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IV. TRADE POLICIES BY SECTOR 
(1) OVERVIEW  
1. Argentina enjoys a major comparative advant age in agriculture, especially in cereal 
production and livestock products.  In 2005, exports of agricultural and livestock products (WTO 
definition) made up almost one-half of Argentina's e xports of goods.  Generally speaking, agriculture 
has received little assistance in comparison with ot her sectors producing goods and virtually all the 
aid notified has been within the Green Box.  Minimum producer prices are set only for tobacco. 
2. The manufacturing sector's share of GDP increased considerably during the period under 
review, largely as a reflection of its increased co mpetitiveness following the 2002 devaluation of the 
peso, and of the growth of the domestic market .  Special support schemes apply to the automotive 
industry, including an incentives scheme introduced in 2005 for the production of autoparts, whereby 
refunds are granted if local components are used.  Argentina has concluded preferential agreements in 
the automotive industry providing, inter alia , for import quotas and measures to ensure a trade 
balance. 
3. Argentina is the fourth largest producer of crude  oil in Latin America and has the third largest 
reserves of natural gas.  Exports of hydrocarbons ar e subject to a surcharge (in addition to the 25 per 
cent export duty), which can be as much as 20 per cent  depending on the international price of oil.  
The rates that may be charged by natural gas distri butors were frozen in 2002;  artificially low prices 
and growing demand have caused problems that prompted  the Government to take a number of steps, 
including export restrictions.  Moreover, in orde r to guarantee the supply of liquid hydrocarbons, 
since 2006 the Government has determined the am ounts that refining companies, wholesalers and 
retailers of gas oil must supply to the local market. 
4. There were sweeping reforms in the electric ity sector in the 1990s, leading to increased 
investment and helping to keep rates low.  In the context of the economic crisis, electricity rates were 
frozen and contracts were declared open for renego tiation.  As a consequence, operators incurred 
losses and investment in the sector dwindled.  Th e subsequent economic recovery has caused supply 
to lag behind growing demand. 
5. Argentina accepted commitments in six of the 12 sectors specified in the GATS.  It submitted 
an initial offer in April 2003 in the framework of  the Doha Round negotiations on services.  Argentina 
participated in the Extended Negotiations on Telecommunications and has ratified the Fourth 
Protocol;  it also participated in the Extended Negotiations on Fi nancial Services but made no new 
offer partly because, except for insurance, it had already made extensive commitments in financial 
services. 
6. As a result of its ratification of the Fourth Protocol, Argentina extended its commitments in 
telecommunications and consolidated its re form process.  Since November 2000, all 
telecommunications services have been provided on a competitive basis.  Yet fixed telephony 
continues to be dominated by the two "traditiona l operators", whose rates were frozen and whose 
contracts were declared open for renegotiation in  2002.  Some rate adjust ments were permitted in 
mid-2006, but the ratification of new contracts was still pending. 
7. The financial sector was hard hit by the 2001-2002 crisis, which prompted the authorities to 
take a series of steps including more flexible regul atory principles, restrictions on the withdrawal of 
bank deposits, the conversion of deposits and banking assets into pesos at asymmetric exchange rates.  
The insurance sector showed negative profitability between 1995 and 2004.  In practice, there are no 
restrictions on the entry of financial entities into the market and the principle of national treatment Argentina WT/TPR/S/176 
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applies to foreign capital.  Foreign insurance comp anies receive national treatment in accordance with 
the principle of reciprocity, however.  Prior permi ssion must be obtained in order to operate on the 
insurance market and depends on opportunity and d esirability criteria.  Insurance covering risks on 
Argentine territory may be contracted only through companies established in Argentina.  Insurance 
premiums are subject to a tax and a higher rate applies to companies established abroad.  Current 
account transactions, as well as all movements of funds  within financial entities, are subject to the Tax 
on Current Account Debit and Credit. 
8. In the transportation sector, domestic air transport services (cabotage) are reserved for 
national companies, though exceptions may be allowe d.  Similar restrictions apply to maritime 
transport. Airports are State-owned but the manageme nt of the major airports has been contracted out 
to private enterprises or consortia.  Most ports  are under private management, but six of them, 
including the Buenos Aires port, are still State-run.  The rates collected by State-run ports differ for 
internal transportation and internationa l trade, being lower for the former. 
9. To practise a profession in Argentina, foreign professional qualifications must be revalidated 
at a national university.  Most professions are sel f-regulating, though some are Government-regulated, 
generally those with health or security implications  such as medicine or engineering.  Argentina has 
made specific commitments regarding a number of professional services under the GATS, including 
legal, accounting, engineering and architectural services. 
(2) AGRICULTURE , FORESTRY , FISHERIES AND RELATED PROCESSING ACTIVITIES  
(i) Agriculture and food processing 
(a) Main features and objectives 
10. Argentina has traditionally enjoyed a solid comp arative advantage in agriculture, especially 
cereal and livestock production, and this has been amplified in recent years by firm international 
prices.  Agriculture's share of GDP (including livestock and forestry but not food processing) was 9.2 per cent in 2005, compared with 5.5 per cent in 1998.  At the beginning of 2006, agriculture, livestock, hunting and forestry provided 5.2 per cent of total employment, with food processing, beverages and tobacco accounting for a further 5.1 per cent.
1  The main agricultural products are (in 
decreasing order of volume produced):  soyabeans, maize (corn), wheat, sunflowers, sorghum, grapes, 
lemons, apples, rice, and livestock (mainly cattle).2  Argentina is one of the world's top five producers 
of sunflower oil, soyabeans and soyabean oil, honey, lemons and beef.3  The leading agricultural 
exports are oilseed products, livestock produc ts, and cereals (see also Chapter I(3)). 
11. The Ministry of the Economy and Production (MEP)  is responsible for policy formulation in 
the sector;  its Secretariat of Agriculture, Livest ock, Fisheries and Food (SAGPyA) formulates and 
implements policy. 
12. At the international level, Argentina is st riving for greater liberalization of trade in 
agricultural and livestock products, and agricultural ne gotiations are one of its main interests in the 
WTO (see Chapter II(4)(i)).  It also attaches impor tance to non-trade concerns, in particular the 
                                                      
1 MEP (2006b). 
2 Ibid. 
3 ADI, Agribusiness , consulted at: http://www.inversiones.gov.ar/sectors_invest.htm. WT/TPR/S/176 Trade Policy Review 
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alleviation of rural poverty and unemployment, as well as environmental protection, even though it 
does not believe that non-trade concerns should be r esolved at the expense of other trading partners.4 
(b) Policy instruments 
Measures at the border 
13. Tariff protection for agricultural and livestock products is some 6.8 per cent (group 111, 
ISIC), compared to 10.7 per cent for the manufacturing sector (major division 3, ISIC) (see also Chapter III(3)(2)(iv)).  Additional import duties are a pplied to sugar imports of any origin, which may 
increase or decrease the ad valorem  duty applied (see Chapter III(2)(v i)).  The sugar trade within 
MERCOSUR is not duty-free and is thus one of th e two exceptions (along with the automotive 
industry) to free trade within the MERCOSUR. 
14. Argentina does not maintain any multilateral tariff quotas, although there are preferential 
tariff quotas for some agricultural products.  U nder Economic Complementarity Agreement (ECA) 
No. 6, Argentina gives Mexico a reciprocal quot a of 10,000 tonnes of canned peaches in syrup or 
packed in water containing added sugar or sweetening matter or syr up.  Under ECA No. 59, Argentina 
grants quotas of 132 tonnes to Ecuador (increasing by  three per cent annually) for chewing gum and 
232 tonnes (increasing by three per cent annually) for cocoa powder. 
15. At the time of the previous review, only bovine-derived raw materials and unprocessed 
oilseeds were subject to export taxes.  Export ta xes were, however, re-introduced in 2002 for all 
consumer goods, including a range of agricultural pr oducts (see Chapter III(3)(ii)).  Furthermore, in 
November 2005, the refund rate for internal taxes was set at zero per cent for exports of several 
commodities spanning various product groups, thereby increasing the tax burden on exports.
5  
16. After unsuccessful negotiations between produ cers and the authorities on an agreement to 
stabilize beef prices, the authorities imposed a ban of 180 days on exports of bovine meat in 
March 2006.6  In May 2006, the export ban was lifted a nd replaced by an export quota for the period 
1 October to 30 November 2006 equiva lent to 40 per cent of exports over a reference period (1 June 
to 30 November 2005).7  Exports under the Hilton meat quota and bilateral agreements were in 
general excluded from both the ban and the quota rest riction.  In October 2006, Argentina had still not 
notified its export restrictions to the WTO. 
17. Since January 2006, all bovine meat export transactions8 have had to be registered with the 
Export Transactions Register – ROE (Registro de Operaciones de Exportación) .9  According to the 
authorities, the Register serves only to  upgrade the information available. 
                                                      
