WT/TPR/S/176/Rev.1 Trade Policy Review 
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II. TRADE AND INVESTMENT REGIME 
(1) OVERVIEW  
1. There have been no changes to the Constitution or the basic legal system since Argentina's 
last Trade Policy Review in 1999, although reforms relating to the judiciary and various other matters 
were introduced under the Emergency Law.  This La w, which came into force in 2002, temporarily 
grants the Executive extraordinary powers to set pr ices and intervene in the economy.  During the 
review period, the President also made frequent use of his powers to issue, in exceptional circumstances and with the intervention of ministers, on grounds of necessity or urgency, decrees which have the same standing as laws adopted by the Legislature. 
2. Argentina regards regional and multilateral ne gotiations as a means of promoting the well-
being and fairness of society as a whole.  It is an original Member of the WTO and participates 
actively in the multilateral trading system.  Argen tina is also an active pa rticipant in the Doha 
Development Round negotiations and has made several  proposals, individually or jointly with other 
countries.  Argentina is mainly interested in ag riculture, although the negotiations on services, market 
access for non-agricultural products, special and diffe rential treatment for developing countries, and 
the reduction of barriers to trade in environmenta l goods and services are also regarded as areas of 
special interest. 
3. Argentina has made several notifications to WTO Members, although, as at October 2006, 
some notifications were overdue.  Argentina h as made active use of the WTO dispute settlement 
mechanism, in nine cases as the co mplainant, in 16 cases as the res pondent and in 15 cases as a third 
party (of these 40 cases, five were initiated in 1 996-1997).  Out of the 16 cases in which Argentina 
participated as the respondent, nine related to trade remedies. 
4. Argentina pursues an autonomous foreign trade policy which, however, must always be 
consistent with its Southern Common Market (M ERCOSUR) obligations.  As part of MERCOSUR, 
Argentina has concluded preferential trade agreem ents with Bolivia, Chile and Peru, which are 
associate members of MERCOSUR, and with the me mbers of the Andean Community (Colombia, 
Ecuador and Venezuela).  Argentina has also conc luded several individual agreements with other 
LAIA members.  The main agreements, in terms of product coverage, are those with the Andean 
Community and with Mexico. 
5. With a few exceptions, Argentina's foreign i nvestment regime is an open one.  Foreign 
participation is restricted only in relation to fishi ng, domestic transport, the purchase of real estate in 
security (border) zones, and arms and ammunition;  in  2003, restrictions were also imposed on certain 
communications media.  Foreign investment is not subject to any prior authorization requirement and benefits from national treatment.  In principle, fo reign investors may repatriate their investments and 
profits and, like other investors, are eligible fo r the various tax incentives offered at federal and 
provincial level (see Chapters III and IV). 
6. Argentina has signed and is applying bilateral i nvestment treaties with 50 other countries, the 
aim being to promote and provide reciprocal protec tion for investments.  During the review period, 
Argentina has had to respond to numerous compla ints before international arbitration tribunals, 
several relating to emergency measures adopted in the context of the economic crisis.  In 
January 2006, there were 43 cases before the Inte rnational Centre for Settlement of Investment 
Disputes (ICSID).  During the economic crisis, Argen tina temporarily imposed exchange restrictions 
on the repatriation of capital and profits.  Although i nvestment flows have recovered since the crisis, 
it will be necessary to restore investor confidence in order to attract the investment needed to sustain 
economic growth. Argentina WT/TPR/S/176/Rev.1 
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(2) FRAMEWORK FOR TRADE POLICY AND INVESTMENT  
(i) General institutional and legal framework 
7. Since the last constitutional reform in 1994, th ere have been no changes in the Argentine 
Constitution.  Argentina is a federative republic  consisting of 23 provinces and one autonomous 
federal district (the Autonomous City of Buenos Aires).  Under the Constitution, executive power is 
vested in the President, who is elected by universal adult suffrage for a term of four years, with the 
possibility of re-election for one more term.  The last  presidential elections were held in April 2003.  
The President appoints the Chief of the Cabinet of Ministers and the Ministers themselves, together 
with the Secretary-General of the President's Office.   The President also concludes and signs treaties 
and other international agreements.1 
8. The President issues the directives and regula tions necessary to implement the country's laws, 
participates in their formulation and promulgates th em.  In exceptional circumstances, the President 
may, in agreement with his ministers, issue d ecrees on the grounds of necessity or urgency.2  During 
the review period, the Executive issued many such  decrees relating, for example, to the economy, 
health, works, public services and transport, social development, employment and social security, and 
administrative organization, some of them to amen d existing laws.  The authorities have pointed out 
that these decrees were adopted during the state of  emergency to speed up the legislative process and 
were subject to a specific control mechanism since they could not be issued without the intervention 
of the Legislature.  If there is no explicit pronounc ement by the Legislature, after being issued the 
decrees in question remain in force for the dur ation of the procedure for which the Constitution 
provides. 
9. Legislative power is vested in a Congress compo sed of two houses:  the Chamber of Deputies 
and the Senate.3  Deputies are elected by universal su ffrage for a four-year term and may be 
re-elected.  Senators are elected on a provincial basi s by direct vote for a six-year term and may be 
indefinitely re-elected.4  The Congress is empowered, among other things, to legislate on customs 
matters;  establish import and export duties together  with their tax base;  impose indirect taxes 
(concurrently with the provinces);  impose direct taxes for a specified term;  establish the annual 
general budget;  regulate trade with foreign nations;  approve or rej ect treaties concluded with other 
nations and international organizati ons (but not amend their contents),  and approve integration treaties 
which delegate powers and jurisdicti on to supranational organizations.5 
10. Legal instruments are arranged in the following hierarchical order:  the Constitution and 
international human rights treaties that satisfy certa in conditions;  other international treaties;  the 
laws passed by Congress, decrees issued on grounds of necessity or urgency, and delegated decrees 
issued under Article 76 of the Constitution;  decrees;   administrative decisions of the Chief of the 
Cabinet of Ministers;  resolutions (issued by the Ch ief of Cabinet internally within his jurisdiction, 
and by Ministers, Secretaries and Under-Secretari es, as well as by the heads of regulatory entities);  
and, lastly, the orders issued by Directors. 
11. Laws may originate in either the Chamber of  Deputies or the Senate through draft laws 
introduced by their members, by the Executive or by citizens;  however, draft laws relating to 
constitutional reforms, internationa l treaties, taxation, budget and pe nal matters cannot be introduced 
                                                      
