Argentina WT/TPR/S/277 
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  II. TRADE AND INVESTMENT REGIME 
(1) OVERVIEW  
1. During the period under review there have b een changes to the institutional structure 
responsible for formulating and implementing trade po licy:  internal and external trade have been 
combined under a single Ministry to streamline impl ementation of trade policing.  In the context of 
this Review, the authorities noted that Argentina uses trade policy as a tool for attaining socially 
inclusive economic development goals that seek to combine economic growth with objectives such as 
reducing unemployment and poverty. 
2. Argentina is a founder Member of the WTO and grants, as a minimum, MFN treatment to all 
its trading partners.  It is of the view that the multilateral trade system must be strengthened by 
agreeing a working agenda cen tred on agricultural reform. 
3. Argentina, together with Brazil, Paraguay and Uruguay, is a founding member of the 
Southern Common Market (MERCOSUR), established in March 1991 with the ultimate objective of 
establishing a common market providing for the free movement of goods, services, capital and labour among member countries.  In August 2012 the Bolivarian Republic of Venezuela became 
a State party to MERCOSUR.  As a member of MERCOSUR Argentina has signed five preferential 
agreements since 2007, of which only the agreements w ith India and Israel have entered into force for 
Argentina. 
4. In accordance with the legislation in force, fo reign investors may, without any need for prior 
approval, invest in economic activ ities related to the production of and trade in goods and services, 
except in the fields of fisheries, the media, arms and munitions, the purchase of land and real estate in 
certain areas and cabotage services.  Additionally some  sectors, such as insurance, require reciprocal 
treatment or prior authorization based on whether it is considered opportune or desirable. 
5. Argentina implements various incentive programm es nationally and provincially in the aim of 
promoting national and foreign investment, comp etitiveness and exports, including horizontal and 
sectoral schemes to stimulate investment in cap ital goods and technological innovation, promote the 
development of small and medium-sized busine sses (SMEs) and facilitate access to credit at 
preferential or fixed rates of interest.  Some of the programmes require the purchase of domestic 
goods in return.  There are also incentives to encour age investment in certain sectors of the economy, 
alongside incentives that are granted according to  geographical location and upon establishment in 
free zones. 
(2) T
RADE POLICY FORMATION AND IMPLEMENTATION  
(i) Institutional and legal framework 
6. Argentina is a federal republic comprising 23  provinces and one city governed by an 
autonomous system (the Autonomous City of Buenos Aires).1  The last constitutional reform was 
conducted in 1994.2 
                                                      
1 Article 1 of the Constitution (Law No. 24.430) and information at the Casa Rosada  Nuestro país:  
organización .  Viewed at:  http://www.presidenc ia.gov.ar/nuestro-p ais/organizacion. 
2 Online information from the InfoLEG Documentation and Information Centre.  Viewed at:  
http://infoleg.mecon.gov.ar. WT/TPR/S/277 Trade Policy Review 
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  7. Executive power is vested in the President, who is  elected by universal suffrage for a term of 
four years and can be re-elected once only.3  The President is the supreme head of the nation, head of 
the government and the chief policymaker for th e general administration of the country, and 
Commander in Chief of the Armed Forces.4  He appoints the Chief of the Cabinet of Ministers, 
Ministers and the Secretary General of the President's Office.  The President concludes and signs 
international treaties5, which must then be approved by the National Congress.6 
8. Judicial power is exercised by the Supreme Court of Justice and by the lower courts 
established by Congress.7 
9. Legislative power lies in the National Congress,  comprising a Chamber of Deputies and the 
Senate.  The Deputies (257) and Senators (72) are elected by universal suffrage.  Deputies hold their 
seats for a four-year term and may be re-elected.  Senators are elected for a six-year term and may be re-elected for an indefinite period.
8  The National Congress is empowered to legislate, among other 
things, on customs matters (including export and im port duties), taxation, budgetary and monetary 
matters.  It also has powers to award subsidies to the provinces to cover ordinary expenditure.9  
The National Congress oversees the balance of the pub lic accounts with technical assistance from the 
General Auditing Office of the Nation (AGN).10 
10. The Chambers of Congress, the Executive and citizens may table draft laws.11  A draft law 
must be approved by the Chamber in which it orig inated before it may be debated in the other 
Chamber.  Once a draft law has been approved by both Chambers it is passed to the Executive for 
consideration.  Once approved by the Executive it is enacted as law.  If the Executive rejects part or 
all of a draft law from the Legislature, the draft la w and the Executive's objections  to it are returned to 
the Chamber of origin;  that Chamber debates it ag ain and if it upholds the draft by a majority 
of two-thirds it is forwarded to the reviewing Ch amber once more.  If both Chambers support the bill 
by the two-thirds majority the bill becomes law and is forwarded to the Executive for enactment.12  
Acting on the initiative of the Chamber of Deputi es the National Congress may submit a draft law to 
public consultation.  The law calling that consultation may not be vetoed.  A public vote in favour of 
the draft law confers the status of law and automatically promulgates the draft law.13  The President 
issues the directives and regulations necessary to implem ent the country's laws, ensuring that the spirit 
of the legislation is not contravened by exemptions contained in the regulations.14 
11. The Constitution empowers the President to issue decrees on the grounds of "necessity or 
urgency" only where exceptional circumstances ha ve rendered it impossible to follow the ordinary 
                                                      
3 Articles 87, 88, 90 and 94 of the Constitution. 
4 Article 99 of the Constitution. 
5 Article 99 of the Constitution. 
6 Article 75 of the Constitution. 
7 Articles 108 and 120 of the Constitution. 
8 Articles 44-62 of the Constitution. 
9 Article 75 of the Constitution. 
10 Article 85 of the Constitution and AGN online information Viewed at:  http://www.agn.gov.ar. 
11 Articles 39 and 77 of the Constitution.  See also Law No. 24.747/1996 regulating Article 39 of the 
Constitution.  Draft laws relating to constitutional reform s, international treaties, taxation, budget and penal 
matters cannot be tabled by popular initiative. (Article 39 of the Constitution).  Additionally, the Chamber of 
Deputies has sole responsibility for tabling laws on taxes or the recruitment of troops (Article 52 of the 
Constitution). 
12 Article 83 of the Constitution. 
13 Article 40 of the Constitution. 
14 Article 99 of the Constitution. Argentina WT/TPR/S/277 
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  procedures provided for in the Constitution to endo rse laws, and where the decrees in question do not 
regulate penal, taxation or electoral matters or a rrangements governing political parties.  The decrees 
are to be decided upon by general agreement of mi nisters, who along with the Chief of the Cabinet of 
Ministers must authenticate them.15  The Chief of the Cabinet presents a decree tabled on grounds of 
necessity or urgency for consideration by the Bi cameral Standing Committee, which must report on 
the validity of the decree, and submits the report to the plenary sitting of each Chamber.16  
The Chambers must give an express pronouncement on the approval or rejection of the decree tabled on grounds of "necessity or urgency".
17  In the absence of an expr ess pronouncement, the decrees in 
question remain in force from the time of the repor t for the duration of the procedure laid down in the 
Constitution.  Since 2007 various decrees on groun ds of "necessity or urgency" have been 
issued (Table II.1). 
Table II.1  
Decrees issued on grounds of necessity or urgency, 2007-2012 
Decree No.  Date  Description  
530/2012  16.04.2012  Provides for transitional aid for YPF S.A. for 30 days to ensure the business's continuing operation, pro tect its assets 
and equity, the fuel supply and ensure the country's needs are met. 
324/2011  02.01.2012  Amends the national budget. 
2.082/2011  12.12.2011  Amends Decree No. 438/1992 (text harmonized by the Ministerial Law) on the institutional framework of t he 
Ministry of External Relations, International Trade and Religion. 
1.764/2011  18.11.2011  Amends the national budget (2011). 
192/2011  25.02.2011  Dissolves the National Office for the Control of Agricultural Trade, a decentralized body under the Minis try of 
Agriculture, Livestock and Fisheries. 
2.054/2010  29.12.2010  Lays down measures supplementing the extension of the national budget (2010). 
2.052/2010  28.12.2010  Amends the national budget (2010). 
1.798/2010  24.11.2010  Amends the national budget (2010). 
919/2010  30.06.2010  Establishes the Ministry of Tourism.  Amends Ministerial Law. 
296/2010  01.03.2010  Repeals Decree No. 2.010/2009 establishing the Bicentennial Debt Relief and Stability Fund.  Declares the  bringing 
into effect of the text of Article 6 of Law No. 23.928/1991 as amended by Law No. 26.076/2012 ratifying Decree No. 1.599/2005 on the Central Bank Reserves. 
298/2010  01.03.2010  Establishes the Argentine Debt Relief Fund. 
2.010/2009  15.12.2009  Establishes the Bicentennial Debt Relief and Stability Fund.  Amends Law No. 23.928/1991 on the convert ibility of 
the austral. 
206/2009  20.03.2009  Establishes the Federal Solidarity Fund to finance works in provinces and municipalities to improve the h ealth, 
educational, hospital, housing or road infrastructure in urban or rural centres. 
1.472/2008  16.09.2008  Amends the national budget (2008). 
1.798/2007  05.12.2007  Amends Decree No. 135/2006 on the deferred payment of taxes in non-industrial projects. 
Source:  Online information from the InfoLEG Documentation and Information Centre.  Viewed at:  
http://infoleg.mecon.gov.ar. 
12. The Constitution, international treaties and the la ws of the nation constitute the "supreme law" 
in Argentina and rank highest in the legal order.18  The Constitution provides that the President is 
empowered to issue other norms:  the instructions and regulations necessary to implement the country's laws;  decrees on the grounds of "necessity or urgency", decrees issu ed by the Executive by 
virtue of Article 76 of the Constitution, which provi des that "the power to legislate shall not be 
delegated to the Executive except in specific matters of administration or in a public emergency …".  
In the hierarchy of laws, these are followed by the acts and regulations issued by the Chief of the 
Cabinet of Ministers as are necessary to exercise his pow ers and the resolutions issued by Ministers in 
respect of the economic and administrati ve arrangements for their departments.
19 
                                                      
15 Article 99 of the Constitution. 
16 Law No. 26.122/2006, Article 10. 
17 Law No. 26.122/2006, Article 22. 
18 Articles 31 and 75 of the Constitution. 
19 Articles 100 and 103 of the Constitution. WT/TPR/S/277 Trade Policy Review 
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  13. The Constitution recognizes the autonomy of the provinces and the Autonomous City of 
Buenos Aires.  Each province has its own constitution20;  the power to establish its own institutions 
and to elect its governors, legislators and other provincial officials without intervention from the 
Federal Government.21  The Autonomous City of Buenos Aires has an autonomous system of 
government with its own legislative and judicial powers, and its head of government is directly 
elected by the city's inhabitants.22  The provinces cannot exercise the powers conferred upon the 
nation by the Constitution (Table II.2).23 
Table II.2  
Powers of the Federal Government 
Conclude partial political treaties 
Issue laws on trade or navigation, whether internal or external 
Establish provincial customs offices 
Coin money 
Establish banks with the power to issue notes without authorization from the Federal Congress 
Issue the Civil, Commercial, Penal and Mining Code, following approval by Congress 
Issue laws on citizenship and naturalization, bankr uptcy, counterfeiting of money or State documents 
Establish tonnage duties 
Fit out warships or raise armiesa 
Appoint or receive foreign agents 
a The provinces may commission warships or raise armies in the ev ent of foreign invasion or a threat so imminent that there can  be 
no delay;  they must report the situation to the Federal Government after the event.  
Source:  Article 126 of the Constitution.  
14. The powers conferred upon the provinces include the authority to establish economic 
development regions, promote and establish new indus tries, administer their natural resources and 
import foreign capital24, and to impose indirect taxes "as a concurrent power" with Congress.  
The Constitution provides for the establishment of a revenue-sharing arrangement to redistribute most 
indirect taxes and certain direct taxes approved by Congress.25  Certain national taxes such as VAT, 
income/profits tax and import or export duti es are excluded from the revenue-sharing arrangement26;  
there is another distribution mechanism for these taxes.27 
15. The provinces may also, with the knowledge of Congress, conclude international agreements 
insofar as they are not incompatible with the country's foreign policy and do not infringe upon the 
powers delegated to the Federal Government or  affect the public credit of the nation.  
The Autonomous City of Buenos Aires has its own regime for concluding international agreements.28 
                                                      