4 WTO document G/AG/NG/W/88 of 30 November 2000. 
5 The products affected included meat and meat preparations, fish, dairy products, fruit and vegetables, 
coffee and tea, cereals and cereal-based prepara tions, milling products, and oils and fats. 
6 Resolutions Nos. 114/2006 of 8 March 2006 and 210/2006 of 30 March 2006.  The tariff items 
affected were 0102.90.90, 0201.10.00, 0201.20.10 , 0201.20.20, 0201.20.90, 0201.30.00, 0202.10.00, 
0202.20.10, 0202.20.20, 0202.20.90, 0202.30.00, 1602.50.00, 1602.90.00 (bovine meat), and 1603.00.00 (bovine meat). 
7 Resolution No. 397/2006 of 26 May 2006.  The quota concerns the following tariff items:  
0102.90.90, 0201.10.00, 0201.20.10, 0201.20.20, 0201.2 0.90, 0201.30.00, 0202.10.00, 0202.20.10, 0202.20.20, 
0202.20.90 and 0202.30.00. 
8 Tariff items 0102.10.10, 0102.10.90, 0102.90.11, 0102.90.19, 0102.90.90, 0201.10.00, 0201.20.10, 
0201.20.20, 0201.20.90, 0201.30.00, 0202.10.00, 0202.2 0.10, 0202.20.20, 0202.20.90, 0202.30.00, 0206.10.00, 
 Argentina WT/TPR/S/176 
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18. In 1999, the European Union requested the estab lishment of a panel, alleging that Argentina 
maintained a "de facto" export ban on raw and semi -tanned bovine hides.  Th e Panel report concluded 
that the measures were inconsistent with Argentina's obligations to apply the rules and regulations in a 
reasonable manner (see also Chapter III(2)(v)).  In 2002, a new decree (Decree No. 1399/02) was 
adopted regarding the participation of private en tities in the inspection of hides meant for export, 
repealing Resolution No. 2235/96. 
19. Argentina did not reserve the right to grant e xport subsidies for agricultural products.  In its 
latest notification to the WTO, Argentina indicated  that it did not grant any export subsidies during 
the period 1998-2003.10 
20. Several agricultural products enjoy preferential access to the markets of Argentina's main 
trading partners through quotas (Table AIV.1). 
Internal measures 
21. During the period under review, Members of the Committee on Agriculture questioned 
Argentina's intention to rectify its commitments regarding the Aggregate Measurement of Support 
(AMS) in its original Schedule notified to the WTO in 1997.11  Following consultations, Argentina 
submitted an official request to rectify its Schedule in 199812;  the new Schedule was certified in 
1999.13  As a result, the total AMS and the product-specific global measurement of support for the 
only product in the Schedule (tobacco) were gr adually reduced to Arg$75 million in 2004/2005. 
22. According to Argentina's latest notification to the WTO, which covers the period up to 2002, 
domestic support was granted for research, pest and disease control, information services, extension 
and advisory services, inspection services, and infrastructure services.14  Decoupled income support 
was granted to smallholders ( minifundistas ) and tobacco-growing families.  Financial support has 
been granted in emergencies and as structural adju stment assistance.  All these Green Box measures 
amounted to Arg$73.5 million (1992 pesos).  The total AMS (granted for tobacco only) was 
Arg$47.7 million (1992 pesos). 
23. The full price of beef cuts is set out in Resolution No. 1/2006.15  Article 4 of that Resolution 
states that "the full price of beef cuts intended fo r the domestic market shall be the prices listed in 
Annex IIc", and in the event of non-compliance the ru les set out in the Law on Supply shall apply (see 
Chapter III(4)(ii)).  The same Resolution also sets th e benchmark prices for various categories of live 
animals and for bovine meat.  According to the au thorities, the benchmark meat prices are the result 
of the agreement concluded with the private sector to make transactions more transparent, improve 
marketing efficiency and reduce consumer prices.  Th e authorities have stressed that public policy on 
bovine meat is anti-inflationary and that meat policy is considered a social policy. 
                                                                                                                                                                     
0206.21.00, 0206.22.00, 0206.29.10, 0206.29.90, 021 0.20.00, 0504.00.11, 0504.00.90 (bovine meat), 
1602.50.00, 1602.90.00 (bovine meat), 1603.00.00 (bovine meat), 2104.10.11 (bovine meat), 2104.10.19 
(bovine meat), 2104.10.21 (bovine meat), 2104.10.29 (bovine meat), 3503.00.11, and 3503.00.12. 
9 Resolutions Nos. 31/2006 of 27 January 2006 and 209/2006 of 30 March 2006. 
10 WTO documents from the G/AG/N/ARG series (t he latest being that of 23 March 2004). 
11 WTO document G/AG/N/ARG/4 of 7 November 1997. 
12 WTO document G/MA/TAR/RS/52 of 14 August 1998. 
13 WTO document WT/Let/292 of 12 March 1999. 
14 WTO document G/AG/N/ARG/24 of 25 April 2006. 
15 Resolution No. 1/2006 of 20 April 2006. WT/TPR/S/176 Trade Policy Review 
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24. Tobacco producers benefit from a system of mini mum prices financed by the Special Tobacco 
Fund – FET ( Fondo Especial del Tabaco ).  The SAGPyA sets the FET price (which includes the 
surcharge and an additional emergency tax for some regions) for different varieties of tobacco, and 
transfers the funds to the provinces (in proportion to the gross value of each province's output).16  The 
provinces pay the "FET price" to producers th rough the Local Executive Unit.  The remaining 
20 per cent of the Fund's receipts are used to fina nce specific projects aimed at the restructuring, 
diversification and moderni zation of tobacco production.17 
25. The Argentine National Bank – BNA (Banco de la Nación Argentina)  has special credit lines 
for the agricultural and livestock sector.  Financing at  a lower rate of interest is provided for various 
purposes including sowing, for working capital and investment, the discounting of credit invoices, 
mortgage-secured current account overdrafts, the purchase of used ag ricultural machinery, 
participation in trade fairs and import financing.18 
(ii) Forestry 
26. The share of forestry and logging in the agricultural GDP was 1.7 per cent in 2005.  In that 
year, forestry employed some 15,000 people in the primary or plantation sector and other forestry work, and 33,978 people in the industrial sector.
19  Exports of forestry products are not voluminous 
(0.07 per cent of Argentina's goods exports in 2004).  Paper and paperb oard exports made up 
36 per cent of total forestry exports, followed by  wood and articles of wood (32 per cent), and wood 
pulp and other fibres (12 per cent). 
27. Several bodies are in charge of the forestry sector:  the Forestation Directorate of the 
SAGPyA is responsible for cultivated forests, the Woodlands Directorate  of the Office of the Chef de 
Cabinet of the Executive is responsible for native forests, and the National Agricultural Technology 
Institute for applied research and extension servi ces.  At the provincial level, there are bodies 
responsible for the forestry sector in each province.  The authorities have stated that, in October 2006, 
they were in the process of finalizing a National Forestry Programme in cooperation with the FAO. 
28. The legal framework governing the forestry sector encompasses the Law on Promotion of 
Forestry Activity (Law No. 13.273, approved by Decree No. 710/95 of 13 November 1995);  Decree No. 711/95 concerning the promotion of afforestation; the Fiscal Stability Law (Law No 24.857 of 6 August 1997, as amended), and the Law on Promoti on of Investment for Cu ltivated Forests (Law 
No. 25.080 of 16 December 1998), and its re gulatory Decree No. 133/99 and Resolutions 
Nos. 610/99, 152/00 and 22/01.
20 
                                                      
16 Argentine Association of Regional Consortia for Agricultural Experimentation – AACREA (2006). 
17 ADI, Incentivos a la Inversión en Argentina, consulted at:  http://www.inversiones.gov.ar/ 
documentos/incentivos_inversion%20.pdf. 
18 BNA (2006). 
19 The industrial sector comprises the primary and secondary processing industries, those making 
panels, pulp and paper, sawmills, impregnation, slicing, and laminated wood industries, as well as extractive 
industries such as the rosin and turpentine industries. 
20 WTO documents G/SCM/N/48/ARG/Suppl .1-G/SCM/N/60/ARG-G/SCM/N/71/ARG- 
G/SCM/N/95/ARG of 7 October 2004 and G/SCM/N/123/ARG of 25 September 2006 . Argentina WT/TPR/S/176 
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29. Argentina notified the WTO that its forestry le gislation allows for the payment of subsidies.21  
The total non-reimbursable amounts disbursed as economic support were notified for the period 
2001-2005.  For 2005, the figure was Arg$27.3 million (roughly US$9.4 million). 
30. Under the Law on Promotion of Forestry Activit y (Law No. 13.273), the subsidies are granted 
in the form of customs exemptions.  Decree No. 711/95 provides for the payment of a set amount per 
hectare to the owners of cultivated forests.  The Fiscal Stability Law (Law No 24.857 of 6 August 
1997, as amended) provides fiscal stability for all fo restry activities and any exploitation of forests 
covered by Law No. 13.273.  The Law on Promoti on of Investment for Cultivated Forests (Law 
No. 25.080 of 16 December 1998), and its regulations22 provide for the refund of the VAT on certain 
goods and services intended for investment in fo restry.  Non-reimbursable economic support is 
provided for planted forests of no less than 500 hect ares, based on a scale set out in Law No. 25.080. 
(iii) Fisheries 
31. The fishing sector is relatively small. It accounted for 0.3 per cent of the GDP23 in 2005 (the 
extractive subsector only) and generated 20,000 jobs (fisheries and related activities).  There is world 
demand for such Argentine fishery products as hake , squid and prawns.  Eighty per cent of fisheries 
production (in volume te rms) is exported.24  Fisheries exports represented 2.3 per cent of the value of 
total exports in 2005. 
32. Argentina is facing a problem of sustainability of exploitable resources.25  It has tackled this 
by taking regulatory measures that have allowed re sources to recover, while attempting to reconcile 
biological sustainability, economic activity and stab le employment.  Initiatives have been taken to 
maintain the various fishery resources at their ma ximum sustainable yield, promote the development 
of non-traditional fisheries, restore Argentina's pr esence in international fisheries-related forums, and 
promote the activities of the Integrated Fisheries Control System – SICAP (Sistema Integrado de 
Control de las Actividades Pesqueras).  
33. The Federal Council of Fisheries – CFP (Consejo Federal Pesquero)  was created by the 
Federal Fisheries Law (Law No. 24.922), and is r esponsible for developing national fisheries policy.26  
The State has exclusive dominion and jurisdiction over all living resources present in Argentina's 
Exclusive Economic Zone (EEZ)27 and on the Argentine continental shelf as of 12 miles;  living 
resources in Argentina's internal waters and territo rial sea adjacent to its coastlines, extending up to 
12 nautical miles, fall under the dominion of the provinces on the seaboard. 
34. In Argentina's EEZ, fishing is reserved for vessels listed in the national re gister and flying the 
national flag.  The captains and officers must be of Argentine nationality.  Seventy-five per cent of the 
remaining crew members must be Argentine or fo reigners with over 10 years of proven permanent 
residence in Argentina.  The Federal Fisheries Law provides for exceptions to the national flag 
requirement in certain circumstances, for example on the basis of international treaties approved by 
law on the catching of unexploited or unde r-exploited species, under certain conditions. 
                                                      