1 Article 99 of the Constitution. 
2 Article 99 of the Constitution. 
3 Article 44 of the Constitution. 
4 Articles 54 and 56 of the Constitution. 
5 Article 75 of the Constitution. WT/TPR/S/176/Rev.1 Trade Policy Review 
Page 18 
 
 
by popular initiative.  Laws become mandatory only after publication and on the date specified 
therein;  if no date is specified, they become mandatory eight days after their official publication.6 
12. Judicial power is exercised by the Supreme Court of Justice and the lower courts as 
constituted by Congress.  The provinces and the Au tonomous City of Buenos Aires have their own 
judicial organizations.  In all cases, the organization is hierarchical or pyramidal and characterized by 
the existence of a Supreme Court or High Court,  bench courts of second instance, and sole-judge 
courts.  The Supreme Court of Justice consists of nine members, appointed by the President, with the 
approval of the Senate, for an indefinite period.  Th e judges of the lower courts of the judicial system 
are also appointed by the President, with the ap proval of the Senate, for an indefinite period, 
following a selection process conducted by the Consejo de la Magistratura  (Judicial Commission), at 
the conclusion of which it proposes a binding short-list of candidates to the Executive. 
13. In 1997 a task force was set up to identify the main problems of the judicial system, and in 
1998 a National Plan for Judicial Reform was drawn up.7  In 2000, Resolution No. 177/00 of 
24 July 2000 on the System of Justice and Legi slative Matters established a Comprehensive 
Programme of Judicial Reform intended to de velop and implement modernization projects and 
provide support for programmes for the reform of Ar gentina's entire judicial system.  The authorities 
have pointed out that the reform was driven by long-standing problems, including slowness in processing cases, severe congestion in the courts and the lack of public access to justice.  The main 
achievements of the Programme include the Electronic Communications Agreement
8;  the Agreement 
on an Information System for the Argentine Courts9;  the creation of a Federal Training Network for 
the Argentine Judicial System10;  the bilingual publication Argentina – The Judicial System11;  the 
publication of Manuals on Aid for the Victims of Crime12;  technical assistance for the Judicial 
Reform Programmes being implemented by the S upreme Courts and High Courts of Argentina's 
provinces;  and the coordina ted organization of conti nuing training activities. 
14. Law No. 26.080, adopted in 200613, modified the composition and functioning of the Consejo 
de la Magistratura and of the Jurado de Enjuiciamiento de Magistrados , the body competent to 
conduct proceedings for the dismissal of judges.  The Law reduced the number of members of the 
Consejo  from 19 to 13 and changed its composition, increasing the proportion of representatives of 
the Legislature and Executive. 
15. The General Auditing Office of the Nation, a congressional technical advisory body, is 
responsible for overseeing the legal aspects, mana gement and auditing of all the activities of 
centralized and decentralized government department s and participates in the procedure for approving 
or rejecting the accounts relating to revenue co llection and the investment of public funds.14 
16. The Constitution recognizes the autonomy of each province in, inter alia , the political, 
administrative, institutional, and financial spheres.   Provincial authorities have the right to levy 
indirect taxes concurrently with the Congress, alt hough in practice tax administration has been mainly 
                                                      
6 Article 2 of the Civil Code. 
7 Available at:  http://www.reformajudicial.jus.gov.ar/materiales/plannac.htm. 
8 Consulted at:  http://www .justiciaargentina.gov.ar. 
9 Consulted at:  http://www .justiciaargentina.gov.ar. 
10 Consulted at:  http://www.reformajudicial.jus.gov.ar. 
11 Available at:  http://www.reformajudicial.jus.gov.ar. 
12 Available at:  http://www.reformajudicial .jus.gov.ar and http://www.cpacf.org.ar. 
13 Law No. 26.080 of 22 February 2006, amending Law No. 24.937 of 10 December 1997, and Decree 
No. 207/2006 of 24 February 2006. 
14 Article 85 of the Constitution. Argentina WT/TPR/S/176/Rev.1 
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a Federal Government responsibility.  This situa tion has led to successive  revenue-sharing pacts, 
under which most of the revenue is collected by th e Federal Government but later shared with the 
provinces.15  During the period since Argentina's last Review, revenue-sharing pacts were concluded 
in 1999, 2000 and 2002.  Revenue from taxes which may only be levied by the Federal Government 
(such as business taxes) is not subject to revenue-sharing. 
17. The provinces reserve to themselves all the powers not delegated to the Federal Government 
under the Constitution, as well as those powers expressl y reserved for them by special pacts at the 
time of their incorporation.16  The Constitution authorizes the pr ovinces to conclude international 
agreements, insofar as they are not incompatible wi th the country's foreign policy and do not affect 
the powers delegated to the Federal Government or  the national reputation, with the knowledge of 
Congress.  They are also authorized to enter into partial treaties with each other for the purposes of the 
administration of justice, economic interests or work s of mutual benefit.  They may also, among other 
things, promote the introduction and establishment of  new industries or the importation of foreign 
capital. 
(ii) Trade policy objectives, formulation and implementation 
18. Argentina has reiterated its commitment to an  open economy, taking the view that regional 
and multilateral liberalization will foster social well-being.17  However, Argentina also considers that 
trade liberalization cannot be detached from the ne ed of governments to retain sufficient room to 
conduct active policies in pursuit of th eir economic and social objectives.18  Its strategic trade 
objectives include better economic integration thro ugh trade negotiations and cooperation with the 
private sector.  In addition, Argentina is seeki ng to promote high-value added exports;  further 
diversify its export markets;  design support polici es to help small- and medium-sized enterprises 
break into international markets;  improve the commercial information ava ilable to enterprises;  
promote tourism and foreign direct investment;  and pursue the coordination of foreign trade policy 
measures between the Ministries of the Economy and Production, External Re lations, International 
Trade and Worship (MRECIC) and other institutions.19 
19. According to the authorities, the multilateral trad ing system and the WTO are at the forefront 
of Argentina's trade policy, followed by MERCOSUR and then the preferential agreements.  Regional 
agreements are likewise a priority concern of Arge ntina's foreign and trade policy.  In particular, 
Argentina is giving priority to MERCOSUR as an integration project that goes beyond economic and trade considerations and represents a joint endeav our to achieve an open-door regionalism fully 
consistent with the multilateral system.
20  Argentina's major trade objectives at MERCOSUR level 
have been the revival of MERCOSUR following the re gional crises, the consolidation of the free trade 
area (FTA) and the further development of the cu stoms union, together with the granting of 
MERCOSUR associate status to other countries of the region.21 
                                                      