20 Articles 5 and 123 of the Constitution. 
21 Article 122 of the Constitution. 
22 Article 129 of the Constitution. 
23 Article 126 of the Constitution. 
24 Articles 124 and 125 of the Constitution. 
25 Article 75 of the Constitution. 
26 For further information see Article 2 of Law No. 23.458/1988 and online information from the 
Parliamentary Training Institute, Diccionario de Términos Parlamentarios:  Coparticipación Federal de 
Impuestos .  Viewed at:  http://www1.hcdn.gov .ar/dependencias/icap/CopFedDicc.asp. 
27 Online information from the Ministry of the Economy and Public Finance Destino de la 
Recaudación de los Impuestos  al 30 de junio de 2012 .  Viewed at:  
http://www.mecon.gov.ar/si p/dniaf/destino_recaud.pdf. 
28 Article 124 of the Constitution. Argentina WT/TPR/S/277 
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  (ii) Trade policy formulation and objectives 
16. During the period of this Review, there have  been several changes to the institutional 
structure responsible for formulating and implementing trade policy, which are the responsibility of the Ministry of the Economy and Public Finance (M EFP) and the Ministry of External Relations and 
Worship (MREC).
29  The Undersecretariat for Foreign Trad e was established at the MEFP in 2011, 
combining the foreign-trade-related responsibilities w ithin a single Ministry to make implementation 
of trade policy more flexible.  Previously these had been attached to three different Ministries 
(MECON, MREC and the Ministry of Industry).  Since 2011, the MREC has been responsible for 
regional, bilateral and multilateral negotiations on external trade.  When formulating external trade 
policy these Ministries consult with various public sector entities involved in the area as well as with 
representatives of the private sector and civil societ y.  The Ministry of Agriculture, Livestock and 
Fisheries and the Ministry of Tourism were estab lished in 2009 and 2010 respectively (Table II.3). 
Table II.3  
Ministries involved in the formulation a nd/or implementation of trade policy  
Body  Trade policy functions  
Ministries with primary responsibility for formulating trade policy
Ministry of the Economy and Public 
Finance   
Secretariat for Domestic Trade  Draft domestic trade policy and national economic and trade integration processes. 
Undersecretariat for Domestic Tradea Implement policy on domestic trade, consumer protection and competition protection.  Oversee the 
National Commission for the Defence of Competition.  
Secretariat for Foreign Tradea Its prime responsibility is to propose and define trade policy at regional and multilateral levels.  Draw 
up the tariff structure and policy on refunds and drawback for export.  Oversee the National 
Commission on Foreign Trade Intervene in trade promotion policy. 
Undersecretariat for Foreign Trade and International Relations
a Implement trade policy.  Participate in the design of policy on national investment and foreign direct 
investment Act as a single window for foreign investors.  
Ministry of External Relations and 
Worship   
Secretariat for International Economic 
Relations (MREyC)a Take part in international trade negotiations.  Take part in policies on external trade and 
internationalization of Argentine businesses abroad. 
Undersecretariat for Latin American Economic Integration and MERCOSUR
a  Take part in bilateral and multilateral economic negotiations with Latin America, the Caribbean and 
MERCOSUR. 
Undersecretariat for International 
Economic Negotiationsa Participate in bilateral and multilateral economic negotiations with the rest of the world.  
Undersecretariat for Investment 
Development and Trade Promotiona Formulate and implement policy and instruments to promote foreign investment.  Act as a single 
window for foreign investors. 
Other ministries that may be involved in trade policy  
Ministry of Industryb  
Secretariat for Small and Medium-Sized 
Enterprises and Regional Development  Draw up policies to develop, consolidate and promote SMEs.  Provide financial assistance and 
facilitate access to credit for SMEs.  
Secretariat of Industrya Draw up industrial policy.  Take part in designing the tariff structure and policy on support for exports 
(refunds and drawback).  Assist the Ministry in the supervision of measures taken by the National Institute of Intellectual Property.  
Undersecretariat for Industry Participate in drafting industrial policy and regional and international negotiations in the auto motive 
sector. 
Secretariat for Industrial Strategic 
Planning Control and implement sectoral strategic plans.  Develop tools to promote industry Implement 
industrial policy in line with the Industrial Strategy Plan 20-20.  
Undersecretariat for Industrial Strategic 
Planning Review the objectives and outcomes of the Industrial Strategy Plan 20-20.  Define policy on industrial 
parks.  Analyse the competitiveness of local industry and propose policies to promote and improve it. 
Ministry of Federal Planning, Public 
Investment and Services  Draw up public investment promotion and protection systems.  Take part in drawing up tariff 
structures.  Participate in the drawing up of mining, energy, rural electrification and communications policies Participate in drawing up and enforcing fuel regulations and the setting of fuel prices.  
                                                      
29 The Ministry of External Relations and (MREC) was formerly known as the Ministry of External 
Relations, International Trade and Worship (Decree Nos. 2.082/2011 and 2.085/2011). WT/TPR/S/277 Trade Policy Review 
Page 26 
  
  Body  Trade policy functions  
Ministry of Agriculture, Livestock and 
Fisheriesb Determine and implement policy on agriculture, livestock and fisheries.  Take part in drawing up tariff 
structures, drawing up and implementing policy on refunds and drawback for export, and trade policy. 
Ministry of Tourismc Determine policy on tourism.  Promote and develop tourism-related products. 
a Established in 2011. 
b Established in 2009. c Established in 2010. 
Source:  Law No. 22,520 (Ministerial Law, harmonized by D ecree No. 438/92) and Decree No. 357/02 (organizational 
framework of the National Government). 
17. Argentina uses trade policy as a tool for attain ing socially inclusive economic development 
goals.  Export promotion continues to be one of the principal objectives of Argentina's trade policy, 
alongside promotion of domestic production (inc luding import substitution), investment promotion 
and employment generation.  The authorities have i ndicated that Argentina's trade policy is based on 
WTO principles and disciplines.  Argentina is in favour of strengthening the multilateral system, and 
its trade policy therefore combines a multilateral approach with regional integration processes and 
bilateral trade agreements to  expand and facilitate trade. 
(3) INTERNATIONAL TRADE RELATIONS  
(i) WTO 
18. Argentina is a founder Member of the WTO and grants, as a minimum, MFN treatment to all 
its trading partners.30  It is an observer in the Committee on Trade in Civil Aircraft and the Committee 
on Government Procurement.  Argentina made sp ecific commitments in the WTO negotiations on 
telecommunications and has ratified the Fourth Protocol .  It also participated in the financial services 
negotiations but neither made any offers nor undertook new commitments, and therefore is not one of 
the signatories to the Fifth Protocol. 
19. In accordance with its statement at the Minist erial Conference in Geneva in December 2011, 
Argentina is of the view that the multilateral tr ading system must be strengthened, since the 
importance and centrality of the WTO go far beyond the negotiating round.  Nonetheless, in facing up 
to future work within the WTO, Argentina believes th at a working agenda must be agreed with a view 
to creating a level playing field in trade and making it more equitable for the interests of all Members, while retaining agricultural reform as the lynchpin.  Fulfilment of the Doha mandate with regard to 
agriculture is essential for developing countries.
31 
20. In the context of this Review, the Argen tine authorities indicated that the country's 
multilateral trade policy is based on the fulfilment a nd consistent implementation of the commitments 
undertaken during the Uruguay Round;  active pa rticipation in the various WTO forums;  
commitment to the Trade Review Policy Mechanism;  the notifications process as a method of maintaining transparency;  and recognition of th e Dispute Settlement Mechanism as a means of 
settling disputes and increasing predictability. 
21. In line with the commitments it has undertak en since the last Review, Argentina has 
continued to submit notifications to the WTO during the period of the Review (Table II.4). 
                                                      