21 Ibid. 
22 Decree No. 133/99 and Resolutions Nos. 610/99, 152/00 and 22/01. 
23 MEP (2006b) 
24 FAO (2005). 
25 Ibid. 
26 Law No. 24.922 of 9 D ecember 1998, partially enact ed on 12 January 1998. 
27 The EEZ extending 200 miles from the baselines. WT/TPR/S/176 Trade Policy Review 
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35. The Federal Fisheries Law stipulates that an authorization from the relevant authority is 
required in order to engage in fishing activities.  In  addition, a fishing quota must be allocated or a 
fishing permit obtained if the species is not subject to a quota.  The Law provides for the creation of a system of Individual Transferable Quotas (ITQs) , though this had not yet come on stream in 
October 2006. 
36. Argentina has signed bilateral fisheries agreemen ts only with Uruguay (Treaty of Rio de La 
Plata and its maritime coast).
28  The agreement with the European  Union was terminated in 1998. 
(3) MINING AND HYDROCARBONS  
(i) Main features 
37. In 2005, mining and quarrying accounted for 5.4 per cent of the GDP (2.5 per cent in 2000).29  
In 2001, 36,000 workers were employed in metallurgical plants, 21,000 in the oil and gas industry, 
16,000 in mineral extraction, and 7,000 in the cement industry.  Exports of mining products totalled 
some US$6.9 billion in 2004 (including fuels).  High international prices have encouraged investment 
in the sector, which rose from US$220 million in 2003 to US$1.29 billion in 2004.  Mining activities 
are mostly in private hands, both foreign and nationa l.  There are only two State-owned enterprises in 
the sector.30 
38. Argentina is the fourth largest producer of crude oil in Latin America.  Crude production 
averaged some 105,842 m3/day in 2005, of which 22 per cent was exported.31  Argentina's network of 
pipelines is over 6,000 kilometres long.  There ar e 10 refineries, which had a total capacity of 
625,000 bpd in 2004.  Most crude oil and natural gas production is in the hands of multinational 
companies.  The main player in the hydr ocarbons market is Repsol-YPF (formerly Yacimientos 
Petrolíferos Fiscales ). 
39. Argentina is the third largest producer of natu ral gas in Latin America, and exported some 
13 per cent of output in 2005.  About one third of the output supplied to the Argentine market is for industrial consumption, another third goes to th e electricity industry, some 20 per cent is for 
residential purposes, 9 per cent for the production of natural gas for vehicles (NGV) and the rest for other uses.  Gas distribution is in the hands of  nine private licence-holders, whilst two private 
companies control transportation.  Argentina is li nked by pipeline to neighbouring countries, to which 
it exports natural gas (to Chile in particular); at th e same time it imports gas from Bolivia.  As growth 
in demand has outstripped supply, there have been sh ortages of natural gas on the Argentine market.  
The Government has reacted with measures re volving around an Energy Plan, and leading, inter alia,  
to the creation of an Electronic Gas Market – MEG (Mercado Electrónico del Gas) .
32 
                                                      
28 FAO (2005). 
29 MEP, Información economica , consulted at:  http://www.mecon.gov.ar/peconomica/ 
basehome/infoeco.html. 
30 Yacimientos Mineros de Agua de Dionisio (YMAD)  and Fomento Minero de Santa Cruz . 
31 Argentine Petroleum and Gas Institute – IAPG (Instituto Argentino del Petróleo y del Gas) . 
32 The creation of the MEG follows the same line established in Decree No. 2731/93, pointing to the 
need to "ensure the existence of a competitive market with conditions allowing optimum price formation, to the benefit of consumers".  See also the Electronic Gas Market website at: http://www.megsa.com.ar. Argentina WT/TPR/S/176 
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(a) Mining (excluding hydrocarbons) 
40. The legal framework for mining includes th e Mining Code, approved by Decree No. 456/97 
of 21 May 1997, and Law No. 24.196 (Mining Invest ment Law), its amendment (Law No. 25.429 of 
21 May 2001), its regulations contained in  Decree No. 2686/93, as amended by Decree 
No. 1089/03 of 7 May 2003.  It further includes Law No. 24.224 of 8 July 1993 (Mining 
Reorganization), Law No. 24.228 of 26 July 1993 (Federal Mining Agreement), Law No. 24.498 of 
14 June 1995 (Mining Updating), Law No. 24.523 of 9 August 1995 (National Mining Trade System), 
Law No. 24.228 of 7 July 1993 (Federal Mining Agreement) and Law No. 24.585 of 1 November 1995 (environmental protection for mining activities). 
41. Mines are the private property of the nation or the provinces, depending on the territory on 
which they are located.
33  Nevertheless, the Mining Code accords individuals the right to seek, exploit 
and hold them as owners.  Although the Federal Government coordinates mining activities, the 
provinces are responsible for setting their own policies and managing their mining resources. 
42. Argentina has notified the WTO that it uses va rious laws as instruments for the granting of 
subsidies (in different forms) to the mining sector.34  The notification states that those laws are 
intended to encourage mining activities so as to furthe r the country's development, ensure the rational 
exploitation of mining resources, generate employment and divers ify regional economies.  The 
notification35 indicated the amounts disbursed for the 2001-2005 period; the 2005 total was 
42.5 million (approximately US$14.7 million).36 
43. Law No. 24.196 sets the rules for the fiscal treat ment of investment in mining (except for 
hydrocarbons, cement production and sand for cons truction).  The Law grants fiscal stability for 
30 years for investment in the sector, including fo reign exchange and tariff regimes (but excluding 
VAT and exchange parity).  Capital investment in projects benefits from the optional regime for 
writing off the IG (profits tax) over three years.  Capital goods imported for use in mining operations 
are exempt from import duties, including the statistical  tax.  The Law allows for a 100 per cent profits 
tax deduction of all amounts invested in prospecting and exploration. 
44. Law No. 24.196 also grants incentives in the form  of lower royalty rates:  provinces that 
adopt the regime contemplated in the Law may charge  a royalty of up to 3 per cent on the value of the 
mineral extracted.  In early 20 06, only seven out of 23 provinces were charging royalties.  Some 
provinces apply royalties inversely to the minera l's value added in the provincial territory.37  I n  
addition to the applicable royalties, Law No. 24.224  of 8 July 1993 provides that companies in the 
sector must pay a mining royalty comprising a fixe d amount per mine and an additional amount for 
every 100 m2 explored. 
(b) Hydrocarbons 
45. The Energy Secretariat of the Ministry of Fede ral Planning, Public Investment and Services 
(MPFIS) is the body responsible for proposing, co ordinating, applying and monitoring national policy 
                                                      
33 Article 7 of the Mining Code. 
34 WTO documents G/SCM/N/48/ ARG/Suppl.1-G/SCM/N/60/ARG-G/SCM/N/71/ARG-G/SCM/N/ 
95/ARG of 7 October 2004 and G/SCM/N/123/ARG of 25 September 2006. 
35 Ibid. 
36 Ibid. 
37 Investment Promotion Agency, Secretariat of Industry, Trade and Small and Medium-Sized 
Enterprises of the Ministry of the Economy and Production (2006). WT/TPR/S/176 Trade Policy Review 
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in the energy sector.38  The MPFIS Undersecretariat for Fuel is responsible for proposing, 
coordinating, implementing and monitoring na tional policy in the hydrocarbons sector.39  The MPFIS 
also regulates the gas industry. 
46. The regulatory framework for the exploration and exploitation of hydrocarbons includes the 
Mining Code and Law No. 12.161 of 21 March 1935, both of limited application;  Law No. 17.319 of 
23 June 1967 (Hydrocarbons Law), which remains in  force only for permits and concessions already 
granted (currently the majority);  as well as Law No. 26.154 of 11 October 2006, which introduced 
promotional regimes for the exploration and ex ploitation of hydrocarbons.  Law No. 24.145 of 
24 September 1992 and the subseque nt 1994 constitutional reform transferred to the provinces the 
control of hydrocarbons deposits situated on their territory. 
47. Between 1994 and 2003 explorati on permits covering areas located in the provinces were 
granted under the "areas in transfer" regime ( régimen de "áreas en transferencia" ).  The process was 
jointly managed by the National Government and th e government of the province in which the area 
was located.  On the basis of Decree No. 546/03, the provincial governments began managing their resources independently, either in full or partial adherence to Law No. 17.319 in the case of permits 
and concessions, or by means of contracts drawn up by the provinces themselves. 
48. The permits and concessions granted exclusiv ely by the Federal Government are still under 
federal jurisdiction.  They continue to be governed  by Law No. 17.319, which generally applies to the 
entire country in respect of the processing and tr ansportation of hydrocarbons and foreign trade 
therein.  The permits and concessions granted under the "areas in transfer" regime between 1994 and 
2003 are being transferred to provincial jurisdicti on.  In 2004, through Law No. 25.943, the National 
Government awarded to ENARSA the offshore ar eas not yet subject to permits and concessions. 
49. Companies holding concessions under Law No. 17.319 must pay royalties of up to 12 per cent 
for natural gas and petroleum exploitation.  The Central Government ceded those royalties to the 
provinces, except for royalties corresponding to o ffshore areas, which it still collects.  The amount 
collected in 2005 was US$988 million for crude oil, US$70 million for natural gasoline, condensate and liquefied petroleum gas (LPG), and US$627 million for natural gas.  Moreover, concessions 
operated under Law No. 17.319 are subject to an annu al surface fee per unit of area and to the general 
profits tax regime.  The authorities have stated  that the surface fee collected is negligible. 
50. As described in Chapter III(3)(ii), export duti es are levied on hydrocarbons.  The export duty 
on crude oil varies depending on international oil prices and may fluctuate between 25 and 
45 per cent.  In the case of natural gas exports , the nominal rate has been 45 per cent since 
July 2006
40, with a special system of adjustment.  The export duty on LPG is 20 per cent.41 
51. Resolution No. 938/2006 of the Secretariat of Energy authorized the charging of differential 
prices for gasoline bought for vehicles with foreign licence plates at service stations in border areas.  
Resolution No. 959/2006 of the Secret ariat of Energy made it compul sory to collect the differential 
price as of 16 August 2006 for gas oil and as of 31 August for gasoline. 
52. Under Title III of Law No. 23.966 and its amen dments, petroleum products are subject to the 
Fuels and Natural Gas Transfer Tax, which varies between 62 and 70 per cent for different types of 
                                                      