15 The revenues of the shared pool are divided up as follows:  57.36 per cent goes to the provinces, 
1.4 per cent to the City of Buenos Aires, 1 per cent to the Fondo de Aportes del Tesoro Nacional  – ATN 
(National Treasury Contributions Fund), and the remainder to the Federal Government. 
16 Article 121 of the Constitution. 
17 WTO document WT/MIN(01)/ST/16 of 10 November 2001. 
18 WTO document WT/MIN(05)/S T/10 of 14 December 2005. 
19 Ministry of External Relations, International Trade and Worship, Comercio internacional .  
Consulted at:  http://w ww.mrecic.gov.ar/. 
20 WTO document WT/MIN(01)/ST/16 of 10 November 2001. 
21 Ministry of External Relations, International Trade and Worship, Comercio internacional.  
Consulted at:  http://w ww.mrecic.gov.ar/. WT/TPR/S/176/Rev.1 Trade Policy Review 
Page 20 
 
 
20. The authorities have pointed out that the gene ral objectives of long-term trade policy are the 
well-being of the population, economic growth and full employment.  Trade policy is formulated and 
implemented against the background of Argentina's traditionally small number of ministries within 
which the various secretariats and under-secretariats ha ve responsibilities akin to those of ministries in 
other countries.  Thus, the Ministry of the Ec onomy and Production (MEP ), which replaced the 
Ministry of the Economy, Works and Public Servi ces, is in charge of formulating objectives and 
policies relating to economic issues, public finances, industry, agriculture, livestock, fisheries, and 
trade.  Its functions include designing, implem enting and auditing the tax and customs regime, 
defining foreign trade policy, and elaborating and implementing the foreign investment regime.  The 
MEP is responsible for international negotiati ons on monetary and fiscal issues, as well as for 
relations with the international m onetary and financial institutions. 
21. The Federal Revenue Administration (AFIP) , a self-governing entity of the MEP, is 
responsible for implementing tax and customs policy.22  The AFIP includes the Directorate-General of 
Customs (DGA) and the Directorate-General of Taxation (DGI). 
22. The MRECIC handles economic and trade negotia tions as part of the implementation of 
Argentina's foreign trade policy, defined in coordination with the MEP.23  The MRECIC is also 
responsible for regional integrati on and export promotion.  The MRECIC's Secretariat of Trade and 
International Economic Relations is  in charge of relations with international economic and trade 
organizations, including the WTO. 
23. The Ministry of Federal Planning, Public Inv estment and Services was established in 200324 
and given the task of determining objectives and policies in the areas of transport, communications, 
mining, energy, sanitation and public works.  It al so plays a part in the development of tariff 
structures. 
24. The private sector participates in trade policy formulation through the Consejo Consultivo de 
la Sociedad Civil  – CCSC (Consultative Council for Civil So ciety, whose aim is to promote the 
exchange of information between public authorities and civil society.  The CCSC is composed of 
government representatives (15 per cent) and represent atives of the private sector (22 per cent), non-
governmental organizations (49 per cent) and academic institutions (14 per cent).25  Its activities are 
coordinated with the Special Representative Body for Integration and Social Participation (REIPS) 
created in November 2003 under the Sub-Secretar iat for American Economic Integration and 
MERCOSUR (SUBIE) of the MRECIC.  At regional level, the REIPS represents Argentina in the 
MERCOSUR Economic and Social Consultative Foru m, the civil society forum for the various 
member countries. 
(3) FOREIGN INVESTMENT REGIME  
25. There have not been any major changes to th e legal framework governing foreign investment 
per se , established by the Foreign Investment Law (Law No. 21.382) and its Regulatory Decree 
No. 1853/93.26  There are restrictions on foreign participation in the fisheries (see Chapter IV, 
Section (2)(iii)), communications media (including radio broadcasting and Internet access, see below), 
and arms and ammunition sectors. 
                                                      
22 Decree No. 618/97 of 10 July 1997. 
23 Decree No. 355/2002 of 21 February 2002. 
24 Decree No. 1283/2003 of 24 May 2003. 
25 Ministry of External Relations, International Trade and Worship (MRECIC),  Consejo Consultivo de 
la Sociedad Civil .  Consulted at:  http://www.mrecic.gov.ar/ccsc/. 
26 Law No. 21.382 approved by Regulatory Decree No. 1853/93 of 2 September 1993. Argentina WT/TPR/S/176/Rev.1 
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26. The Constitution (Article 20) gr ants foreigners, among other th ings, the right to exercise 
"their industry, trade or profession", and the right to own, buy and sell real estate.  Law No. 21.382 
confers on foreign investors the same rights and ob ligations as the laws and Constitution confer on 
national investors, subject to the provisions of any special or promotional regimes.  According to the 
authorities, none of the special or promotional regimes treats enterprises differently according to 
whether their capital is domestic or foreign.  A "foreign investor" is any natural or legal person 
domiciled outside the national territory who is the holder of a foreign capital investment, and local 
foreign-capital enterprises if they are investors in other local enterprises. 
27. For national security reasons certain restric tions are imposed on investment in security 
(border) zones.  To purchase real estate in these z ones it is first necessary to apply to the National 
Security Zones Commission, which comes under the Inte rnal Security Secretariat of the Ministry of 
the Interior, for approval to transfer prope rty and/or exploit permits and concessions. 
28. In 2003, a new law on the preservation of cultural property and assets was adopted.27  This 
imposed a 30 per cent cap on the participation of  foreign enterprises in the ownership of 
communications media28 and limited their voting rights to 30 per cent. 
29. Under Decree No. 1853, foreign companies can invest without prior approval, on the same 
conditions as investors domiciled in Argentina, and have the right to repatriate their investments and 
transfer their profits abroad at any time.  Howeve r, in late 2001 an exchange control regime was re-
established29, including measures such as prior authorization requirements for external transactions 
involving interest and dividend payments, the re payment of principal a nd profit remittances. 
30. According to the authorities, as of June 2006 th ere were no longer any restrictions on interest 
payments or on payments relating to the servicing of  external debt capital or to the distribution of 
profits and dividends, provided that they correspond to closed and audited ba lance sheets.  However, 
the repatriation of direct investments as a result of the sale or definitive disposal of the investment is 
subject to the prior approval of the Central Ba nk of the Argentine Republic (BCRA) insofar as it 
exceeds US$2 million per month.  Under certain conditions, direct investments are subject to the 
30 per cent deposit introduced by Decree No. 616/05.30 
31. Local foreign-capital enterprises can access lo cal credit on the same conditions as local 
domestic-capital enterprises.31  Foreign investors may adopt any of the corporate structures allowed by 
national legislation.32 
32. Incentives have been designed to attract inv estment to certain targeted activities (see 
Chapter IV).  To reduce the initial cost of the inv estment, or of modernizing or expanding operations,  
incentives are also granted under certain specific tax regimes, including tariff concessions;  some tax 
incentives are also granted under promotional sc hemes sponsored by provincial governments 
(Chapter III). 
                                                      