30 Information provided by the authorities. 
31 WTO document WT/MIN(11)/S T/19 of 16 December 2011. Argentina WT/TPR/S/277 
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  Table II.4  
Principal notifications to the WTO, 1 January 2007–30 October 2012 
Agreement  Requirement  Frequency  WTO document date (latest document if 
submitted regularly)  
Agreement on Agriculture  
Articles 10 and 18.2 
(ES:1 and ES:2) Export subsidies  Annual G/AG/N/ARG/29 (27 April 2010) 
Article 18.2 (DS:1) Domestic support  Annual G/AG/N/ARG/30 (18 October 2010) 
GATT 1994  
Article XVII:4(a) 
(State trading) State trading enterprises Annual  G/STR/N/13/ARG, G/STR/N/14/ARG 
(15 February 2012)  
Article XXVIII:3 Modification of Schedules (withdrawal of 
concessions as a means of retaliation) Ad hoc  G/SECRET/20/Add.6 (11 January 2007) 
Article XXVIII:5 Modification of Schedules (reservation of the 
right to modify schedules for a period of 
three years) On a three-year 
basis  G/MA/248 (22 September 2011) 
Enabling clause 
(integration) Preferential Trade Agreement between developing 
countries:  MERCOSUR and India  Ad hoc  WT/COMTD/N/31 (25 February 2010) 
QR (G/L/59) Quantitative restrictions Bi ennial G/MA/NTM/QR/1/Add.12 (3 May 2011) 
GATT concessions 
(Addendum to 
L/6905) Changes in the 1996 Harmonized Syst em Ad hoc  G/SECRET/HS96/30/Add.1 
(28 February 2011) 
Agreement on Implementation of Article VI of the GATT 1994 (anti-dumping)
Article 16.4  Anti-dumping actions (preliminary and fina l) Ad hoc  G/ADP/N/152 (19 January 2007) 
G/ADP/N/234 (16 October 2012) 
Article 16.4 Anti-dumping actions  (taken during the preceding 
six months) Semi-annual  G/ADP/N/230/ARG (4 October 2012) 
Article 18.5 Laws/Regulations as ame nded Ad hoc  G/ADP/N/1/ARG/1/Suppl.9, 
G/SCM/N/1/ARG/1/Suppl.8 (22 September 2008) 
Agreement on Import Licensing Procedures 
Article 1.4(a) Copies of publications setting out the rules and 
information relevant for the purposes of the 
Agreement Once only, 
subsequently 
notification of 
changes G/LIC/N/1/ARG/3 (17 September 2009)  
Article 5.1, 5.2, 5.3 Import Licensing Procedures and changes thereto Ad hoc  G/LIC/N/2/ARG/11 (29 May 2007) 
G/LIC/N/2/ARG/4/Add.1/Rev.1/Suppl.1 
(24 October 2012) 
Article 7.3 Replies to questionnaire Annual  G/LIC/N/3/ARG/9 (24 April 2012) 
Article 8.2(b) Changes in laws/regulations and administrative 
procedures Once only, 
subsequently notification of 
changes G/LIC/N/1/ARG/4 (14 April 2011) 
Agreement on the Application of Sanitary and Phytosanitary Measures
Article 7, Annex B Sanitary/phytosanitary me asures Ad hoc  G/SPS/N/ARG/103 (3 January 2007) 
G/SPS/N/ARG/160 (27 September 2007) 
Agreement on Technical Barriers to Trade  
Article 2.10 Technical regulations (u rgent) Ad hoc  G/TBT/N/ARG/179/Add.1 
(18 September 2008) 
G/TBT/N/ARG/186/Add.1 (5 April 2012) 
Article 2.9 Technical regulations Ad hoc  G/TBT/N/ARG/207 (10 January 2007) 
G/TBT/N/ARG/277 (30 October 2012) 
Articles 2.9 and 5.6 Technical regul ations;  conformity assessment 
procedures Ad hoc  G/TBT/N/ARG/208 (24 January 2007) 
G/TBT/N/ARG/260 (30 March 2011) 
Article 5.6 Conformity assessment procedures Ad hoc  G/TBT/N/ARG/213 (20 April 2007) 
G/TBT/N/ARG/259 (30 June 2010) 
Article 5.7 Conformity assessment procedures  (urgent) Ad hoc  G/TBT/Notif.99/498/Add.3 
(20 March 2007) 
G/TBT/Notif.99/498/Add.9 
(8 December 2011) WT/TPR/S/277 Trade Policy Review 
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  Agreement  Requirement  Frequency  WTO document date (latest document if 
submitted regularly)  
Agreement on Safeguards  
Article 12.1(b)  Safeguard measures in the event of a finding of 
serious injury or threat thereof  Ad hoc  G/SG/N/10/ARG/5, G/SG/N/11/ARG/5, 
G/SG/N/8/ARG/5 (26 April 2007) 
G/SG/N/10/ARG/5/Suppl.2, 
G/SG/N/11/ARG/5/Suppl.2, G/SG/N/8/ARG/5/Suppl.2 
(26 November 2008) Article 12.1(c) Safeguard measures  when a decision is taken to 
apply or extend a safeguard measure  Ad hoc  
Article 9.1, footnote 2 Non-applica tion of safeguard measures against 
products originating in a developing country  Ad hoc  G/SG/N/10/ARG/5, G/SG/N/11/ARG/5, 
G/SG/N/8/ARG/5 (26 April 2007) 
G/SG/N/11/ARG/5/Suppl.3 (12 May 2009) 
Agreement on Subsidies a nd Countervailing Measures
Article 25.1 
GATT Article XVI.1 Subsidies Annual  G/SCM/N/220/ARG (10 February 2012) 
Article 25.11 Countervailing measures (preliminary and final)  Ad hoc  G/SCM/N/152 (24 January 2007) 
Article 25.11  Countervailing me asures (adopted during the 
preceding six months) Semi-annual  G/SCM/N/242/ Add.1 (12 October 2012) 
Article 32.6 Laws/regulations and changes thereto   Once only, 
subsequently notification of 
changes G/ADP/N/1/ARG/1/Suppl.9, 
G/SCM/N/1/ARG/1/Suppl.8 (22 September 2008) 
Source : WTO Secretariat. 
22. During the period of this Review, Argentin a has participated in 34 disputes at the 
WTO Dispute Settlement Body, acting as complainant in four cases, respondent in five cases and as 
third party in the remaining cases (Table II.5). 
Table II.5  
Status of dispute-related WTO matters involving Argentina, 1 January 2007-19 October 2012  
Case  Complainant/ 
respondent  Date of receipt of 
request for 
consultations Status at 19 October 2012  WTO 
document 
series  
Argentina as complainant      
Anti-dumping measures on imports of 
wheat flour from Argentina Argentina/Chile 14 May 2009 In consultations (14 May 2009) WT/DS393 
Certain measures concerning the 
importation of biodiesels Argentina/EU and Spain 17 August 2012 In consultations (17 August 2012) WT/DS443 
Measures affecting the importation of 
animals, meat and other animal 
products from Argentina  Argentina/United States 30 August 2012 In consultations (30 August 2012) WT/DS447 
Measures affecting the importation of 
fresh lemons  Argentina/United States 3 September 2012  In consultations (3 September 2012) WT/DS448 
Argentina as respondent      
Anti-dumping duties on fasteners and 
chains from Peru  Peru/Argentina 19 May 2010 In consultations (19 May 2010) WT/DS410 
Measures affecting the importation of 
goods  EU/Argentina 25 May 2012 In consultations (25 May 2012) WT/DS438 
Measures affecting the importation of 
goods  United States/Argentina 21 August 2012 In consultations (21 August 2012) WT/DS444 
Japan/Argentina 21 August 2012 In consultations(21 August 2012) WT/DS445 
Mexico/Argentina 24 August 2012 In consultations (24 August 2012) WT/DS446 
Argentina as third party      
Subsidies and other domestic support 
for corn and other agricultural products Canada/United States 8 January 2007 Panel established, but not yet 
composed (17 December 2007) WT/DS357 
Certain measures granting refunds, 
reductions or exemptions from taxes and other payments  United States/China 2 February 2007 Settled or terminated (withdrawn, 
mutually agreed solution) (7 February 2008) WT/DS358 
Mexico/China 26 February 2007 WT/DS359 
Measures affecting the protection and 
enforcement of intellectual property 
rights  United States/China 10 April 2007 Implementation notified by 
respondent (19 March 2010) WT/DS362 Argentina WT/TPR/S/277 
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  Case  Complainant/ 
respondent  Date of receipt of 
request for 
consultations Status at 19 October 2012  WTO 
document 
series  
Domestic support and export credit 
guarantees for agricultural products Brazil/United States 11 July 2007 Panel established, but not yet 
composed (17 December 2007) WT/DS365 
Certain measures prohibiting the 
importation and marketing of seal 
products  Canada/EUa b 25 September 2007 Panel established, but not yet 
composed (25 March 2011) WT/DS369 
Definitive anti-dumping and 
countervailing duties on certain products from China  China/United States 19 September 2008 Implementation notified by 
respondent (31 August 2012) WT/DS379 
Measures concerning the importation, 
marketing and sale of tuna and tuna products  Mexico/United States 24 August 2008 Report(s) adopted, with 
recommendation to bring measure(s) into conformity (13 June 2012)  WT/DS381 
Anti-dumping administrative reviews 
and other measures related to imports of certain orange juice from Brazil  Brazil/United States 27 November 2008 Report(s) adopted, with 
recommendation to bring measure(s) into conformity (17 June 2011) WT/DS382 
Anti-dumping measures on 
polyethylene retail carrier bags from 
Thailand  Thailand/United States 26 November 2008 Implementation notified by 
respondent (31 August 2010) WT/DS383 
Certain country of origin labelling 
(COOL) requirements Canada/United States 1 December 2008 Report(s) adopted, with 
recommendation to bring measure(s) 
into conformity (23 July 2012) WT/DS384 
Mexico/United States 17 December 2008 WT/DS386 
Measures affecting the importation of 
bovine meat and meat products from Canada  Canada, Korea, Rep. of  9 April 2009 Settled or terminated (withdrawn, 
mutually agreed solution) (20 June 2012)  WT/DS391 
Measures related to the exportation of 
various raw materials  United States/China 23 June 2009 Report(s) adopted, with 
recommendation to bring measure(s) into conformity (22 February 2012) WT/DS394 
EUa/China 23 June 2009 WT/DS395 
Mexico/China 21 August 2009 WT/DS398 
Measures prohibiting the importation 
and marketing of seal products  Canada/EUa 2 November 2009 Panel composed (4 October 2012) WT/DS400 
Norway/EUa 5 November 2009 WT/DS401 
Countervailing and anti-dumping 
duties on grain oriented flat-rolled 
electrical steel from the United States  United States/China 15 September 2010 Circulation of Appellate Body report 
(18 October 2012) WT/DS414 
Measures affecting the importation 
and internal sale of goods 
(environmental charge) Ukraine/Moldova  17 February 2011 Panel established, but not yet 
composed (17 June 2011) WT/DS421 
Measures concerning the importation 
of certain agricultural products from the United States United States/India 6 March 2012 Panel established, but not yet 
composed (25 June 2012) WT/DS430 
Measures related to the exportation of 
rare earths, tungsten and molybdenum United States/China 13 March 2012 Panel composed (24 October 2012) WT/DS431 
EU/China 13 March 2012 WT/DS432 
Japan/China 13 March 2012 WT/DS433 
Certain measures concerning 
trademarks and other plain packaging 
requirements applicable to tobacco 
products and packaging  Ukraine/Australia 13 March 2012 Panel established, but not yet 
composed (28 September 2012) WT/DS434  
a Previously the Eu ropean Communities. 
b The measures are national measures taken by Belgium and Netherlands, not Community measures. 
Source : WTO Secretariat. WT/TPR/S/277 Trade Policy Review 
Page 30 
  
  (ii) Regional agreements32 
23. Argentina, together with Brazil, Paragua y and Uruguay, is a founding member of 
MERCOSUR, established in March 1991 by the Treaty  of Asunción, with the ultimate objective of 
establishing a common market providing for the free movement of goods, services, capital and labour 
among member countries.33  The Additional Protocol to the Treaty of Asunción on the Institutional 
Structure of MERCOSUR (Ouro Preto Protocol), si gned in 1994, gave MERCOSUR legal personality 
under international law.  In J une 2012 Paraguay's right to participate in MERCOSUR organs and 
discussions was suspended.34  A press release from the Ministry of Foreign Affairs of Paraguay states 
that:  "Despite referring expressly to the Protocol of Ushuaia on Democratic Commitment within 
MERCOSUR, that decision was adopted in breach of Article 4 of that Protocol, which requires 
relevant consultations to be held  with the State concerned;  this did not occur in respect of the 
Republic of Paraguay.  On that ground the decision  is not only illegal but also illegitimate and in 
violation of due process."35 
24. The Bolivarian Republic of Venezuela signed its  Protocol of Accession with the original 
four MERCOSUR members in July 2006;  in June 2012, the Heads of State of the MERCOSUR 
member countries, except Paraguay, signed a Declaration on the Incorporation of the Bolivarian 
Republic of Venezuela into MERCOSUR.36  The Bolivarian Republic of Venezuela deposited its 
instrument of ratification to the Protocol on Ac cession to MERCOSUR on 13 July 2012.  Meeting in 
Brasilia on 30 July 2012, the Council of the Common Market (CMC) decided that as from 
12 August 2012 the Bolivarian Republic of Venezuela would acquire the status of State Party and 
would participate in MERCOSUR with all rights and obligations. 
25. The Treaty of Asunción provides for the free movement of goods among member countries, 
with a timetable for achieving this under the Trad e Liberalization Programme.  Since 1 January 2000, 
goods other than those in the sugar and automotiv e sectors have moved freely within MERCOSUR if 
they have a MERCOSUR certificate of origin.  Specifi c deadlines for integrating the sugar sector into 
common trade policy have not yet been set.  CMC Decision No. 56/10 provided that the MERCOSUR 
common automotive policy should be in force by 1 January 2013 at the latest. 
26. The MERCOSUR Common External Tariff (CET) h as been in force since January 1995;  
some exemptions are allowed under various CMC decisions.  Nevertheless, Decision CMC No. 56/10 
(on convergence towards the customs union) establis hed an ad hoc group to examine the consistency 
and dispersion of the entire structure of the CET and to present a proposal for revision of the CET to 
the Common Market Group in 2014. 
27. MERCOSUR has an agreement on the elimination of double charging of the CET and the 
distribution of customs revenue within MERCOSUR.37  The aim is to achieve the free movement of 
                                                      
