edelap.  The concession for the public elect ric power service in the La Plata and neighbouring areas 
awarded to this firm was taken over by the Province of Buenos Aires pursuant to National Executive Decree 
No. 1.853 of 16 November 2011. WT/TPR/S/277 Trade Policy Review 
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  156. The legal framework for the electricity sector in Argentina is mainly composed of 
Law No. 24.065 of 16 January 1992 (Electric Po wer Regime) and its im plementing regulations, 
Decree No. 1.398/92.  The Law divided up the electri city sector into segments and provided for each 
segment to be partially or wholly privatized.  It imposes limits on economic concentration in the 
sector, prohibiting vertical integration but not cro ss holdings, albeit non-majority, between generators 
and distributors.  Notwithstanding this, the Executive may authorize a generator, distributor and/or 
large user to build a transport network for its ow n use.  Export or import of electric power must 
receive prior authorization from the Secretariat for Energy. 
157. The Law describes electricity transport and distribution as a public service, but stipulates that 
priority for providing them must be given to private legal persons operating under concessions from 
the Executive, although it authorizes the State, e ither on its own or through  any of its bodies or 
dependent companies, to provide such services if there are no candidates or concession holders.  
Distribution or transport concessions given to private legal persons are for a fixed term of ten years, 
renewable for similar periods.  Concession contracts incl ude an initial tariff scale valid for five years, 
adjustable under a system of maximum prices fi xed by ENRE for successive five-year periods.  
Transporters and distributors must apply these tariff scales.  Distributors may not use cross subsidies 
between categories of users, and price discriminati on is also prohibited.  However, mechanisms are 
provided to cover tariff differentials for predetermined users. 
158. Generation only requires a concession in the case of hydroelectric energy if the power 
exceeds 500 kW.  Law No. 24.065 allows generators to enter into supply contracts directly with 
distributors and large users.  If there is no contract, generators sell power on the market at hourly spot 
prices, but for the power sold they receive the same tariff at each point of delivery. 
159. Argentina's legislation divides the end-user ma rket into a regulated segment (end users) and 
another open to competition (large users).  In the regulated segment, the distributor holding the concession is guaranteed a monopoly, but must satisfy all the demand that it is required to meet under 
the terms of the concession contract;  the tariffs ar e regulated.  The large users are agents of the MEM 
and therefore free to procure electricity on the market at the price determined by the latter. 
160. Law No. 24.065 requires privatized distribution companies to buy power on the market at a 
stabilized (predetermined) seasonal price, adjust ed quarterly.  The prices are determined by 
CAMMESA and approved by the Secretariat for Energy.  Seasonal prices are based on an energy price calculated according to the probable margin al cost and a price for power in the light of 
requirements to cover demand, reserve stocks and ot her services related to the operation of the MEM. 
161. The adjustment clause system for electric power tariffs applied to users by distributors was 
suspended by the Public Emergency and Ex change Regime Reform Law No. 25.651 of 
7 January 2002, opening up a contract renego tiation process with Edenor, Edesur and Edelap 
(Executive (P.E.N.) Decree No. 802/2005 of 14 July 2005), and with two distributors and six transport 
companies.
82  Edelap (currently under provincial administration) was the only distributor authorized 
to increase its tariffs.  The agreement with Tran sener (Executive (P.E.N.) Decree No. 1.462/2005 
of 2 December 2005) authorized an average tariff rise of 31% as of 1 June 2005 until ENRE completed a comprehensive tariff review.
83  There has been no further renegotiation of contracts since 
then.  Provincial distributors are governed by the rules applicable in each province. 
                                                      
82 Unit for Renegotiation and Examination of Public Service Contracts (2005a). 
83 Idem  (2005b). Argentina WT/TPR/S/277 
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  162. Transport of electricity is paid for by means of a system of fixed and variable charges.  
Transporters and distributors are obliged to allow third parties indiscriminate access to any transport 
capacity in their systems that is not already contractually committed. 
163. The authorities promote electric power saving through programmes such as the Programme 
for Rational Use of Electric Power (PUREE), introd uced by Resolution No. 745/05 of the Secretariat 
for Energy and implemented by ENRE Resolution No. 355/05 and amendments thereto.  It applies to 
household, commercial and industrial users of the firms Edenor S.A. and Edesur S.A.  
The Programme consists of a ser ies of incentives to lower consum ption through a mechanism that 
gives reductions and imposes additional charges.   Under SE Resolution No. 797/2008, household 
users whose consumption exceeds 1,000 kW every two months are not eligible for the reductions.  
Since November 2008, commercial and industrial  users have been excluded from PUREE.  
The reductions are calculated on the basis of the kW h saved and are financed through the additional 
charge on consumers of excess amounts of electricity  within the same category and subcategory.  
Additional charges are paid by household u sers consuming over 300 kWh every two months. 
164. During the period under review, the National Pr ogramme for Rational and Efficient Use of 
Energy (PRONUREE) was launched (Executive (PE)  Decree No. 140/2007 of 21 December 2007) 
with the aim of improving management of electricity demand according to fairness and 
efficiency criteria. 
165. SE Resolution No. 1.281/06 launched the "Ene rgy Plus" Programme, created to promote 
increased electricity generating capacity in order to meet growing demand and to boost Argentina's 
industrial production.  In force since 1 November 2006, the Resolution provides that the priority for 
the energy sold on the spot market is to meet demand from distributors and/or suppliers of the public 
electricity service which lack the necessary capacity to contract supplies on the MEM.  
The Resolution stipulates that any increase in power of  large users after the base year (2005) must be 
the subject of firm supply contracts for power installed subsequent to the entry into force of this rule.  
It also provides that large users with power of 300 KW or more are the last priority for supplies and 
must meet increased demand for energy by gene rating their own power or by signing forward 
contracts with new generators.  The prices in the contracts must be submitted to CAMMESA for 
consideration.  The latter prepares a report which th e Secretariat for Energy forwards to MPFIPS for 
approval.  Large users which do not sign forward contracts and are covered by the Resolution must 
reduce their consumption, as instructed by CAMMESA, and if they fail to do so they have to pay an 
additional hourly amount of Arg$3,000/MWh for th e excess energy consumed.  The calculation is 
based on the social cost of the energy not supplied. 
(6) SERVICES  
(i) Main features and multilateral commitments 
166. In 2011, the services sector accounted for 62% of  GDP at current prices, compared to 53.4% 
notified for 2005 in the previous Report.  This pe rcentage rises to 68% if electricity, water and gas 
supplies (2% of GDP) and construction (6% of GDP) are included.84  The commercial services and 
real estate services subsectors were the most impor tant in 2011, with GDP shares of 11.6% and 9.1%, 
respectively, followed by transport and communicati ons, with 7.3%, and financial services accounting 
for 5.3%.  According to the World Bank's Services Trade Restrictions Index, the Argentine services 
                                                      
84 Online information from the MEP.  Viewed at:  
http://www.mecon.gov.ar/downloa d/infoeco/apendice1.xls. WT/TPR/S/277 Trade Policy Review 
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  sector's restrictiveness index is 17 on a scale that ranges from zero (totally open) to 100 (totally 
closed).  This places it among the countries that are "virtually open but with minor restrictions".85 
167. In the Uruguay Round, Argentina accepted commitm ents in six of the 12 sectors specified in 
the GATS.  Those relating to specific sectors co mprised:  business services;  communications 
services;  construction, engineering and related services;  financial services;  distribution services;  
and tourism and travel-related services.86  Argentina bound commitments in 59 specific subsectors.  
It has not stipulated limitations on market access or national treatment with respect to cross-border supply (mode 1) or consumption abroad (mode 2) in  any of the sectors included in its schedule of 
specific commitments under the GATS.  The only limitation imposed on commercial presence (mode 3) relates to the requirements for acquiring land in frontier areas (150 km in land frontier areas 
and 50 km in coastal areas).  Where supply thro ugh the presence of natural persons (mode 4) is 
concerned, commitments have been bound only with respect to the presence of managers, executives 
and specialists, in relation to both market access and national treatment, the other categories being 
left unbound. 
168. Argentina participated in the extended nego tiations on telecommunications, broadening its 
commitments.
87  Only the provision of satellite facilities of geostationary satellites operating fixed 
satellite services was excluded from MFN treatment a nd is subject to cond itions of reciprocity.88  
Argentina ratified the Fourth Protocol on Teleco mmunications annexed to the General Agreement on 
Trade in Services by adopting Law No. 25.000.  It also participated in the extended negotiations on 
financial services but did not submit any new of fer.  Within the context of the Doha Round 
negotiations on services, Argentina subm itted an initial offer in April 2003. 
169. Argentina applies MERCOSUR's Montevideo Pr otocol on Trade in Services, signed in 1997 
and incorporated into Argentine legislation by Law No. 25.623, adopted on 17 July 2002 and published on 15 August 2002.  The Montevideo Protoc ol aims to liberalize services over a ten-year 
period as of its entry into force.  The Protocol entered into force on 7 December 2005, after being 
ratified by Argentina, Brazil and Uruguay. 
(ii) Telecommunications 
(a) Main features 
170. In September 2011, there were around 9.65 million fixed telephone lines installed in 
Argentina (of which 9.46 million were in service).
89  As regards mobile telephony, the total number of 
mobile telephones was 57.65 million in September,  a substantial increase over the 23.9 million 
                                                      
85 Online information from the World Bank, Services Trade Restrictions Database .  Viewed at:  
http://iresearch.worldbank.org/servicetrade. 
86 WTO document GATS/SC/4 of 15 April 1994. 
87 WTO document GATS/SC/4/Suppl.1 of 11 April 1997. 
88 WTO document GATS/EL/4 of 11 April 1997. 
89 Online information from INDEC, Servicio telefónico básico:  líneas instaladas, líneas en servicio, 
teléfonos públicos y llamadas nacionales urbanas;  Servicio de telefonía celular móvil:  teléfonos en servicio, 
llamadas y mensajes de texto SMS .  Viewed at:  http://www.indec.mecon.ar/ 
nuevaweb/cuadros/14/sh_comunicac2.xls. Argentina WT/TPR/S/277 
 Page 163 
 
 
  indicated for March 2006 in the previous Review.90  Total teledensity (fixe d plus mobile telephones) 
was 167% in September 2011, compared to 85% in March 2006. 
171. The process of privatizing and liberalizing th e telecommunications sector started with the 
privatization of the State-owned telecommunications  company under Decree No. 62 of 1990.  At that 
time, the market was a monopoly;  the national telecommunications company provided services 
throughout Argentina and local te lephone cooperative associations in areas of low population density, 
which provided a basic service in those areas under li cences granted by the State, were connected to 
its national public telephony network.   This situation changed with the enactment of Decree No. 62 
of 1990, which required all services to be provi ded on a competitive basis, with the temporary 
exception of the basic telephone service (SBT).  This was to be provided by two private licensees, for 
which purpose the country was divided into two regions.91  Telephone cooperative associations were 
termed Independent Operators (OI) with a monopoly in the areas they served. 
172. In the extended negotiations on basic teleco mmunications under the GATS, Argentina 
undertook not to impose any restrictions  on access to telecommunications markets 
after 8 November 2000, with the exception of inte rnational satellite services.  The market was 
formally deregulated following adoption of Decree No. 465 of 13 June 2000 and amendments 
thereto.92  Decree No. 764/2000 introduced a new regulatory framework for the supply of 
telecommunications services and opened up all national and international services in the 
telecommunications sector to competition as of N ovember 2000.  A single licensing regime and the 
National Interconnection Regulations (RNI) were al so introduced.  Since then, the SBT has been 
provided by three types of provider:  traditional pr oviders, independent operators (local cooperative 
associations and local authorities which provided the service prior to privatization) and new operators 
(companies and cooperative associations which star ted to provide the servi ce after the end of the 
exclusivity period).93 
173. In October 2012, the two "traditional operato rs" (Telefónica and Telecom Argentina) 
continued to dominate the telephony market and betw een them had 89% of the market.  There were 
also 289 independent operato rs (operating prior to 2000), which acc ounted for close to 6% of the lines 
in service, while new operators (from 2000 onwards) provided services to almost 6% of the total lines 
in service.  In Argentina as a whole, fixed telephone density at the national leve l is 24.5%;  teledensity 
                                                      
90 Online information from the CNC.  Viewed at:  http://www.cnc.gov.ar/indicadores;  and online 
information from SECOM.  Viewed at:  http://www.secom.gov.ar/municipios/ 
seccion.asp?MID=10&Seccion_Id=61. 
91 These companies are:  Telefónica de Argen tina S.A. in the southern region and TELECOM 
Argentina STET FRANCE TELECOM S.A.  (now Telecom Argentina S.A.) in the northern region.  The 
temporary exception was for a period of ten years as of privatization, during which the two companies were 
guaranteed a monopoly of telecommunications services in their respective areas of Argentina.  Pursuant to Decree No. 62/90, the SBT is defined as the supply of fixed telecommunications links that form part of the 
public telephone network or are connected to it and the supply of urban, interurban and international voice 
telephony services through them. 
92 Article 1 of Decree No. 465/2000. 
93 Online information from the National Communications Commission (CNC), La Telefonía Fija en 
Argentina .  Viewed at:  http://www.cnc.gov.ar/ciudadanos/te lefonia_fija/index.asp.  A "traditional operator" 
means the holder of a licence for basic telephone service in the northern or southern region in the terms of 
Decrees Nos. 2.347/90 and 2.344/90.  The regulations in Argentina define "dominant providers" (PPD) as those 
whose revenue earned from providing the service exceeds 75% of the total earnings of all providers of the service in question, within a specified area or at the national level, as applicable.  "Significant providers" are 
defined as those whose income earned from providing the service exceeds 25% of the total earnings of all 
providers of the service in question, within a specified area or at the national level, as applicable. WT/TPR/S/277 Trade Policy Review 
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  in the Metropolitan Area of Buenos Aires rises to 40%.94  There are currently four operators in the 
mobile telephony market:  Personal (Telecom) , MoviStar (Telefónica, formerly Unifón and 
Movicom), Claro (América Móviles, formerly CT I) and, as a provider of radio trunking services, 
Nextel, which focuses on the business market. 
174. In 2010, the authorities launched the Argentina Conectada  National Telecommunications 
Plan pursuant to Decree No. 1.552/2010.  The Plan  revolves around three axes:  digital inclusion;  
more efficient use of the radio spectrum;  dom estic production and generation of jobs in the 
telecommunications sector;  training and research in communications technologies;  and infrastructure and connectivity.  The Decree declares the developm ent, implementation and op eration of the Federal 
fibre optic network to be of public interest.  A Planning and Strategic Coordination Commission was 
set up to implement the Plan.  MPFIPyS Resoluti on No. 2.161/2010 approved the rules of procedure 
for the Planning and Strategic Coordination Commission for the Argentina Conectada  National 
Telecommunications Plan, established its organizat ional structure and allotted responsibilities to 
its members. 
(b) Regulatory and legal framework 
175. The institutions involved in implementing telecomm unications regulations an d legislation are:  
the MPFIPS, the Secretariat for Communications (SECOM) within the MPFIPS, and the National 
Communications Commission (CNC).  SECOM help s the MPFIPS in formulating, proposing and 
implementing telecommunications a nd postal policies, monitoring compliance with them and with the 
corresponding regulations.  It is also responsible  for developing draft general regulations on the 
provision of communications services, and for approving Argentina's radio spectrum band 
allocation table.
95 
176. The CNC, a decentralized SECOM body, was created by Decree No. 660/96 and is 
responsible for regulating, monito ring, controlling and verifying ma tters relating to the supply of 
telecommunications and postal services and use of the radio spectrum.96  The CNC helps SECOM to 
update and develop the basic technical telecommunica tions plans and issue the general regulations for 
the services within its jurisdiction.  The CNC is authorized to implement, interpret and ensure 
compliance with the decrees and other regulatory rules on telecommunications and postal services and 
to impose the penalties applicable if the rules on telecommunications in force are infringed.  
Decree No. 764/2000 provides for participation by th e MEFP's Secretariat for Consumer Protection in 
specific activities.  Another responsibility of the CNC is to administer the radio spectrum (including 
broadcasting), to approve equipment and material s used specifically for telecommunications, to 
review interconnection contracts between providers of telecommunications services and to take 
measures concerning the supply of satellite services in  Argentina.  At the international level, the 
CNC seconds SECOM as Argentina's representative in  international teleco mmunications and postal 
                                                      