27 Law No. 25.750 of 18 June 2003. 
28 The following are deemed to be communications media: newspapers, periodicals and publishing 
houses in general;  radio broadcasting services and s upplementary radio broadcasting services covered by Law 
No. 22.285;  producers of audiovisual and digital content;  Internet service providers;  and public broadcasting companies. 
29 Presidential Decrees No. 1570/ 2001 of 1 December 2001, No. 1 606/2001 of 5 December 2001, 
No. 1638/200 of 11 December 2001, an d Law No. 25.561 of 6 January 2002. 
30 Decree No. 616/2005 of 9 June 2005, and BCRA Communications A 4554/2006 and A 4554/2006 of 
4 August 2006. 
31 Law No. 21.382, approved by Regulatory Decree No. 1853/93 of 2 September 1993. 
32 Law No. 21.382, approved by Regulatory Decree No. 1853/93 of 2 September 1993. WT/TPR/S/176/Rev.1 Trade Policy Review 
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33. The only case of expropriation envisaged in th e Constitution is expropriation for reasons of 
public interest; this must be authorized by law and the owner must first be compensated.  The 
confiscation of property is prohibited.33  The authorities state that, nationally, there has been no 
legislation providing for expropriation.  Locally, however, some provinces have adopted provincial 
expropriation legislation in connection with ente rprises that have gone bankrupt, for the purpose of 
preserving the source of employment.  In all th ese cases the expropriating province granted the 
owners of the business compensation equal to the value of the assets expropriated. 
34. In order to promote and reciprocally prot ect investment, Argentina has signed and is 
implementing bilateral investment treaties with 50 countries34, as well as double taxation agreements 
with 15 countries.35 
35. Faced with the numerous complaints brought befo re arbitration tribunals by foreign investors, 
Argentina adopted a series of measures designed to deal with these claims.  In 2003 it established, 
inter alia , the Public Utility Contracts Renegotiati on and Analysis Unit (UNIREN) and the 
Arbitration Defence Aid Unit (UNADAR) to take ch arge of the amicable negotiations on foreign 
investment disputes under bilateral investment treaties. 
36. Investment disputes can be adjudicated through administrative procedures and local courts or 
through international arbitration.  Argentina is a member of the Multilateral Investment Guarantee 
Agency (MIGA), the Overseas Private Investment Committee (OPIC), and the International Centre 
for Settlement of Investment Disputes (ICSID).36 
37. In May 2005, an arbitration tribunal c onstituted under ICSID rules awarded damages 
amounting to US$133 million in favour of a sharehol der in an Argentine privatized gas transport 
company.  According to the findings of the trib unal, through the pesoization and freezing of gas 
tariffs, Argentina had violated the protection acco rded under the Argentina-United States bilateral 
investment treaty. 
38. A total of 48 claims against Argentina were br ought before internationa l institutions between 
1999 and October 2006;  as of January 2006 there we re 43 cases before ICSID.  In 2005 and 2006, 
four claims were withdrawn and nine were suspended.  One case was withdrawn because Argentina's 
Supreme Court ruled in favour of the investor.  The authorities have indicated that the other withdrawals were due to settlements having been reached.  The nine suspensions reflected the 
progress made in the renegotiations between the Gove rnment and the investors or the companies in 
which they had invested.  In 2005, there were around 30 pending claims brought against Argentina by 
                                                     
 
33 Article 17 of the Constitution. 
34 These countries are (year of signature):  Au stria (1994), Armenia (1994), Australia (1992), 
Bolivia (1995), Bulgaria (1994), Canada (1992), Costa Rica (1999), Croatia (1995), Cuba (1997), China (1994), Czech Republic (1998), Denm ark (1994), Ecuador (1995), Egypt (1993), El Salvador  (1998), Finland (1995), 
France (1992), Germany (1992), Guatemala (2000), Hungary (1994), Indonesia (1997), Israel (1997), 
Italy (1992), Jamaica (1995), Lithuania (1998), Luxembourg (1992), Malaysia (1995), Mexico (1998), 
Morocco (1997), Netherlands (1994) , Nicaragua (2000), Panama (1998), Peru (1996), Poland (1992), 
Portugal (1995), Romania (1995), Russia (2000), South Korea (1996), Senegal (1994), South Africa (2000), Spain (1992), Sweden (1992), Switzerland (1992), Tunisia (1994), Turkey (1994), Ukraine (1996), 
United Kingdom (1992), United States (1992), Viet Nam (1997), and Venezuela (1995). 
35 These countries are (year of signature):  Austria (1983), Belgium (1999), Bolivia (1979), 
Brazil (1982), Canada (1994), Chile (1985), Denmark (1997), Finland (1996), France (1981), Germany (1979), 
Italy (1983), Netherlands (1998), Spain (1994), Sweden (1997), and United Kingdom (1997). 
36 Investment Promotion Agency (ADI), Legal Framework: How to Invest in Argentina .  Consulted at:  
http://www.inversiones.gov.ar/documentos/marco_juridico_argentina.pdf.  Argentina WT/TPR/S/176/Rev.1 
 Page 23 
 