32 This section is based on WTO (2012). 
33 The provisions in the Treaty of Asunción were incorporated in the LAIA's legal structure under 
Economic Complementarity Agreement No. 18. 
34 Decision on the suspension of Paraguay within MERCOSUR pursuant to the Protocol of Ushuaia on 
Democratic Commitment.  Viewed at:  http://www.m ercosur.int/innovaportal/f ile/4496/1/ver_adjunto.pdf. 
35 Ministry of External Relations of Paraguay , Press Release, "Communiqué on the MERCOSUR 
Decision in respect of Paraguay".  Viewed at:  http://www.mre.gov.py/v1/Noticias/74-comunicado-sobre-la-
decisin-del-mercosur-sobre-paraguay.aspx. 
36 Declaration on the Incorporation of the Boliv arian Republic of Ven ezuela into MERCOSUR.  
Viewed at:  http://www.mercosur.in t/innovaportal/file/4501/1/vzl.pdf. 
37 MERCOSUR Decision CMC No. 54/04. Argentina WT/TPR/S/277 
 Page 31 
 
 
  goods and eliminate the double charging of CET duties, and it was to be implemented in 
three stages.38  The first stage concerns recognition of goods  with a 0% CET rating in all the member 
countries and with a 100% tariff preference within the framework of the agreements concluded by 
MERCOSUR with third parties.  The second stage w as expected to cover all the other goods subject 
to the CET;  implementation was planned for the entry into force of the MERCOSUR Customs Code, 
which was signed in 2010 but has yet to enter into force.39  The third stage, full implementation of the 
process, will require the establishment of a mechanis m for the distribution of customs revenue and the 
interconnection of the computerized customs manage ment systems of the various member States and 
the establishment of the Regional Registers of Offenders Database (RIM). 
28. The Protocol of Montevideo on Trade in Se rvices in the MERCOSUR was signed in 1997 
with the aim of liberalizing services over a period of 10 years.  The Protocol has been ratified by Argentina, Brazil and Uruguay and entered into fo rce on 7 December 2005.  The Protocol is of 
indefinite duration;  it establishes a programme to  liberalize trade in services within the Common 
Market by December 2015.
40 
29. Since 2007 Argentina has signed five preferentia l agreements as a member of MERCOSUR, 
of which only two have entered into force for Argentina (Table II.6). 
Table II.6  
Preferential agreements in force and/or si gned between 1 January 2007 and 19 October 2012  
 
Signature  Duration  Scope  
Final year of 
tariff 
reduction  Tariff lines  
Goods ServicesExcluded 
(number)  Coverage  
(% of total)  
2012  End of the 
reduction 
period  
Trade agreements 
that have entered into force since 
1 January 2007         
MERCOSUR -India 
preferential trade 
agreementb 25 January 2004 1 June 2009 Yes No n.a.a 9,378 4.6 n.a.b 
MERCOSUR -Israel 
free trade agreement 18 December 2007 9 September 2011 Yes No 2019 408 95.8 95.8 
Trade agreements 
signed since 1 January 2007         
MERCOSUR -
Southern African 
Customs Union 
(SACU) preferential trade agreement 15 December 2008 Pending Yes No n.a.
a 8,780 10.7 n.a.b 
                                                      
38 MERCOSUR Decision CMC No. 10/10. 
39 MERCOSUR Decision CMC No. 27/10 an d MERCOSUR Decision CMC No. 34/11. 
40 For further information on the commitments entered into by Argentina see the Protocol of 
Montevideo on Trade in Services in the MERCOSUR, Seventh Round of Negotiations on Specific Services Related Commitments:  Schedule of sp ecific commitments.  Viewed at:  
http://www.aladi.org/nsfaladi/nuevostemas.nsf/2c617e60b2a993cb032574920060b614/51071885d11687c10325
768e006039d2?OpenDocument. WT/TPR/S/277 Trade Policy Review 
Page 32 
  
   
Signature  Duration  Scope  
Final year of 
tariff 
reduction  Tariff lines  
Goods ServicesExcluded 
(number)  Coverage  
(% of total)  
2012  End of the 
reduction 
period  
MERCOSUR -Egypt 
FTA 2 August 2010 Pending Yes No 10 yearsc 197 98 98 
MERCOSUR -State 
of Palestine FTA 20 December 2011 Pending Yes No 10 yearsc 408 95.8 95.8 
n.a. Not applicable. 
a Not relevant because the agreement in  question concerns fixed preferences. 
b Notified to the WTO (WTO document WT/COMTD/N/31 of 23 February 2010). 
c Since entry into force. 
Source: Online information from the Undersecretar iat of Trade Policy and Management, Dirección Nacional de Política 
Comercial Externa:  Política Comercial Regional .  Viewed at:  http://www.co mercio.gov.ar/web/index.php? 
pag=334&btn=161.  Online informa tion from the MERCOSUR Secretariat Tratados, Protocolos y Acuerdos .  
Viewed at:  http://www.mercosur.int/t_generic.jsp? contentid=2639&site=1&channel= secretaria;  additional 
information supplied by the Argentine authorities. 
30. Within the framework of the Latin American Integration Association (LAIA), Argentina has 
partial-scope economic complementar ity agreements with Brazil (ECA No. 14), Mexico (ECA No. 6), 
Paraguay (ECA No. 13) and Uruguay (ECA No. 57).  The agreements with Brazil and Uruguay were 
amended during the period of this Review.  In  2010 the original agreement of 1990 between Brazil 
and Argentina was supplemented by the Thirty -Ninth Additional Protocol on the Common 
Automotive Policy between Argentina and Braz il.  In 2008 the agreement with Uruguay was 
supplemented by a Protocol updating the quotas for the automotive sector (Chapter IV(4).41  
Implementation of Economic Complementarity Agre ement No. 55/02, including the Annexes thereto 
and Bilateral Appendix I on Trade in the Automoti ve Sector between Argentina and Mexico, was 
suspended in 2012 for a period of three years (Chapter IV(4)).42 
31. Argentina is eligible for the Generalized  System of Preferences (GSP) of Belarus 
(WTO Observer), Canada, the European Union, Japan, New Zealand, Norway, 
the Russian Federation, and Turkey.43  Argentina was eligible fo r the GSP of the United States 
until March 2012. 
32. At multilateral level, as part of MERCOSUR Argen tina is a signatory to the Global System of 
Trade Preferences among Developing Countries (GSTP).44 
                                                      
41 Online information from LAIA, Integración y Comercio:  Acuerdos:  Disposiciones de 
Internalización, Sumarios y Textos:  Acuerdos Actuales.   V i e w e d  a t :   
http://www.aladi.org/nsfaladi/text acdos.nsf/vpaises/argentina. 
42 Decree No. 969/2012. 
43 UNCTAD (2011). 
44 Agreement on the Global System of Trade Preferences among Developing Countries of 
12 April 1988.  Viewed at:  http://unctad.org/en/docs/ditcmisc57_en.pdf.  See also Law No. 26.083/06 
approving the Protocol for the Accession of the Southern Common Market (MERCOSUR) to the Agreement on 
the Global System of Trade Preferences among Developing Countries (GSTP). Argentina WT/TPR/S/277 
 Page 33 
 
 
  (4) INVESTMENT REGIME  
(i) General investment framework 
33. Argentina's foreign investment regime is governed by a number of norms including the 
Foreign Investment Law (Law No. 21.382) as amende d;  Decree No. 1.853/93;   Economic Emergency 
Law No. 23.69745;  Law No. 22.561 on Public Emerge ncy and Exchange Regime Reform46;  
Decree No. 616/2005;  and Communications of the Central Bank of the Argentine Republic.  These 
norms regulate foreign direct investment (FDI) as such as well as the registration of foreign companies, monetary policy, the regime governing cu rrency exchange and transfers that also have a 
bearing on FDI.  Under Law No. 21.382 foreign inv estors have the same rights and obligations as 
those afforded by the Constitution and laws to nati onal investors;  foreign investors are therefore 
eligible for promotional or other special regimes provided for in the various laws.
47  Argentina grants 
national treatment to foreign investment.48  Under the Constitution, property is inviolable and 
expropriation for reasons affected with a "public  purpose" may be authorized by law subject 
to compensation.49 
34. The foreign investment regime in Argentina cove rs foreign direct investment (FDI) by way of 
capital, real estate and portfolio investment. 
35. Until 2010 the task of formulating and implemen ting foreign investment policy was a matter 
for the National Investment Development Agency (ANDI), a decentralized body under the former 
Ministry of the Economy and Production.50  The ANDI was dissolved in 2010 and responsibility for 
foreign investment policy was transferred to the Undersecretariat for Investment Development and 
Trade Promotion in the Ministry of External Relations and Worship.51  The Undersecretariat provides 
assistance to potential investors at all stages of the investment process.  Argentina also has various 
provincial investment promotion bodies to advise investors. 
36. Foreigners can invest without the need for pr ior approval in activities in industry, mining, 
agriculture, finance, services or other sectors asso ciated with production of and trade in goods and 
services.52  In practice, there are no restrictions on en try by foreigners to the various sectors and the 
principle of national treatment applies to foreign cap ital.  Nevertheless, in order to operate in some 
sectors reciprocal treatment, or prior authori zation depending on opportuneness and desirability 
(insurance market), are required (Chapter IV(6)(iii)(d)). 
37. The Reporting System for Direct Investment at Home and Abroad was implemented in 2004.  
Non-residents' direct investments in Argentina must  be recorded in the System where the value of 
their holdings in the country is equal to or greater  than the equivalent of US$500,000 and must be 
declared in respect of the end of each six-month cal endar period.  Additionall y, the regime governing 
                                                      