94 Online information from the CNC, Evolución y penetración del servicio .  Viewed at:  
http://www.cnc.gov.ar/ciudadanos/tele fonia_fija/evolucion.asp#iconsumo. 
95 Online information from SECOM.  Viewed at:  
http://www.secom.gov.ar/municipios /ver.asp?MID=10&tipo=nota&id=346. 
96 In this role, the CNC is empowered to administer, manage, monitor and control telecommunications 
services and systems, including telephony, the In ternet, audiotext, satellites, maritime and aviation 
communications services, and to act to ensure compliance with the terms, quality standards and other obligations imposed by the supply of the universal basic postal service, private operators and/or other official 
postal services considered to be mandatory (online information from the CNC.  Viewed at:  
http://www.cnc.gov.ar). Argentina WT/TPR/S/277 
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  organizations.  An ad hoc working commission, composed of representatives of SECOM and the 
CNC, was set up by SC Resolution No. 8/2009 to foster coordination between SECOM and the CNC. 
177. Law No. 19.798 of 23 August 1972 (Telecommunica tions Law) is the principal law governing 
the telecommunications sector, with its ame ndments, including Decree No. 731/89 and the 
amendment thereto No. 59/90, which began the privatization and reform of the sector, together with 
Decree No. 60/90, which divided Argentina into two regions for the purpose of providing basic 
telephone services.  Decree No. 62/90 approved the licensing regime for the supply of the SBT under 
a temporary exclusivity regime.  Decree No. 264/98  of 13 March 1998 authorized the granting of 
licences for the provision of local and long-distance telephony services in new areas, but erected temporary barriers to the entry of new players into the market. 
178. Law No. 25.000, enacted on 1 July 1998, approved the Fourth Protocol annexed to the GATS, 
and Decree No. 764/2000 of 3 September 2000 gave effect to liberalization of the market as 
of 8 November 2000.  This Decree established a new regulatory framework that eliminated the 
barriers to the entry of new operators and provi ded that there should be no obstacles to the 
incorporation of new technologies in the telecommunications market. 
179. Under Decree No. 764/2000, as of November 2000, a Single Telecommunications Services 
Licence has been granted without any time-limit.  The licence authorizes the provider to offer any 
type of registered telecommunications service, wi th or without its own infrastructure, throughout 
Argentina.  There are no restrictions on the pa rticipation of foreign capital.  Licences may be 
transferred or assigned, subject to authorization.  The obtaining of a licence is independent of the use of the radio spectrum frequencies, which has to be authorized by SECOM. 
180. Law No. 25.891 of 28 April 2004 or Law on Mo bile Communications Services, for which 
implementing regulations are curre ntly being adopted by the Executive, provides that mobile 
communications services may only be provided th rough companies legally authorized for this 
purpose, and no reseller, wholesaler or any other person not so authorized is permitted to do so. 
181. For the most part, rates for telecommunications services can be freely determined, except in 
the case of the SBT, which is governed by the Gene ral Tariff Structure (EGT).  The latter applies to 
privatized companies or traditional operators (T elecom Argentina S.A. with competence for the 
northern zone and Telefónica de Argentina S.A. fo r the southern zone), as well as to independent 
operators in their respective areas of supply.   The EGT determines the maximum rates which 
companies may impose on clients in their areas for the service and connection charges.  These 
companies may set rates below the limits determin ed by the EGT by area, routing, long-distance 
routes and/or groups of clients, pursuant to Decree No. 764/2000. 
182. The Public Emergency Law authorized the Na tional Executive to renegotiate the contracts 
with the traditional providers.  As steps in the renegotiation process, the Gove rnment signed letters of 
understanding with Telefónica and Telecom Argentin a in 2004 and 2006.  Th rough these letters, the 
licensees undertook to achieve the long-term goals relating to standard of service established in 
Decree No. 62/90 by 31 December 2010, while the Government approved a correction factor for the 
termination of incoming intern ational calls.  These letters of  understanding were not, however, 
implemented.  Consequently, even though the Executi ve has the power to modify the EGT, SBT rates 
have been frozen since 1999.
97 
                                                      
97 Online information from the CNC, Acerca de las tarifas .  Viewed at:  
http://www.cnc.gov.ar/ciudadanos/telefonia_fija/tarifas.asp. WT/TPR/S/277 Trade Policy Review 
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  183. In accordance with Article 11 of the Licensing Regulations, new companies are free to set 
their rates and/or prices for the services provided fo r objective categories of clients.  These rates must 
be applied without discrimination and ensure the tran sparency of the prices applicable to each of the 
services provided to the public.  Article 34 of the General Regulations on Clients of Mobile 
Communications Services states that, even though prices can be freely set, the Regulatory Authority 
may exceptionally decide on any type of restriction or  provide for prior authorization for duly justified 
reasons of public interest. 
184. SC Resolution No. 98/2010 approved the Di gital Portability Regime.  Joint Resolution 
SC No. 8/11 and SCI No. 3/11 approved the timetable  for implementing this Regime, which became 
effective throughout Argentina on 30 March 2012.98 
185. The RNI are contained in Annex II to Decree No . 764/2000.  The RNI stipulate that the rates 
for interconnection are to be determined freely and that they must be fair, reasonable and 
non-discriminatory.  Significant or dominant pr oviders are required to  submit a reference 
interconnection offer, in which they must indicat e the maximum rates applicable to each of the 
interconnection components.  SECOM may intervene to  set the price at the request of any of the 
parties involved in an interconnection agreement if there is disagreement with respect to conditions 
or rates. 
186. The General Regulations on the Universal Tel ecommunications Service (RGSU) entered into 
force through implementation of Decree No. 558/20 08 of 4 April 2008, replacing the former RGSU 
contained in Decree No. 764/2000 (Annex III).  Th e RGSU extend coverage beyond the basic 
telephone service and provide for expansion of servic es to areas without coverage or with unsatisfied 
needs.  They also allow for the po ssibility of granting subsidies for the service in high-cost areas, or to 
certain clients or groups of clients whose needs ca nnot be met according to commercial standards.  
SECOM is the implementing authority for the RGSU. 
187. Decree No. 558/2008 introduced the Universal Se rvice Trust Fund, created by the former 
RGSU to finance the investment needed for thei r implementation.  The Fund's resources come from 
contributions by telecommunications service providers , which have to contribute 1% of their total 
earnings from providing telecommunications services, net of tax and other charges.  SC Resolution 
No. 7/2009 approved the model trust agreement fo r the Fund.  SC Resolution No. 154/2010 approved 
the methodology for making contributions to the Universal Service through the Universal Service 
Trust Fund's escrow account in trust. 
188. In order to implement the RGSU, the Govern ment has launched an Infrastructure and 
Equipment Programme, introduced by SC Resolution No. 9/2011, with the aim of establishing a new 
infrastructure and/or modernizing the existing on e to meet Universal Service needs in areas not 
covered or with unsatisfied needs. 
189. Under Decree No. 558/2008 and by means of SC Resolution No. 88/2009, SECOM launched 
the Universal Service Programme "Telephony and Broad Band Internet for Areas without a Basic 
Telephone Service".  In March 2012, the Gove rnment issued an invitation to tender for 
implementation of this Programme, the objective being to give Argentina's population access to 
information and communications technologies.  In this  first bidding process, the focus is on providing 
telephony and broad band Internet services to 400 localities that have no basic telephony, 
corresponding to over 180,000 inhabitants, 1,000 schools and 80,000 pupils.  The investment in 
                                                      
98 Online information from SECOM, Portabilidad Numérica .  Viewed at:  
http://www.secom.gov.ar/inde x.php?pageid=52&secc=949. Argentina WT/TPR/S/277 
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  infrastructure for this part of the project is ca lculated at Arg$500 million.  It is estimated that, 
overall, the Programme will reach 1,491 localities,  i.e. 509,169 inhabita nts and 2,792 schools, 
with 250,000 pupils.99 
190. Other programmes implemented to achieve wi despread use of information technologies 
include the Internet Programme for Educationa l Establishments, created by SC Resolution 
No. 147/2010, whose aim is to provide broad ba nd Internet service to State-run educational 
establishments.  The first competitive bidding took place in 2011 to connect 4,906 establishments in 17 provinces, with 1.8 million pupils.  By the e nd of 2012, it is hoped to  have 10,000 educational 
establishments with 3 million pupils connected.  By the end of the process, it is expected that a total of 
45,000 State-run educational establishments with  11.75 million pupils will have benefited from 
this policy.  An Internet Programme for Public  Libraries has also been implemented under SC 
Resolution No. 148/2010, the aim being to pr ovide 2,000 public libraries with broad band 
Internet access. 
191. Pursuant to Law No. 25.239, a 4% tax is imposed on the amount invoiced to the user for the 
provision of cellular or satellite telephone ser vices.  Moreover, under Decree No. 1.185/90 and 
amendments thereto, providers must pay a control,  inspection and verification tax on the provision of 
telecommunications services, together with fees, du ties, tariffs and charges for use of the radio 
spectrum.  Providers with teledensity of 15% or l ess in a specified service and area may be exempt 
from payment of the tax on the income earned from pr oviding the service in that particular area, as 
well as on that from providing the universal service. 
(c) Audiovisual services 
192. The tasks of the Federal Audiovisual Communi cations Services Authority (AFSCA), created 
in 2009, are to apply, interpret and ensure comp liance with the Law on Audiovisual Communications 
Services (see below) and its implementing regulations.  It is also AFSCA's role to prepare and update 
the technical regulations for this activity and to  approve the technical projects of broadcasting 
stations, grant authorizations and approve the launching of regular broa dcasts, in conjunction with the 
regulatory authority and the implementing authority for telecommunications. 
193. Audiovisual communications services throughout Argentina are regulated by Law No. 26.522 
of 10 October 2009 (Law on Audiovisual Communicati ons Services).  Under this Law, audiovisual 
communications services are deemed to be an activity  of public interest, essential for the population's 
socio-cultural development.  Even though it does not rest rict the right to participate in this activity, it 
makes it subject to regulation.  The Law provides that State-managed and privately-managed 
providers may operate audiovisual communications ser vices, whether or not for profit, and that they 
must be capable of operating all the available tr ansmission platforms and giving equitable access to 
them.  Decree No. 1.525/2009 lays down the terms for the AFSCA's operation. 
194. Ground or satellite radio communications and television services for subscribers using the 
radio spectrum require prior authorization by the implementing authority. 
                                                      
99 MPFIPS (2012). WT/TPR/S/277 Trade Policy Review 
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  (iii) Financial services 
(a) Main features 
195. The financial services sector includes:  the financial system, i.e. public and private banks, and 
non-banking institutions such as finance companies,  and credit funds;  insu rance companies;  and 
participants in the securities market. 
196. Argentina undertook specific commitments on fina ncial services in the WTO.  All these 
commitments appear in its initial schedule of con cessions as Argentina did not submit any offer in the 
extended negotiations on these services under the GA TS.  In its specific commitments, Argentina 
bound, without limitations, consumption abroad and commercial presence in relation to all types of 
bank loans and deposits, financial leasing, guaran tees and commitments, money market and foreign 
exchange instruments, derivative products, and advi sory services, among others, but left unlisted new 
financial services unbound.100  In the field of insurance, Argentina bound cross-border supply and 
consumption abroad for maritime and air tran sport insurance services and reinsurance and 
retrocession services.  In its GATS schedule of commitments, Argentina made being a member and shareholder of the securities market a prerequis ite for engaging in stock exchange transactions. 
(b) Banks and other financial intermediation institutions 
Main features 
197. During the period under review, the consolidation of  Argentina's financial system continued.  
In early 2012, the financial system, which includes the establishments regulated by the Central Bank 
of the Argentine Republic (BCRA), consisted of  64 banks, 14 finance companies and two credit 
funds, compared to 72 banks, 16 finance companies and two credit funds notified in the previous 
Report.  Of the total number of banks, 12 were public and 52 private.
101  Among the public banks, two 
were national and ten provincial or municipa l.  Among the private banks, 31 were local 
domestic-capital banks, 12 were local foreign capital ba nks, and nine were branches of foreign banks.  
Of the 14 finance companies, five were domes tic-capital companies and nine foreign-capital. 
198. The public banks continue to make  an important contribution to financial activity.  Of the top 
ten Argentine banks in terms of assets, three are pub lic banks:  the BNA, the largest in the country in 
terms of assets and loans, deposits and net worth;  th e Bank of the Province of Buenos Aires;  and the 
Bank of the City of Buenos Aires.  The BNA operates as a State commercial bank and as a promotion and development bank.
102 
199. The levels of financial inte rmediation (deposits and loans) continued their upward trend 
in 2011 and 2012.  Bank loans to the private sector as a percentage of GDP, in particular, showed a 
marked rise, reaching 15.2% in 2011, even thou gh the authorities consider that there is still 
                                                      
100 Argentina has excluded from these concessions financial transactions by the Government and 
State-owned companies (WTO document GATS/SC/4 of 15 April 1994). 
101 Supervisory Authority for Financial and Foreign Exchange Establishments (2012). 
102 Online information from the BNA, Perfil de la entidad .  Viewed at:  
http://www.bna.com.ar/institu cional/institucional.asp. Argentina WT/TPR/S/277 
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  considerable potential for development over the next few years.103  It is estimated that around 88% of 
the balance of the financing is in pesos, compared to around 40% prior to the 2001-2002 crisis. 
200. Although all financial groups increased their loans to the private sector, especially in 
Argentine currency, the increase w as greater in the case of public banks, where it reached almost 60% 
in 2011.104  In that year, loans to households and busin esses recorded growth of 46.2%, with an annual 
rate of 42.8% for the 12 months prior to March 2012.105  Household loans went from 43% of assets in 
December 2010 to 51% at the end of 2011.  Loans to  the business sector have been rising at even 
more sustained rates, especially loans to industr y.  The banking sector has also gradually been 
lessening its exposure to the public sector:  in December 2011, loans to the public sector made 
up 10.6% of assets, 1.6 percentage points less than at the end of 2010.  During the period under 
review, the public sector became a net creditor of the banking system.  Bearing in mind the resources 
that are available to financial institutions from de posits by the public sector, at the end of 2011 the 
latter's net credit position vis-à-vis  the banks corresponded to almost 10% of total assets, compared to 
a debit position of 16% at the end of 2005. 
201. In 2011, for the seventh consecutive year the fina ncial system closed its accounts with a credit 
balance (Arg$14,720 million), which has helped in stabilizing solvency levels.  Profits in 2011 
corresponded to 2.7% of assets, a level similar to th at in 2010.  All banking groups showed a profit, 
with a slight improvement in that of the public  banks and a decrease among private institutions.  
The consolidated net assets of the financial system rose by 24.2% in 2011.  The irregular loan ratio for 
the private sector fell to around 1.5% in March 2012, 6 percentage points less than six years previously;  the non-performing loan ratio was ar ound 1.8%.  Coverage of irregular loans by 
provisions amounted to 158%, almost 43 percentage points more than six years previously. 
202. Argentina's financial system has adequate leve ls of solvency.  The banks' net worth increased 
by almost 22% during 2011, mainly attributable to book profits and, to a lesser extent, to capital inflow.  In 2011, the percentage of paid-up capital was 15.5% of credit risk-weighted assets, 2.2 percentage points lower than in 2010, re flecting higher levels of financial activity, but 62% 
above the regulatory requirement.
106  During the first months of 2012, growth in financial 
intermediation slowed down slightly, but the percentage of paid-up capital rose to 15.9%.107  All 
groups of financial institutions maintained a per centage of paid-up capital in excess of the minimum 
regulatory requirements. 
203. Total deposits in the financial system (in Arge ntine and foreign currency) also rose rapidly 
over the period 2010-2012, at rates of over 20% annuall y.  The rates of financial leverage (assets over 
net worth) were 9.2%, lower than in other c ountries in the region (according to the BCRA).  
In addition, despite a decline in the second half of 20 11 and in 2012 in particular, the financial margin 
remained relatively high, especially for non-bankin g financial institutions (EFNB) (Table 1V.7). 
                                                      
103 BCRA (2012a).  In connection with this Review, the authorities emphasized that, although this 
percentage relating to the deepening of credit has risen by 5 percentage points since 2005, it is still below the 
figures prior to the 2001-2002 crisis. 
104 In December 2011, the total balan ce of loans to the private sector could be broken down as follows:  
66.6% from private banks, 29.8% from public banks and 3.6% fro m non-banking financial institutions 
(BCRA, 2012a). 
105 BCRA (2012b) 
106 Idem  (2012a). 
107 Idem  (2012b). WT/TPR/S/277 Trade Policy Review 
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  Table IV.7 
Profitability structure by  group of banks, 2011 
(Yearly indicators as a percentage of average net assets) 
Total  Private banks Public banks EFNB Financial 
system National Foreign National Foreign 
Financial margin  9.0 8.4 9.6 6.4 16.6 8.0 
Performance by interest  6.1 5.6 6.6 2.1 15.8 4.6 
CER (benchmark stabilization coefficient) and CVS (wage 
variation coefficient) adjustments 0.1 0.0 0.2 0.6 0.0 0.3 
Performance by securities  2.1 2.4 1.8 3.4 0.4 2.6 
Variation in market value  0.7 0.5 0.9 0.4 0.4 0.6 
Other financial balances  0.0 -0.1 0.1 -0.1 0.0 0.0 
Performance by service  5.0 4.7 5.3 2.5 5.4 3.9 
Administrative costs  -7.8 -7.6 -8.1 -5.0 -10.6 -6.7 
Provision for bad debts  -0.9 -0.9 -0.8 -0.4 -2.3 -0.7 
Impact of the 2001-2002 crisis  -0.1 0.0 -0.1 -0.2 0.0 -0.1 
Tax burden  -1.4 -1.5 -1.3 -0.6 -1.9 -1.1 
Miscellaneous  0.6 0.7 0.5 0.5 1.4 0.5 
Overall performance before IG  4.4 3.7 5.1 3.1 8.6 4.3 
IG  -1.4 -1.1 -1.7 -0.9 -3.1 -1.4 
Closing balance (ROA)  3.0 2.6 3.4 2.3 5.5 2.9 
Adjusted balance  3.0 2.6 3.5 2.5 5.5 3.0 
Balance as a % of net worth (ROE)  25.6 23.1 28.1 25.2 20.9 27.1 
Performance before IG as a % of 
net worth 37.8 33.5 42.3 34.9 9.1 40.4 
Source : BCRA. 
 