38 MEP, Secretariat of Mines, Misiones y Funciones, consulted at:  http://mineria.mecon.gov.ar/. 
39 Secretariat of Energy, Unde rsecretariat for Fuel (2006). 
40 MEP Resolution No. 534/2006 of 14 July 2006. 
41 Resolution No. 335/2004 of 11 May 2004. Argentina WT/TPR/S/176 
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gasoline, and is 19 per cent on gas/ diesel oil.  If the resulting tax is less than a certain minimum, that 
minimum must be paid.42  Owing to gas oil shortages, the G overnment has twice had to suspend 
application of the Fuels and Natural Gas Transfer Tax to imported gas oil, in 2002 and in 2004. 
53. Since 1 January 2002 and under the powers dele gated by Law No. 25.414, the production and 
importation of regular grade petrol and natural gas have also been subject to a Water Infrastructure 
Tax of Arg$0.05 per litre of gasoline or cubic metr e of gas, instituted by Decree No. 1.381 of 
1 November 2001, as amended.  This charge  is payable only at one stage of the 
production/distribution process and is subject  to a system of advance payments. 
54. Law No. 24.076 and supplementary regulations g overn the distribution and transportation of 
natural gas.  The National Gas Regulatory Authority – ENARGAS ( Ente Nacional Regulador del 
Gas)43 is responsible for regulating and applying thos e rules.  ENARGAS approves the rates that may 
be charged for the regulated services. 
55. In 2002, the Public Emergency policy frame work (Law No. 25.561 and supplementary 
regulations) froze the rates charged by natural gas di stributors and stipulated the renegotiation of the 
contracts of privatized companies, including price setting and adjustment clauses.  As of July 2006, 
renegotiations had been concluded with just one (Gas Natural Ban S.A.) of the 11 companies.44  In 
2004, ENARGAS approved price increases for large user s.  Since 2002, several agreements have also 
been concluded between the authorities and producers in order to stabilize the prices of natural gas, 
LPG and gas oil.45 
56. To assure the supply of liquid hydrocarbons and th eir derivatives, (gas oil in particular), the 
Government issued Resolution No. 25/2006 in Oc tober 2006 containing new rules on the marketing, 
intermediation, distribution and/or production of gas oil.46  The Resolution obliges refining companies 
and/or wholesale and/or retail sellers "to cover in  a reasonably justified manner the entire demand for 
gas oil, in the amounts requested from them in ke eping with customary market practices".  The 
amounts marketed must be at least as much as those supplied in the same month of the preceding year, 
plus the positive correlation existing between the increased demand for gas oil and the increase in 
GDP, cumulated from the reference month up to the current date.  The Domestic Trade Secretariat 
was empowered to apply the procedures forese en in Law No. 20.680 of 20 June 1974 (see 
Chapter III(4)(ii)). 
57. Through Decree No. 1396/2001 issued in 2001, the Government declared the production and 
marketing of biodiesel for use purely as fuel or as a base for mixing with gas oil or as an additive for 
gas oil to be of national interest.47  The Decree accords some ta x incentives, for example, a 
10-year waiver of the Liquid Fuels and Natural Gas Tax and exemption from the Presumed Minimum Profits Tax for companies producing biodiesel.  In 2006, Law No. 26.093 of 19 April instituted the 
Regulatory and Promotion Regime for the Su stainable Production and Use of Biofuels. 
                                                     
 
42 The minimum payable (in Arg$ per litre) was 0.5375 on leaded or unleaded gasoline of over 
92 octanes;  0.5375 on other leaded or unleaded gasoline;  and 0.15 on gas oil, diesel oil and kerosene. 
43 See also:  http://www.enargas.gov.ar. 
44 Public Utility Contracts Renegotiation and Analysis Unit (2006a). 
45 They include the Agreement for the Stabilization of Natural Gas Prices at the Point of Entry into the 
Transportation System, concluded on 2 April 2004 and effective until 31 December 2006. 
46 Resolution No. 25/2006 of 11 October 2006. 
47 Decree No. 1396/2001 of 4 November 2001. WT/TPR/S/176 Trade Policy Review 
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58. Since 2003, Argentina has concluded several in ternational energy integration agreements, 
including that with Bolivia (Nor th-eastern Argentine Gas Pipeline ( Gasoducto del Noreste 
Argentino )), with Brazil (Transitional Energy Exchange Agreement ( Acuerdo Transitorio de 
Intercambio de Energía )), with Venezuela and Brazil (South American Gas Interconnector ( Iniciativa 
del Gran Gasoducto del Sur )), and with Venezuela and Bolivia  (initiative to create a multistate 
petroleum enterprise  (Iniciativa para la creación de una empresa petrolera multiestatal, 
PETROSUR )). 
(4) MANUFACTURING  
(i) Overview 
59. Manufacturing's share of GDP rose from 19.4 per cent in 1998 to 23.3 per cent in 2005 
(including food processing), due in large measure to  the expansion of the domestic market, the sector's 
renewed competitiveness following the devaluation of th e peso and a general contraction in the share 
in GDP of activities oriented toward domestic tr ade (construction services and real estate) (see also 
Chapter I).  In 2004, the last year for which data  are available, the manufacturing industries that 
contributed most to the volume of trade for the sector were food processing (29.2 per cent), petroleum 
(18.9 per cent), the chemical industry (12.4 per cent) , the steel and metallurgy industry (10.8 per cent) 
and the automotive industry (9.4 per cent). 
60. The bulk of industrial activity is concentrated  in three provinces, namely Buenos Aires 
(35 per cent), Santa Fe (21 per cent) and Córdoba (11.5 per cent).  In 2005, the manufacturing sector 
employed 26 per cent of Argentina's labour force. 
61. The balance of trade for the manufacturing sector  was reversed in 2002 as imports declined 
drastically and exports remained stable.  Some 90 per cent of exports of manufactures can be 
attributed to huge conglomerates  and multinational corporations, many of which have majority 
foreign participation.  The leading exports in 2004 were machinery and transportation equipment 
(9.1 per cent of the total), followed by chemicals (8.5 per cent) and other semi-manufactures (mainly 
hides) (5.2 per cent) (see Table AI.1). 
62. Through its Secretariat of Industry, Trade and Small and Medium-Sized Enterprises, the 
Ministry of the Economy and Production is responsib le for formulating industrial policy and devising, 
funding and applying instruments to further the se ctor's development and growth;  it acts as the 
authority responsible for implementing promotional schemes.48  Several activity-specific incentives 
are available to the manufacturing sector, more pa rticularly to the automotive and naval industries 
(see below). 
(ii) Support measures 
63. In 2006, the simple average MFN tariff rate for the manufacturing sector (ISIC definition) 
was 10.6 per cent (see Chapter III(2)(iv)).  The highest average tariffs are applied to products such as 
knitted and crocheted fabrics (33.2 per cent);  made-up textile goods (ex cept wearing apparel) 
(32.4 per cent);  clothing (31.8 per cent);  footwear  (27.3 per cent);  motor vehicles (20.8 per cent);  
sporting goods (20.4 per cent);  and leather products  (except footwear) (20 per cent).   During the 
period under review, safeguards (including unde r the transitional safeguard mechanism of the 
Agreement on Textiles and Clothing) and anti-dumpi ng measures were adopted to protect various 
                                                      
48 Decree No. 1359/2004 of 5 October 2004. Argentina WT/TPR/S/176 
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manufacturing industries (see Chapter III(2)(vii)).  Othe r measures that affected such industries during 
the review period include non-automa tic licensing (see Chapter III(2)(vi)). 
64. In addition to border measures, the Govern ment assists the manufacturing sector through 
horizontal fiscal incentive schemes (see Chapter III(4)(iii)), as well as export promotion schemes such 
as export free zones or temporary admission (see Chap ter III(3)(iv)).  Special arrangements also apply 
to the production of capital goods under the capital goods, information technology and 
telecommunications regime (see Chapter III(4)(iii)). 
65. The industrial specialization re gime (REI), established in 199249, was terminated in 1996 
without new contracts having been concluded.50  During the period under review, however, some 
enterprises continued to receive benefits prev iously accrued under the regime which included 
measures such as the concessional entry of imported inputs linked to export performance 
requirements.  In September 2001, Resolution No. 86  was adopted for the purpose of winding up the 
regime.  Under this resolution, the beneficiari es of the regime with pr ogrammes approved before 
20 August 1996 were allowed, over a period of 90 days, to apply for the corresponding tariff relief 
certificate for increases in thei r exports prior to 31 December 1999.  Tariff relief certificates 
equivalent in value to U$S96,204,964.08 were issued.51  
66. The manufacturing sector also benefits from special credit facilities for R&D projects and 
technological development and i nnovation through the Scientific and Technological Research Fund 
(FONCyT) and the Argentine Technological Fund (FONTAR).  During the period 1997 to 2004, FONTAR committed Arg$350 million to almost 2,000 projects;  some 64 per cent of this financing concerned manufacturing.
52  Small and medium-sized enterprises ar e eligible for an interest subsidy 
regime and can access credit facilities through Mutual Guarantee Societies (S.G.R.).53 
67. In 2004, a framework agreement on the financing of the shipbuilding industry was concluded.  
Under this framework, in July 2006, eight agreemen ts to finance 15 shipyards were signed.  As a 
result, over 10 years, Arg$149 million in subsidies will be granted for projects worth Arg$430 million.
54 
(iii) Motor vehicles 
68. The automotive industry has been the most dynamic manufacturing sector in recent years.  
Argentina's motor vehicle equipment manufacturers lost competitiveness with the devaluation of the 
real in 1999, and many of them transferred their ac tivities to Brazil.  Since the devaluation of 2002 the 
industry has been regaining competitiveness.  With  the disappearance of the smaller producers, the 
sector has become more concentrated.  Since the de valuation of the peso the sector has grown more 
export-oriented, but production capacity remain s underutilized (in 2005, the average capacity 
utilization rate was 37 per cent).  The automotive indus try is open to foreign investment and there is a 
strong foreign presence. 
                                                      