45 Article 16 of Law No. 23.697 of 1989 (the Economic Emergency Law) empowers the Executive to 
issue such regulations as may be necessary to facilita te the repatriation of profits on foreign investment. 
46 Article 2 of Law No. 25.561 of 2002 empowers the Executive to provide for the system determining 
the exchange rate between the Argentine peso and foreign currencies, and to issue regulations for the regime 
governing currency exchange. 
47 Law No. 21.382. 
48 Decree No. 1.853/1993 approving the harmonized text of Law No. 21.382, Articles 1 and 2. 
49 Article 17 of the Constitution. 
50 Decree No. 1.225/2006. 
51 Decree No. 1.187/2010. 
52 Decree No. 1.853/93. WT/TPR/S/277 Trade Policy Review 
Page 34 
  
  the inflow and outflow of foreign currency for the Argentine currency exchange market requires 
foreign investment to be declared for statistical purposes to the Central Bank;  invested capital must 
remain in the country for at least one year prior to being remitted abroad.53 
38. Portfolio investors must lodge a deposit in US dollars for a sum equivalent to 30% of the 
amount of the investment.  The deposit does not bear interest and must remain at the Central Bank for 
a period of one year, after which time the funds ar e released and may be transferred abroad.  This 
requirement only applies to persons making an FDI wh ere:  (i) the debt between companies is entered 
into abroad54 and (ii) the deed transferring ownership to  a non-resident is not executed at the same 
time as the sale of foreign exchange on th e unified free foreign exchange market.55 
39. Foreign investors may set up a business in Ar gentina as provided for by law;  they may 
establish a branch office, participate in an  existing company or set up a new company.56  A branch of 
a foreign company is an office opened by a foreign company in Argentina.  In terms of equity the 
branch is accountable for the capital of its parent and not only for the capital allocated by the parent 
company to the branch established in  Argentina.  Branches of foreign companies must be entered in 
the Public Trade Register appropriate to their re gistered office.  Branch es may carry out the same 
activities as their parents.  Investors may also estab lish a new company or participate in an existing 
one.  The Law on Commercial Companies (LSC) provid es for a number of types of corporation, of 
which the most frequently used by foreign investor s in Argentina are public limited companies (SA) 
and limited liability companies (SRL).  In contrast to a branch, these two types of corporation are in 
principle accountable only for the capital of the comp any established or the company in which shares 
are held.57 
40. Local foreign-capital businesses have the sa me rights to access domestic credit as local 
domestic-capital businesses, and on the same terms.58 
41. The Investment Law (Law No. 21.382) guarantees foreign investors the right at any time to 
repatriate their investment and transfer abroad  the liquid profits they have made.  Since 2001 
Argentina has, however, imposed several require ments on the purchase and transfer of foreign 
currency.  These controls have become a key asp ect of current economic policy and are used to 
increase reserves, manage the exchange rate, limit foreign-currency liabilities in the private sector, 
and prevent capital flight.  The Argentine authorities have stated that the current rules do not place 
restrictions on remittance abroad provided that a number of requirements confirming the genuine 
nature of the transfer are complied with.  They have  further stated that "the controls governing such 
transactions have become a key aspect of current economic policy to prevent capital flight based on 
figures that do not tally with actual transactions". 
                                                      
53 Decree No. 616/2005, Article 1 and Article 4 
54 Excluding debt used to purchase non-financial assets that is repaid in a period of more than 
two years. 
55 Ministry of External Relations, In ternational Trade and Worship (2010). 
56 Harmonized text of Law No. 21.382/1993, Annex I to Decree No. 1.853/1993, Article 6 and 
Article 7. 
57 Online information from Invest in Argentina Guía del Inversor :  Aspectos legales relativos a la IED .  
Viewed at:  http://www.inversiones.gov.ar/es/prospera r-guia-del-inversor/aspectos-legales-relativas-a-la-
ied.html. 
58 Harmonized text of Law No. 21.382/1993, Annex I to Decree No. 1.853/1993, Article 6 and 
Article 7. Argentina WT/TPR/S/277 
 Page 35 
 
 
  42. Argentina authorizes the payment abroad of in terest, dividends, earnings or royalties without 
restrictions provided that the accounts have been  closed and certified by an external auditor.59  
Payment of royalties to affiliated enterprises require s the prior authorization of the BCRA where the 
sum involved is greater than US$100,000.  An inv estment may be repatriated once it has remained in 
the country for one year, subject to certain restrictions.60  In principle there is no quantitative limit on 
the repatriation of FDI;  nonetheless since October 2011 the repatriation of FDI in the form of funds 
invested in any new investment or stockholding purch ased in local enterprises and real estate must 
have been deposited and surrendered on the unified free foreign exchange market (MULC).  There is 
no requirement to prove the deposit of funds fo r the repatriation of investments made prior 
to October 2011.  If the foreign currency was not  deposited via the MULC the investor must seek 
authorization from the Central Bank in order to repatriate the FDI.61  The prior authorization of the 
BCRA is required for any repatriation of FDI in fi nancial entities or in non -financial enterprises that 
control financial entities. 
43. Foreign investment is allowed without restriction in all sectors except fisheries, the media62, 
arms and munitions, the purchase of land and real estate in certain areas and cabotage services.  
Argentina restricts foreign stockholdings in the media to 30% of the capital (and votes) but has 
allowed higher holdings under reciprocal contracts w ith countries that authorize foreign investment in 
their media, up to the limit allowed in those countries.63  The restriction does not include media that 
were under foreign control prior to 2003.64  In the transport sector, air and maritime cabotage services 
are reserved to Argentine enterprises although exceptions may be authorized (Chapter IV). 
44. In 2011 the Regime to Protect the National Domain over Property, Possession and Tenure of 
Rural Land (or Rural Land Law) introduced restricti ons on the acquisition of rural land by restricting 
purchase by foreigners to a maximum of 15% of all rural land and 1,000 ha in the "core area".65  
Additionally, nationals of a single country may not acquire over 30% of all land available for 
purchase.66  The Rural Land Law is not retrospective.67  Foreign owners must be listed on the National 
Rural Land Register.68 
45. The Rural Land Law also prohibits foreigne rs, on grounds of national security, from 
purchasing real estate in the country's border area s and in areas bounded by major permanent bodies 
of water.  Nevertheless the Law also states that forei gners may, with the consent of the Ministry of the 
Interior, acquire real estate in  areas where the border is secure.69 
                                                      
59 Harmonized text of Law No. 21.382/1993, Annex I to Decree No. 1.853/1993, Article 5 and Ministry 
of External Relations, International Trade and Worship (2010). 
60 Central Bank, Communication No. 4.662 of 11 May 2007. 
61 Central Bank, Communication No. A5237 of 28 October 2011. 
62 Journals and magazines;  radio broadcasting services and associated radio broadcasting services as 
set out in the Radio Broadcasting Law (Law No. 22.285/1980);  producers of audiovisual and digital content;  
suppliers of internet access;  an d public broadcasting enterprises (L aw No. 25.750/200 3, Article 3). 
63 Law No. 25.750/2003, Article 2 and Law No. 26.522, Articles 25 and 29. 
64 Law No. 25.750/2003, Article 2. 
65 Article 10 of Decree No. 274/2012 defines the concept of "core area". 
66 Law No. 26.737/2011, Articles 8-10. 
67 Law No. 26.737/2011, Article 17. 
68 Law No. 26.737/2011, Article 12. 
69 Law No. 26.737/2011, Articles 10 and 13. WT/TPR/S/277 Trade Policy Review 
Page 36 
  
  46. To date Argentina has signed 55 reciprocal i nvestment promotion and protection agreements 
(IPPAs)70, and 17 double taxation conventions.71 
47. Argentina is a member of the Multilateral Inv estment Guarantee Agency (MIGA) and of the 
International Centre for Settlement of Investment Disputes (ICSID).72  Between 2007 and 2012, 
ICSID registered 14 claims by foreign investors agai nst Argentina of which four have been settled.  
The pending claims principally concern trans port services, and gas and water supply services.73  
Between 2007 and 2012 shares were  expropriated in Aerolíneas Argentinas S.A., Austral Líneas 
Aéreas Cielos del Sur S.A. and the enterprises under its control, and in Yacimientos Petrolíferos Fiscales (YPF) S.A. and Repsol YPF GAS S.A. (Chapters III and IV). 
(ii) Incentives for investment, manufacturing and trade 
48. Argentina has various incentive programmes at  national and provincia l level that aim to 
promote national and foreign investment, competit iveness and exports (Chapter III).  There are a 
number of horizontal and sectoral incentives and pr ogrammes that seek to stimulate investment in 
capital goods and technological innovation, promote the development of sm all and medium-sized 
enterprises (SMEs), and facilitate access to credit at preferential or fixed interest rates.  Incentive 
programmes continue to be implem ented to encourage investment in  certain sectors of the economy.
74  
Argentina also has incentives that are granted on a geographical basis and upon establishment in free 
zones (Chapter III(3)(iv)(a)).  These incentives are administered and gr anted by various agencies with 
regard to the aims the incen tive is intended to achieve. 
(a) Fiscal incentives 
Horizontal fiscal incentives 
49. Argentina does not have a general law awarding incentives;  instead the process is governed 
by a series of laws that can apply either to the entire economy (horizontal), to a single sector or in relation to specific schemes. 
50. Law No. 25.924/2004 on the Promotion of Invest ment in Capital Goods and Infrastructure 
Works ("LPI Law") established a special fiscal regi me for investments in capital goods (except cars) 
intended for use in industrial activity or infrastruct ure works.  Under the scheme, when enterprises 
purchase new capital goods they receive advance re fund of VAT and/or accelerated amortization of 
income/profits tax.
75  The scheme's period of application was originally scheduled to end in 
September 2007 but was extended to 31 December 2012.76  In 2004 Arg$1.2 billion were allocated to 
the scheme to finance fiscal exemptions, with a quota of Arg$200 million earmarked for SMEs;  the 
                                                      
70 For further information, see Ministry of External  Relations, International Trade and Worship (2010). 
71 Online information from the Federal Public Revenue Administration (AFIP), " Convenios para evitar 
la doble tributación internacional " [Conventions for the prevention of double taxation] Viewed at:  
http://www.afip.gob.ar/institucional/convenios.asp. 
72 Ministry of External Relations, In ternational Trade and Worship (2010). 
73 Online information from ICSID, "Sear ch ICSID Cases".  Viewed at:  
http://icsid.worldbank.org /ICSID/Front Servlet. 
74 For further information see Undersecreta riat for Investment Promotion (2010). 
75 Law Nos. 25.924/2004 and 26.360/2008. 
76 Law No. 26.360/2008, Article 2;  and Law No. 26.728/2011, Article 27.  See in addition online 
information from the Secretaria t for Industry "Investment Promotion Law".  Viewed at:  
http://www.sub-industria.gob.ar/lpi/legal.htm. Argentina WT/TPR/S/277 
 Page 37 
 
 
  total amount has not changed since 2004.77  To be eligible for the scheme, enterprises must submit an 
investment project that seeks to generate em ployment, has the backing of a bank guarantee and 
expenditure plans for funds amounting to at l east 7.5% of the total amount of the project.78  
The investment project is opened for public tender at  the Ministry of Industry (industrial activities) or 
the Ministry of Federal Planning, Public I nvestment and Services (infrastructure works).79  Capital 
goods covered by the scheme may not be transferred during the first three years.80  In general terms 
the award of a fiscal benefit is restricted to just one type of tax:  one project cannot qualify simultaneously for advance refund of VAT and acceler ated amortization of income/profits tax unless 
the product of the project is exclusively for export or  concerns a clean production plan or a sustainable 
industrial reconversion plan.
81  SMEs, however, can be granted both fiscal benefits.82 
51. Additionally, various mechanisms are in place to reduce tariffs or VAT on the purchase of 
capital goods.  Some of these require the beneficiar y enterprises to purchase capital goods of domestic 
origin equivalent to a percentage of overall imports or to achieve certain export levels in order to 
qualify (Table II.7) (Chapter III).  The tempor ary import regime also allows importers or 
manufacturers to import capital goods free of duty but subject to the requirement that they must be 
re-exported for consumption within a (renew able) period of three years (Chapter III(3)).83 
Table II.7  
Fiscal incentives, 2007 and 2011  
Incentive (legal framework)  Beneficiary  Benefits and obligations 
Import regime for goods forming 
an integral part of major 
investment projects (Resolution 
No. 256/2000 (as amended))  Importers of new capital goods for 
major investment projects  Tariff reduction to 0%.  Exem ption from verification of 
destination tax.  Import of parts allowed up to 5% of the 
exported f.o.b. value.  Require ment to acquire capital goods 
of domestic origin for a value equivalent to 20% of all imports and prohibition on transferring imported goods for 
two years 
Import regime for used production 
lines (Resolution No. 511/2000 
(as amended) and Decree 
No. 2.259/2009)  Manufacturers of tangible goods.  
Financial entities and/or leasing 
companies  Extra-zone import duty of 6%.  Exemption from payment of 
the statistical tax and the veri fication of destination tax.  
Requirement to import used goods with 50% of their useful 
life remaining and purchase goods of domestic origin amounting to 40% of the total imports 
VAT reduction (Decree 
Nos. 493/2001, 496/2001, 615/2001, 733/2001 and 959/2001) Purchasers/importers of finished 
capital goods and information technology and 
telecommunications products 
(components and finished products) VAT rate reduced to 10.5% 
                                                      