Legislative framework 
204. The main provisions relating to the regulation of the banking system and other financial 
institutions can be found in Law No. 21.526 (Law  on Financial Establishm ents) and amendments 
thereto.108  The application of this Law and, in genera l, supervision of the financial intermediation 
system is the responsibility of the BCRA, under its  Charter and the extended powers conferred on it 
by Law No. 25.782.  The BCRA operates through the Supervisory Authority for Financial and 
Foreign Exchange Establishments (SEFyC).  It regularly publishes an updated summary of its 
regulations, which may be viewed online. 
205. Under Argentina's legislation, financial ins titutions can freely enter or withdraw from the 
market, conduct mergers or be taken over.  The legi slation does not impose any restrictions as to the 
nationality of investors wishing to participate in  the local financial system or as regards the 
transactions that may be conducted by the instituti ons in which they participate inasmuch as the 
principle of equal treatment for Argentine and foreign capital prevails. 
206. The establishment of new financial institutions, th eir expansion, merger and changes in their 
capital or functions require prior authorization from the BCRA.  In making its decision, the BCRA 
takes into account considerations of expediency, the features of the project, market conditions, the 
record and responsibility of the appli cants and their financial experience.109  Financial institutions may 
be established in the form of commercial ba nks, investment banks, mo rtgage banks, finance 
companies, savings and loan associations for housing and other real estate, or credit funds.  
Depending on the transactions they are authorized to conduct, commercial banks are classified into 
first-tier and second-tier banks. 
                                                      
108 Laws Nos. 22.051, 22.529, 22.871, 24.485, 24.627, 25.562, 25.780, 25.782, 26.173 and in 
Decree No. 214/2002. 
109 Resolution No. 5.355/2012. Argentina WT/TPR/S/277 
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  207. Private financial institutions must be establishe d in the form of a limited company, with the 
exception of branches of foreign institutions or co mmercial banks, which may also be established in 
the form of a cooperative society, and credit funds , which may only be established in the form of a 
cooperative society.  Financial institutions may hold shares in other financial institutions, subject to 
authorization by the BCRA, but are prohibited from operating commercial, industrial, agricultural or 
other business enterprises on their own behalf, unl ess expressly authorized by the BCRA, which must 
issue a general authorization that sets out the limits and terms guaranteeing that the institution's solvency and assets are not affected. 
208. The minimum capital requirement depends on th e Argentine jurisdiction within which the 
institution's main activity is carried on, with reduced requirements in those areas that are 
comparatively less well supplied with banking services;  for this purpose, Argentina has been divided 
into six regions, depending on their level of ban carization.  The minimum capital requirement for 
banks is Arg$15 million to Arg$26 million;  for cr edit funds, it is Arg$1 million to Arg$6 million;  
and for other institutions betw een Arg$8 million and Arg$12 million.
110 
209. The opening of branches in Argentina by Argentine or foreign financial institutions also 
requires prior approval from the BCRA and they must comply with the prudential regulations 
concerning minimum capital, liquidity, solvency, risk and return.  For foreign institutions to establish 
branches in Argentina, the country of origin must  have a consolidated s upervisory regime, and the 
capital required must be actually and permanently located in Argentina.  Representative offices of 
foreign financial institutions require prior authori zation from the SEFyC, which is contingent upon its 
examination and assessment of the pr oject concerned.  The SEFyC co nsiders applications made by 
institutions established abroad which have been authorized by the competent authority in the country 
of origin to take deposits from the public and whic h have not been established in countries classified 
as having low or no taxes.  The applicant instituti on must also comply with the internationally 
accepted principles, standards or rules on the pr evention of money launde ring and financing of 
terrorism, and be subject to a consolidated monito ring system, and the supervisory authority in the 
country of origin must observe the Basel Core Principles for Effective Banking Supervision .  
Only natural persons may act as representativ es and an alternate must be designated. 
210. Any merger, takeover or transfer of business asset s that may be agreed between institutions in 
the same or different categories also require pr ior authorization from th e BCRA.  The institution 
resulting from the merger or that which takes ove r another or incorporates its business assets must 
have an economic and financial structure which, in  the BCRA's view, justifies the authorization to 
realize the project.  Subject to prior approval by  the BCRA, financial institutions may be converted 
into one in another category.  The essential requi rements that apply for this purpose are compliance 
with the minimum capital requirements and with other prudential regulations and the absence of 
liquidity, solvency, risk or profitability problems.  Credit funds may not transfer their business assets to institutions with a different legal status or be converted into commercial institutions. 
211. Financial establishments must immediately info rm the SEFyC of any negotiation of shares or 
of any other circumstance liable to lead to a change  in their status or to alter the structure of the 
respective groups of shareholders.  The BCRA must  consider whether these changes are timely and 
appropriate and is empowered to withhold approval or to annul authorizations granted if there have 
been fundamental changes in the basic conditi ons taken into account when granting them.  
Any important changes in the shareholding compos ition of legal persons domiciled abroad which 
                                                      
110 Idem . WT/TPR/S/277 Trade Policy Review 
Page 172 
 
 
  directly or indirectly control financial instituti ons established in Argentina must be notified to 
the SEFyC. 
212. Prior approval from the BCRA is required for te rritorial expansion by financial institutions 
through the opening of branches in Argentina.  Of ficial financial institutions in the provinces and 
municipalities may authorize branches in their respec tive jurisdictions subject to notifying the BCRA, 
which may declare its opposition if the regulatory re quirements for authorization are not met.  The 
BCRA's policy on branches is to raise the level of bancarization among the population.  Accordingly, 
it applies a policy that encourages the opening of  branches in localities with low levels of 
bancarization.  The branches must comply with  the prudential regulations on minimum capital, 
liquidity, solvency, risk and profitability, but do not require express authorization from the BCRA, 
which is the case for those wishing to set up in areas where there is a better supply of financial 
services.  In the latter case, one of the factors ta ken into account when granting an authorization is 
whether the application is associated with the si multaneous establishment of an equal number of 
branches or agencies in areas with less bancarization.  A system of points is used to grant the 
authorization.  Branches in zones in categories 3 to  6 must remain in operation for at least 24 months 
and penalties are provided if this time-frame is not respected. 
213. Financial institutions may open agencies or offi ces in localities of up to 30,000 inhabitants for 
the purpose of conducting activities relating to applicati ons for loans or other financing, credit and/or 
debit cards, the opening of deposit accounts and paymen t of wages.  Agencies, but not offices, may 
also disburse loans and receive and pay out deposits up  to a certain limit if they are in cash, pay social 
security contributions and collect taxes. 
214. Cooperative credit funds may establish up to five agencies in addition to the parent company 
exclusively in the zone in which they conduct thei r activities and these may be in the form of offices 
temporarily providing services to the public or branches. 
215. Financial institutions must also seek authori zation from the BCRA before setting up branches 
or offices to represent them abroad.  The requirement s are similar to those relating to the opening of 
branches in Argentina, but the consent of the foreign country also has to be obtained.  
No authorization is needed for holdings in fo reign financial instituti ons provided they do not 
exceed 5% of the capital or votes in the said in stitutions;  if they do exceed this limit, prior 
authorization has to be obtained from the SEFyC. 
216. Financial supervision is based  on internationally recognized standards.  The BCRA applies 
the basic rules on capital adequacy established by  the Basel Committee on Banking Supervision and 
requires a ratio of total capital to risk-weighted ass ets of at least 8%.  The capital requirements for 
each financial institution are determined taking into account the risks implicit in their various 
activities.  In December 2011, three types of risk were  considered:  credit or counterpart, interest rate 
and market rate, although the road map for adoption of the Basel III measures has already been made 
public.  In February 2012, the operational risk requi rement was incorporated, with a longer timetable 
for implementation by smaller financial institutions (see below).  Institutions must maintain the basic 
minimum capital fixed by the BCRA, which is the hi gher amount between the basic capital and the 
sum of the risk capital requirement. 
217. The minimum credit risk capital requirement is determined by weighting the requirements for 
the different assets according to their risk, as s hown in Table IV.8, multiplied by a rating factor Argentina WT/TPR/S/277 
 Page 173 
 
 
  determined by the SEFyC on the basis of th e institution's performance and which varies 
between 0.97 (highest) and 1.15 (lowest).111 
Table IV.8 
Risk-weighting of assets for the purpose of determ ining the minimum credit risk capital requirement  
Heading  Weighting rate (%)
Resources  0 
Government securities  
Government securities subject to market risk requirement and BCRA monetary regulation instruments  0 
Government securities of provincial governments, local authorities and the Autonomous City of Buenos Aires, 
without any National Government guarantee or resources derived from Federal tax revenue sharing 100 
Government bonds of OECD countries, rated "AA" or higher  20 
Loans  
Loans to the non-financial private sector, with preferred guarantees in cash, security for fixed-term certificates 
issued by the creditor itself  0 
Loans to reciprocal guarantee firms registered with the BCRA, export credit insurance, documentary credits used  50 
Guarantee mortgages and trust funds  50-100 
Loans to the non-financial public sector, with a National Government guarantee or resources derived from Federal 
tax revenue sharing  100 
Loans to public banks with guarantee of co-participation to the financial sector 50 
Loans with guarantees from foreign banks:  parent firm or controlling bank of the local financial institution with 
"AA" international risk rating  0 
Loans to other banks with foreign guarantees, with international risk rating in the "investment grade" category 20 
Other financial intermediation credits  
Credits for operations with the BCRA  0 
Rental to be paid for financial leasing of real estate and vehicles  50 
Credit with the financial sector  50 
Cash operations due for payment and fixed term, in securities and foreign currency, whether or not related to repo 
operations, for which receipt of the agreed  counterpart is pending, wi th counterparts with inte rnational risk  rating in 
the "investment grade" category 20 
Other credit operations 100 
Surety, endorsement and any other liabilities  
Differences between the market price and the strike price where favourable to the institution, through call and put 
option contracts covered by guarantee or repo margins on established markets 0 
Book credits for deferred payment when shipment documentation has not yet been given to the client 50 
Credit for compliance with contractual obligations and/or maintenance of offers  100 
Credit to the non-financial public sector  100 
Source : BCRA (2011), Marco Normativo , December.  Viewed at:  http:// www.bcra.gov.ar/pdfs /marco/marco%20 
normativo.pdf. 
 
218. The market risk capital requirement is calculate d according to the value at risk (VaR) of the 
instruments habitually traded on th e market.  The total market risk capital requirement is equal to the 
sum of the requirement for five categories of in strument:  government bonds (government securities 
and BCRA monetary regulation instruments), fo reign government and private bonds, Argentine 
shares, foreign shares and positions in foreign currency and gold.  The interest rate risk requirement is 
determined on the basis of transactions attribut able to all assets and liabilities through financial 
intermediation not included in the market risk ca lculation.  The operational risk requirement is 
calculated on the basis of gross revenue (provided th at it is positive) for consecutive 12-month periods 
corresponding to the last 36 months prior to the month in which the calculation is made, subject to specific adjustments and multiplied by 0.15.
112 
                                                      
111 This is based on the rating system used by the SEFyC.  The Supervisory Authority gives each 
financial institution a note ranging from 1 to 5, with 1 being the best note and 5 the worst.  This rating is based 
on an evaluation that takes into account different aspects of the financial institution, both qualitative and quantitative.  Each of the components evaluated is also given a note from 1 to 5 and the financial institution is 
given an overall note that is not nece ssarily the average of the notes for the components.  This note is a factor 
taken into account for certain transactions such as th e fractioning of the credit risk, the credit risk capital 
requirement, transfer of loan port folios, opening of branches, etc. 
112 BCRA Communications "A" 5.272 and BCRA "A" 5.273 introduced an additional capital 
requirement to cover the operational risk from 2012 onwards, extending the limit for conserving capital before WT/TPR/S/277 Trade Policy Review 
Page 174 
 
 
  219. Financial institutions may distribute profits provide d that they are not in the process of being 
regularized, rehabilitated or reorganized, are not re ceiving financial assistance from the BCRA, are 
not late in complying with the information regime determined by the BCRA or fail to comply with it, 
and there are no shortfalls in the minimum paid-up capital or cash requirements.113  Profits may not be 
distributed if the average minimum paid-up cash, after taking into account the effect of the 
distribution, is less than the corresponding require ment and/or the resulting minimum paid-up capital 
is less than the requirement, increased by 75%.  For branches of foreign fi nancial institutions, the 
SEFyC also takes into account the liquidity and creditworthiness of the parent companies and the 
markets in which they operate. 
220. Banking institutions may receive financial assistance from the BCRA for temporary liquidity 
problems.  It is a requirement that the requ esting institution should ha ve exhausted the other 
alternatives offered by financial assistance policy in effect at the time of the request.  Among other requirements, the liquidity ratio of the requesting in stitution must be less than 20% and the amount of 
the assistance to be given must be whichever is lower among the following:  the amount requested by 
the institution;  the amount that brings the liquidity ratio up to 30%;  the aggregate decrease in sources 
of financing (deposits, fixed-term investments, net payee positions for inter-finance loans, foreign 
lines of financing and negotiable bonds);  20% of  the total assistance to the financial system 
determined in the Monetary Programme;  and the difference between the institution's net worth and 
the debit balance for transactions through the BCRA  assistance scheme.  Assistance is offered for a 
period of 180 consecutive days and may be renewed for periods of the same length, with interest paid 
every 30 consecutive days at the prevailing rate.  Institutions have to make pre-payments depending 
on how their liquidity ratio develops.
114 
221. Law No. 25.780 stipulates that the BCRA is aut horized to exclude certain assets and liabilities 
from a bank's restructuring process.  This Law also provides that, if a financial institution goes into 
receivership, priority should be given to refunding deposits made by natural a nd/or legal persons up to 
the amount of Arg$50,000, followed by larger depo sits and by liabilities derived from credit lines 
granted to the institution that dir ectly affect international trade. 
222. Holdings by financial institutions in the capita l of companies that do not provide services to 
complement financial activities may not exceed 12.5% of  their registered capital and 12.5% of votes.  
There are no limits on holdings in companies which provide complementary services, for example, management of mutual investment funds, exploita tion and management of automatic cash points, 
issue of credit or debit or similar cards, manageme nt of rotating savings associations, financial leasing 
of assets, management of payments for public services, payment of wages, or other activities 
specifically permitted by the BCRA. 
223. Argentina's financial sector legislation also includes provisions on credit rating.  For this 
purpose, the credit regulations provide for limits relate d to the capital of the loan applicant;  the basic 
margin for the granting of loans is 100% of the c lient's worth.  The complementary margin is 200%, 
provided that it does not exceed 2.5% of the financ ial institution's computable net equity (RPC) and 
the loan has been approved by the board of director s or equivalent authority.  Financial institutions 
                                                                                                                                                                     
distributing profits.  The operational risk capital requirement is now equivalent to 15% of positive gross revenue 
for the previous three financial years and it is planned to introduce it gradually, with 50% of the new 
requirement taking effect in February 2012, 75% in August and the full amount in December 2012. 
113 Institutions that are not in the aforementioned situations may distribute profits up to the positive 
balance that remains after deducting the relevant legal and statutory reserves from the "Profits not earmarked" 
account. 
114 BCRA (2011a). Argentina WT/TPR/S/277 
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  must monitor any borrower in their portfolio if the financing exceeds Arg$6,000;  housing mortgages 
over Arg$200,000;  collateral loans exceeding Arg$75, 000;  and personal and financing loans using 
credit cards that exceed Arg$15,000. 
224. There are limits on credit assistance, determined as a percentage of the financial institution's 
RPC.115  The individual limits for transactions with the private sector, as a percentage of the financial 
institution's RPC, are the following:  transactions without security with an unrelated company or 
person, 15% (25 including security);  non-tradable shares and shares in mutual investment funds and 
tradable shares that do not entail any market risk capital requirement, 15%;  total shares and shares in 
mutual investment funds, 50%;  financing with BCRA-approved guarantees, 25%;  transactions with 
the financial sector, 25% (except for foreign banks no t of investment grade, 5%).  There is a 100% 
limit on financing of local financial institutions by  second-tier commercial banks if they are ranked in 
one of the first three categories on the scale (1 to 5) of the SEFyC or 0% if they are in the last two 
categories.116 
225. There are also individual limits on transactions with the non-financial public sector:  the limit 
for loans to institutions under national jurisdiction is  50%;  for loans to institutions under provincial 
jurisdiction, to the CABA and financing for local  authorities with a provincial tax revenue sharing 
guarantee, the limit is 10%.117  There is also an overall limit of 15% on financing for all municipal 
jurisdictions, with the exception of those with a pr ovincial tax revenue sharing guarantee.  Overall, 
assistance to the public sector may not exceed 75% of the institution's RPC;  moreover, since July 2007, monthly assistance to the public sector has not been allowed to exceed 35% of a financial 
institution's assets. 
226. The legislation also sets limits on the concentration of risk, defined as the sum of financing 
which individually exceeds 10% of an institution's RP C.  Risk concentration may not be greater than 
                                                      