 
foreign investors under the ICSID arbitration rules, ma inly in the utilities sector  (see also Chapter IV, 
Section (6)).37 
39. The MEP's Secretariat of Industry, Trade and Small and Medium-Sized Enterprises is the 
authority responsible for implementing the foreign investment regime.  During most of the period 
under review, the Investment Promotion Agency (A DI), operating under the MEP was in charge of 
identifying business opportunities in various sectors and in the different regions of the country and of 
circulating the information, as well as serving as a reference centre.38  In September, however, the 
National Investment Promotion Agency was establis hed pursuant to Decree No. 1225/2006, replacing 
the ADI.  This new agency is a decentralized body with wider scope for action than the previous one. 
(4) INTERNATIONAL RELATIONS  
(i) World Trade Organization 
40. Argentina is an original member of the WTO and grants at least MFN treatment to all its 
trading partners.  It is not a signatory to the WT O Plurilateral Agreements but is an observer to the 
Committee on Trade in Civil Aircraft and the Co mmittee on Government Procurement.  Argentina 
made specific commitments in the WTO negotiati ons on telecommunications and has ratified the 
Fourth Protocol (see Chapter IV, Section (6)).  It also participated in the financial services 
negotiations but neither made any offers nor undertook new commitments, and therefore does not 
figure among the signatories to the Fifth Protocol.  The MRECIC is responsible for Argentina's 
permanent mission in Geneva. 
41. Argentina has made a large number of notifi cations to the WTO, but as of October 2006 
certain notifications were still pending, such as t hose concerning agricultural export subsidies (for 
2004 and 2005) and domestic support (for 2002, 2003 , 2004 and 2005), export prohibitions and 
restrictions, and customs valuation (see Table AII.1). 
42. Argentina has made active use of the WTO di spute settlement mechanism during the period 
under review.  It has appeared as a complainant in nine cases (in three of which panels were 
established), as respondent in 16 cases (in seven of whic h panels were establishe d) and as a third party 
in 15 cases;  five cases out of the 40 were initia ted before 1998.  Out of the 16 cases involving 
Argentina as respondent five dealt with anti-du mping and countervailing duties and four with 
safeguards.  The cases involving Argentina as r espondent, and in which a panel report had been 
adopted as of June 2006, are as follows (complainant  country in brackets):  poultry (Brazil), preserved 
peaches (Chile), ceramic tiles (European Union), hides and leather (European Union), footwear 
(European Union), and textiles and apparel (United States).  In each of these six cases a panel report 
was adopted. 
43. At the WTO, in the context of the Doha Round Argentina has made a number of contributions 
and proposals, either alone or together with ot her MERCOSUR partners or other WTO Members.  
                                                      
37 See http://www.imf.org/externa l/pubs/ft/scr/2005/cr05236.pdf. 
38 Investment Promotion Agency (ADI), Quienes somos.  Consulted at: http://www.inversiones. 
gov.ar/quienes_somos.htm. WT/TPR/S/176/Rev.1 Trade Policy Review 
Page 24 
 
 
Argentina belongs to various negotiating groups, such as the G-2039 and the Cairns Group (for 
agriculture) and the NAMA-11 Group40 (for non-agricultural products). 
44. Argentina remains convinced that the objective of Doha Round is development, and that the 
results should contribute to substantial poverty reduction.41  Agricultural negotiations are one of 
Argentina's main interests in th e WTO.  Argentina has stated that "there could be no progress in 
NAMA and services if the developed countries failed to  take seriously the commitment to an effective 
contribution in agriculture".42  It has expressed its commitment to achieving substantial and 
progressive reductions in support and pr otection in the agricultural sector.43  A s  a  m e m b e r  o f  t h e  
G-20, Argentina has proposed that tariffs be divide d into four bands, with higher tariffs subject to 
greater reductions44;  concerning domestic support, the Group aims at real cuts based on support 
actually provided45, while on export subsidies, it is in favour of the elimination of all forms of export 
subsidies.46  Argentina is a supporter of non-trade concerns;  the main non-trade concerns for 
Argentina are rural poverty, unemplo yment and environmental protection.47 
45. Regarding market access for non-agricultural pro ducts, Argentina, together with Brazil and 
India (ABI proposal), has proposed a Swiss-type formula for tariff reduction.48  Argentina has 
submitted a proposal that contains trade facilitati on elements and stresses the importance of special 
and differential treatment.49  Argentina has also made submis sions concerning subsidies in the 
                                                      
39 The G-20 is composed of Argentina, Bolivia, Brazil,  Chile, China, Cuba, Eg ypt, Guatemala, India, 
Indonesia, Mexico, Nigeria, Pakist an, Paraguay, Philippines, South Afri ca, Tanzanía, Thailand, Uruguay, 
Venezuela, and Zimbabwe. 
40 The group consists of Argentina, Brazil, Egypt, India, Indonesia, Namibia, Philippines, South Africa, 
Tunisia, and Venezuela. 
41 WTO document TN/C/M/16 of 21 April 2005. 
42 WTO document TN/C/M/19 of 15 September 2005. 
43 WTO document G/AG/NG/W/88 of 30 November 2000 (Legitimate Non-Trade Concerns, Technical 
Submission by Argentina). 
44 G-20 Proposal on Market Access.  Consulte d at:  http://www.g-20.mre.gov.br/conteudo/ 
proposals_marketaccess.pdf. 
45 G-20 Proposal on Domestic Support.  Consulted at:  http://www.g-20.mre.gov.br/conteudo/ 
proposals_domesticsupport.pdf. 
46 WTO document WT/MIN(03)/W/6 of 4 September 2003. 
47 WTO document G/AG/NG/W/88 of 30 November 2000 (Legitimate Non-Trade Concerns, Technical 
Submission by Argentina). 
48 WTO document TN/MA/W/54 of 15 April 2005 (Communication to the Negotiating Group on Non-
Agricultural Market Access from Argentina, Brazil and India). 
49 WTO documents TN/TF/W/40 of 2 June 2005 (Communication from Argentina) and TN/TF/W/41 
of 2 June 2005 (Communication from Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, El Salvador, 
Guatemala, Honduras, Mexico, Paraguay, Peru and Uruguay). Argentina WT/TPR/S/176/Rev.1 
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fisheries sector50;  contingency measures51;  geographical indications52;  and environmental 
goods/services.53 
46. In April 2003, Argentina circulated its offe r on services in the context of the Doha 
Development Agenda negotiations.  Together with some other Member s, Argentina tabled a proposal 
concerning Mode 4 (presence of natura l persons) under the GATS negotiations.54  With respect to 
dispute settlement, Argentina, together with some  other countries, has presented a non-paper that 
focuses on systemic issues.55 
(ii) Preferential trade agreements 
(a) Southern Common Market (MERCOSUR) 
47. Together with Brazil, Paraguay and Urugua y, Argentina is a founding member of 
MERCOSUR, which was established in 1991 under the Treaty of Asunción with the objective of creating a common market and ensuring the free circulation of goods, services, capital and labour 
among member countries.
56  Initially only an agreement within  the Latin American Integration 
Association (LAIA) framework, MERCOSUR acqui red an independent le gal personality under 
international law by virtue of the Additional Prot ocol to the Treaty of Asunción on the Institutional 
Structure of MERCOSUR (Protocol of Ouro Preto), signed in 1994.  The Bolivarian Republic of 
Venezuela signed its Protocol of Accession with th e other four MERCOSUR countries in July 2006;  
in October 2006 the Protocol was still in process of being ratified. 
48. MERCOSUR was initially notified to the GATT in 1992 under the Enabling Clause.57  The 
Agreement on MERCOSUR has been examined in the WTO Committee on Regional Trade 
Agreements under the provisions of both the GATT 1994 and the Enabling Clause.  As of April 2006, 
the Working Party on MERCOSUR had reviewed the operation of the Treaty of Asunción in four 
meetings, the latest of which took place in March 2006.58  The MERCOSUR countries have provided 
                                                      