77 Law No. 25.924/2004, Article 11;  and Law No. 26.360/2008, Article 6. 
78 Law No. 26.360/2008, Article 2;  Law No. 26.728/2011, Article 27;  and Decree No. 726/2009, 
Articles 13 and 15. 
79 Decree No. 726/2009, Articles 1 and 9. 
80 Online information from the Undersecretariat for Industry, Beneficiarios .  Viewed at:  
http://www.sub-industria.gob .ar/lpi/beneficiarios.htm. 
81 Law No. 26.360/2008, Article 3 and Decree No. 726/2009, Articles 8 and 10. 
82 Law No. 26.728/2011, Article 27. 
83 Undersecretariat for Investment Promotion (2010). WT/TPR/S/277 Trade Policy Review 
Page 38 
  
  Incentive (legal framework)  Beneficiary  Benefits and obligations 
Technical VAT balance  (Decree 
Nos. 280/2001, 733/2001 
and 496/2001) Manufacturers of capital goods and 
information technology and 
telecommunications products  Difference between VAT paid on the purchase of inputs 
(21%) and VAT paid on the sale of the finished product 
(10.5%).  Option to use the balance to pay taxes 
Promotion of production of capital 
goods, information technology and 
telecommunications products, and 
agricultural machinery  (Decree 
Nos. 379/2001 (as amended) 
and 917/2010) Manufacturers of capital goods, 
information technology and 
telecommunications products and agricultural machinery  Tax voucher to the value of 14% of the amount resulting 
from the deduction of the value of imported inputs from the 
sales price.  The tax voucher is used for the payment of national taxes 
Source:  Ministry of External Relations, In ternational Trade and Worship (2010), Guide for Investors 2011:  ¿Cómo hacer 
negocios en Argentina? , Viewed at:  http://www.inve rsiones.gov.ar/es/descargas/ Gu%C3%ADa-del-Inversor/Gu% 
C3%ADa-del-Inversor-2011/;  Undersecretar iat for Investment Promotion (2010), Incentivos a la Inversión:  
ventajas de invertir hoy .  Viewed at:  http://www.inversiones. gov.ar/es/descargas/ Guia_del_Inversor/ 
incentivos-a-la-inversion/In centivos-a-la-Inversión-2010/, and online information from the Ministry of the 
Economy and Public Finance Base de datos de Instrumentos para el  Desarrollo Productivo:  Jurisdicción 
nacional:  Beneficios impositivos y/o fiscales:  Alcances horizontal y sectorial:  Temas de inversión y 
competitividad  Viewed at:  http://www.instrumentos.mec on.gov.ar/intro_esquema.php. [Link broken] 
Sectoral fiscal incentives 
52. Incentives are also available for specific sector s, namely fiscal benefits (tariff reductions, 
issue of vouchers for payment of national tax es, and fiscal stability arrangements) and/or 
non-repayable contributions (ANR) to prom ote investment, production, innovation and 
competitiveness in specific sectors.84  The sectors that have benefited include agriculture and forestry;  
capital goods, information technology and telecommunications85;  the automotive, motorcycle and 
parts industry86;  the petroleum, gas and biofuels industry87;  mining88;  shipbuilding89;  
biotechnology90 and tourism91 (Chapter IV). 
                                                      
84 For further information, see Undersecretariat for Investment Promotion (2010) and online 
information from the Ministry of the Economy and Public Finance Instrumentos para el desarrollo productivo .  
Viewed at:  http://www.instrumento s.mecon.gov.ar/intro_esquema.php. 
85 Capital goods, information technology and telecommunications (Decree No. 379/2001) and 
Promotion Regime for the Software Indust ry (Law No. 25.922) (viewed at: http:// 
www.instrumentos.mecon.gov.ar/mensajes-ver-mensajes.php?id_prog=1024&order=fecha desc&cantidad=). 
86 MERCOSUR Automotive Regime, Law on the Development and Consolidation of the National 
Automotive Parts Sector (Law No. 26.393) and Local Investment Incentive Scheme for the Manufacture of Motorcycles and Automotive Parts (Law No. 26.457). 
87 Oil Plus Programme, Gas Plus Programme, Refining Plus Programme, Regulatory and Promotion 
Regime for the Sustainable Production and Use of Biofuels (Law No. 26.093). 
88 Promotion of Mining Activities (Law No. 24.196). 
89 Import Regime for the Shipbuilding Industry (Decree No. 1.010/2004). 
90 Promotion of the Development and Production of Modern Biotechnology (Law No. 26.270 and 
Decree No. 983/2007). 
91 National Tourism Investment Programme;  Tourism Line 400;  Investment Credit Line for Tourism 
and Hotel Services;  Technical and Financial Assistan ce Programme for Regional Exportable Production;  
Technological Support for the Tourism Industry;  and Programme to Enhance and Promote Tourist Destinations 
(Profode) (online information from the Ministry of the Economy and Public Finance, Instrumentos para el 
desarrollo productivo .  Viewed at:  http://www.instrumentos.mecon.gov.ar). Argentina WT/TPR/S/277 
 Page 39 
 
 
  Regional fiscal incentives to promote investment and industrial development 
53. Argentina also has fiscal incentives to promote investment in the various regions of the 
country.92  The purpose of these schemes is to compen sate for the disadvantages inherent in the 
geographical location of the various regions, both in terms of distance from centres of consumption 
and suppliers, and in terms of infrastructure.  Th e provinces also have their own laws providing for 
fiscal incentives to promote investment and industrial development (Table II.8). 
Table II.8  
Provincial fiscal incentives  
Province and legal 
framework  Beneficiaries  Benefits  
Buenos Aires 
Law on Promotion of 
Industry (Law No. 13.656/2008 and 
Decree No. 523/2008) Activities regarded as priorities under the current 
Industrial Development Plan, with the exception 
of microenterprises and SMEs for which all physical, chemical or physical-chemical 
processes conducted at their place of business are 
eligible for the benefits se t out in the Law.  In the 
event of expansion, the increase in theoretical 
production capacity required to become eligible 
for the benefits must be at least 50%.  When a new production process is adopted the new 
investment must be greater than 30% of the value 
of the existing fixed assets. Full exemption from all provincial taxes for 
10 years.  Access to finance on preferential terms.  
Discounts on the cost of electricity, gas, water and communications services. 
Catamarca Law on Economic Promotion 
and Fiscal Incentives 
(Law No. 5.238/2008 and Decree Nos. 641/2008 and 
1.705/2008) Activities that have no presence in the region but 
have a high impact on its development.  Agrifood 
industries, containers, packaging, textiles, 
footwear that add value to output.  Enterprises that are part of and/or complementary to 
production chains for olives, vines, walnuts, 
livestock and direct and/or indirect services provided in respect of those chains.  Innovative 
production ventures.  Activities that promote the 
marketing and consumpti on of products outside 
the province. Full exemption from all provincial taxes for 
10 years.  Tax credit equivalent to a maximum of 
40% of the investment, 30% of operating 
expenditure and 25% of the minimum wage for each permanent new job created.  
Córdoba Provincial Law No. 9.611 
(Incentives for Investment 
and Local Production) Agricultural producers and rural contractors in 
Córdoba. Repayment of 10% on purchases of agricultural 
machinery, agricultural equipment and high 
technology fittings to enterprises and 
concessionaires established in Córdoba. 
Corrientes 
Industrial Development Trust 
Fund (Law No. 5.684/2005 and Decree No. 306/2006) Physical or legal persons under private law who 
run business ventures or expand existing 
industrial or services-related business ventures;  generate or expand indus trial, manufacturing or 
remanufacturing production capacity;  or 
generate new products, services or processes. Subsidies for recruiting and training staff.  
Subsidies for interest rates on loans to be used in 
industrial investment and the payment of industrial electricity tariffs a nd other expenses.  
Non-repayable contributions for technological 
innovation.  
Jujuy 
Law on Promotion of 
Industry (Law No. 4.392/88) Physical and legal persons domiciled in the 
province. Loans at a subsidized rate, technical assistance, tax 
and/or fiscal benefits, financial facilities. 
Mendoza 
Scheme to Attract 
Investment and Promote 
Employment (Law No. 8.019/2009)
a Physical and legal persons established in the 
Argentine Republic whose principal activity is 
conducted in the territory of the province of 
Mendoza. Tax credit for creating employment, valid for a 
maximum period of five years.  Full exemption 
from all provincial taxes for 10 years.  Fiscal 
stability for 10 years.  Tax credit amounting to a maximum of 30% of the total investment in new 
ventures.  Wage subsidies and an interest subsidy 
regime for production loans. 
                                                      
92 For example:  Special Tax and Customs Regi me for Tierra del Fuego, Antarctica and the 
South Atlantic Islands (Law No. 19.640);  Patagonia Rural Development Project (Proderpa);  Law No. 22.021 on the Promotion of the Provinces of San Luis, La Rioja and Catamarca (online information from the Ministry 
of the Economy and Public Finance, Instrumentos para el desarrollo productivo .  Viewed at:  
http://www.instrumentos.mecon.gov.ar). WT/TPR/S/277 Trade Policy Review 
Page 40 
  