115 The RPC ( responsabilidad patrimonial computable ) of financial institutions is calculated as follows:  
RPC = PNb + PNc - Cd, where PNb:  net basic worth;  PNc:  net complementary worth;  Cd:  amounts to be deducted.  The PNb is composed of the equity, non-capitalized contributions and adjustments to worth, reserves 
for profits, non-earmarked balances and instruments representing long-term subordinate debt which meet certain 
criteria, up to a maximum percentage of the net basic worth, which decreases to 15% in January 2013.  The PNc, which may not exceed the amount of the net basic worth, includes non-earmarked balances that have 
not been reviewed by the auditor and those corresponding to the current financial year, 50% of the provision 
corresponding to the normal portfolio and the subordinate debt with a weighted average term of five years or 
more, which meets certain criteria and provided that it does not exceed 50% of the PNb.  The amounts to be 
deducted are, for example, the majority of the sight ba lances placed with foreign financial institutions that are 
not of investment grade, securities that are not phys ically within the institution or registered with 
BCRA-approved custodians, securities issued by foreign countries with a rating lower than that of National 
Government, holdings in other financial institutions, real estate for which the transfer deeds have not been registered in the Property Register, and organizati onal and development costs.  See BCRA (2011a) and BCRA 
Communication "A" 5.282 of 14 February 2012. 
116 Argentina's legislation divides commercial banks into three categories:  retail banks, which may 
engage in all asset, liability and services transactions within the terms of Law No. 21.526;  wholesale banks, 
which may engage in all the transactions and services permitted for retail banks under the law and the 
regulations, but are only authorized to take deposits from investors permitted by the respective regulations;  and second-tier banks, which may engage in all asset, liabi lity and services transactions which the law and the 
regulations allow retail banks to conduct, but may not take deposits from the public, except for foreign banks. 
117 Subject to certain conditions, it is possible to raise the individual limits by 15 percentage points and 
the overall limits by 50 percentage points when the in crease in each jurisdiction concerns financial assistance 
granted or the holding of debt instruments issued by  trusts or trust funds relating to the financing of 
infrastructure projects. WT/TPR/S/277 Trade Policy Review 
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  three times the RPC for transactions with clients, whether or not related, not taking into account 
financing of local financial instituti ons;  five times the RPC if the latte r are included;  or ten times for 
second-tier banks conducting transactions with other fi nancial institutions, whet her or not related, 
which exceed 15% of the RPC.  Financing of over 2.5%  of the RPC of the lender financial institution, 
except for inter-finance transactions, must be approved by the Board of Directors. 
227. The legislation on the financial sector imposes li mits on risk stemming from loan transactions 
with natural or legal persons re lated to the financial institution.118  The limits on financing that may be 
granted to each related client are determined acco rding to the RPC of the institution and the rating 
given by the supervisory body.  For institutions ranked from 1 to 3 (better risk), there is a limit of 10% 
of the RPC per client for transactions with guara ntees and 5% for those without.  Institutions ranked 
4 to 5 may not give assistance to related clients, exce pt for loans of up to Arg $50,000 to their directors 
or managers in order to meet pe rsonal or household needs.  There is  also an overall limit of 20% for 
related clients. 
228. The SEFyC requires financial institutions to provide periodic reports on their asset position 
and compliance with technical, operational and institu tional regulations.  It is mandatory to report 
share transfers or capital contributions made in a fo rm that is not proportional to shareholdings which, 
considered individually or collectively over a six- month period, represent 5% or more of the capital 
and/or votes, as well as subscriptions to shares on st ock markets in Argentina or abroad.  Significant 
changes in the capital ownership of foreign enterpri ses that control financial institutions established in 
Argentina must also be notified. 
229. Bank deposits are protected by the Law on Fi nancial Establishments  and by the Deposit 
Guarantee Fund (FGD) pursuant to Law No. 24.485,  which created the deposit guarantee insurance 
scheme.  The Law provides that, if a banking instituti on goes into receivership, priority is given to the 
deposits of natural and/or legal pe rsons up to the amount of Arg$50,0 00 or its equivalent in foreign 
currency, but only for one person per deposit.  The FGD provides subsidiary and complementary 
coverage in addition to that provided in the Law on Financial Establishments.  The FGD is managed 
by Seguro de Depósitos S.A. (SEDESA), a private limited company created by PEN Decree 
No. 540/95.  All financial institutions must c ontribute to the FGD at a fixed monthly rate 
corresponding to 0.015% of deposits plus an amount  that varies according to each institution's risk 
rating.  This contribution is fixed by the BCRA.  If the FGD reaches 5% of the total deposits in the financial system, the BCRA may suspend or reduce th e obligation to contribute to the FGD and may 
also adjust the total amount which the FGD must c ontain when it considers that the aggregate amount 
is prudent in light of the situation in the fina ncial market and the role played by the FGD.  
FGD resources are invested on similar terms to tho se fixed for placement of the BCRA's international 
foreign currency reserves.  The financing used by the deposit insurance scheme is ex ante  (building up 
of a reserve or deposit fund to cover demands for insurance as a precaution against the collapse of a 
member institution).
119 
230. The Fund covers several types of deposits in  pesos and foreign currency up to Arg$120,000 
per depositor and institution.  It dealt with 39 cases between October 1996 an d June 2012, disbursing 
                                                      
118 Under Argentina's legislation, control of an institu tion occurs when a natural or legal person directly 
or indirectly owns 25% or more of total votes, or has held 50% or more of total votes in assemblies electing 
directors or similar positions, or when, even if it has less than 25% of votes, it has control of other institutions 
which, in turn, may affect decision-making in the institution in question, or when the BCRA, through the SEFyC, so determines. 
119 Online information from SEDESA, Que es el Fondo de Garantía de los Depósitos (FGD) .  Viewed 
at:  http://www.sedesa.com.ar/Section.aspx?Id=153. Argentina WT/TPR/S/277 
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  a total of Arg$1,972.9 million.  Of this amount, on ly one disbursement was made during the period 
under review, Arg$32.3 million in 2007.  On 30 Ap ril 2012, the balance available in the Fund 
amounted to Arg$6,319.7 m illion (some US$1,400 million).120 
231. Movements of funds in current accounts, toge ther with other financial transactions, are 
subject to the tax on debits and credits in curre nt accounts, in accordance w ith Law No. 25.413 and 
Decree No. 380/2001 of 30 March 2001 and amendments thereto.  The ge neral rate is 6% for credits;  
for movements of funds, it is 12%;  for transactions  covered by tax exemptions or social works, it 
is 2.5 or 5%;  for credit card payments, a rate of 0.75% is applied.  Under Law No. 23.427, and 
amendments thereto, a tax of 2% is levi ed on the capital of cooperative associations. 
232. Since January 2012, financial in stitutions have been obliged to implement a company code of 
governance that contains guidelines concerning the responsibilities of the Board of Directors and 
senior management, the audits and standards applicab le in relation to indepe ndence, and determines 
strategic objectives, organizational values and lines of  responsibility, together with aspects concerning 
internal control and risk management.  Since Janua ry 2012 as well, financial institutions have had to 
have a comprehensive procedure for managing ri sks in proportion to their size and economic 
importance and to the nature and complexity of their operations, taking into account the guidelines 
laid down by the BCRA.  This comprehensive manageme nt must cover, in particular, credit, liquidity, 
market, interest rate and operational risks. 
233. One important change during the period under review has been the implementation of Law 
No. 26.173 of 22 November 2006, which amended fina ncial legislation to expand the scope of the 
Cooperative Credit Funds (CCC).  BCRA Communica tion "A" No. 4.712 of  24 September 2007 
implemented the Law's provisions.121  Under these new provisions, credit funds must be set up in the 
form of cooperative associations and obtain an au thorization from the BCRA in order to operate.  
They may have up to five branches within their z one of activities, including part-time offices.  
Members of the cooperative association must have th eir economic activity or be located within the 
zone in which the fund is authorized to opera te.  The initial capital requirement is Arg$1 million 
to Arg$6 million depending on the zone of activities. 
234. There is also a basic minimum capital requireme nt which cooperative associations must meet 
on the last day of each month, corresponding to the higher amount between the basic requirement 
(Arg$500,000 to Arg$5 million) and th e sum total of the credit, interest rate and operational risk 
requirements.  Cooperative associations must also comply with the same credit risk requirement as 
that determined in general for financ ial institutions.  As far as the inte rest rate risk is concerned, the 
provisions laid down by the BCRA for this type of institution must be observed, while for the 
operational risk the requirement corresponds to 10% of th e sum total of the credit risk and interest rate 
requirements. 
235. Even though the minimum credit risk capital requirements are the same as those for other 
financial institutions, cooperative ass ociations are not subject to interest rate or market risk 
requirements.  Criteria also apply to the granting of loans:  at the end of each calendar month, the total 
amount of financing granted to members must be a minimum of 75% of the total inasmuch as the facilities given to clients established or engage d in economic activities outside the cooperative 
association's zone of activities must not exceed 15% of the financing.  The maximum term for loans 
                                                      
120 Online information from SEDESA, Saldo Disponible .  Viewed at:  
http://www.sedesa.com.ar /Section.aspx?Id=155. 
121 Online information from the BCRA.  Viewed at:  
http://www.bcra.gov.ar/pdf s/comytexord/A4712.pdf. WT/TPR/S/277 Trade Policy Review 
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  with full amortization on the due date is one year  and for temporary loans assignable to call accounts 
in order to pay off bills of exchange it is 30 days.  The average term for mortgages must not 
exceed 96 months;  for commercial loans it is 60 months ;  for other loans, 36 months.  For the first 
financial year, the limit for granting financing to  credit call accounts is 200% of the cooperative 
association's RPC and 300% as of the second year. 
236. The creation and operation of new foreign exchange institutions requires an authorization 
from the BCRA, pursuant to the provisions in La w No. 18.924 (Exchange Houses and Agencies) and 
its implementing Decree No. 62/71, as amended by Decree No. 427/79.  Such institutions may be in 
the form of exchange houses, exchange agenci es or exchange offices.  The minimum capital 
requirement for exchange houses is Arg$600,000 to  Arg$2.9 million, depending on the institution's 
category, the jurisdiction and the number of bran ches.  For exchange agencies it is Arg$300,000 
to Arg$1.45 million.  Moreover, these institutions mu st post an operating guarantee in proportion to 
the minimum capital determined and have to pay an au thorization fee prior to starting their activities.  
Authorization from the BCRA is also required to opera te as an exchange broker, either individually or 
in an established partnership.  The requirements and obligations for this type of institution are similar 
to those applicable to financial institutions. 
(c) Securities market 
237. The securities market is governed by Law No. 17. 811 of 22 July 1968 on the Public Offer of 
Securities and supplementary regulations, and by  Decree No. 677/2001 and amendments thereto.  
These legal instruments regulate the securities mark et as a whole, including the public offer of 
securities, the organization and operation of intern al stock market and over-the-counter institutions 
and the conduct of stockbrokers a nd other natural and legal persons  engaged in securities trading.122 
238. Securities markets must be set up as limited companies with registered shares and must be 
associated with a stock exchange, which in turn mu st be established as a civil association with legal 
personality or as a limited company.  Stockbrokers a nd brokerage firms must be registered with and 
be shareholders in the securities market in which th ey are to operate, as well as being members of the 
relevant stock exchange.  There are no nationality or residence restrictions on being a shareholder, but 
to operate as a stockbroker or br okerage firm on the Buenos Air es Stock Market (Merval) it is 
necessary to be domiciled in the CABA, within a radi us determined by Merval's Board of Directors.  
The securities markets supervise the stockbrokers and brokerage firms and have disciplinary powers.  
These disciplinary measures may incl ude suspension or cessation of the activities by the intermediary 
infringing the law. 
239. The National Securities Commission (CNV), a national self-governing body created by Law 
No. 17.811 on the Public Offer of Securities, with  jurisdiction throughout Argentina, monitors and 
controls internal stock market and over-the-counter  institutions, as well as offering and trading in 
negotiable securities issued by natural and legal pers ons.  In this respect, the CNV's objective is to 
ensure the transparency of securities markets and th e correct formation of prices thereon, as well as to 
                                                      
122 The legal framework of the securities market includes:  Law No. 20.643 of 11 February 1974 on the 
regime for the purchase of private securities;  Law No. 22.000 of 24 May 1979 on the responsibilities of boards of directors;  Law No. 22.169 of 25 February 1980 on the responsibilities of the CNV;  Law No. 23.271 
of 16 October 1985, on stock market secrecy;  Law No. 23.576 of 27 July 1988 on negotiable bonds;  Law 
No. 24.083 of 18 June 1992 on mutual investment funds;  Law No. 24.441 of 16 January 1995 on trust funds;  Law No. 24.587 of 22 November 1995 on designating nominees of private securities;  Law No. 25.246 
of 10 May 2000 on concealment and laun dering of assets of criminal origin ;  and Law No. 26.2 68 of 5 July 2007 
on illegal terrorist organizations and financing of terrorism. Argentina WT/TPR/S/277 
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  protect investors.  The CNV also oversees the sec ondary securities markets and their brokers, as well 
as the public offer of forward, futures and options  contracts, their markets and clearing houses, and 
their brokers.123  The Law provides that an authorization from the CNV must be obtained before 
securities issued can be offered to the public.  The CNV keeps the register of stockbrokers and of the 
natural and legal persons authorized to offer securiti es to the public.  The CNV is authorized to apply 
sanctions in cases of infringement of the securities market laws and regulations. 
240. Argentina's capital market is composed of two principal systems:  a stock market system, 
comprising stock exchanges, securities markets, a futures and options market, collective depositories 
and clearing houses;  and an over-the-counter system comprising a self-regulated over-the-counter establishment called the Electronic Open Market S. A. (MAE).  These establishments each play a 
different role, for example, registration and circul ation of transactions, trading, administration of 
guarantees and payment of transactions, collective safe-keeping of securities and the register of shareholders. 
241. In practice, Argentina's securities market is mainly concentrated in the Merval and although 
there are securities markets operating in other cities,  they collectively represent barely 1% of the 
volume traded on the Merval.
124  At the end of June 2012, 133 st ockbrokers and broke rage firms were 
participating in the Merval.125  The volume traded during the year ending 30 June 2012 
was Arg$217,833 million (around US$44,440 million), a 9.8% increase in comparison with the 
previous period.  Of the total volume, 96.5% was traded on the Merval and only 3.5% on markets in the interior of Argentina. 
242. In 2012, 64.8% of trading on the securities markets was in public sector securities, while trade 
in shares accounted for 5.7% of the total, the majo rity of the remaining amount (25.2% of the total) 
corresponding to bonds and repos.
126 
243. At 31 December 2011, Merval's market capitalization amounted to a total of 
Arg$1,980 million (around US$437,128 m illion), with decreases of 2.8% in peso and 11.6% in dollar 
terms.  This difference is attributab le to the depreciation of the peso.127  The market 
capitalization/GDP ratio stood at 105.6% on the same date, lower than the 129.9% notified 
for 2010128, with the majority of the capitalization co rresponding to firms with foreign capital.  
The market value of Argentine firms amounted to Arg$141,024 million (or US$31,148 million), accounting for 7.5% of the GDP.  This ca n be compared to Arg$245,889 million (or 
US$59,754 million), some 15.7% of the GDP, reported in 2010.  The negative performance in 2011 
meant a sharp drop (42.6%) in the value of the ca pitalization of Argentine firms (47.9% in dollar 
terms).
129  The fall in the share prices of comp anies in the oil industry, banking and 
telecommunications were a contributory factor in this decline. 
                                                      
123 Online information from the CNV.  Viewed at:  http://www.cnv.gov.ar. 
124 At August 2012, the Córdoba, Mendoza and Rosa rio securities markets, the Coastal Securities 
Market and the Securities Market S.A. were operating.  (Online information from the CNV, Entitdades bajo el 
Control de la CNV .  Viewed at:  http://www.cnv.go b.ar/bajocontrol.asp?Lang=0). 
125 Online information from the CNV, An exo nómica agentes.  Viewed at:  
http://www.cnv.gov.ar/Infofinan/BLOB_Zip.a sp?cod_doc=172244&error_page=Error.asp. 
126 Buenos Aires Securities Market S.A. (2012). 
127 Idem . 
128 Ibid. (2011). 
129 Ibid. (2012). WT/TPR/S/277 Trade Policy Review 
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  244. In 2011, new private financing in capital ma rkets resulted in a value of Arg$27,017 million 
(US$6,575 million), a 15% increase in comparison with  2010.  This financing was composed of 69% 
of financial trust fund issues, 30% of negotiable bo nd issues and 1% of capital stock subscriptions.130  
In December 2011, the stock of negotiable bonds was US$9,283 million, 86% of which were issued 
in US dollars, 13% in Argentine currency and the remaining 1% in euros. 
245. The Merval is a self-regulated entity.  Its capital c onsists of shares;  the shareholders (natural 
or legal persons) are authorized to act as stoc kbrokers or brokerage firm s, and may buy and sell 
tradable securities on their own account or for third parties.  The main functions of the Merval are the coordination, settlement, supervisi on and guarantee of market operations .  It is empowered to take 
disciplinary action against stockbrokers or brokerage  firms that fail to comply with the rules and 
regulations of Argentina's stock market system, pur suant to Law No. 17.811 (see below), or with the 
rules of the Merval itself.  The main function of the Argentine Capital Market Institute (IAMC), an 
integral part of the Merval, is to advise stockbroke rs and brokerage firms and promote the use of the 
capital market through its publications and training courses. 
246. The operation of the MAE is mainly regulated by CNV Resolution No. 9.934/93 and Decree 
No. 677/2001.
131  Agents on the open market (AMA) must be registered with the CNV;  they may be 
natural or legal persons, but at present all the AMA are legal persons, generally banks, finance 
companies or exchange houses.  Public and priv ate fixed-income securities (mainly national, 
Treasury, provincial and municipal bonds, Treasury  bills, negotiable bonds, trust fund share 
certificates and investment funds) are traded on the MAE, in both spot and forward transactions.  
The public offer of private negotiable securities must be authorized by the CNV.  Transactions may be 
agreed in pesos or in US dollars and must all be settled using one of th e CNV-approved clearing or 
payment schemes.132 
247. Pursuant to Resolution No. 597/11, since 1 Ma rch 2012 the primary placement of negotiable 
securities that are the subject of a public offer mu st be through an aucti on or open public bidding 
conducted through a computer system set up by a self-regulated entity.  All primary placement 
schemes approved by the CNV must allow access by all markets and brokers and by stock exchanges 
without associated securities markets.  By June 20 12, the CNV had approved three primary placement 
schemes:  the Merval, the MAE, and the Rosario Se curities Market S.A. (MERVAROS).  In addition, 
three securities markets have signed an agreemen t to use one of the aforementioned primary 
placement schemes in operation:  the Córdoba  Securities Market and the Coastal Securities 
Market S.A. in order to use the MAE scheme;  a nd the Mendoza Securities Market S.A. in order to 
use the MERVAROS scheme. 
248. The Securities Fund S.A. (CVSA) is an entity which, acting as a collective depository, deals 
with the safekeeping and registration of both public and private negotiable securities, pursuant to Law 
                                                      