50 WTO Document TN/RL/W/166 of 2 November 2004. 
51 WTO document TN/RL/W/81 of 23 April 2003 (Communication from Argentina). 
52 WTO documents TN/IP/W/5 of 23 October 2002 (Communication from Argentina, Australia, 
Canada, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Guatemala, Honduras, Japan, 
Namibia, New Zealand, Philippines,  Chinese Taipei, and the United  States); TN/IP/W/6 of 29 October 2002 
(Communication from Argentina, Australia, Canada, Chile, New Zealand, and the United States);  TN/IP/W/9 of 13 April 2004 (Communication from Argentina, Australia, Canada, Chile, Ecuador, El Salvador, New
 Zealand, 
and the United States);  TN/IP/W/10 of 1 April 2005 (Submission by Argentina, Australia, Canada, Chile, 
Dominican Republic, Ecuador, El Salvador, Hondur as, Mexico, New Zealand, Chinese Taipei, and the 
United States);  and TN/C/M/11 of 2 February 2004. 
53 WTO document TN/TE/W/62 of 14 October 2005 (Integrated Proposal on Environmental Goods for 
Development). 
54 WTO documents TN/S/W/14 of 3 July 2003 (Communication from Argentina, Bolivia, Chile, 
People's Republic of China, Colombia, Dominican Repub lic, Egypt, Guatemala, India, Mexico, Pakistan, Peru, 
Philippines, and Thailand) and TN/S/W/31 of 18 February 2005 (Communication from Argentina, Bolivia, 
Brazil, Chile, Colombia, India, Mexico, Pakistan , Peru, Philippines, Thailand, and Uruguay). 
55 WTO document JOB(04)/52 of 19 May 2004 (non-paper submitted by Argentina, Brazil, Canada, 
India, Norway, and New Zealand). 
56 The provisions of the Treaty of Asunción were incorporated in the LAIA legal framework through 
Economic Complementarity Agreement No. 18. 
57 WTO document WT/L/127 of 7 February 1996. 
58 GATT documents L/7044 of 9 July 1992, L/7370 of 18 January 1994, and L/7370/Add.1 of 
18 January 1994.  WTO document WT/COMTD/5/Rev.1 of 25 October 1995, and WT/COMTD/1 document series. WT/TPR/S/176/Rev.1 Trade Policy Review 
Page 26 
 
 
the WTO with information on numerous aspect s of its institutional and legal framework.59  In 2005, 
the WTO Secretariat prepared a document on the we ighted average tariff rates and customs duties 
collected by MERCOSUR member c ountries (see also Chapter III(2)(iv )).60 
49. The institutional structure of MERCOSUR, estab lished under the Protocol of Ouro Preto, 
signed on 17 December 1994 and in force since 15  December 1995, comprises six organs, out of 
which three are intergovernmental with decision-ma king powers:  the Council of the Common Market 
(CCM);  the Common Market Group (CMG), and the MERCOSUR Trade Commission (MTC).  The CCM is responsible for matters rela ting to the consolidation of regiona l integration and fulfilment of 
the goals set forth in the Treaty of Asunción and adopts Decisions.  The CMG is the executive body 
responsible for supervising the implementation of the Treaty of Asunción, and issues Resolutions.  
The function of the MTC is to implement comm on trade policy instruments and handle matters 
relating to common trade policies, intra-MERCOSUR tr ade, and trade with third countries;  it also 
issues Directives.  The rulings of these bodies are binding on all member countries.  The organs with no decision-making powers are:  the Joint Parlia mentary Commission, the Economic and Social 
Advisory Forum, and the MERCOSUR Administrative  Secretariat.  None of the MERCOSUR organs 
is supranational;  they are all intergovernmental.  
50. There have been some institutional changes si nce 1999, including the transformation of the 
MERCOSUR Administrative Secretariat into a technical secretariat with broader functions.
61  
Moreover, in October 2003, the MERCOSUR Commi ssion of Permanent Representatives (CRPM) 
was established as a subsidiary body of the CCM.62  Its mandate is to assist the CCM and the 
Pro-Tempore Chairperson;  make proposals regardin g the common market, regional integration, and 
external negotiations;  and st rengthen economic, social and pa rliamentary relations within 
MERCOSUR. 
51. With regard to the dispute settlement system, the Brasilia Protocol has been replaced by the 
Protocol of Olivos, signed in 2002 and in effect since January 2004.  The new system incorporates a 
stage for reviewing the arbitral awards made by ME RCOSUR's ad hoc arbitral tribunals, restricted to 
points of law and legal interpretations.  It also in cludes a clause offering a choice of competent forum 
(MERCOSUR, WTO, or other preferential schemes).   During the period under review, Argentina has 
participated in nine MERCOSUR disputes, in  four as complainant and in five as respondent .63 
                                                      