  Province and legal 
framework  Beneficiaries  Benefits  
Neuquén 
Provincial Law No. 378 (Economic Promotion - 
Regulation No. 664) Enterprises established in Neuquén. Exem ption from provincial taxes and duties on 
legal instruments concerning the establishment and/or registration of companies, partnerships 
and/or entities making the proposed investment.  
Sale at fiscal price of publicly owned land where essential to secure the investment.  Commitment 
by the provincial State not to authorize the 
establishment of another similar industry at provincial level for a pre-determined time-limit.  
Technical advice to the proposers.  Commitment to 
give preference in all tenders for the provision or execution of public works to products obtained 
from a benefiting establishment, provided that in 
terms of quality and cost they match products from outside the province. 
Salta Promotion of Investment in Production and Employment 
(Law Nos. 6.771/1995 and 
6.910/1996 and Decree No. 2.931/1997) Agricultural producers, microenterprises and 
SMEs, enterprises in gene ral engaged in primary 
projects, industry, construction, mining (except 
for hydrocarbons), tourism, commerce and the 
output of services, established in provincial territory and generati ng new investment and 
employment. Exemption from a percentage of provincial taxes 
for 10 years. 
San Luis Investment Promotion Law 
(Law No. VIII-0664-2009) Physical or legal persons, whether Argentine 
or non-Argentine, who invest in ventures 
involving activities in the fields of production, 
industry, agriculture, livestock, mining, real-estate, tourism, new technology, alternative 
energy sources or services in sums in excess 
of Arg$150,000. Exemption from provincial taxes on gross 
earnings, real estate, stamp duties, motor vehicles, 
trailers and motorcycles for 15 years on a scale as 
follows:  100% for the first five years;  50% for the next five years;  25% for the last five years.  
Non-transferable, named Tax Credit Certificate for 
an amount not exceeding 50% of the provincial taxes payable as a result of the investment project;  
to be used to pay any provincial tax payable by the 
taxpayer.  Purchase of public land to construct industrial plant to implement the investment 
project;  payable in five y ears free of interest, and 
with one year's grace.  Decreasing subsidies for persons who recruit recipients under the Social 
Inclusion Labour Plan for San Luis, for up to 
two years.  Subsidies on the interest rate on the project:  full or partial refund of interest payable 
on any loan taken out. 
Santa Cruz 
Provincial Law No. 3.092 
(Law on Provincial Industrial 
Development and Promotion) Physical or legal persons, whether Argentine or 
non-Argentine, domiciled in the provincial 
territory.  Priority to secondary industries in the 
sectors of agriculture, liv estock, forestry, mining, 
hydrocarbons, energy, fisheries, tourism, that 
meet some of the following non-exhaustive list 
of conditions:  (a) they use raw materials, semi-manufactured products and natural resources originating in the province;  (b) they 
enable the production of inputs required by the 
principal economic activities in the province and/or added value to raw materials for 
subsequent marketing pr ovincially, nationally or 
internationally;  (c) they have a multiplier effect 
on the provincial economy. Refund of a maximum of 40% of the new 
investment made or of the increase in existing 
investments.  Exemption from existing or future 
provincial taxes for a peri od of up to ten years, 
with an option for 15 years.  Subsidy amounting to 
up to 50% of the supply costs of electricity, water 
and sewerage services for a period not exceeding four years.  Subsidies of up to 49% on the interest rate on credit lines applied by Banco Santa Cruz 
S.A. in respect of recipient enterprises.  Transfer 
of use of provincial land required for the construction of production-related infrastructure.  
Non-repayable provincial contribution for activity 
in the ports of Santa Cruz for up to four years. 
Santiago del Estero Provincial Industrial Promotion and Development 
System Physical and legal persons established under 
public, provincial or private law, established or authorized to operate in the country and foreign 
investors who establish a legal domicile in the 
province. Refund of up to 30% of the investment over a 
maximum five-year period.  Repayment of up to 50% or tax credit for the payment of provincial 
taxes for infrastructure works.  Full or partial 
exemption on sliding scale from provincial taxes for 10 years.  Subsidies of up to 50% on the 
interest rate for loans. Argentina WT/TPR/S/277 
 Page 41 
 
 
  Province and legal 
framework  Beneficiaries  Benefits  
Tucumán 
Investment Promotion System (Law 
No. 7.886/2007) and 
Emergency Decree on grounds of Necessity or 
Urgency No. 14/2008
b Physical or legal persons, whether Argentine or 
non-Argentine, who are established or authorized to operate in the country and establish a legal 
domicile in the province and whose projects 
justify investment in ventures established in the province. Exemption from provincial taxes for 15 years.  
Exemption from increases in the provincial tax burden for 15 years.  Subsidy of up to 50% on the 
interest rate for credit lines.  
a Applied only to activities in the fi elds of software, call centres, web- hosting and technological innovations. 
b Law No. 6.699/1995 introduced the Industrial Promotion Scheme  into the province of Tucumán.  Repealed by Law 
No. 7.886/2007. 
Source:  Online information from the Ministry of  the Economy and Public Finance, Base de datos de Instrumentos para el 
Desarrollo Productivo:  Jurisdicción provincial :  Beneficios impositivos y/o fiscales:  Tema de inversión .  Viewed 
at:  http://www.instrumentos .mecon.gov.ar/intro_esquema.php. 
(b) Credit programmes 
54. Investors have access to lines of credit at pref erential rates through institutions such as the 
Bank of the Argentine Nation (BNA), the Investme nt and Foreign Trade Bank (BICE), the Federal 
Investment Council (CFI) and bodies such as the Secr etariat for Small and Medium-Sized Enterprises 
(SEPYME).93  The aim of the programmes includes th e promotion of investment, industrial 
competition and the consumption of goods produced in Argentina by offering medium term and long-
term finance to sectors of the economy or regions of the country that are not conventional credit recipients, such as microenterprises and SMEs.  This type of credit is principally granted to projects 
that promote investment, generate employme nt, strengthen productio n chains and enhance 
regional development. 
Table II.9  
Financing of investment and competitiveness, 2007 and 2012  
(Arg$ million) 
 
Description  Amount granted  
2007  2012  
Bank of the Argentine Nation (BNA) credit lines    
 Productive Investment Financing Facility - SEPYMEYDR (Assistance Programme for the 
Establishment of Productive Clusters) and BNA.    
 Provision of finance to purchase capital goods of domestic origin, including new IVECO lorries 
manufactured in Argentina.  Finance at a fixed intere st rate for construction, plant, other equipment, 
technology for investment projects.   Interest-rate subsidy of two annual percentage points for users 
of the SEPYMEYDR facility.  .. .. 
 BNA and EMPRETEC Foundation Programme to  finance innovative business ventures.    
 New business ventures that have not entered the ma rket and plan to do so within six months of 
disbursement of credit.  Young businesses where le ss than two years have elapsed since the first 
fiscally registered sale. .. .. 
Bicentennial Productive Financing Programme    
 Credit granted at a fixed annual interest rate (in Argentine pesos) of 9.990% for a five-year loan. n.a.  4,530  
                                                      
93 For example SEPYME (www.sepyme.gov.ar) and the Social Capital Fund (FONCAP) S.A. 
(www.foncap.com.ar) (online informati on from the Faculty of Agronomy at the University of Buenos Aires, 
Información sobre organismos y entidades que ofrecen financiamiento a emprendimientos .  Viewed at:  
http://www.agro.uba.ar/unpuente/contenidos6.html). WT/TPR/S/277 Trade Policy Review 
Page 42 
  
   
Description  Amount granted  
2007  2012  
Investment and Foreign Trade Bank (BICE) credit lines   
 Programme to Finance Investment   
 Finance for the purchase of capital goods for invest ment projects in the field of the production of 
goods and services 123,527  182,420  
 Finance for Renewable Energy Investment n.a.  28,972  
 Finance for Projects in the field of Moderniza tion and/or Technological Innovation in the Sector 
producing Goods of Domestic Origin (FONTAR) n.a. 9,552  
 Finance for Investment in Environmenta l Improvement in Production Sectors n.a.  0 
 Programme to Co-Finance Investment n.a.  8,400  
 Finance for Regional Economies 57,228  2,496  
 Programme to Finance Invest ment - Blended Rate   
 Finance projects to invest in and purchase new capita l goods, regardless of whether or not they need 
to be registered, for the purposes of an investment  project.  Finance amounting to up to 80% of the 
total amount of the project excluding VAT.  Fina nce for imported goods may not exceed 30% of all 
BICE assistance allocated to the project. .. .. 
 CAE-BICE   
 Financial facilities for enterprises producing goods legally established in the country that have 
invoiced up to Arg$200 million.  The amount to be fi nanced by the credit must be between Arg$1 and 
Arg$4 million, excluding VAT, and may cover up to 80 % of investments required by the enterprise 
under the approved project.  The interest rate to  be charged on the loan is a blend where 85% 
comprises a fixed component of 6.45% annually (nom inal annual rate or TNA), and 15% comprises a 
variable component calculated by adding a fixed margin of 150 basis points (1.50%) to the TNA. n.a. .. 
 Subline financing Capital Goods of Domestic Origin   
 To finance the purchase of capital goods of domestic or igin.  The interest rate to be charged on the 
loan is based on the enterprise's annual sales   
.. Not available. 
n.a. Not applicable. 
Source:  Undersecretariat for Investment Promotion (2010), Incentivos a la Inversión:  ventajas de invertir hoy  Viewed at:  
http://www.inversiones.gov.ar/es/descar gas/Guia_del_Inversor/incentivos-a-la- inversion/Incentivos-a-la-Inversión
-2010/, and online information from the Minist ry of the Economy and Public Finance Instrumentos para el 
desarrollo productivo .  Viewed at:  http://www.instrumentos.m econ.gov.ar/intro_esquema.php and information 
from the Argentine authorities. 
55. The BNA plays an important role in the country's development policy, for example by 
providing assistance to SMEs and businesses in locations of low economic vitality that are a long way 
away from major centres.  Additionally the BNA prom otes and supports external trade, notably by 
encouraging the export of Argentine goods, services  and technology, and provides financial assistance 
to "enterprises producing" goods and services, credit for investment and working capital, and awarding finance and guarantees to external trade activities.
94  The BICE, a financial institution for 
development established in 1992, is a second tier public bank that awards medium and long-term 
credit to promote productive investment an d foreign trade among Argentine enterprises.95  The CFI is 
a federal body whose aim is to promote the harm onious development of Argentine provinces and 
regions by directing investment towards all sectors in the national territory. 
(c) Support for research, development and improving competitiveness. 
56. The Ministry of Science, Technology and Innovative Production was established in 
December 2007 and was entrusted with generating competitiveness and strengthening the "Argentine 
                                                      
94 Online information from the BNA.  Viewed at:  
http://www.bna.com.ar/institu cional/institucional.asp. 
95 It has also made direct loans to businesses since October 2003 (online information from the BICE.  
Viewed at:  www.bice.com.ar Créditos para Inversión .  Viewed at:  http://www.b ice.com.ar/bice_en/index.asp). Argentina WT/TPR/S/277 
 Page 43 
 
 
  model of production" through research a nd innovation in science and technology.96  The National 
Agency for the Promotion of Science and Tec hnology (ANPCyT), established in 1996, and the 
Federal Science and Technology Council (COFECyT), established in 1997, have been agencies of the 
Ministry since 2007 and are responsible for promo ting investment in scientific and technological 
projects.97  To that end the ANPYyT administers four  funds and the COFECyT five credit lines 
(Table II.10).  To be eligible for finance, pr ojects must promote applied scientific research and 
"precompetitive technology" and adapt or improve technologies. 
57. The number of programmes run by both the ANPCyT and the COFECyT increased during the 
period of this Review.  In 2008 the ANPCyT launche d a new fund, the Argentine Sectoral Fund, and 
the COFECyT established two new credit lines to  support technological development within 
municipalities and the tourism sector.98  As at 2011, the four funds administered by the ANPCyT 
offered 22 credit lines, some ex clusively to finance SMEs.99  The recipient enterprises and institutions 
can choose to receive "non-repayable contributions (ANR)", loans or ta x credits.  The benefits granted 
under these programmes rose between 2007 and 2011 (Table II.10).100  Projects are selected through a 
public tendering process.101 
Table II.10  
Incentives for research, development and improving competitiveness, 2007 and 2011  
(Arg$ million) 
 Amount granted in 2007  Amount granted in 2011  
Support  Credit  Tax 
credit  Total  Support  Credit  Tax 
credit  Total  
ANPCyT Funds          
Argentine Technological Fund (FONTAR) 33.4  161.9  22.6  217.9  134.9  110.5  40.0  285.4  
Scientific and Technological Research Fund 
(FONCyT) 182.5 n.a. n.a. 182.5 243.5  n.a. n.a. 243.5  
Trust Fund for Promotion of the Software 
Industry 6.9 0.6 n.a. 7.5 59.0  0.3 n.a. 59.3  
Argentine Sectoral Fund (FONARSEC) n.a. n. a. n.a. n.a. 306.7  n.a. n.a. 306.7  
Total  222.8  162.5  22.6  407.9  744.1  110.8  40.0  894.9  
COFECyT credit lines          
Technological Support for the Tourism 
Industry (ASETUR) n.a. n.a. n.a. n.a. 24.0 n.a. n.a. 24.0 
Municipal Technological Development 
Projects (DETEM) n.a. n.a. n.a. n.a. 33.6 n.a. n.a. 33.6 
Federal Projects for Innovation in 
Production (PFIP) 14.4 n.a. n.a. 14.4 n.a. n.a. n.a. n.a. 
                                                      