130 Financial trust funds traded on the stock market are contracts under which a person (the truster) 
transmits to another person (the trustee) the trust fund ow nership of specified assets.  Only financial institutions 
or companies expressly author ized for this purpose by the CNV may act as financial trustees.  The rights of the 
beneficiaries are set out in instruments, which may be  participation certificates and/or debt securities.  
Negotiable bonds are public debt instruments issued by private companies seeking fi nancing.  See CNV (2010). 
131 Online information from the CNV.  Viewed at:  
http://www.cnv.gov.ar/LeyesyReg/ Decretos/esp/DEC677-01.htm. 
132 These are:  the national schemes Argenclear S.A.  and CRYL (Centre for registering and clearing 
public liabilities and financial trust funds operating under BCRA supervision and control) and, at the 
international level, Euroclear, whose headquarters are in Brussels (Belgium), and Clearstream, clearance and 
settlement scheme based in Luxembourg. Argentina WT/TPR/S/277 
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  No. 20.643 of 11 February 1974 and its supplementary  rules.  The CVSA is the only entity of this 
type authorized to operate in Argentina;  its h ead office is in Buenos Aires and it has branches in 
Córdoba, Mendoza, Rosario and Santa Fe. 
(d) Insurance and social security 
Main features 
249. At 30 June 2011, 180 insurance companies were operating in Argentina;  their number and 
structure remained fairly stable throughout the pe riod under review.  Of these companies, 21 offered 
retirement insurance, 37 life insurance, 16 insuran ce against occupational risks, five public passenger 
transport insurance, and the remaining 101 covered va rious property risks or offered more than one 
type of insurance.133  Most of these companies are privately-owned with Argentine or foreign capital, 
five are branches of foreign companies, and three are State-owned.  In 2011, 23,100 natural persons 
and 470 producers' associations were acting as insurance intermediaries. 
250. In the reinsurance market, the Register of  Reinsurers shows that, at 30 June 2011, 
34 Argentine companies and 99 foreign companies had been authorized to provide reinsurance 
services.134  SSN Resolution No. 35.615/2011 provides that, as of 1 July 2011, reinsurers must be 
Argentine companies (see below).  Since then, fore ign firms have been acting as retrocessionaires. 
251. The value of insurance premiums continued to increase over the period under review and 
in June 2011 amounted to Arg$45, 000 million (around US$10,000 milli on), 35% more than in 2010 
and almost three times the value notified fo r 2006 at the time of the previous Review 
(Arg$15,914 million).  Non-life insurance accounted for 80% of the total, while 20% related to 
personal insurance (life, retirement and personal accide nt).  In 2011, the insurance branch accounted 
for 2.7% of GDP.  At 30 June 2011, the per capita direct premium was Arg$1,110 (US$247). 
252. At the close of the 2011 financial y ear, insurance companies' assets were 
over Arg$75,300 million, whereas liabilities stood at Arg$55,200 million, with net worth of 
over Arg$15,300 million.  Almost three quarters of the assets were investments, for a total of Arg$55,200 million.  During each year over the period 2006-2011, insurance companies as a whole 
posted positive balances.  In 2011, the balance wa s Arg$3,508 million, the result of financial gains 
of Arg$6,100 million and technical losses of Arg$2,600 million. 
Legislative framework 
253. The regulatory and supervisory authority for th e sector is the National Insurance Supervisory 
Authority (SSN), a decentralized public agency operating under the MEP's Undersecretariat for 
Financial Services.  The SSN's responsibilities includ e the control, supervision and inspection of the 
insurance market in accordan ce with the principles set out in Law No. 20.091 on insurance 
establishments (see below);  helpi ng to define policies for the insurance market;  controlling minimum 
capital, foreign companies, technical reserves, withdr awal of authorizations, liquidation and penalties;  
supervision of insurers, insuran ce intermediaries, experts and liqui dators;  and the development and 
                                                      
133 National Insurance Supervisory Authority (SSN), Communication No. 3.020/Circular EST 683, 
Evolución del Mercado Asegurador 2011", 23 November 2011.  Viewed at:  http://www.ssn.gov.ar/storage/ files/circulares/7607.pdf. 
134 Online information from the SSN, Reaseguradoras admitidas .  Viewed at:  
http://www.ssn.gov.ar/storage/re gistros/reaseguros/ree.htm. WT/TPR/S/277 Trade Policy Review 
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  implementation of programmes to improve the quality of the service, costs and the rapidity of 
procedures for policy holders. 
254. In the main, insurance activities in Argentin a are governed by Law No. 20.091 (Law on 
Insurance Establishments and th eir Supervision) of 7 February  1973 and amendments thereto.135  
This Law applies to insurers and reinsurers  throughout Argentina.  Law No. 24.241 
of 18 October 1993 established the Integrated Retir ement and Pensions Sche me, creating provident 
retirement and life insurance.  This Law was amended in 2008 by Law No. 26.425 
of 9 December 2008 (see below).  Law No. 24.557 of 4 October 1995 on Occupational Risks provided 
that every employer has to be insured through an Occupational Risk Insurer (ART).  The SSN's 
resolutions also constitute the regulatory frame work for the insurance market.  Resolution 
No. 21.523/92 and amendments thereto contain th e General Regulations of the Insurance Business.136  
SSN Resolution No. 35.615/2011 constitutes the legi slative framework for th e reinsurance market.  
Insurance intermediation, which includes counselli ng policy holders and potential policy holders, is 
governed by Law No. 22.400 of 18 February 1981 on  the Registration of Insurance Consultants. 
255. Prior authorization from the SSN must be obtaine d to operate as an insurer or reinsurer in 
Argentina or to make any changes to the memorandum or articles of association or in the registered 
capital of an insurance company.  Only the fo llowing may carry out insurance transactions:  
(a) limited companies, cooperative associations and mu tual funds;  (b) branches or agencies of foreign 
companies, if the laws of their country of dom icile provide for reciprocity;  and (c) national, 
provincial or municipal official or joint bodies a nd establishments.  Insurance companies must have 
been established for the sole purpose of carryin g out insurance transactions, and all the capital 
required must have been paid up before they may be authorized by the SSN to operate.  
The authorization of new operators is also subject to the expediency of thei r role in the insurance 
market.  Insurers are not allowed to operate in any branch of insurance unless they have been 
expressly authorized to do so. 
256. SSN Resolution No. 35.615/2011 provides that, as  of 1 September 2011, reinsurers must be 
Argentine companies, with the exception of ag encies of foreign reinsurance companies.  
The following are defined as national reinsurance companies:  (i) Argentine limited companies, 
cooperative associations and mutual funds whose sole purpose is to provi de reinsurance;  (ii) branches 
of foreign reinsurance companies established in the Argentine Republic137;  (iii) Argentine limited 
companies, cooperative associations , mutual funds, branches of fo reign companies, and national, 
provincial or municipal official or joint bodies and est ablishments authorized to  offer direct insurance 
in the Argentine Republic in the branches for which the authorization has been given.  
This Resolution provided that agencies of fo reign reinsurance companies operating in accordance 
with the previous legislation (SSN Resolution No. 24.805 and amendments thereto) had to adapt to 
the new Resolution's provisions before 1 September 2011. 
                                                      
135 Other relevant laws are Law No. 17.418 of 6 September 1967 on Insurance Contracts, and Law 
No. 22.400 of 18 February 1981. 
136 New SSN resolutions amended these Regulations.  Over the period 2006-2011, there were some 
30 amendments to the General Regulations of the Insu rance Business, contained in the relevant resolutions. 
137 Pursuant to this Resolution, no authorization may be given to branches of foreign companies 
established in countries where the rate of IG or similar tax is less than 20% or in countries whose domestic 
legislation imposes secrecy concerning the business compos ition of legal persons, or in jurisdictions, territories 
or States where there is little or no tax, the so-called "t ax havens", and/or countries or territories that do not 
cooperate in the global struggle against the crimes of money laundering and financing of terrorism according to 
the criteria defined by the Financial Action Task Force (FATF). Argentina WT/TPR/S/277 
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  257. Insurance against risks that might arise on Argentine territory can only be taken out through 
companies established in the country.  Law No. 12.988 of 11 July 1947 prohibits the insuring abroad of persons, goods or any insurable interest with in national jurisdiction.  The aforementioned 
restriction does not apply to reinsurance.  Insu rance companies can place reinsurance with national 
reinsurers, with foreign reinsurers that operate in their country of or igin and register with the SSN, or, 
using the services of a broker, with foreign reinsurers not registered with the SSN.  In the latter case, 
the reinsurance broker must be registered with  the SSN and the reinsurance company must be 
accredited by an international risk rating agency.  Registration with the SSN is subject to certain 
requirements:  proof of minimum capital of US$30 million and the appointment of a representative 
with broad administrative and legal powers, w ho must establish legal residence in the CABA. 
258. Premiums and commissions are freely determined by insurers, although the SSN is authorized 
to establish minima and maxima for commissions.  Where premiums are concerned, the SSN may 
approve uniform minimum premiums net of commission, in the form of a resolution, if the stability of the market is affected and at the request of any of  the insurers' associations, after hearing the other 
associations.  General insurance premiums are authorized by the insurer's managing body and 
personal insurance premiums require prior authorization by the SSN. 
259. Insurance premiums are subject to a tax at a rate that varies depending on whether the 
company is established in Argentina or abroad, being higher in the latter case.  For companies 
established in Argentina, the rate has been 0.1% in general since 2002, in accordance with 
Decree No. 687/98.  The rate is 2.5% for occupa tional accidents and 23% for insurers established 
outside Argentina. 
260. One of the most important changes during the period under review was the amendment of the 
retirement and pension scheme esta blished by the National Law on the Integrated Retirement and 
Pension Scheme, Law No. 24.241 of  23 September 1993.  In 2008, the assets of the ten retirement and 
pension fund managers (AFJP), amounting to Arg$94,400 million (US$29,300 million), were 
nationalized and combined into a single institution. 
261. Law No. 26.425 on the Unification of the P ublic Social Security Scheme, approved on 
20 November 2008 and enacted on 4 December 2008, provided for the unification of the integrated retirement and pension scheme into a single public so cial security scheme, the Argentine integrated 
social security scheme (SIPA).  The Law abolished the former capitalization regime, replacing it with 
a pay-as-you-go system, guaranteeing contributors a nd beneficiaries of the capitalization regime 
identical cover and treatment to that provided by the public social security scheme.  The Law provides 
for the transfer in cash to the National Social S ecurity Administration (ANSES) of the assets in the 
individual capitalization accounts of the contributors a nd beneficiaries of the capitalization regime of 
the integrated retirement and pension scheme provi ded by Law No. 24.241 and amendments thereto, 
and that these assets should be incorporated into the Fund to guarantee the sustainability of the public 
pay-as-you-go social security scheme created by D ecree No. 897/07.  Pursuant to Law No. 26.425, the 
totality of the resources may only be used to pay out SIPA benefits.  The Law prohibits investment of 
SIPA funds abroad. 
262. Although the scheme was unified in 2008, Law No. 26.425 allowed the benefits of the 
capitalization regime to be maintained and, as of the en try into force of the law, they were paid out in 
the form of a social security annuity and will cont inue to be paid through the relevant retirement 
insurance company.  Contributors to the capitalization regime who had paid into their individual 
capitalization accounts in the form of "voluntary paym ents" and/or "agreed de posits" and who had not WT/TPR/S/277 Trade Policy Review 
Page 184 
 
 
  yet received social security benefits were allowed to  transfer them to ANSES or to an AFJP converted 
into another financial institution, although they were not obliged to do so. 
263. Law No. 26.425 provided that the AFJP should be liquidated and compensated with 
government securities in an amount that could not exceed the maximum value of their equity.  These 
securities have to be issued according to a "minimum  timetable for transfer" so as to prevent them 
having an impact on the securities' prices and enable  the ANSES to have priority for repurchasing 
these securities.  The Law also pr ovides that contributors to the SIPA have the right to receive a 
permanent additional benefit that is determined by calculating 1.5% for each year of service with contributions made to the SIPA. 
(iv) Air transport and airports 
(a) Main features 
264. There are a total of 54 airports in Argentina belonging to the national airports system of the 
Argentine Republic (SNA), seven of which are international.
138  The main airport (Ezeiza) is 
located 22 km outside the City of Buenos Aires and handles over 80% of international traffic.  
By number of passengers, the busiest airport is Aeroparque Jorge Newbery, within the City 
of Buenos Aires.  The number of passengers carried on scheduled domestic flights (cabotage) 
was 6.27 million in 2011 and the number of passengers carried on international flights 
was 5.4 million.  As at June 2012, 51 airlines had been authorized to provide cabotage flights.139  
There were also 50 facilities authorized to provide technical services, of which 11 were Argentine and 
the remainder foreign.  Argentina did not make  any commitments on air transport under the GATS. 
(b) Air transport services 
265. Since the previous review of trade polici es in 2007, there have been changes in the 
composition of the entities responsible for air trans port services in Argentina.  Public policy for the 
commercial air transport sector is now the responsibility of the National Civil Aviation 
Administration (ANAC), a self-regulated body attach ed to the Secretariat for Transport in the 
Ministry of the Interior and Transport, created  by Decree No. 239/2007 (Creation of the National 
Civil Aviation Administration (ANAC)).  ANAC's r esponsibilities were previously exercised by the 
Undersecretariat for Commercial Air Transport in the Secretariat for Transport.  Decree No. 1.770/07 
(National Civil Aviation Administration - General Transfer Programme – Organizational Structure) 
and Decree No. 1.840/2011 (Civil Aviation – Tr ansfer of Responsibilities) determine the 
organizational aspects of the new institution, togeth er with the transfer of responsibilities.  Under 
Decree No. 1.770/07, the Secretar iat for Transport keeps responsibility for policies relating to 
concessions for new air routes, bilateral agreements and fares.  ANAC is now the aviation authority 
under the Aviation Code and, in that role, mana ges air navigation services, regulates, supervises, 
controls and administers civil aviatio n, and proposes policies for the sector.140  Decree No. 875/2012 
reorganized the responsibilities of the Secretariat for Transport. 
                                                      
138 Aeroparque (AEP), Córdoba (COR), Ezeiza (EZE), Neuquén (NQN), Mendoza (MDZ), San Juan 
(SJN) and Bariloche (BRC). 
139 Online information from ANAC, Empresas argentinas autorizadas a realizar servicios 
aerocomerciales .  Viewed at:  http://www.anac.gob.ar/spa nish/pages/read/lineas-aereas-comerciales. 
140 Online information from ANAC.  Vi ewed at:  http://www.anac.gob.ar. Argentina WT/TPR/S/277 
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  266. ANAC is also responsible for implementing bilate ral civil aviation agreements and takes part 
in their negotiation.141  It approves routes, flight frequencies, capacity and timetables for domestic and 
international scheduled air transport services.  It  keeps the National Aircraft Register and grants 
operating permits, contrary to the situation that prev ailed at the time of the previous Review in 2007, 
when the Air Force's National Airworth iness Board (DNA) kept the register.142 
267. As the aviation authority, ANAC inspects and c ontrols public and private airfields throughout 
Argentina, air navigation services, airworthiness, work  on aircraft, aerial work and air transport, the 
operation of aviation services, air transit and communications.  It also grants the necessary approval and licences for both aviation and airport services.  It  draws up draft rules and plans for civil aviation 
and is responsible for collecting and administering the fees paid for air transit services and for 
imposing fines for failure to comply with the Avia tion Code.  These resources are in the first place 
earmarked for ANAC's budget in or der to finance its operations. 
268. Law No. 17.285 of 23 May 1967 and amendments thereto compose the Aviation Code.  
All Argentina's civil aviation regulations have b een compiled into a single volume, which can be 
viewed online on ANAC's website.
143  Registration of an aircraft in the National Aircraft Register, 
currently kept by ANAC, confers Argentine nati onality on the aircraft.  There are no nationality 
requirements for owning an Argentine aircraft.  A natural person must be an actual resident of 
Argentina;  if there are several co owners, then th e majority whose rights exceed half the value of the 
aircraft, must maintain their actual residence in Ar gentina.  In the case of a company, it must have 
been established under Argentine law and have its registered office in Argentina.  Persons who 
perform aviation duties on board Argentine-registered  aircraft or on the ground must be in possession 
of a certificate issued by the DNA (Decree No. 1.954/ 77).  The revalidation of aviation certificates 
issued abroad is governed by agreements conclude d between the issuing countries and Argentina;  if 
there is no such agreement, revalidation is subject to reciprocity. 
269. A concession or prior authorization has to be  obtained for any commercial aviation activities, 
in accordance with the requirements in the Code  and its regulations.  ANAC gives any person 
authorized to provide an air transport service an Air Services Operator's Certificate (CESA). 
270. Cabotage air services are reserved for Argentine companies or nationals.  However, on 
grounds of public interest, the Executive may author ize foreign companies to provide such services on 
condition of reciprocity.  In the case of natural persons providing domestic air transport services, 
Argentine natural persons are deemed to be pe rsons of Argentine nationality with their actual 
domicile in Argentina.  Where companies are concerned, they must have been established and have 
their registered offices in Argentina, and they mu st be controlled and managed by persons actually 
domiciled in Argentina.  In the case of a partnership, at least half plus one of the partners must be 
Argentine nationals domiciled in the country and ow ning a majority of the equity;  in the case of a 
joint-stock company, a majority of the shares, corresponding to a majority of the countable votes, 
must be registered and owned by Argentine nati onals actually domiciled in the country, a criterion 
applicable both to natural persons and to lega l persons actually domiciled in Argentina (Decree 
No. 52/1994).  The chairman of the executive board or  board of directors, the managers and at least 
two thirds of the directors or executives must be Argentine nationals. 
                                                      