59 Most of the information is contained in WTO document WT/COMTD/1 of 2 May 1995, and the 
addenda and revisions thereto dated after 1995. 
60 WTO document WT/COMTD/1/Add.15 of 24 May 2005. 
61 MERCOSUR Decision No. 30/02 (Transformation of the MERCOSUR Administrative Secretariat 
into a Technical Secretariat) of 6 December 20 02.  Consulted at:  h ttp://www.sice.oas.org/ 
trade/mrcsrs/decisions/dec3002s.asp. 
62 MERCOSUR Decision No. 11/03 of 6 October 2003. 
63 The disputes are as follows (complainant/responden t):  Argentina/Brazil, "Application of Restrictive 
Measures to Reciprocal Trade";  Argentina/Brazil "Complaint concerning Subsidies on the Production and 
Exportation of Pork";  Brazil/Argentina, "Application of Safeguard Measures concerning Textile Products, 
Resolution No. 861/99 of the Ministry of the Economy, Works and Public Services";  Brazil/Argentina 
"Application of Anti-Dumping Measures against the Ex portation of Whole Poultry from Brazil, Resolution 
No. 574/2000 of the Ministry of the Economy of the Argentine Republic";  Uruguay/Argentina, "Restrictions on 
Access to the Argentine Market for Bi cycles of Uruguayan Origin";  Ar gentina/Brazil, "Barriers Preventing 
Argentine Phytosanitary Products from Entering the Brazilian Market.  Non-Incorporation of Resolutions GMC Nos. 48/96, 87/96, 149/96, 156/96 and 71/98, which is preventing their entry in to force in MERCOSUR";  
Argentina/Uruguay, "Incompatibility of the Wool Processing Incentives Regime Granted by Uruguay and 
Established by Law No. 13.695/68 and Decrees Additional to the MERCOSUR Legislation Regulating the Application and Use of Incentives in Intra-zone Trade" ;  Uruguay/Argentina, "Ban on the Import of Retreaded Argentina WT/TPR/S/176/Rev.1 
 Page 27 
 
 
52. The Treaty of Asunción envisages the free movement of goods between the members of 
MERCOSUR.  Since January 2000, all products, with  the exception of those of the automotive and 
sugar sectors, have been subject to zero tariffs in intra-MERCOSUR trade (see also Chapter III(2)(iv)).  As of April 2006, the automotiv e sector was governed by  bilateral agreements 
(Argentina has agreements with Brazil and Uruguay) ;  in the case of the sugar sector, MFN tariffs, 
with a 20 per cent preference, apply to intra-zone trade. 
53. The Common External Tariff (CET) has applie d (with some exceptions) to trade with non-
MERCOSUR countries since January 1995 (see Chapte r III(2)(iv)).  The CET rates can only be 
modified with the consent of all members.  According to data provided by the authorities, 
approximately 78.7 per cent (excluding informa tion technology and telecommunications goods and 
capital goods) or 85.2 per cent (including informa tion technology and telecommunications goods and 
capital goods) of Argentina's total imports are subject to the CET. 
54. In December 2004, with a view to achieving the free movement of goods and eliminating the 
double charging of CET duties, the MERCO SUR members concluded an agreement
64 granting 
MERCOSUR origin status (see also Chapter III(2)(iii)) to products imported from outside 
MERCOSUR that comply with the common tariff policy.   The first stage in this process, which began 
in January 2006, concerns goods with a zero per cen t rating in all the member countries or with a 
tariff preference of 100 per cent within the framewo rk of the agreements concluded by MERCOSUR 
with third parties.  The second stage, which will cover all the goods subject to the CET, must be 
implemented by 2008 at the latest, with the en try into force of a MERCOSUR Customs Code, a 
mechanism for the distribution of customs revenue  and the interconnection of the computerized 
customs management systems of the various member States. 
55. The Protocol of Montevideo, signed by the MERCOSUR members in 1997, aims at 
liberalizing trade in services over a 10-year period.  The Protocol has been ratified by Argentina, 
Brazil and Uruguay and entered into force on 7 December 2005. 
56. The Macroeconomic Assessment Group, comp rising the Ministers of Finance and the 
Presidents of the Central Banks, was establis hed in 2000 for the purpose of coordinating 
macroeconomic policies.65  To remedy the problem of differenc es in levels of development within 
MERCOSUR, the MERCOSUR Structural Convergen ce Fund was established, integrated and 
regulated by MERCOSUR Decisions No. 45/04 of 16 December 2004, No. 18/05 of 19 June 2005, and No. 24/05 of 8 December 2005, respectively.  It is the first MERCOSUR mechanism to permit a 
net transfer of resources between MERCOSUR countries. 
(b) Agreements concluded within the framework of  the Latin American Integration Association 
(LAIA) 
57. Argentina is a member of the Latin American Integration Association (LAIA), established in 
1980 by the Treaty of Montevideo.  The Treaty aims at the gradual establishment of a Latin American 
common market.  Two types of LAIA agreements gran t tariff reductions:  Regional Agreements (AR) 
and Partial Scope Economic Comple mentarity Agreements (ECA). 
                                                                                                                                                                    
 
Tyres";  and Uruguay/Argentina, "Omission of the Argentine State to Adopt Appropriate Measures for 
Preventing and/or Eliminatin g Obstacles to Free Movement due to the Cutting in Argentine Territory of Access 
Roads to the General San Martín and General Artigas Inte rnational Bridges linking the Argentine Republic with 
the Eastern Republic of Uruguay". 
64 MERCOSUR Decision No. 54/04 of 16 December 2004. 
65 MERCOSUR Decision No. 30/00 of 29 June 2000. WT/TPR/S/176/Rev.1 Trade Policy Review 
Page 28 
 