49 Decree No. 2641/1992 of 29 December 1992.   
50 Decree No. 977/96 of 20 August 1996. 
51 Ministry of the Economy, information consulted at:  http://www.mecon.gov.ar/hacienda/cgn/cuenta/ 
2001/tomo_ii/50a.htm. 
52 National Agency for the Promotion of Science and Technology, FONTAR Statistics, consulted at:  
http://www.agencia.secyt.gov.ar/fontar_estadistica.php. 
53 Law No. 24.467 of 15 March 1995. 
54 "Apoyo a la industria naval y mercante", article in Pesca y Puertos , 17 July 2006, consulted at:  
http://www.pescaypuertos.com.ar/20060717_leasing.html. WT/TPR/S/176 Trade Policy Review 
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69. In 2006, average nominal tariff protection for th e motor vehicle sector (ISIC 3843) stood at 
20.8 per cent.  Nine tariff headings (including p assenger motor vehicles, chassis-built motor vehicles, 
public transport vehicles and heavy goods vehicles) were subject to an MFN import quota until August 2000, when it was abolished with the entry into force of Decree No. 660 of 1 August 2000. 
70. Imports of cars and light utility vehicles from outside the MERCOSUR zone, together with 
imports of heavy commercial vehicles as from 2006, are subject to a 35 per cent tariff, with the 
exception of self-propelled agricultural and highway m achinery which pays 14 per cent.  On the other 
hand, autoparts (with some exceptions) pay a CET of 14, 16 or 18 per cent.  Autoparts that are not produced in MERCOSUR pay a CET of 2 per cent;  how ever, as a list of these parts not produced in 
MERCOSUR had not been agreed, on 23 July 2004 Argentina adopted Resolution No. 497/2004, 
which establishes a list of products not manufactured in  Argentina, provided that they are intended for 
motor vehicle production, and subjects them to a 2 per cent tariff. 
71. Activity in the automotive industry is governed by  various sectoral agreements, for example,  
the 35th Additional Protocol to the Economic Co mplementarity Agreement (ECA No. 14) between 
Argentina and Brazil, the 31st Additional Protocol  to ECA No. 35 between Argentina and Chile, and 
other trade agreements such as the bilateral agreement with Uruguay (ECA No. 57) and the 
MERCOSUR Agreement with Mexico (ECA No. 55). 
72. To promote the recovery of the autoparts industr y, which suffered severely during the crisis, an 
Incentives Regime to improve the competitiv eness of local autoparts was established.
55  This provides 
for the granting, for a maximum period of three years, of a benefit consisting in the payment of a cash refund on the value of purchases of local autoparts, i.e., those with a non-local content of not more 
than 30 per cent.  Such parts must be inte nded for production and must be purchased by 
manufacturers of cars, utility vehicles with a load cap acity of up to 1,500 kg, trucks, chassis with and 
without cabs and buses, engines, gearboxes and axles w ith differentials.  To obtain this benefit, such 
enterprises must submit a project for the production of new platforms or new autoparts, as the case 
may be, which must be approved by the Application Authority. 
73. Since 2003, the automotive sector has been s ubject to a new general regime known as the 
in-factory customs regime (RAF).  As at Octobe r 2006, enabling regulations had been adopted only 
for the automotive sector (see Ch apter III(2)(iv)) and four firms were benefiting from the RAF:  
Toyota Argentina S.A., Daimler Chrysler Arg S.A. F.I.C.I.M., Ford Argentina S.C.A., and Peugeot 
Citroen Arg. S.A. 
74. In July 2006, the new Automotive Agreement signe d by Argentina and Brazil, incorporated in 
the 35th Additional Protocol to ECA No. 14, entered into force for a period of two years.  This 
Agreement modified the export deviation coefficient (Flex
56), which now has to be measured for the 
period July 2006-June 2008.  At the end of this pe riod the ratio of import value to export value should 
correspond to a Flex of not more than 1.95 (2.6 unde r the previous agreement), provided that the ratio 
does not exceed 2.10 in the first 12 months (July 2 006-June 2007).  Automotive products are traded 
between Argentina and Brazil with a 100 per cent tari ff preference and, as distinct from the previous 
agreement, the new Agreement does not contai n any Argentine local content requirement.57   
                                                      
55 Decree No. 774/2005, of 5 July 2005. 
56 Flex regulates the amount that can be imported for each dollar exported to the partner country. 
57 For more details, see Acuerdo Sobre la Política Automotriz Común Entre la República Argentina y la 
República Federativa del Brasil (Agreement on the Common Automotive Policy between the Argentine 
Republic and the Federative Republic of Brazil), consulted at:  http://www.aladi.org/. Argentina WT/TPR/S/176 
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75. To be treated as originating in MERCOSUR, vehicles and autopart assemblies must 
incorporate at least 60 per cent of parts manufactured in MERCOSUR;  however, in the case of new models it is possible to make use of progressi ve integration programmes which moderate the 
requirement as follows:  40 per cent at the beginning of the first year, 50 per cent at the beginning of 
the second, and 60 per cent at the beginning of the third. 
76. Under the bilateral Agreement with Uruguay, Argentina grants duty-free access to Uruguayan 
exports of all products included in the tariff univer se covered by the Agreement, provided that they 
comply with the rules of origin established therein.   Cars and light commercial vehicles (with a load 
capacity of up to 1,500 kg), trucks and autoparts also benefit from duty-free access, but are subject to 
quantity and value limits which in 2006 were set  at 20,000 units, 800 un its and US$60 million, 
respectively. 
77. In September 2002, Mexico signed an agreemen t with MERCOSUR to create a free trade area 
for the automotive sector by 30 June 2011
58;  the agreement came into force in January 2003.59  The 
agreement provides for a transition period between  each of the MERCOSUR countries and Mexico.  
In the case of Argentina, a tariff quota of 50,000 uni ts was established  for cars, vehicles with a gross 
vehicle weight of not more than 8,845 kg, and motor vehicles for the transport of 10 or more persons.  
On 1 May 2006 free trade in these products came in to effect.  Trade in agricultural machinery was 
freed from the moment the agreement entered into force.  Tariffs on NALADISA heading 
8407.34.0060 were set at zero per cent from the commenc ement of the agreement.  Other imported 
autoparts pay CET rates of 14, 16 and 18 per cent, as the case may be. 
78. In 2002, the 31st Additional Protocol to ECA No. 35 was signed.  This established free trade 
between Argentina and Chile in cars;  light comme rcial vehicles (with a load capacity of up to 
1,500 kg);  trucks;  road tractors for semi-trailers;  chassis with engines;  buses;  and autoparts, as 
from 2006. 
79. Argentina's latest notification to the WTO c oncerning trade-related investment measures 
(TRIMs) dates from 1997 and covers only meas ures adopted under the automotive regime, 
specifically local content and trade balancing requirements.61  Several questions were raised by WTO 
Members regarding steps taken to abolish TRIMs.62  In November 2001, the WTO Council for Trade 
in Goods granted Argentina until th e end of 2003 to bring its polici es into compliance with the TRIMs 
Agreement.63  In 2002, Argentina notified the WTO that it had reduced the local content requirement 
from 30 to 20 per cent, that further reductions were planned and that the range  of goods to which the 
local content requirement applied had been narro wed down to cars, light utility vehicles and the 
corresponding autoparts.64   
80. The local content requirement was abolishe d on 31 December 2005, in accordance with 
Article 23 of Protocol XXXI to ECA No. 14, while the trade-balancing requirement with countries 
other than Brazil was abolished by Decree No. 660/2002 and Protocol XXX to ECA No. 14. 
                                                      
58 Economic Complementarity Agreement (ECA) No . 55, consulted at:  http://www.aladi.org/. 
59 Decree No. 4.458 of 5 November 2002. 
60 Reciprocating piston engines of a kind used for the propulsion of vehicles (other than parts of 
railway or tramway locomotives  or rolling stock) of a cyli nder capacity exceeding 1,000 cc. 
61 WTO document G/TRIMS/N/1/ARG/1/Add.1 of 26 May 1997. 
62 See the questions and replies in WTO docu ments G/C/W/222 (European Communities) of 
31 July 2000, G/C/W/223 (United States) of 1 August 2000, and G/C/W/224 (Japan) of 2 August 2000. 
63 WTO documents G/L/460 and G/L/497 of 7 August 2001 and 9 November 2001, respectively. 
64 WTO document G/L/602 of 14 January 2003. WT/TPR/S/176 Trade Policy Review 
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81. Argentina has also notified the WTO of the addresses of the Boletines Oficiales  (Official 
Journals, hereinafter O.J.) of the different provin ces in which TRIMs, if there were any, would be 
published.65 
(5) ELECTRICITY  
(a) Special features of the sector 
82. In 2004, installed generation capacity was 26, 000 MW, of which 53.1 per cent depended on 
natural gas and 33 per cent was hydroelectric.  Most of the hydroelectric power stations are in private 
hands, although the two largest are State-owned.  Ar gentina has two nuclear power plants with a third 
under construction.66  The electricity sector is characterized by a strong foreign presence.  Argentina 
is interconnected with the Brazilian, Paraguayan and Uruguayan power systems and is a net exporter 
of electricity to those countries. 
83. The Argentine electricity market was deregul ated in 1991.  The reforms introduced ended 
with a vertical market structure divided into three segments:  generation, distribution and transport.  
All activities are open to the private sector, but each seg ment of the market has its own characteristics.  
Generation is totally open to the private sector a nd a considerable number of enterprises are involved 
(43 in 2004).  Distribution and transport are subject to regulation.  Although there are also many distributors (some 65), three enterprises (Edenor , Edesur and Edelap) hold the concessions in the 
areas under federal jurisdiction, in Greater Buenos Air es zone and La Plata, areas of high demand.  In 
the transport market, which is entirely in private ha nds, competition is more limited, since 95 per cent 
of the high-voltage electricity is transported by a single private company, Compañía Nacional de 
Transporte Energética en Alta Tensión  (Transener).  For the purposes of transport by trunk 
distribution the country is divided up into six re gional areas, each operated by a different company. 
84. Almost all of Argentina's electrical power demand is supplied through the Wholesale 
Electricity Market (MEM), in which producers, tran sporters, distributors, large users and marketers all 
participate.  Since 1 March 2006 the MEM has b een interconnected with the Patagonian System, 
which covered 6 per cent of the demand.  The dist ributors absorb about three quarters of the power 
generated, while the rest is consumed by large user s, self-generators, marketers and other distributors, 
or is exported.  In 2005, 73 per cent of the power generated was traded on the spot market and 21 per 
cent on the forward market, while the rest was expor ted or purchased directly by large users.  
Although thanks to the MEM liberalization has been s ubstantial at wholesale level, this is not the case 
at retail level.  The small users (with a demand of less than 30 kW) are customers of the distributors 
within a geographical area in which the latter have exclusivity and are subject to regulated tariffs. 
85. As a result of deregulation, the electricity sector underwent extensive transformation leading 
to a substantial increase in investment (about US$2.3 billion in the peri od 1992-2002) accompanied 
by a substantial fall in tariffs.  It is estimated that following deregulation average distribution tariffs 
decreased by about 30 per cent in peso terms.
67  Electricity prices in Argentina are among the lowest 
in Latin America.  The average price of power in May 2006 was Arg$57.70/MWh (around 
US$0.02 per kWh).68  A surcharge is applied to the tariffs paid by wholesale market buyers, i.e., the 
distributors and large users.  This surcharge f eeds the National Electrical Power Fund (FNEE), in 
                                                      