141 Idem . 
142 Online information from ANAC, Registro Nacional de Aeronaves .  Viewed at:  
http://www.anac.gob. ar/spanish/pages/read/regi stronacionaldeaeronaves. 
143 ANAC (2010). WT/TPR/S/277 Trade Policy Review 
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  271. The provision of cabotage or international air services requires a concession in the case of 
scheduled services or an authori zation in the case of unscheduled air transport.  Concessions are 
granted for specified routes and for a period of not  more than 15 years, which may be extended upon 
request, and are non-exclusive.  Flight crews must be Argentine nationals;  for technical reasons a 
percentage of foreign crew may exceptionally be aut horized for a period of not more than two years.  
Aircraft assigned to domestic transport services mu st be Argentine-registered;  exceptionally, to 
ensure the provision of these services or for reasons of  national expediency, foreign-registered aircraft 
may be used.  The routes, flight frequencies, cap acity and timetables for scheduled air transport 
services and fares for all services must have prior approval from ANAC. 
272. In accordance with Argentina's air transpor t regulations, foreign airlines may provide 
international air transport services between Ar gentina and other countries, under international 
conventions or agreements to which Argentina is  party, or with prior authorization from the 
Executive.  The authorization granted to foreign air lines must contain at least the same obligations as 
those imposed on Argentine airlines providing similar services. 
273. International airfares are deregulated and carrier s, whether national or foreign, only have to 
register them with ANAC.  Nevertheless, bilate ral understandings signed by Argentina with other 
countries may contain fare clauses stipulating diffe rent criteria for approving the fares of designated 
carriers on bilateral routes. 
274. Domestic fares for economy-class tickets on sch eduled flights are governed by a fare band 
scheme, with a minimum (benchmark fare) and ceili ngs (maximum fares I and II) for each origin and 
destination.  The latest update of the fares in effect  authorized by the Secretariat for Transport can be 
found in ST Resolution No. 23/2012.144  Domestic air carriers must submit the fares for air transport 
services to ANAC, which has to approve and register them.  Fares for domestic air transport must fall within the levels determined in ST Resolu tion No. 23/2012 in order to be approved. 
275. Provisions exist for the creation of promotiona l air services and for subsidizing the domestic 
public service on non-profitable routes.  Law No. 19.030 of 27 May 1971 (implementing regulations 
for providing commercial air services) provides that the National Executive may give domestic 
carriers holding concessions for scheduled air services economic compensation if, because of the application of non-remunerative fares on routes or legs  of routes declared to be of public interest for 
Argentina, the commercial operation of all the routes decl ared to be of public interest is in deficit.  
The Executive is also empowered to subsidi ze aerial work services in the same situation.
145 
276. Pursuant to Decree No. 1.654/2002 (extended by Decree No. 1.012/2006, which declared a 
state of emergency in commercial air transpor t throughout Argentina), as of 1 September 2002, 
Argentine air carriers have no longer been obliged to take out commercial air transport insurance in 
Argentina, as prescribed by Law No. 12.988 of 194 7, so as to lower their insurance costs.  
The authorities have indicated that, following an action for protection ( acción de amparo ) brought by 
an association of insurance companies, this regulation is not at present being applied. 
277. PEN Decree No. 1.012/2006 declared the continuation of the state of aviation emergency and 
established the Aviation Fuel Compensation Regime  (RCCA) to be applied to domestic scheduled 
                                                      
144 For further details on the fares determined in this resolution, see online information from ANAC, 
Tarifas correspondientes a Resolución S.T. 23/2012 .  Viewed at:  
http://www.anac.gob.ar /contents/webpage/media/Tarif as_SecretariaTansporte.xls. 
145 Decree No. 2.836/71 allows subsidi zation of aerial work when this is for the purpose of dealing with 
agricultural pests or natural disasters. Argentina WT/TPR/S/277 
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  passenger air transport services.  Resolution No. 806/2006 of the Secretariat for Transport 
implemented this regime, which remained in effect up to the end of 2008.  The latest extension was 
ST Resolution No. 987/2008.146 
278. Argentina is party to the Convention on Inte rnational Civil Aviation (Chicago Convention) 
of 7 December 1944, ratified by Law No. 13.891 of  15 December 1949, and participates in several 
international air transport services agreements and conventions.  Since its creation, ANAC has taken 
on Argentina's responsibilities under the Convention.   Law No. 25.806 of 2 December 2003 ratified 
the Agreement on Subregional Air Services (F ortaleza Agreement) between the members of 
MERCOSUR, the Plurinational State of Bolivia, Chile  and Peru, which is in tended to facilitate the 
introduction of new subregional scheduled air servi ces on routes not actually operated under bilateral 
agreements.  Argentina has bilateral air transpor t agreements with 26 countries.  Moreover, it has 
concluded bilateral unde rstandings on commercial air transport services with 41 countries.  
Agreements that involve arrangements for the pooli ng, linking, consolidation or merging of services 
or business operations, as well as code sharing agr eements, must be submitted to ANAC for approval. 
(c) Airports and auxiliary services 
279. Argentina's airports are owned by the State.  However, the law allows airport management to 
be put out to concession.  Accordingly, at June 2012, 38 of the SNA's 54 airports were being managed 
by concession-holders.147  The National Airport System Regulatory Authority (ORSNA), established 
by Decree No. 375/97, is responsible for regulati ng, controlling and supervis ing all services provided 
to passengers and users of airports belonging to the SNA.  ORSNA supervises and regulates the 
quality of the airport infrastructure and the invest ment needed to adapt to the level of demand.148 
280. Pursuant to Decree No. 375/97, ORSNA estab lishes the rules, systems and technical 
procedures required to administer, operate, protect and maintain the airports belonging to the SNA 
and monitors compliance by concession-holders and/ or airport managers with their obligations.  
It submits to the Executive draft proposals for th e amendment and repeal of laws, decrees and/or 
resolutions relating to aviation.  For this pur pose, ORSNA Resolution No. 232 of 19 October 1998 
approved the first Operating Manual for Airports  in the National Airports System and ORSNA 
Resolution No. 96/01 of 31 July 2001 gave effe ct to the General Regulations on the Use and 
Operation of SNA Airports (REGUFA).149  ANAC is responsible for ope rational control of aviation, 
transit services, air traffic control and flight protect ion, for example, timetables, issue of air tickets, 
boarding services and everything concerning airlines' activities. 
281. ORSNA is responsible for approving tariff scales for services provided by the SNA, both as 
regards concession-holders and airport managers.  In 2009, by means of Resolution No. 10/2009, 
ORSNA undertook an overall revision of tari ffs, which had remained unchanged since 2001.150  
In 2011, ORSNA Resolution No. 126/2011 introduced a further revision of the rates for airport fees.  
                                                      
146 Viewed at:  http://www.trans porte.gov.ar/UserFiles/pdfs/subs idios/rcca/rcca_noviembre08.pdf. 
147 Online information from ORSNA.  Viewed at:  http://www.orsna.gov.ar/c ontents/aeroports.html. 
148 Idem . 
149 Viewed at:  http://www.ors na.gov.ar/pdf/REGUFA.pdf. 
150 Viewed at:  http://www.orsna.gov.ar/pdf/Res_10_09. pdf.  Originally, the systems for determining 
tariffs for airport services for domestic and in ternational flights were contained in Annex I, Cuadro Tarifario 
Inicial  to Resolution No. 53/98.  Decree No. 698/2001 amended the tariffs for domestic services in the Cuadro 
Tarifario Inicial , approved by Decree No. 500/97, and amended by Decree No. 57 of 22 January 2001.  
Decree No. 698/2001 significantly reduced landing and parking fees for domestic flights, although the tariffs 
applicable to international flights remained unchanged. WT/TPR/S/277 Trade Policy Review 
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  For domestic flights, the airport use fee (TUA) was set at US$16.68 plus VAT and is included in the 
air ticket.151  The TUA for international flights is US$33.15.  In addition, a single customs 
and migration fee of US$10 also has to be paid.  As of 1 January 2013, passengers will have to pay 
a US$10 security tax for both domestic and intern ational flights, pursuant to ANAC Resolution 
No. 613/2012 and the amendment thereto.  ORSNA's ta riff scales determine the fees applicable to 
aircraft, such as the landing and parking f ees, which depend on the aircraft's weight. 
282. Since 2008, ANAC has been responsible for the co ntrol of security, the supply of air transit 
and/or air traffic control and/or flight protec tion services, aviation regulation and the provision of 
communications, meteorology, rescue and salvage servi ces, and in general the technical aspects of the 
SNA (previously the responsibility of the Argentine Air Force).  The DNA administers the standards 
and procedures governing airworthiness.152 
283. As already mentioned, a concession or authori zation is required to carry on any commercial 
air transport activity, including airport services.  Market access without re strictions and national 
treatment apply to all auxiliary services, with the exception of air navigation services, which are 
reserved for the State.  There are no limitations on domestic or foreign private participation in the 
provision of auxiliary services such as maintenance,  which can be commissioned abroad.  Technical 
aviation personnel must obtain a certificate of comp etency and a licence to exercise their profession.  
Certificates of competency and licences granted abroad  are valid in Argentina subject to revalidation. 
(v) Maritime transport 
(a) Main features 
284. Argentina has 43 main ports, eight under provincial administration and the rest privately 
operated.  The port of Buenos Aires is the count ry's main port for both general and container cargo 
and in 2009, the latest year for which informati on is available, handled some 9.81 million tonnes of 
goods transported by river or by sea.153  Of the total cargo handled, 4.86 million tonnes consisted of 
imports and 4.99 million of exports.  San Lorenzo, San Martín and Rosario on the Paraná River are 
the country's major ports for cereals and oils. 
285. As at June 2012, 28 shipping lines, with dom estic or foreign capital, were operating in 
Argentina.154  A substantial proportion of international goods traffic continues to use foreign-flag 
vessels.  The market is fairly concentrated:  in 2011, the four major shipping lines accounted 
for 56.4% of the total cargo carried and the three l eading lines for 46.2%, a higher percentage than the 
global average, which was 33.1% that year.155 
286. Throughout the period under review, the aut horities continued to implement policies to 
increase the volume of traffic using Argentine ship s, but the Argentine merchant fleet has been 
                                                      
151 With the exception of the TUA at the airports of Trelew, Ushuaia and Calafate, where it is paid 
separately at specially approved counters. 
152 Online information from the DNA.  Viewed at:  
http://www.dna.org.ar/dnaportal/institucional/Home/home.htm. 
153 Argentine Port Council (2010). 
154 Online information from the Port of Buenos Aires, Armadores y líneas marítimas en operación .  
Viewed at:  http://www.puertobuenosaires.gov.ar/Notas/armador.pdf. 
155 Online information from Nuestromar,  Los armadores top en la Argentina .  Viewed at:  
http://www.nuestromar.com/noticias/30 -05-12/armadores-top-en-argentina. Argentina WT/TPR/S/277 
 Page 189 
 
 
  shrinking.  In response to incentives to encourage national registration, 187 vessels were registered 
under the national flag between 2004 and 2011, with tonnage of close to 150,000 tonnes. 
(b) Maritime and river transport services 
287. The Undersecretariat for Ports and Naviga ble Waterways (SSPyVN), attached to the 
Secretariat for Transport, Ministry of the Interior and Transport, is responsible for the formulation, 
implementation and monitoring of policies a nd plans for river and maritime transport.156  Within this 
Undersecretariat, the foremost responsibility of the National Directorate for River and Maritime 
Transport is to draw up, propose and implement po licies, plans and programmes for river, maritime 
and lake transport.  It is also in charge of ove rseeing activities concerning registration, water traffic 
and transport services for passengers and cargo, a nd for compliance with the standards for the 
industry and shipbuilding.157 
288. There were no major changes to shipping legislation during the period under review.  
The Shipping Law or Law No. 20.094 of 2 Marc h 1973, and Decree No. 4.516 of 16 May 1973 and 
succeeding enactments of the Maritime, River and Lake Shipping Regime (REGlNAVE) contain the rules applicable to maritime and river trans port.  Decree No. 1.772/91 of 3 September 1991 and 
Decree No. 817/92 of 26 May 1992 introduced the dere gulation of waterborne transport.  The latter 
Decree contains rules for the administrative reorga nization and privatization of maritime, river and 
lake transport activities, and revoked the administrati ve provisions relating to the approval of tariffs, 
with the exception of those on conference freight.  Within this free tariff regime, shipowners and/or 
ship brokers are required to communicate their ta riffs, routes, schedules and standard of service to 
the SSPyVN and this information must be made public. 
289. Argentina has restrictions on coastal shipping  and trade (cabotage).  Decree Law No. 19.492 
of 25 July 1944, ratified by Law No. 12.980 of 29 July 1996, provides for cabotage to be reserved for Argentine-flag vessels.  This restriction also appli es to cargoes which are ultimately to be exported or 
when, in the course of the voyage, the vessel puts in at  one or more foreign ports.  The regulations on 
cabotage apply to transhipment, dredging and towi ng operations and any other service or commercial 
activity carried out in Argentine (maritime, river or  lake) waters.  Vessels providing cabotage services 
in Argentina must be owned by Argentine citizens or companies legally established in Argentina and 
registered as shipowners in th e National Shipowners Register. 
290. There are also legal clauses that allow ex ceptions to the cabotage rule in specific 
circumstances.  Article 6 of Decree Law No. 19.492 of 25 July 1944 empowers the National Executive to authorize foreign vessels to provide national cabotage services if there are no 
Argentine units capable of providing them.  Over the period 2006-2010, 427 waivers were granted:  
72 in 2006, 135 in 2007, 124 in 2008, 44 in 2009 and 52 in 2010.
158 
291. Decree No. 1.010 of 6 August 2004 repealed Decree No. 1.772/91, which had established a 
provisional suspension of the Argentine flag regime.  This regime had led to a sharp decline in the 
number of Argentine-registered vessels, from 149 on the date on which Decree No. 1.772/91 was 
                                                      
156 Decrees Nos. 1.824/2004, 1.283/2003 and 1.142/2003. 
157 Online information from the SSPyVN.  Acciones de la Dirección Nacional de Transporte Fluvial y 
Marítimo .  Viewed at:  http://www.s spyvn.gov.ar/ acciones.html. 
158 Online information from the Secretariat for Transport, Excepciones al cabotaje nacional .  Viewed 
at:  http://www.sspyvn.gov.ar/exepciones_cabotaje09.html. WT/TPR/S/277 Trade Policy Review 
Page 190 
 
 
  enacted to a minimum of 70 in 2002.159  Decree No. 1.010/2004 introduced  a transitional regime to 
boost the merchant fleet and promote the re-registra tion of Argentine vessels.  Under this regime, 
Argentine shipowners were granted facilities fo r bareboat chartering of vessels, which may be 
registered under the Argentine flag temporarily and provide cabotage services.160  Shipowners based 
in Argentina were originally given a period of two years in which to adapt to the new regime.  Decree 
No. 1.022/2006 eliminated this tran sitional period, providing that shi powners could be covered by the 
regime until a new legal regime for the Argentine merc hant fleet entered into force, but this has not 
yet been the case.  Vessels eligible for the re gime are authorized to carry out cabotage and 
international operations, being consid ered to be under the national flag for a period of between one to 
three years from the date of enrolment in the Register, depending on the duration of the charter 
contract.  Vessels incorporated in the Register are placed under the temporary import procedure. 
292. The requirements for enrolment in the Register  of Vessels Considered Argentine Vessels 
include permanent domicile in Argentina for natu ral persons.  For legal persons, they include:  
establishment of the company in Argentina;  regist ration under its ownership or operation of at least 
one Argentine-flag vessel or the conclusion of a sh ipbuilding contract with an Argentine shipyard and 
registration as a shipowner;  a bareboat charter contra ct for a vessel or floating structure for a duration 
of no less than one year or more than three y ears as of the date on which the authorization was 
granted;  and at the time of submitting the applicat ion, the vessel or floating structure that is the 
subject of the bareboat charter must not be more than ten years old calculated from the date on which 
it was first registered.  In December 2011, 37 vessels had been authorized as Argentine vessels 
pursuant to Decrees Nos. 1.010/2004 and 1.022/2006.161 
293. To promote shipbuilding in national shipyards,  Decree No. 1.010/2004 authorizes shipowners 
with vessels under construction in Argentine shipyards to use for coastal traffic for up to 24 months, 
under a bareboat charter contract, foreign-registered vessels with characteristics similar to those of the 
vessels under construction and up to 100% of the to nnage under construction, and to charter vessels 
intended for activities in support of offshore oil opera tions for the equivalent of 200% of the tonnage 
to be built in national shipyards. 
294. Decree No. 1.010/2004 also established an import regime for inputs, parts and/or components 
not produced in MERCOSUR, intended for cons truction and repair in Argentina of vessels 
and floating structures classifiable in NCM headings 8901, 8902, 8904, 8905 and 8906, at a tariff rate of 0%.  Foreign-flag vessels and floating stru ctures covered by Decree No . 1.010/2004 must have 
exclusively Argentine crews and modifications and repairs to vessels and structures covered by the 
regime must be carried out in shipyards and marine workshops in Argentina.  Only if it can be shown 
that no Argentine crews are available, foreign crew s with the required capacity may be authorized for 
as long as Argentine crews remain unavailable;  this does not, however, apply to cabotage traffic for 
periods exceeding 30 consecutive days, pursuant  to Article 6 of Decree Law No. 19.492/44. 
                                                      