 
58. The first type includes Regional Tariff Preferen ce Agreement No. 4, which has been signed 
by all LAIA members.  Under this agreement, LA IA countries are classified  in three categories, 
namely:  relatively less developed countries, countri es at an intermediate level of development;  and 
other countries.  Argentina belongs in the latter cat egory and accordingly grants preferences of 48 per 
cent to imports from land-locked relatively less deve loped countries, 40 per cent to imports from other 
relatively less developed countries, 28 per cent to im ports from countries at an intermediate level of 
development, and 20 per cent to im ports from countries at the same stage of development as itself (see 
also Chapter III(2)(iv)(d)). 
59. Among the ECA agreements, the most importa nt is ECA No. 18 which created MERCOSUR 
(see Section (4)(ii)(a) above).  Other significant ag reements (in terms of product coverage) are the 
agreements between MERCOSUR and Chile, MERC OSUR and Bolivia, Argentina and Colombia, 
Ecuador and Venezuela, Argentina and Mexi co, and MERCOSUR and Peru (Table II.1). 
Table II.1 
Framework and free trade agreements concluded by MERCOSUR, April 2006 
Agreement Date of signature/ 
entry into force Remarks 
Free trade agreements 
MERCOSUR-Chile  
(ECA No. 35) 25 June 1996/ 
1 October 1996 Elimination of duties on at least th ree quarters of tariff lines before 
January 2004 and for all tariff lines before 2014 
MERCOSUR-Bolivia  
(ECA No. 36) 17 December 1996/ 
2 March 1997 Establishment of a free-trade area for 1 January 2006 
MERCOSUR-Mexico  
(ECA No. 54) 5 July 2002/  
5 January 2006 Gradual establishment of a free-trade area 
MERCOSUR-Mexico  
(ECA No. 55) 5 July 2002/ 
1 January 2003  Establishment of free trade in th e automotive sector in July 2011 
MERCOSUR-Andean 
Community 
(ECA No. 59) ECA No. 59: 
16 December 2003/ 
March 2005 Gradual establishment of a free-trade area over a maximum transition 
period of 15 years 
MERCOSUR-Peru 
(ECA No. 58) 25 August 2003/ 
November 2005 Establishment of a free-trade area over a maximum transition period of 
15 years 
MERCOSUR-Cuba 21 July 2006/ 
not in force Limited coverage (2,700 tariff headings).  Establishment of a free-trade 
area over a maximum period of 5 years for a limited product universe 
Extra-regional agreements 
MERCOSUR-India Preferential Trade Agreement 25 January 2004/not in 
force as it still requires 
parliamentary approval Limited coverage (some 900 tariff headings);  concessions still to be 
finalized with preference margins of 10 or 20 per cent, rising to 100 per 
cent for a limited group of products 
Framework agreements   
MERCOSUR-South Africa;  
MERCOSUR and Lesotho, 
Namibia, Swaziland and Botswana (2003) 15 December 2000/n.a. It is intended to establish a fixed preference agreement as a first stage, 
with a view to creating the conditions  for the signature of a free-trade 
agreement at a later stage;  negotiations in progress 
MERCOSUR-Egypt 7 July 2004/n.a. It is intended to estab lish a fixed preference agreement in a first stage, as 
a preliminary to a free-trade agreement 
MERCOSUR-Morocco 26 November 2004/n.a. It is intended to esta blish a fixed preference agreement in a first stage, as 
a preliminary to a free-trade agreement 
MERCOSUR-Israel 8 December 2005/n.a. Establishment of a free-trade area;  negotiations in progress 
MERCOSUR-Pakistan 21 July 2006/n.a. It is intended to esta blish a fixed preference agreement in a first stage, as 
a preliminary to a free-trade agreement 
n.a. Not applicable. 
Source : Regional Trade Policy Directorate of the MEP. Argentina WT/TPR/S/176/Rev.1 
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60. Apart from the Agreement establishing MERCOSUR, no other MERCOSUR agreement has 
been formally notified to the WTO.66  Nevertheless, WTO Members were informed about the 
conclusion of the Agreements with Chile and Bo livia in a communication presented by the LAIA 
Secretariat to the WTO Committee on Trade and Development .67 
(c) Other preferential arrangements 
61. Argentina is taking part in the Free Trade Area of the Americas (FTAA) negotiations, 
launched in December 1994 with a view to progre ssively removing barriers to trade in goods and 
services among 34 countries of the Western Hemis phere.  The negotiating process was due to be 
completed in January 2005, but the Argentine authorities have indicated that in October 2006 the 
negotiations had reached an impasse, without time lim its or dates for the resumption of the meetings 
of the Trade Negotiations Committee. 
62. MERCOSUR has also begun negotiating free-trade agreements with countries that do not 
belong to the region and has signed a trade agreemen t with India and framework agreements with the 
members of the Southern African Customs Union (South Africa, Lesotho, Namibia, Swaziland and 
Botswana), with Egypt and with Morocco (Table II.1). 
63. Moreover, MERCOSUR and the European Union  are negotiating an interregional association 
agreement for the establishment of a political  and economic association, based on the 
EU-MERCOSUR Interregional Framew ork Cooperation Agreement signed in December 1995.  In 
May 2006, on the occasion of the Fourth Summit be tween the European Union, Latin America and 
the Caribbean, representatives of the two regions r eaffirmed the need to co nclude a balanced and 
comprehensive interregional association agreement. 
64. Argentina benefits from the generalized system of preferences of the following countries:  
Australia, Belarus, Bulgaria, Canada, European Un ion, Japan, Liechtenstein, New Zealand, Russia, 
Switzerland and the United States.68  In 2005, the percentage of Argentina's exports to the 
United States that actually used the system was 13.3 per cent of total Argentine exports to the 
United States, the main products exported in 2005 being hides and skins, methyl alcohol, motor 
vehicle parts and accessories, sugar confectionery, b ovine meat preparations, cheese, aluminium wire 
and leather garments.  In 2004 (the latest year availa ble), the percentage of total Argentine exports to 
the European Union that actually u sed the system was 28.8 per cent. 
65. Argentina participates in the Global System of Trade Preferences among Developing 
Countries (GSTP)69, having granted, in the first round of  negotiations, tariff concessions on a number 
of products, both agricultural and industrial.  In  June 2004, the third round of negotiations was 
launched in Brazil.  In 2006, the Argentine C ongress approved the Protocol for the Accession of 
MERCOSUR to the GSTP70, under which the preferences granted by the members of the group are 
also conferred by Argentina, thereby turni ng MERCOSUR into a participant in the GSTP. 
                                                      
66 WTO document WT/COMTD/1 of 2 May 1995. 
67 WTO document WT/COMTD/11 of 8 October 1997. 
68 Fundación Export.Ar:  Principales Acuerdos Preferenciales que benefician a las exportaciones 
argentinas.   Consulted at:  www.exportar.org.ar/descargas/negocios.php?id= IE12estrategia.pdf. 
69 Argentina incorporated the GSTP Agreement in its legislation through Law No. 23.743 of 
28 September 1989. 
70 Law No. 26.083 of 14 March 2006.