65 WTO document G/TRIMS/N/2/Rev.14 of 22 September 2005. 
66 See http://www.eia.doe.gov/emeu/cabs/argentna.html#elec. 
67 National Electricity Regulatory Authority, (2004). 
68 CAMMESA (wholesale electricity ma rket management company) 2006. Argentina WT/TPR/S/176 
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accordance with Law No. 15.336, O.J. of 22 September 1960.69  Under Resolution No. 1.872/2005, 
O.J. of 7 December 2005, this tax is curre ntly set at Arg$0.0054686/kWh (see below).  
86. The privatized enterprises record ed high rates of return up until 2002, when because of the 
emergency measures adopted in that year (see Chapter I), tariffs were set in pesos.  As the debts of 
these companies were denominated in dollars, there were problems with losses and defaults, falls in 
market valuation and reduced investment in the sect or.  The subsequent economic recovery led to a 
substantial increase in demand and problems with th e supply of natural gas for the sector and the 
provision of electricity.  In response, the Governme nt adopted a series of emergency measures, such 
as an increase in the price of natural gas for large us ers;  a reduction in natural gas exports to Chile to 
ensure that the domestic market was kept supplied70; and recourse to imports from Bolivia;  together 
with energy-saving measures on the consumption side, which included rebates where energy was 
saved and surcharges in cases of overconsumption.71 
(b) Legal framework 
87. The Energy Secretariat of the MEP is responsib le for the formulation and implementation of 
sector policy.  The privatized sector is regulat ed by the National Electricity Regulatory Authority 
(ENRE), a self-governing body under the jurisdiction of the Energy Secretariat;  ENRE is authorized to supervise the performance of concession agreements  by monitoring end-user tariffs in the areas 
operated by Edenor, Edesur and Edelap.
72  The provincial distributors are regulated by their respective 
provincial authorities.  The Wholesale Electricity Market Administration Company – CAMMESA (Compañía Administradora del Mercado Mayorista Eléctrico S.A. ) is entrusted with administration of 
the MEM and technical and economic dispatch, as we ll as with the coordination of the centralized 
operation of the Argentine Interconnection System (SIN).   
88. The legal framework for the electricity sector in  Argentina comprises Law No. 24.065, O.J. of 
16 January 1992 (Electrical Power Regime), and Decree No. 1398/92, which incorporates the 
Regulations for Law No. 24.065.  This legislation divided up the electricity sector into segments and 
provided for each segment to be partially or wholly privatized.  Law No. 24.065 authorized generators 
to conclude supply contracts directly with distribu tors and large users.  The Law describes electricity 
transport and distribution as a public service, but s tipulates that priority in carrying out these activities 
must be given to private enterprises operating under government concession;  these concessions are 
for a fixed term and must specify the usage charge regime.
73  The Law imposes limits on economic 
concentration in the sector, prohibiting vertical inte gration but not cross holdings, albeit non-majority, 
between generators and distributors. 
89. The end-user market has been divided into a regulated segment (end users) and another open 
to competition (large users).  In the regulated segment the distributor holding the concession is 
guaranteed a monopoly, but must satisfy the whole of  the demand that it is required to meet under the 
                                                      
69 Amended by Article 70 of Law No. 24.065, O.J. of 16 January 1992;  Article 5 of Law No. 25.019, 
O.J. of 26 October 1998;  Article 74 of Law No. 25.401, O.J. of 4 January 2001;  and Article 1 of Law 
No. 25.957, O.J. of 2 December 2004. 
70 In this connection, the authorities have noted that the reduction in exports is based on the 
Hydrocarbons Law and is intended to guarantee domestic supplies. 
71 Energy Secretariat Resolution No. 415/2004, O.J. of 28 April 2004. 
72 See http://www.enre.gov.ar/. 
73 The legal definition of transpor t includes transformation and acce ss to any other installation or 
service. WT/TPR/S/176 Trade Policy Review 
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terms of the concession agreement;  the tariffs are re gulated.  The large users are agents of the MEM 
and therefore free to procure electricity on the market.   
90. Law No. 24.065 requires distributors to purchase power on the market at a stabilized 
(predetermined) seasonal price which can be adjusted  quarterly.  These rules apply to the privatized 
distribution companies;  the provincial enterprises are regulated by the particular rules of each 
province.  The generators sell power on the market  at hourly spot prices determined marginally, but 
for the power sold the generators receive a uniform ta riff at each point of delivery.  Transport is paid 
for by means of a system of fixed and variable char ges.  Transporters and distributors are obliged to 
allow third parties indiscriminate access to any trans port capacity in their systems that is not already 
contractually committed.  
91. Electricity transport and distribution activities require a concession;  generation requires one 
only in the case of hydroelectric energy if the power exceeds 500 kW.  Concessions are valid for 
10 years and can be renewed for similar periods.  Tr ansporters and distributors must apply the tariffs 
approved by ENRE (these tariffs fall within the federal jurisdiction).74  Distributors may not use 
cross-subsidies between categories of users, and pr ice discrimination is also prohibited.  However, 
they may use specific subsidies to cover tariff di fferentials in cases of predetermined users.   
92. Under the distribution concession agreements, prices are worked out quarterly by 
CAMMESA and approved by the Energy Secretariat.   The distribution costs themselves are adjusted 
every six months in line with prices in the United States.  Between privatization and June 2006, the 
tariffs of the electricity distributors changed 19 times.  However, in 2002, Public Emergency and 
Exchange Regime Reform Law No. 25.651 of 7 January 2002 suspended the adjustment clause 
system, opening up a contract renegotiation process.  By June 2006 the contracts with Edenor, Edesur 
(not yet ratified by the Executive) and Edelap (E xecutive (P.E.N.) Decree No. 802/2005 of 14 July 
2005) had been renegotiated, together with those of two distributors and six transport enterprises.75  
The contract renegotiated with Edelap authorized an average increase of 23 per cent in distribution 
and connection costs following a transition peri od beginning on 1 May 2005 during which the 
distributor's average tariff may not increase by more than 15 per cent.  The agreement with Transener 
(Executive (P.E.N.) Decree No. 1.462/2005 of 2 D ecember 2005) authorized an average tariff rise of 
31 per cent as from 1 June 2005, during a transiti on period to last until ENRE has completed a 
comprehensive tariff review.76 
93. Law No. 24.065 created the National Electri cal Power Fund (FNEE), constituted by a 
surcharge on the tariffs paid by buyers on the MEM.  In 2006, pursuant to Energy Secretariat 
Resolution No. 1.872/2005, this surcharge was Arg$0.0054686/kWh.  Resolution No. 1.872/2005 
provides for 79.44 per cent of total FNEE revenue to  be used to finance the Subsidiary Fund for 
Regional End-User Tariff Compensation (60 per cen t of this percentage) and the Fund for the 
Electrical Development of the Interior (40 per cent).77  Of the remainder, 0.7 per cent is to go towards 
financing wind power development and 19.86 per cent to the Trust Fund for Federal Electrical 
Transport established by Energy Secretariat Resolution No. 657 of 3 December 1999. 
                                                      
74 Concession contracts include an initial tariff schedul e valid for five years, adjustable under a system 
of maximum prices fixed by ENRE for successive five-year periods. 
75 The legal instruments approving the rene gotiated contracts are available at:  
http://www.uniren.gov.ar/ audiencias _publicas/acuerdo_aa_edelap.pdf. 
76 See http://www.uniren.gov.ar/audien cias_publicas/aa_transener_00.pdf. 
77 The Subsidiary Fund for Regional End-User Tari ff Compensation is distributed among the provinces 
for the construction of high-voltage lines and to prevent mismatches between provincial tariffs, the result being redistribution to the provinces with fewer resources. Argentina WT/TPR/S/176 
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94. The MEM Stabilization Fund consists of a seasona l price stabilization mechanism.  There is 
an approved price at which the distributors buy on the wholesale spot market for three months.  The differences between the fixed seasonal price and the s pot market price are covered by the Fund, which 
serves to stabilize the price.  Every quarter th e accumulated differences are reallocated to the 
following periods.  The Fund was in deficit in 2005 and 2006, due to arrears of payment on the MEM 
and reduced income, which led the authorities to es tablish a debt consolidation mechanism and to 
authorize an Arg$150 million loan to support the MEM price stabilization system.  This is linked with the Seasonal Market.  There is a stabilization fu nd (administered by CAMMESA), to which the 
differences produced between the seasonal and spot market prices are directed.  
(6) S
ERVICES  
(i) Main features and multilateral commitments 
95. In 2005, the services sector accounted for 55.3 per cent of GDP at current prices, a percentage 
which rises to about 62 per cent if electricity, wate r and gas supplies and construction are included;  
this level is well below the 78 per cent recorded in 2000.78  The loss of share by the services sector 
can be largely attributed to the increase in goods production, which benefited from the devaluation of 
the peso in 2001, whereas the output of services received less of a stimulus as most prices are 
established on the domestic market.79  The commercial services and real estate services subsectors 
were the most important in 2005;  their shares of GDP were 11.8 and 10.9 per cent, followed by 
transport and communications, with 9 per cent, with  financial services accounting for 4.4 per cent of 
GDP. 
96. Under its horizontal commitments within the framework of the GATS, Argentina has not 
stipulated limitations on market access or nationa l treatment with respect to cross-border supply 
(mode 1) or consumption abroad (mode 2) in any of the sectors included in its schedule of specific 
commitments (Table AIV.2).  The only limitation imposed on commercial presence (mode 3) relates 
to the conditions for acquiring land in frontier ar eas (150 km in land frontier areas and 50 km in 
coastal areas).  Where supply through the presence of natural persons (mode  4) is concerned, 
commitments have been bound only with respect  to the presence of managers, executives and 
specialists, in relation to both market access and national treatment, the other categories being left 
unbound.  Argentina accepted commitments in 6 of  the 12 sectors specified in the GATS.  The 
commitments relating to specific sectors comprise:  business services,  communications services;  
construction and related engineering services;  fina ncial services;  distribution services;  and tourism 
and travel-related services.80   
97. As a result of its participation in the exte nded negotiations on teleco mmunications, Argentina 
broadened its commitments in this sector (see below).81  The only exemption from the principle of 
MFN treatment that Argentina listed in the Annex on Article II exemptions is that relating to the 
provision of satellite facilities of geostationary sate llites operating fixed satellite services, a measure 
which is subject to conditions of reciprocity.82  Argentina ratified the Fourth Protocol on 
Telecommunications annexed to the General Ag reement on Trade in Services by adopting Law 
                                                      