159 Taking into account Decree No . 1.010/2004.  Viewed at:  
http://www.revistarap.com.ar /Derecho/regulacion_servicios_publicos /regulacion_economica/decreto_1010_200
4_marina_mercante_nacio_rag.html. 
160 Vessels and floating structures which it is consid ered can be built in Argentina are excluded from 
the regime.  These include:  vessels to be used for fishing;  for sporting or recreational or technical, scientific 
and/or research activities;  for transporting passengers and/or vehicles, up to 5,000 tonnes;  for transporting 
cargo, not self-propelled;  for extracting sand and/or pebbles ;  and tugs and support and auxiliary craft.  Floating 
structures include dredgers, landing stages, platforms, buoys and other floating structures. 
161 Online information from th e Secretariat for Transport , Buques con tratamiento de bandera nacional 
autorizados:  diciembre de 2011 .  Viewed at:  http://www.sspyvn .gov.ar/tratamientoDecreto.html. Argentina WT/TPR/S/277 
 Page 191 
 
 
  295. In some cases, the use of Argentine-registered vessels is required in order to be eligible for 
preferences.  Resolution No. 12/2012 of 14 May 2012 of the Secretariat for Mining provides that companies in receipt of benefits under Law No. 24.196 (Mining Investment Law) and amendments 
thereto must use Argentine companie s to ship their exports of minerals or byproducts by sea, river, 
land or air.  For freight that has to be transhipped prior to reaching its final destination, either using 
the same mode of transport and/or other intermodal tr ansport, the cargo preference is reviewed by leg.  
The preference does not apply when the cargo cannot  be carried by Argentine companies either 
because there is no hold space or no vessel, vehicle or aircraft is available. 
296. Argentina is a member of the International Ma ritime Organization (IMO) and participates in a 
number of international shipping agreements ad ministered by it.  It is a signatory to the 
Inter-American Convention on Facilita tion of International Waterborne  Transportation (Convention of 
Mar del Plata) of 7 June 1963.  Together with the Plurinational State of Bolivia, Paraguay, Uruguay 
and Brazil, Argentina is party to the Agreem ent on Facilitation of Navigation and Commercial 
Transport on the Paraguay-Paraná  Waterway, approved by Law No. 24.385 of 21 November 1994.  
It has also signed bilateral cross-border river transport agreements w ith Brazil, Paraguay and 
Uruguay, including with Paraguay the Convention on Cross-Border River Transport of Passengers, 
Vehicles and Cargo of 31 July 1972.  With Br azil, the Agreement on the Cross-Border River 
Transport of Passengers, Vehicles and Cargo, signed on 27 April 1997 a nd approved by Law 
No. 25.594 of 18 June 2002 is in force.  An Ag reement on Waterborne Transport was signed with 
Uruguay on 14 October 1994 and approved by Law No. 25.177 of 25 October 1999, covering the 
transport of passengers and vehicles between th e two countries.  A provisional regime on ferry 
services for cross-border river transport between Aguas Blancas and Pozo del Bermejo was signed 
with the Plurinational State of Bolivia in Nove mber 2004 and governs river traffic between these two 
localities until a bilateral agreement enters into force. 
297. In MERCOSUR Subgroup 5 on Transport, Arge ntina and two other members agreed on a 
draft multilateral agreement on maritime transpor t, but it was not accepted by another member.  
In this Subgroup, meetings of maritime transport e xperts have been held in order to achieve regional 
integration, develop the merchant fleets of the States Party, and promote the shipping industry, with the possible incorporation of new units into the system. 
298. Argentina has also signed bilateral shipping agre ements with Brazil and Cuba.  The Maritime 
Transport Agreement between Argentina and Braz il, signed on 15 August 19 85 and approved by Law 
No. 23.557 of 12 July 1988, grants reciprocity for the transport of cargo and reserves the transport of 
goods between their ports to vessels registered in  the two countries, whether those goods be in 
commercial trade or transhipment to or from th ird countries.  The Maritime Transport Convention 
of 13 November 1984 between Argentina and Cuba , approved by Law No. 23.432 of 27 March 1987, 
reserves the carriage of their foreign trade for vessels registered in the two countries. 
(c) Port services 
299. Under Decree No. 1.824/2004, the SSPyVN is th e authority responsible for formulating, 
implementing and monitoring policies relating to port services.
162  It supervises the operation of the 
General Administration of State-owned Ports (AGPSE) , which manages the Port of Buenos Aires.  
Within the SSPyVN, pursuant to Decree No. 1.142/2003,  the National Ports Directorate is in charge 
of drafting proposing and implemen ting ports-related policies, plans and programmes and for ensuring 
                                                      
162 Online information from the Secretariat for Transport, Misiones y Funciones de la Subsecretaría de 
Puertos y Vías Navegables .  Viewed at:  http://www.transporte.gov.ar/content/misiones-pyv. WT/TPR/S/277 Trade Policy Review 
Page 192 
 
 
  compliance with them.  The Directorate is respons ible for controlling proce dures for approving ports, 
inspecting port operations and c oordinating action by various State bodies and private entities that 
play a role in ports.163 
300. Law No. 24.093 of 26 June 1992  deregulating port activities governs all matters relating to 
the approval, administration and operation of Stat e-owned and private ports.  Decree No. 769/93 on 
port activities contains the implementing regulations for Law No. 24.093.  This Law provided for the 
decentralization of port activities, transferring ports throughout Argentina to the respective provinces.  
It provided that the Port of Buenos  Aires should be transferred to th e scope of the former Municipality 
of Buenos Aires, but this was vetoed by the Executi ve and the Port of Buenos Aires is still owned by 
the State. 
301. The Law classifies ports according to their owne rship into national, provincial, municipal or 
privately-owned, according to their use into public  or private, and accordin g to their purpose into 
commercial, industrial or recreational.  It also  establishes the conditions and requirements for the 
approval of ports and stipulates that private indi viduals may build, manage  and operate public or 
private ports for commercial, industrial or recreational purposes, on public land or on their 
own property. 
302. In order to operate, commercial and industria l ports must be approved by the Executive and 
this applies for as long as they c ontinue to operate.  Law No. 24.093 requires the fees, prices and other 
considerations paid by users to be stri ctly proportional to the service provided. 
303. Decree No. 817/92 provided for the dissoluti on of the AGPSE once the ports under its 
jurisdiction had been privatized, transformed or  transferred.  In the meantime, individual 
administrations were provisionally establishe d, under the AGPSE, for six ports, namely:  
Buenos Aires, Rosario, Quequén, Bahía Blanca, Santa Fe, and Ushuaia.  As the Port of Buenos Aires 
remains State-owned, the AGPSE con tinues to operate and is currently  responsible for operating and 
maintaining the infrastructure in the areas of the port that are not the subject of a concession.  It also 
acts as the implementing authority and monitoring entity for compliance with the contractual terms 
applicable to holders of concessions for private terminals vis-à-vis  the State. 
304. The fees charged by privately-managed ports are fre ely fixed.  The fees charged in the Port of 
Buenos Aires and in those ports still managed by the State are centrally fixed and a distinction is 
made between cabotage and international trade.  Fo r example, for quayside services and vessel taxes, 
cabotage vessels pay only 25% of the fee or genera l tax at an exchange rate of Arg$1 to US$1.  
Similarly, the cargo tax structure favours internal transport operations as the rate is US$3 per net 
registered tonne (NRT) for exports, US$1.50 for imports, and US$0.562, at an exchange rate 
of Arg$1 to US$1 by weight, for transport operations.164  These fees have not changed since the 
previous Review. 
305. Pursuant to Decree No. 2.694 of 20 Dece mber 1991, pilotage, marshalling and towing 
services are compulsory for foreign-flag vessels.  Argentine-flag vessels with certain dimensions and 
draught can opt to dispense with the aforementioned ser vices if their captains or owners comply with 
certain requirements with regard to experience. 
                                                      
163 Online information from the SSPy VN, Acciones.  Viewed at:  
http://www.sspyvn.gov.ar/ acciones_puertos.html. 
164 Online information from the Port of Buenos Aires, Tarifas y normas .  Viewed at:  
http://www.puertobuenosaires.gov.ar/tarifasynormas.html. Argentina WT/TPR/S/277 
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  (vi) Professional services 
(a) Main features 
306. In general terms, the exercise of a profession in Argentina is not regulated.  What is regulated 
is the curriculum for those professions  whose exercise could run counter to the public interest, placing 
the health, safety, rights, property or education of the population directly at risk.  Under Decree 
No. 2.293/92 on professional exercise by graduates and non-graduates, the freedom to exercise a 
profession is subject only to the requirement of a si ngle registration, where appropriate.  This Decree 
abolished the various national and pr ovincial regulations formerly in force, which required enrolment, 
registration, membership of an association or othe r forms of registration as a requirement prior to 
exercising a profession with a nationally valid diploma. 
307. Under Law No. 24.521 of 10 August 1995 on higher education, exercise of a profession 
requires official recognition of the diplomas awarded by university institutions, and this is given by 
the Ministry of Education.  According to this Law, officially recognized diplomas attest to the 
academic training received and give approval for exercising the profession throughout Argentina, 
without prejudice to the power of law enforcem ent services in respect of professions coming under 
provincial jurisdiction. 
308. In order to be recognized in Argentina and be able to exercise a profession, Law No. 24.521 
requires that foreign diplomas (whether awarded to Argentine nationals or to foreigners) be 
revalidated by a National University (i.e. a pub lic State university, not a provincial or private 
establishment) or endorsed by the Ministry of Education. 
309. The system of equivalence of diplomas appli es in cases where Argentina has signed bilateral 
or multilateral agreements on the recognition of university diplomas.  Currently, the diplomas 
awarded by the Plurinational State of Bolivia, Colombia, Chile, Ecuador, Spain, Peru, Cuba and 
Mexico (agreement not yet in force) fall within this category.165  The procedure for recognizing 
diplomas awarded by these countries for the ex ercise of a profession varies according to the 
agreement.  For this purpose, the diploma must ha ve been certified by the education authorities and 
the Argentine Consulate in the country of origin and by the Ministry of External Relations in 
Buenos Aires, unless the country is party to the Hague Convention of 5 October 1961, in which case 
the diploma is exempt from the requirement of authentication by the Ministry. 
310. Decree No. 240/99 on economic de regulation contains provisions that deregulate the activities 
of a series of professional regimes and annuls the previous provisions on the determination of scales establishing all forms of remuneration for professional services.  Public or private establishments, 
including professional associations and societies,  are prohibited from obstructing the free negotiation 
of any form of remuneration.  Decree No. 2.28 4/91 annulled the restrictions on the supply of goods 
and services throughout Argentina. 
                                                      
165 For diplomas issued by Ecuador, Spain and Colombia (for non-accredited professions only) and 
Peru, Ministerial Resolution No. 252/03 provides for a procedure that includes the formation of Assessment Committees of Specialists from the National Commission for University Evaluation and Accreditation 
(CONEAU) to examine each applicati on for the recognition of a diploma an d advise on the relevant academic 
requirements. WT/TPR/S/277 Trade Policy Review 
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  311. Argentina participates in the regional accred itation system for academic degrees of the 
MERCOSUR States Parties and associate States (ARCU-SUR system), whose experimental stage is called the experimental accreditation mechanism (MEXA).  Through this, joint regional accreditation 
is given for undergraduate degrees in MERCOSUR countries, the Plurinational State of Bolivia, 
Colombia and Chile.  This system was created by  the Memorandum of Understanding on the creation 
and implementation of the system for accreditation of university degrees for the regional recognition 
of the academic status of various diplomas in MERCOSUR and associate States, signed on 30 June 2008.  The purpose of the ARCU-SUR system is to validate university degrees in the 
participating States on the basis of regionally agr eed quality parameters;  accreditation is solely 
academic and does not confer the right to exerci se a profession.  Regional accreditation currently 
applies to the professions of agronomy, engineer ing, veterinary medicine, architecture, nursing 
and dentistry. 
312. Argentina has made full specific commitmen ts in the professional services sector under 
the GATS in various areas such as legal, accounti ng, auditing and bookkeeping services, architecture 
and engineering.  The commitments include market access and national treatment both for cross-border supply and for consumption abroad and commercial presence.  The supply of services 
through the presence of natural persons is unbo und with respect to market access and national 
treatment for all the sectors included in Argentin a's GATS schedule, except for measures concerning 
the entry and temporary stay of managers, executives and specialists.
166 
313. In 1996, in accordance with Article VII.4 of the GATS, Argentina notified the WTO that it 
had ratified diploma recognition agreements with ten countries.167  This notification has not been 
updated since then. 
(b) Legal services 
314. To practise as a lawyer it is necessary to have a national lawyer's diploma awarded by a 
university belonging to the national university system .  If the diploma has been awarded by a foreign 
university, it must be endorsed by the Ministry of Education or revalidated by a national university.  
In all cases, to practise as a lawyer professional au thorization also has to be obtained through 
enrolment in the Register of the Law Society of the corresponding jurisdiction. 
315. Each one of Argentina's 24 jurisdictions gran ts registration to exercise the profession.  
Each local jurisdiction also has the autonomy to  set up one or more law societies within its 
jurisdiction, in which the interested professional mu st be enrolled in order to obtain registration. 
316. Lawyers must have their office or special domic ile within the jurisdiction in which they are 
registered.  Law No. 23.187 of 28 June 1985 cont ains provisions concerning the requirements for 
practising as a lawyer in the Federal Capital.  In the provinces, lawyers can practise anywhere in the 
provincial territory and be enrolled in the register of  the law society of their actual domicile;  it is not 
necessary to be actually domiciled in the particular  jurisdiction in which the profession is practised.  
As there are no nationality requirements, a foreign lawyer may open a law office.  Foreign lawyers 
                                                      
166 WTO document GATS/SC/4 of 15 April 1994. 
167 WTO document S/C/N/13 of 27 February 1996.  The various agreements involve Argentina and one 
or more of the following countries:  Brazil, the Plurinational State of Bolivia, Colombia, Ecuador, the Holy See, 
Paraguay, Peru, Spain, Uruguay and the Bolivarian Republic of Venezuela. Argentina WT/TPR/S/277 
 Page 195 
 
 
  with national diplomas can be enrolled with the p ublic law society of their Argentine domicile.  
Foreign diplomas need to be revalidated.168 
(c) Accounting and auditing services 
317. The requirements relating to chartered accountan cy and other economics professions are laid 
down in Law No. 20.488 of 23 July 1973, and in Reso lutions of the Ministry of Culture and Education 
Nos. 1.560 of 1 September 1980 and 1.627 of 25 Oct ober 1983.  Access to the Argentine market for 
foreign-trained accountants depe nds on revalidation of the professional diploma, professional 
accreditation and registration in Argentina.  Foreign accountancy firms may set up and offer services in Argentina. 
318. Each provincial jurisdiction and the CABA re gulate the activities of accountants and monitor 
the ethics of all professionals working within their ju risdiction.  In all cases, the State has delegated 
this responsibility to the professional economics c ouncils, whose scope extends exclusively to the 
corresponding province or jurisdiction.  These counc ils grant and administer the registration that 
enables the economics professions to be practised lega lly.  The rules to be followed are laid down in 
each jurisdiction in accordance with the le gislation of each province or the CABA. 
319. At the domestic level, through an agreement w ith all the 24 professional councils, Argentina 
endeavours to harmonize technical and accounting standa rds.  At the international level, even though 
it is not party to any accountancy-related mutual recognition agreements, Ar gentina does participate 
in several ventures to harmonize accounting procedures.
169  It is involved in the MERCOSUR 
Integration Group on Accountancy, Economics and Administration (GIMCEA) with a view to 
harmonizing the rules on the exercise of the relevant professions within MERCOSUR.  Argentina was 
also involved in the Working Party on Profession al Services and replied to the questionnaire on 
accounting services.170 
(vii) Tourism 
320. Since 2005, Argentina's tourism sector's indicator s have shown a sustained upward trend, with 
the exception of 2009, when there was a dec line owing in part to the global economic 
crisis (Table IV.9). 
Table IV.9 
Some economic indicators for the tourism sector, 2005-2011 
 2005 2006 2007 2008 2009 2010 2011 
Arrival of non-resident tourists 3,822,666 4,172,534 4,561,742 4,700,494 4,307,666 5,325,129 5,693,730 
Earnings (US$ million) 2,640.9 3,249.5 4,218.1 4,530.1 3,837.5 4,816.4 5,208.0 
Jobs 908,260 956,546 1,018,076 1,005,505 1,005,413 1,046,940 1,077,580 
Investment (US$ million) 152 172 177 317 338 344 368 
Source : Online information from the Undersecretariat for Tourism Development, Estudios de mercado y estadísticas .  
Viewed at:  http://desarrolloturistico.gob.ar/inicio. 
 