96 Online information from the Ministry of Science, Technology and Productive Innovation, 
El Ministerio:  Presentación .  Viewed at:  http://www.mincyt.gov. ar/ministerio/presentacion/index.php. 
97 Decree Nos. 1.660/1996 and No. 1.113/1997. 
98 National Agency for the Promotion of Science and Technology (2011) and online information from 
the Federal Science and Technology Council, Líneas de financiamiento .  Viewed at:  
http://www.cofecyt.mincyt.gov.ar/Linea_financiamiento.htm. 
99 National Agency for the Promotion of Science and Technology (2012) and online information from 
the National Agency for the Promotion of Science and Technology.  Viewed at:  http://www.agencia.gov.ar. 
100 National Agency for the Promotion of Science and Technology (2012). 
101 Online information from the National Agency for the Promotion of Science and Technology.  
Viewed at:  http://www.agencia.gov.ar.  Online informa tion from the Federal Science and Technology Council.  
Viewed at:  http://www.cofecyt.mincyt.gov.ar/, and onlin e information from the Ministry of the Economy and 
Public Finance, Instrumentos para el desarrollo productivo .  Viewed at:  
http://www.instrumentos.meco n.gov.ar/intro_esquema.php. WT/TPR/S/277 Trade Policy Review 
Page 44 
  
   Amount granted in 2007  Amount granted in 2011  
Support  Credit  Tax 
credit  Total  Support  Credit  Tax 
credit  Total  
Federal Projects for Innovation in 
Production – Linkages in Production (PFIP - ESPRO) 14.4 n.a. n.a. 14.4 43.2 n.a. n.a. 43.2 
Institution-Building Projectsa  - n.a. n.a. - - n.a. n.a. - 
Total  28.8 n.a. n.a. 28.8 100.8 n.a. n.a. 100.8 
n.a. Not applicable. 
a Line not used. 
Source:  Online information from the National Agency for the Prom otion of Science and Technology (ANPCyT).  Viewed 
at:  http://www.agencia.gov.ar/spip.php?a rticle49, online information from th e Federal Science and Technology 
Council (COFECyT).  Viewed at:  http://www.cofecyt.minc yt.gov.ar/, and information provided by the Argentine 
authorities.  
(d) Micro, small and medium-sized enterprises (MSME) 
58. The MSME sector continues to be extremel y important to the Argentine economy and a 
priority of the national development strategy;  the State therefore seeks to foster and promote the 
sector through various support programmes.  Th e sector generates around 65% of employment and 
accounts for 40% of GDP.102  Exports from MSMEs represent 15% of the national total.103 
59. The operation of MSMEs in Argentina is gove rned by Law No. 24.467 as amended, which 
seeks to promote their growth and developm ent by creating new support instruments and 
consolidating those already in place.  Since the Law was promulgated the State has continued to 
develop credit instruments and tools for technical as sistance and training by introducing an interest 
subsidy regime to reduce the cost of credit, s tipulating that the BNA and the BIUCE must have 
special credit lines available to MSMEs, a nd establishing a system of Mutual Guarantee 
Societies (SGR).  Argentina promotes the forma tion of consortia of SMEs, especially those that 
are export-oriented.104 
60. The National Fund for Microenterprise and SME Development (FONAPyME) was 
established in 2000 under the MSMEs Development Law (Law No. 25.300) to provide capital 
contributions and medium and long term finance fo r investment.  The Microenterprise, Small and 
Medium-Sized Business Guarantee Fund (FOGAPyME) was also established, as was the training tax credit scheme and the Compremipyme Programme requiring national Argentine public bodies to 
apply a 5% preference rate to tenders from MSMEs supplying goods or services produced in 
Argentina for purposes of comparison with the best tender.  Compremipyme also stipulates a 
minimum preference rate of 10% in tenders or bids for the procurement of goods and services in 
which only MSMEs are competing (Chapter III (4)(v)). 
61. The objective of the Secretariat for Small and Medium-Sized Enterprises and Regional 
Development (SEPYMEyDR) at the Ministry of I ndustry is to support the development of MSMEs 
through various programmes, including tax credit programmes for training;  perform analyses and 
implement action plans to improve management and competitiveness;  and provide improved access 
to credit through the interest subsidy regime a nd direct credit under FONAPyME.  Since 2010, access 
to SEPyME's assistance programmes and other progra mmes focused on MSMEs has been available to 
                                                      
102 Information provided by the authorities. 
103 Information provided by the authorities. 
104 Law No. 24.467/95. Argentina WT/TPR/S/277 
 Page 45 
 
 
  enterprises whose total sales in Argen tine pesos are not higher than figur es specifically provided for in 
the law (Table II.11).  An SME must be in compliance with its tax obligations in  order to be eligible 
to access the benefits. 
Table II.11  
Definition of enterprise 
(Arg$ million)  
 Agriculture  Industry and mining  Commerce  Services  Construction  
Micro 0.61 1.8 2.4 0.59 0.76 
Small  4.1 10.3 14 4.3 4.8 
Medium-sized 24.1 82.2 111.9 28.3 37.7 
Source:  Resolution No. 21/2010. 
62. The Government's policy on SMEs does not comprise only the programmes run by the 
SEPyME.  MSMEs are also eligible for specific programmes run by various institutions (Table II.12).  
The provinces also have specific programmes to assist MSMEs. 
Table II.12  
Support programmes for MSMEs, 2007 and 2012  
(Arg$ million)  
 
Description  Amount granted  
2007 2012 
Finance programmes    
 Investment Finance in Productive Industries for Various Activities - BNA    
 Finance amounting to up to 80% of the value of the purchase or charge, excluding VAT, at subsidized interest 
rates for the procurement of new capital goods of domestic origin to be used in construction, installation and 
purchase of equipment and technology in investment projects.  Interest rate subsidized by the BNA and the SEPyME.  Subsidy individually determined, depends in particular on the domicile of the enterprise.  .. 526.9
a 
 Regional and Sectoral Development Programme (PRODER) - BNA    
 Credit line for assisting the implementation of sectoral projects promoted through various intermediate 
organizations (chambers, associations, federations, development agencies and others) that focus on the sector's common objectives.  The loan can be used to finance up to 90% of the total investment at an interest rate set at 60% of the rate paid on the general BNA portfolio plus a subsidy of 5 points. b b 
 Investment and Foreign Trade Bank (BICE) credit lines   
 SME Stimulus Programme:  Credit line in Argentine pesos with a fixed rate subsidized by the Undersecretariat 
for SMEs. .. .. 
 Credit Line for SMEs and Cooperatives - BICE   
 Finance investment projects for SMEs and cooperatives.  The interest rate to be charged on the loan will be 
based on the annual sales figures for the SMEs and cooperatives. .. 0.1 
 Working Capital Finance Programme for MSMEs - BICE   
 Credit line to finance working capital for various economic activities.  Maximum amount of finance is 
Arg$300,000 at a fixed interest rate of 11% (TNA). .. .. 
Federal Investment Council (CFI) credit lines    
 Revival of production:  credit to finance working capital, fixed assets and preinvestment.  Regional Exportable 
Production:  credit to prefinance exports and support exportable production (working capital, fixed assets and 
preinvestment). 132.3 130.3 
Subsidized credit   
 The State assumes responsibility for a proportion of the financial cost of bank loans for the procurement of new 
capital goods, the formation of working capital, prefinancing and financing of exports, etc. .. .. 
SEPYME interest subsidy regime   
 Credit lines subsidized by financial entities.  Credit granted for the procurement of capital goods and for working 
capital.  The subsidized proportion ranges between 3 and 8 percentage points, based on the level of development 
in each region, but does not exceed 50% of the rate offered. 199.0 1,333.0  
National Fund for Microenterprise and SME Development (FONAPyME)   
 To finance projects directed at the domestic market with the principal emphasis on replacing imports, generating 
added value and employment, and promoting regional development.  For investment projects, capital goods, 
construction and plant (up to 70% of the project) and raw materials (only those associated with the project and up 
to 10% of the amount of credit).  Interest rate set at 50% of the rate paid on the general BNA portfolio, equivalent to 9.43% annually (April 2012). 9.0 159.0 WT/TPR/S/277 Trade Policy Review 
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Description  Amount granted  
2007 2012 
Direct support fo r Businesses - Competitiveness an d Credit Access Programme (PACC)   
 To co-finance through non-repayable contributions up to 60% of the investment in technical assistance and/or 
training in activities identified as important for improving competitiveness.  The maximum ANR is Arg$90,000 
but it must not account for more than 60% of the investment made.  Non-eligible businesses are businesses in the 
brokerage, financial, insurance, professional legal or accountancy services sectors;  businesses where more than 49% of the stock is held by foreigners;  and importing businesses where the turnover on imported goods accounts for more than 25% of total turnover. .. 118.0 
Other support programmes    
 Tax Credit Scheme for SMEs and Large Businesses - MTEYSS   
 Participating businesses receive tax credit certificates that may be used to pay income/profit taxes, presumptive 
minimum profit tax, domestic taxes and VAT.  SMEs can finance projects for the equivalent of 8% of their 
total annual payroll plus their respective employer contributions. 7.7 28.0 
 Support for Local Production Systems   
 Technical assistance, training and market access through non-repayable contributions for Argentine SMEs 
belonging to a Local Production System. 0.3 4.5 
 Training Tax Credit   
 Tax benefits to be used for technical assistance.  Issue of endorsable tax credit certificates that can be used to 
pay taxes collected by the Federal Public Revenue Administration. .. .. 
. Not available. 
a To August 2012. 
b Over the period 2006-201 1 Arg$5,589,634 were allocated to FO MICRO and Arg$34,06 9,737 to FONDER.  
Source:  Undersecretariat for Investment Promotion (2010), Incentivos a la Inversión:  ventajas de invertir hoy .  Viewed at:  
http://www.inversiones.gov.ar/es/descar gas/Guia_del_Inversor/incentivos-a-la- inversion/Incentivos-a-la-Inversión
-2010/, and online information from the Ministry  of the Economy and Public Finance, " Instrumentos para el 
Desarrollo Productivo ".  Viewed at:  http://www.instrume ntos.mecon.gov.ar/int ro_esquema.php.