78 MEP online information , http://www.mecon.gov.ar/download/infoeco/apendice1.xls.  
79 According to the authorities, it should also be ta ken into account that when  output is measured at 
current prices, services  GDP falls substantially given the improvemen t in the relative prices of tradeables, but 
that when the calculations are made at cons tant prices the decline is much smaller. 
80 WTO document GATS/SC/4 of 15 April 1994. 
81 WTO document GATS/SC/4/Suppl.1 of 11 April 1997. 
82 WTO document GATS/EL/4 of 11 April 1997. WT/TPR/S/176 Trade Policy Review 
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No. 25.000, O.J. of 27 July 1998.  Argentina al so participated in the extended negotiations on 
financial services but did not submit any new offer. 
98. Within the context of the Doha Round negotiati ons on services, Argentina submitted an initial 
offer in April 2003.  The authorities have noted that the offer improved the commitments bound in 
supply mode 4 by incorporating the following categories of service providers:  businessmen, 
professionals and specialists, intra-corporate transf ers, and representatives of foreign enterprises.   
99. By Law No. 25.623, O.J. of 15 August 2002, Argentina ratified MERCOSUR's Montevideo 
Protocol on Trade in Services.  This Protocol, signed in 1997, aims to liberalize services over a 
10-year period.  The Protocol entered into for ce on 7 December 2005, after having been ratified by 
Argentina, Brazil and Uruguay.   
(ii) Telecommunications 
(a) Main features 
100. In March 2006, there were about 9.5 million fixed telephone lines installed in Argentina 
(8.9 million in service), compared with 3.5 million (3.1 million in service) in 1990, before the sector was liberalized.
83  With regard to mobile telephony, in March 2006 the total number of terminals was 
around 23.9 million.84  Total teledensity (fixed telephones pl us mobiles) was 85 per cent in March 
2006.  In 2004, local telephony contributed 40 per cent of fixed telephony turnover.  In 2005, the telecommunications sector accounted for 5.4 per cent of GDP.
85  
101. Up to 2000, the Argentine telecommunications ma rket was characterized  by the presence of 
segments with different degrees of competition:  wi th limitations in the fixed and mobile telephony 
sectors, and freer competition for other services.  The privatization and liberalization process begun in 
1989 required all services to be provided on a compe titive basis, with the temporary exception of the 
basic telephone service (BTS); this was to be provide d by two private licensees, for which purpose the 
country was divided into two regions.86 The right of cooperatives (Independent Operators) to provide 
services, mainly in the interior of the country, w as also recognized.  In 1998, regulations governing 
the transition to competition in telecommunications  were issued, and in 1999 four new companies 
were granted licences to provide services on a co mpetitive basis.  Decree No. 465 of 13 June 2000 
and its amendments formally deregulated the market.87  The exclusivity regime ended in November 
2000, after which all services, national and internat ional, were offered on a competitive basis as a 
consequence of the implementation of the Fourth Protocol to the GATS Agreement and as established 
by Decree No. 764/00.  However, the situation of legal duopoly "allowed companies to develop 
dominant positions:  strength in facilities (networks), in services (telephony in all its forms, data 
transmission), market concentration (many captiv e customers) and financial resources (monopoly 
income)".88 
                                                      
83 See http://www.indec.m econ.ar/nuevaweb/cuadro s/14/sh_comunicac2.xls. 
84 See http://www.cnc.gov.ar/indicadores, and h ttp://www.secom.gov.ar/municipios/section.asp?MID 
=10&Seccion_Id=61. 
85 Supervisory Authority of the National Communications Commission (2006). 
86 Telefónica de Argentina S.A. in the southe rn region and TELECOM Argentina STET FRANCE 
TELECOM S.A. (now TELECOM Argentin a S.A) in the northern region. 
87 Article 1 of Decree No. 465/2000, O.J. of 13 June 2000. 
88 Communications Secretariat (2006).   Argentina WT/TPR/S/176 
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102. As at October 2006, the fixed telephony mark et was still dominated by two "historical 
operators" (Telefónica and Telecom Argentina), which together hold a 90 per cent market share.  In 
the case of mobile telephony, there are currently th ree operators in the market (Movistar, Telecom 
Personal and CTI).   
103. As a result of the adoption of the Public Emergenc y Law, the tariffs of the historical providers 
were frozen and the contracts were declared subjec t to renegotiation.  As steps in the renegotiation 
process, the Government signed Letters of Unders tanding with Telefónica and Telecom Argentina, 
most recently in the first quarter of 2006.89  Through these letters the licensees undertook to achieve 
the long-term goals relating to standard of service established in Decree No. 62/90 by 31 December 2010, while the Government approved, inter alia , a correction factor for the termination 
of incoming international calls.
90  As at October 2006, the ratification of new contracts by the 
Executive was still pending. 
104. The prices of mobile communications reflect the increased competition in the sector.  In 
August 2006, the fixed charges for private users of the two main mobile communications services providers were fluctuating betw een Arg$23.4 and Arg$151.1, depending on the number of free calls 
or minutes;  the cost per additional minute varied between Arg$0.23 and 0.52.
91   
(b) Laws and regulations 
105. The institutions involved in applying the telecommu nications legislation are:  the Ministry of 
Federal Planning, Public Investment and Services,  the Communications Secretariat (SECOM), and the 
National Communications Commission (CNC).  SECOM is responsible, inter alia , for helping the 
Ministry of Federal Planning, Public Investment  and Services to formulate, propose and execute 
telecommunications and postal policies, while supe rvising their implementation and compliance with 
the corresponding regulations.  SECOM is also respons ible for developing draft general regulations 
on the provision of communications services, a nd approving Argentina' s radio-frequency band 
allocation table.92  The CNC, a decentralized SECOM body, is responsible for monitoring the 
telecommunications sector.93  The CNC helps SECOM to update and develop the Basic Technical 
Telecommunications Plans and issue the general regu lations for the services within its jurisdiction.  
The CNC is authorized to impose penalties in cases of infringement of the rules applicable in the 
sphere of telecommunications.  Decree No. 764/0 0 provides for the participation of the MEP's 
Consumer Protection Secretariat in specific activities.   
106. Law No. 19.798, O.J. of 23 August 1972 (Teleco mmunications Law), has been progressively 
amended and supplemented to allow for sector lib eralization.  Decree No. 731/89, O.J. of 
14 September 1989, and its amending Decree No. 59/90, O.J. of 12 January 1990, began the 
privatization and reform of the sector.  The basic telephone service was privatized by Decree No. 60/90, O.J. of 12 January 1990, which divided the country into two regions for the 
provision of basic telephone services.  Decree No. 62/90 approved the basis and conditions for the 
                                                     
 
89 See http://www.uniren.gov.ar/audiencias_publicas/ ce_telefonica.pdf, and http://www.uniren.gov.ar/ 
audiencias_publicas/ce_telecom.pdf. 
90 The formula for calculating the correction factor is:  TLL h = TLL b * Factor Z, where TLL h is the 
value of the call corrected, TLL b n is the termination value of the international call, and Z = T*C, where T = 
national currency units per dollar, and C is a constant whose value has been fixed at 3.  If the peso depreciates 
relative to the dollar with respect to a reference ex change rate (3), the tariff is corrected upwards. 
91 See http://www.cnc.gov.ar/ServTelefonico/Movil/precios.asp. 
92 See http://www.secom.gov.ar/municipi os/ver.asp?MID=10&tipo=nota&id=346. 
93 See http://www.cnc.gov.ar/. WT/TPR/S/176 Trade Policy Review 
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privatization of the assets of ENTel, the Na tional Telecommunications Company, including the 
respective licences for providing BTS, under an exclus ivity regime comprising a two-year transition 
period, a five-year period of exclusivity, and the right to a three-year extension conditional on fulfilment of the duly established targets and co mmitments.  Decrees Nos. 264/98 and 266/98 opened 
up the market to competition by directly liberaliz ing firstly public telephony and then telephony in 
rural areas, and after that, in 1999, by incorpora ting the total liberalization of local, domestic long-
distance and international telephone services.  Decree  No. 264/98 of 13 March 1998 authorized the 
granting of licences for the provision of local and long-distance telephone services in new areas, but erected temporary barriers to the entry of new players into the market.  Under the powers conferred by 
Decree No. 264/98, in 1999 the Communications Secretariat granted licences for the provision of 
services on a competitive basis to four new companies. 
107. In the extended negotiations on basic telecomm unications under the GATS, Argentina made a 
commitment not to impose any limitation on access to the telecommunications markets after 8 November 2000, except in the case of internationa l satellite services.  Law No. 25.000, enacted on 
1 July 1998, approved the Fourth Protocol annexed to the GATS, and Decree No. 764/2000 of 
3 September 2000 implemented the liberalization of the market as from 8 November 2000. 
108. Decree No. 764/2000, liberalizing the tel ecommunications market, established a new 
regulatory framework which guarantees equality and freedom of trade and industry in the 
telecommunications market, without barriers to the in corporation of new operators or obstacles to the 
incorporation of new technologies and services.  Under the new framework, starting in November 2000, a single licence of unlimited validity, known as the Single Telecommunications Services Licence, was granted.  The licence authori zes the provider to offer any type of registered 
telecommunications service, with or without its own infrastructure, throughout the territory of 
Argentina, and the granting of the licence is indepe ndent of the allocation of the facilities required to 
provide the service.  This regime requires the submis sion of a technical plan and an investment plan.  
There are no restrictions on the participation of foreign capital.  Licences may be transferred or 
assigned, subject to authorization.  The obtaining of a licence is independent of the use of the frequencies of the radio-frequency spectrum, which has to be authorized by SECOM.   
109. To resell services it is necessary to obtain a single telecommunications services licence.  
Ground or satellite radio communication system and television services for subscribers using the 
radio-frequency spectrum require prior authorization. 
110. The regulations in force distinguish between Dominant Providers ( Prestadores con Poder 
Dominante ) and the rest.  The former are defined as t hose providers whose income generated by the 
provision of the service exceeds 75 per cent of the total income generated by all the providers of the 
service in question, in a specified area or na tionally, as the case may be.  Likewise, Significant 
Providers ( Prestadores con Poder Significativo ) are those whose income generated by the provision 
of the service exceeds 25 per cent of the total income  generated by all the providers of the service in 
question, in a specified area or nationally, as the case may be.  Moreover, each of the basic telephone 
service licensees in the northern and southern regions is considered to be an "Historical Provider" 
within the meaning of Decrees Nos. 2347/90 and 2344/ 90, both published in th e Official Journal of 
7 January 1991. 
111. Except where no effective competition is consid ered to exist, telecommunications services 
providers can freely establish their tariffs and i nvoicing periods for the provision of local, domestic 
long-distance and international telephony services in each  local basic telephone service area.  In these 
cases, the providers for the areas in question must  respect the maximum tariffs established by the 
CNC, in accordance with the provisions of Annex I to  Decree No. 62/90 and its amending legislation.  Argentina WT/TPR/S/176 
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In mid-2006, only the historical providers were subject to controlled tariffs.94  The historical providers 
will be free to set the tariffs for local, domes tic long-distance and international long-distance 
telephone services in a local basic telephone service area once effective competition exists.   
112. Decree No. 764/2000 adopted, as Annex II, the Na tional Interconnection Regulations (RNI), 
which introduced a set of interconnection procedur es, standards and principles.  The RNI stipulate 
that prices are to be determined freely and that they  must be "fair, reasonable and non-discriminatory" 
(Art. 26).  Significant or dominant providers are re quired to submit a Reference Interconnection Bid, 
in which they must indicate the maximum pric es applicable to each of the interconnection 
components.  SECOM may intervene to set the price at  the request of any of the parties involved in an 
interconnection agreement, if there is disagreement with  respect to conditions or prices.  In this case, 
SECOM determines the prices of the network compone nts and functions in terms of the cost of 
efficient supply, which the Regulations take to mean a cost not greater than the arithmetic mean of the 
prices in effect in countries with competitive market  systems, such as Australia, Canada, Chile, the 
European Union, New Zealand and the United States.   
113. The General Regulations on the Universal Se rvice (RGSU), also adopted by Decree 
No. 764/2000 (Annex III), extend its coverage beyo nd the basic telephone service and provide for 
subsidies for high-cost areas, customers and groups of customers, and specific services which cannot 
be offered or provided under cost conditions that meet commercial standards.  The subsidies can only 
be used to pay costs relating to the provision of the universal service and are calculated in terms of net 
costs.  To finance the application of the universal  service, the RGSU created a Universal Service Trust 
Fund, which was to be implemented from 1 January 2001.  In November 2006, this Fund had still to 
be constituted.    
114. Law No. 25.239, O.J. of 31 December 1999, imposed a tax of 4 per cent on the amount 
invoiced to the user for providing cellular or sat ellite telephone services.  Moreover, under Decree 
No. 1185/90, O.J. of 28 June 1990, and its amendi ng legislation providers must pay a control, 
inspection and verification tax on the provision of te lecommunications services, together with taxes, 
duties, tariffs and charges for the use of the radio-frequency spectrum.  For providers with a 
teledensity of not more than 15 per cent in a spec ified service and area there is the possibility of 
exemption from payment of the tax on the income earned by providing that service in that area, as well as on that earned by providing the universal service.  
(iii) Financial services 
(a) Main features  
115. Argentina's financial services sector includes the financial system (public and private banks, 
and non-banking entities such as fina nce companies, and credit f unds), insurance companies and 
participants in the securities market and the Admi nistrators of the Retirement and Pension Funds 
(AFJP) of the capitalization system.   
116. Argentina's specific commitments on financial ser vices are contained in its initial schedule of 
concessions.  Argentina did not submit an offer in the extended negotiations on these services within 
the framework of the GATS.  Argentina bound, without limitations, consumption abroad and commercial presence in relation to all types of bank loans and deposits, financial leasing, guarantees 
and commitments, money market instruments, fore ign exchange, derivative products, and advisory 
                                                     