                                                      
168 Online information from the Law Society of the Federal Capital.  Viewed at:  
http://www.cpacf.org.ar/azul/A _ReqMatric.htm#extranje. 
169 For example, through the Inter-American Accounting Association, the International Federation of 
Accountants and the International Accounting Standards Board. 
170 WTO document S/WPPS/W/7/ Add.7 of 17 July 1996. WT/TPR/S/277 Trade Policy Review 
Page 196 
 
 
  321. The National Tourism Law, Law No. 25.997 of 7 January 2005, governs the tourism sector 
in Argentina and declares it to be "of national interest" because of its "vital" role in the 
country's economy.171 
322. Since it was set up in 2010, the Ministry of Tourism (MINTUR) has been responsible for 
formulating and implementing tourism policies.  Th is responsibility was previously fulfilled by the 
Secretariat for Tourism, which was first attached to the Office of the President and, from 2008 to 
2010, to the former Ministry of Industry and Tour ism.  MINTUR was created by a Necessity and 
Urgency Decree with the aim of reinforcing and ex tending government action in a sector which the 
authorities consider to be of considerable impor tance for the "alternative development of economic 
activities".172  MINTUR drafts policies and implements pr ogrammes on tourism and, together with the 
Secretariat for Transport, coordinates policies on commercial air transport.173  The Secretariat for 
Tourism, within MINTUR, assists the Minister in developing plans and projects for the sustainable and competitive development of Argentina's tour ism offer.  The Secretariat also prepares 
communication strategies that provide an appropria te link between tourism demand and supply, deals 
with incentive policies for capital investment in the sector, and handles aspects concerning the 
competitiveness of tourism.  The strategies are draw n up mainly by the Undersecretariats for Tourism 
Development and National Tourism Promotion.
174 
323. MINTUR chairs the National Tourism Promo tion Institute, a non-State public law body 
which develops and implements st rategies to promote internationa l incoming tourism and the image 
of Argentina abroad.175  The Federal Tourism Council decides on government policies and actions at 
the Federal level and is consulted by  MINTUR when deemed appropriate.176  There are also 
provincial tourism promotion organizations which may issue regulations and monitor the quality of 
the services provided.177 
324. The Federal Strategic Plan for Sustainable Tourism (PFETS) was drawn up in 2005 under the 
National Tourism Law with the objective of de veloping and promoting tourism in Argentina.178  
The PFETS defines a Federal map of opportunities to de velop Argentina's tourism potential.  In order 
to achieve this objective, the PFETS is built around four premises:  institutional consolidation of 
tourism, sustainable development, balanced de velopment of national tourism opportunities, and 
fostering investment through a series of incentives.179  MINTUR updated the PFETS in 2011 to take 
into account the results achieved since 2005.180  The authorities have earmarked an annual budget 
of Arg$553 million for the Plan and aim to attr act private Argentine a nd foreign investment 
                                                      
171 Its implementing regulations are contained in Decree No. 1.297/2006. 
172 Decree No. 919/2010. 
173 Idem , Article 3. 
174 Online information from the Secretariat for Tourism, Organización .  Viewed at:  
http://www.turismo.gov.ar/indexfs.html. 
175 Law No. 25.997/2005, Articles 13 and 14. 
176 Idem , Article 10. 
177 Undersecretariat for Tourism Development (2009). 
178 Law No. 25.997/2005, Articles 2 and 7. 
179 Online information from the Undersecretariat for Tourism Development, PFETS 2016 .  Viewed at:  
http://desarrolloturistico.gob.ar/subsecretaria/pla n-federal-estrategico-de-turismo-sustentable. 
180 Idem , PFETS 2020 .  Viewed at:  
http://desarrolloturistico.gob.ar/subsecretaria/pla n-federal-estrategico-de-turismo-sustentable. Argentina WT/TPR/S/277 
 Page 197 
 
 
  of Arg$27 million.  The PFET's ultimate objective is  to make Argentina a benchmark for the quality 
and diversity of its tourism offer and make it th e foremost tourism destination in Latin America.181 
325. Since 2005, Argentina has had a National Tourism Fund, set up for a period of ten years.182  
The Fund's finances come from various sources, including the 5% tax on the sale of scheduled and non-scheduled maritime or air transport tickets, after taxes and other contributions have been 
deducted.
183  The Fund has been managed by MINTUR since 2010, but was previously managed by 
the Secretariat for Tourism.184  The funds go to the following programmes:  tourism development, 
promotion of domestic tourism, social tourism,  tourism quality, international lines of credit 
(local counterpart), personnel and other running cost s, for 60% of the budget.  The remaining 40% is 
used to finance measures to promote international incoming tourism. 
326. Argentina has a number of instruments to prom ote investment in tourism, mainly aimed at 
projects which generate jobs, use Argentine raw ma terials or inputs, increase tourism demand or boost 
the sustainability and balanced develo pment of Argentina's tourism potential.185  Tourism projects 
with public investment are eligible for the nationa l tourism investment prog ramme (Table IV.10).  
The provinces forward their projects for selecti on by MINTUR, with the endorsement of the 
respective provincial tourism organization.  The cr iteria taken into account when selecting the projects 
include the following:  fulfilment of the PFETS obj ectives, upgrading of works that have received 
previous support, and reinforcement or generation of new tourism products.186 
327. To finance the building or renovation of the hotel infrastructure or to purchase capital goods 
or labour, companies may have access to credit lin es from the BNA and the I nvestment and Foreign 
Trade Bank (BICE) (Table IV.10).  Provincial fina ncial institutions also offer companies, notably 
MSMEs, a wide range of credit lines.187  The budget earmarked by the Council rose from 
Arg$3.6 million in 2008 to Arg$24 million in 2011.188  The Federal Investment Council also provides 
lines of credit to promote tourism products.189  MINTUR receives financing from the IaDB under the 
programme to improve the competitiveness of the tourism sector.190  There are also provincial 
incentive schemes for investment in tourism consis ting of total or partial exemption or deferred 
payment of various contributions.  Schemes ar e in effect in 17 of the 23 provinces and in 
the CABA.191 
                                                      
181 Idem , PFETS 2016 .  Viewed at:  http://desarrolloturistico.gob.ar/subsecretaria/ 
plan-federal-estrategico-de-turismo-sustentable. 
182 Law No. 25.997/2005, Article 24. 
183 Ibid., and Decree No. 1.297/2006, Article 24. 
184 Idem , Article 7, and Decree No. 919/2010, Article 2. 
185 Idem , Article 32. 
186 Idem , Articles 34 and 36, Decree No. 1.297/2006, Article 27, and online information from the 
Undersecretariat for Tourism Development, Inversiones turísticas:  Programa Nacional de Inversiones 
Turísticas .  Viewed at:  http://desarrolloturistico.gob.ar/inversiones/pnit. 
187 For further details, see Undersecretariat for Tourism Development (2012a and 2012b). 
188 Online information from the Undersecretariat for Tourism Development, Inversiones turísticas:  
ASETUR .  Viewed at:  http://desarrolloturistico.gob.ar/inve rsiones/asetur;  and online information from the 
Federal Science and Technology Council, Líneas de financiamiento:  ASETUR .  Viewed at:  
http://www.cofecyt.mincyt.gov.ar/Asetur.htm. 
189 Undersecretariat for Tourism Development (2012a). 
190 Idem,  (2009). 
191 The exceptions are Catamarca, Formosa, Misiones, Rio Negro, San Juan and San Luis.  For further 
details, see Undersecretariat for Tourism Development (2011). WT/TPR/S/277 Trade Policy Review 
Page 198 
 
 
  Table IV.10 
Some incentives for investment in  the tourism sector, 2007 and 2012 
Type of enterprise  Amount of financing Term 
(years) Annual rate of interest Amount granted 
2007 2012 
National tourism investment programme (MINTUR)   
Public sector  70% of the investment financed by 
MINTUR and the counterpart by local 
authorities  .. n.a. Arg$478,900 Arg$1.72 million 
(for 2012)
Línea 400 Turismo (BNA)   
MSMEs  Investment and/or purchase of new capital 
goods of Argentine origin:  Arg$800,000 or 80% of the cost (excl.  VAT) 5  11%
a,b .. Arg$5.98 million 
(up to July 2012)
Constitution of working capital:  Arg$300,000 not exceeding 25% of annual 
sales (excl.  VAT) 2  9.5%
a Arg$4.44 million 
(up to July 2012)
MSMEs affected by the eruption of the volcano Puyehue in 2011  Arg$500,000 not exceeding 25% of annual 
sales (excl.  VAT) 3  9%
a n.a. Arg$7.58 million 
(from 
September 2011 to 
July 2012)
Line of financing for investment in tourism and hotels (BICE) 
All New constructionc:  Arg$15 million or 
40% of the investment 10  Combined rate:  sales of less than 
Arg$300 million:  50% at fixed rate of 12% and 50% at Badlar variable rate + 1.5% Sales over Arg$300 million:  30% at fixed rate of 12% and 70% at Badlar variable rate + 1.5% 0 0 
Extension/upgrading of servicesc:  
Arg$7.5 million or 60% of the investment 
Programme to improve the competitiven ess of the tourism sector (IaDB) 
All enterprises in the 
provinces of Misiones, Chubut, Neuquén and Río Negro US$56 million to be disbursed over five 
years as of 2005 20  LIBOR + 2 points .. .. 
.. Not available. 
n.a. Not applicable. 
a Fixed in Arg$. 
b MSMEs in the provinces of the Norte Grande region (provinces of Catamarca, Corrientes, Chaco , Formosa, Jujuy, La Rioja, 
 Misiones, Salta, Santiago del Estero, Tucumán and six de partments in the north of the province of Santa Fe). 
c Includes projects throughout Argentin a with the excepti on of the CABA. 
Source : Online information from the Undersecretariat for Tourism Development, Inversiones turísticas .  Viewed at:  
http://desarrolloturistico.gob. ar/inversiones/pnit;  online information from the BICE, Financiamiento:  Líneas de 
crédito .  Viewed at::  http://www.bice.com.ar;  online in formation from the Federal Science and Technology 
Council, Líneas de financiamiento:  ASETUR .  Viewed at:  http://www.cofe cyt.mincyt.gov.ar/Asetur.htm. 
Undersecretariat for Tourism Development (2009), Guía de Oportunidades de Inve rsión para el Sector Turismo .  
Viewed at:  http://desarrolloturistico.gob.ar/recur sos/Inversiones/GuiaDeO portunidadesDeInversion/ 
Guia-de-Oportunidades-de-Inversi on-para-el-Sector-Turismo_2009.pdf;  and Undersecretariat for Tourism 
Development (2012), Guía de Asistencia Financiera para el  pequeño y mediano inversor en turismo .  Viewed at:  
http://desarrolloturistico. gob.ar/recursos/Inversiones/AsistenciaFi nanciera/Asist.%20Financiera%202012.pdf. 
 
328. In Argentina, travel agencies include travel and tourism firms (authorized for wholesale and 
retail sales), tourist agencies (retail sales) and ticket offices (ticket sales).192  A licence issued by the 
Secretariat for Tourism has to be obtained in order to operate a travel agency.  To obtain such a 
(definitive) licence, a temporary pe rmit has to be obtained (costi ng Arg$600) and then a provisional 
licence (costing Arg$600).  A temporary permit do es not allow any commercial activities to be 
                                                      
192 Travel and tourism firms offer services to their clients and to other agencies in Argentina and abroad 
or to third parties.  Tourist agencies offer services exclus ively to their clients.  Tick et offices can only book and 
sell tickets for all authorized means of  transport or sell the services provid ed by travel and tourism firms and 
maritime and river carriers.  Online information from th e Cabinet Secretariat, Office of the Chief of Cabinet, 
Tramites:  Turismo, Deportes y Recreación:  Agencias de Viaje .  Viewed at:  
http://200.1.116.61/argentina/tramites/index.dhtml?frame1=1&tema=4&subtema=230&grupo=. Argentina WT/TPR/S/277 
 Page 199 
 
 
  undertaken but is granted to persons or firms planni ng to set up a travel agency;  it is granted by 
category and no change of category is allowed until the provisional licence has been obtained;  it is 
valid for six months (renewable once only) and ca nnot be assigned.  A provisional licence, valid for 
one year, is granted, in the form of an enabling provision, when the temporary permit expires.  One year after the issue of a provisional licence,  a definitive licence is granted, for which the 
procedure is free of charge.  A definitive licence ha s to be requested one month before expiry of the 
provisional licence.  It is free of charge and does not expire.
193  When requesting a definitive licence, 
the applicant must deposit a guarantee endorsed to the Secretariat for Tourism.194  The amount of this 
guarantee is Arg$47,730 for travel and touris m agencies, Arg$23,865 for tourist agencies, 
and Arg$11,932 for ticket offices.195  A deduction is given for travel agencies established in cities in 
the interior of Argentina;  this amounts to 10 to 50% of the amount depending on the number of 
inhabitants.196  In 2012, there were 4,769 licensed travel agencies in Argentina.  Travel agents must be 
enrolled in the Travel Agents Register in the releva nt department, which is r esponsible for issuing and 
verifying licences.197 
329. Travel agencies which provide tourism services to  student groups must also have a national 
authorization certificate for student tourism agencies, granted by the Secretariat for Tourism (costing 
Arg$200 to Arg$400).198  These certificates are valid for one year and may be renewed two months 
before they expire.  In order to ensure the certifi cate remains valid, travel agencies have to submit an 
annual sworn statement (costing Arg$100).  In addi tion to the deposit which every travel agency has 
to make when applying for a definitive licence, ag encies which organize student tourism also have to 
contribute to the Student Tourism Fund, which is used to deal with cases of non-fulfilment of 
contracts.  6% of the total amount of each individua l contract is paid into the Fund.  Agencies which 
only sell such travel do not have to contribute to the Fund.199 
330. The legal framework governing activities as a t echnical representative in tourist agencies 
includes Law No. 18.829 of 19 November 1970, Decr ee No. 2.182/72 and Resolutions Nos. 763/92, 
752/94 and 167/03. 
331. Argentina's hotel and parahotel facilities have  grown since 2005 and there has been a sharp 
increase in investment since 2007 both in international chains and independent establishments (Table IV.11).
200  In 2009, ten establishments belonging to international chains were opened and nine 
belonging to Argentine chains.201  Over 60% of the supply of ho tel and parahotel accommodation is 
concentrated in the provinces of Buenos Aires,  Córdoba, Río Negro and Entre Ríos and in the 
CABA.202  The National Hotels Law of 1970 and its im plementing decree govern the classification of 
                                                      
193 For further details on the procedure for obtainin g a temporary permit, a provisional licence or a 
definitive licence, see the online information from the Cabinet Secretariat, Office of the Chief of Cabinet, 
Tramites:  Turismo, Deportes y Recreación:  Agencias de Viaje .  Viewed at:  
http://200.1.116.61/argentina/tramites/index.dhtml?frame1=1&tema=4&subtema=230&grupo=. 
194 Law No. 18.829/1970, Article 6. 
195 Secretariat for Tourism Resolution No. 751/1994, Article 1. 
196 Idem , Article 2. 
197 Law No. 18.829/1970, Article 3. 
198 Laws Nos. 25.599/2002, Article 1, and 26.208/2007. 
199 Student Tourism Regulations (Secretariat for Tourism Resolution No. 237/2007). 
200 Hotel establishments:  hotels, boutique hotels, aparthotels and hotels not classified.  Parahotel 
establishments:  inns, lodgings, serviced apartments, cottages/bungalows, motels, hostels, B&Bs, pensions, 
tourist complexes, trade union and municipal hotels, ho liday camps and hostels (Und ersecretariat for Tourism 
Development (2010)). 
201 Undersecretariat for Tourism Development (2010). 
202 Idem . WT/TPR/S/277 Trade Policy Review 
Page 200 
 
 
  tourist accommodation.203  Establishments must be enrolled in th e National Hotels Register in order to 
be approved.204  The expressions "international" and "l uxury" can only be used for "international 
tourist hotels".205  According to information from the Undersecretariat for Tourism Development, 
although it has not been repealed, the National Ho tels Law and its implementing decree lost their 
scope when the national territory of Tierra del Fu ego became a province and the Government of the 
CABA was created.206  The provinces have their own classification standards.207 
Table IV.11 
Tourist accommodation, 2005-2011 
 2005 2006 2007 2008 2009 2010 2011 
Hotel and parahotel establishments  9, 466 10,152 10,751 11,473 12,227 12,758 13,156 
International chains .. .. .. .. .. .. 98 
Argentine chains .. .. .. .. .. .. 224 
Beds 480,382 496,171 517,852 542,082 564,368 580,376 604,330 
Investment (US$ million) 152 172.5 176.8 317.9 338 334 368 
International chains 113 91.7 36.3 186.8 144 116 144 
Argentine chains 14 56.7 22.4 24.6 83 63 120 
Independent establishments  25 24.1 118.1 106.5 109 165 104 
.. Not available. 
Source : Information provided by the authorities and onlin e information from the Undersecretariat for Tourism 
Development, Estudios de mercado y estadísticas .  Viewed at:  http://desarrolloturistico.gob.ar/inicio;  and 
Undersecretariat for Tourism Development (2009), Guía de Oportunidades de Inve rsión para el Sector Turismo .  
Viewed at:  http://desarrolloturistico.gob.ar/recur sos/Inversiones/GuiaDeO portunidadesDeInversion/ 
Guia-de-Oportunidades-de-Inversi on-para-el-Sector-Turismo_2009.pdf. 
 
332. Foreign tourists may seek refund of VAT on purchases of Argentine-produced goods 
costing Arg$70 or more.208 
333. Argentina has signed bilateral agreements on tourism cooperation with Armenia, the 
Plurinational State of Bolivia, Bulgaria, Cana da, Chile, China, Colombia, Costa Rica, the 
Czech Republic, Ecuador, Egypt, El Salvador, th e European Union, France, Greece, Honduras, 
Hungary, Indonesia, Israel, Italy, Jamaica, Le banon, Malaysia, Morocco , Nicaragua, Panama, 
Paraguay, Peru, Portugal, Qatar, Russia, Spain, Syria, Tunisia, Turkey, the United Kingdom, the 
United States, Uruguay, the Bolivarian Republic of Venezuela, and the World Tourism Organization. 
 
                                                      
203 Law No. 18.828/1970 and Decree No. 1.818/76. 
204 Law No. 18.828/1970, Article 2. 
205 Ibid., Article 6.  For further details on interna tional tourist hotels, see Law No. 17.752/1968. 
206 Undersecretariat for Tourism Development (2009). 
207 For further details, see Undersecretariat for Tourism Development (2009). 
208 Decree No. 1099/1998 and General Resolutions AFIP Nos. 380/1999 and 381/1999. ARGENTINA WT/TPR/S/277 
 Page 201 
 
 
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