 
94 In accordance with Resolutions SC No. 672/99 (Telecom Argentina STET-France Telecom S.A.) and 
Nos. 986/99 and 18969/99 (Telefónica de Argentina S.A.).  WT/TPR/S/176 Trade Policy Review 
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services, among others, but left unlisted new financial services unbound.95  In the field of insurance, 
Argentina bound cross-border supply and consum ption abroad for maritime and air transport 
insurance services and reinsurance and retrocession se rvices.  Commercial presence in the case of the 
services mentioned, together with life, accident a nd health and non-life insurance services, was bound 
in practice for enterprises already operating in Argen tina in 1994, since it was subject, as far as market 
access is concerned, to the limitation of suspension of authorization of the establishment of new entities.  In its GATS schedule of commitments, Arge ntina made being a member and shareholder of 
the Securities Exchange a prerequisite fo r engaging in stock market transactions. 
(b) Banks and other financial intermediation institutions 
Main features 
117. As at May 2006, Argentina's financial system , which includes the entities regulated by the 
BCRA, consisted of 72 banks, 16 finance companies a nd 2 credit funds.  Of the banks, 13 out of 
72 were public and 59 private.
96  Among the public banks, 3 were national and 10 provincial or 
municipal.  Among the private banks, 34 were  domestic-capital institu tions, 13 were local 
foreign-capital banks, 11 were branches of foreign banks, and 1 was a private cooperative bank.  Of 
the 16 finance companies, 4 were dom estic-capital and 12 foreign-capital. 
118. The number of banks declined sharply during the last decade, falling from 169 in 1995 to 
72 in 2006.  The number of private banks decreased from 138 to 59, mainly due to mergers, although quite a few licences (44) were also revoked.  The number of public banks fell from 31 to 13, mainly 
as a result of the privatization of 13 of them.  Most  of the consolidation of the banking system took 
place before 2000, which is said to have improved the efficiency of the system.
97 
119. Although most of the financial system, in term s of both the number of institutions and assets 
and loans, is in private hands, the public banks cont inue to make an important contribution.  Of the 
top 10 Argentine banks in terms of assets, three are public banks:  Banco de la Nación Argentina  
(BNA), the largest in the country in terms of  assets and loans, deposits and net worth;  Banco de la 
Provincia de Buenos Aires (second in assets and fifth in loans), and Banco de la Ciudad de Buenos 
Aires  (sixth largest in assets and loans).98  The BNA operates as a State commercial and development 
bank.99 
120. The economic and financial crisis  of 2001/2002 resulted in a c onsiderable exodus of deposits 
from the system.  The generalized outflow observed in last quarter of 2001 led to the implementation of a series of restrictions on withdrawals, in order to protect the savings and assets of economic agents in general.  Decree No. 1570/01 established te mporary restrictions on withdrawals of cash ( corralito ), 
which were limited to Arg$250 or US$250 per week , and temporarily prohibited transfers abroad, 
with the exception of those corresponding to foreign trade transactions, the use of credit or debit cards 
abroad, and the settlement of financial transactions .  In January 2002, the convertibility regime was 
abandoned and this was followed by a substantial depreciation of the peso (see also Chapter I).  In 
                                                     
 
95 Argentina has excluded from these concessions financial operations by the Government and State-
owned enterprises.  WTO document GATS/SC/4 of 15 April 1994. 
96 BCRA (2006a). 
97 Basu, Ritu et al. (2004).  This study concludes that banking sector consolidation through mergers and 
privatizations during the period December 1995 to December 2000 had a positive and significant effect on bank 
performance and reduced the risk of insolvency, but  that acquisitions did not have the same effect. 
98 See http://www.bcra.gov.ar/sisfin. 
99 See http://www.bna.com.ar/in stitucional/institucional.asp. Argentina WT/TPR/S/176 
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February 2002, the maturity of time deposits ( corralón ) was extended and, with some exceptions, 
bank deposits and assets were converted into pesos at an exchange rate of Arg$1 to the dollar for 
assets and Arg$1.4 to the dollar for liabilities.  The banks  were seriously affected by the conversion of 
dollar deposits and assets into pesos at different ex change rates, since it substantially increased their 
liabilities in relation to their assets.100  An attempt was made to offset the direct effects of 
asymmetrical pesoization by means of a "compe nsation bond" (BODEN $2007), with entities also 
being given the opportunity to subscribe to dollar bonds (BODEN US$2012) at a rate of Arg$1.40 to 
the US dollar for the amount of their negative net foreign-currency position.   
121. Following the devaluation and the moratorium on the repayment of public-sector debt, which 
represented 50 per cent of bank assets, there was a significant increase in credit risk.101  This was later 
aggravated by a series of legal actions ( amparos ) brought by depositors seeking to have deposits 
refunded in the original currency.  In th is connection, the BCRA allowed the book losses 
corresponding to the differences resulting from the implementation of these measures to be booked as 
assets and then amortized over a period of 60 months.  In response to the crisis, the authorities also introduced a series of temporary measures which resu lted in more flexible regulation of the banks.  
For example, permission was given to deduct partia lly from taxable income (IG) the net losses due to 
the application of the exchange rate determined  by the Executive, a valuation mechanism for 
government bonds (and loans) was established to al low for a gradual convergence to market value, 
and coefficients were fixed for temporarily reducing the capital requirements on non-financial 
public-sector financing granted up to 31 May 2003  and the capital charge on interest rate risk, 
together with a timetable for the convergence of these coefficients.
102  
122. Credit levels have been recovering since the e nd of 2003, but at the end of 2005 were still 
below 1998 levels.  After deteriora ting considerably during the financial crisis, bank solvency and 
profitability indicators have gradua lly improved.  The net worth/net assets ratio was 13.26 per cent in 
May 2006, compared with 11.8 per cent in Decem ber 2004.  The non-performing loan ratio (loans 
more than 90 days in arrears as a percentage of to tal gross loans) has been dropping and in June 2005 
stood at 7 per cent.  As at May 2006, 93.3 per cent of financial system debtors were in good standing, 
1.93 per cent of debt was considered irrecoverable, a nd with respect to the rest there was some risk of 
insolvency.   
Legislative framework  
123. Financial activity in Argentina takes place with in a legal framework that includes various 
laws, decrees, regulations and BCRA circulars.  Th e main provisions relating to the regulation of the 
banking system and other financial entities can be found in Law No. 21. 526, O.J. of 21 February 1977 
(Law on Financial Entities) and its amendments.103  The application of this Law and, in general, the 
supervision of the financial intermediation system  is the responsibility of the BCRA, under its Charter 
and the extended powers conferred on it by Law No. 25.782, O.J of 31 October 2003.  The BCRA 
operates through the Supervisory Authority for Fina ncial and Foreign Exchange Entities (SEFyC).   
                                                      
100 Barajas, Adolfo et al.  (2006).  This study shows that the financially sounder banks were less 
affected by withdrawals of deposits, generally havi ng a better net position in dollar terms and greater 
capitalization, which contributed to a reduced perception of risk.   
101 See http://www.imf.org/externa l/pubs/ft/scr/2005/cr05236.pdf. 
102 BCRA (2006b). 
103 Contained in Laws No. 22.051, O.J. of 20 Augu st 1979, No. 22.529, O.J. of 26 January 1982, 
No. 22.871, O.J. of 10 August 1983, No. 24.485, O.J. of 18 April 1995, and No. 24.627, O.J. of 18 March 1996, and in Decree No. 214/2002, O.J. of 4 February 2002. WT/TPR/S/176 Trade Policy Review 
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124. The Argentine legislation is governed by the principle of national treatment for foreign 
capital.  The establishment of new financial entities,  their expansion, merger and changes in their 
capital or functions require the prior authoriza tion of the BCRA, which must take into account 
considerations of timeliness and fitness, such as th e characteristics of the project, market conditions, 
the record and responsibility of the applicants and their financial experience.  In general, private 
financial entities must be established in the form  of a limited company, with the exception of:  
branches of foreign entities;  commercial banks, wh ich may also be established in the form of a 
cooperative society;  and credit funds, which may al so be established in the form of a cooperative 
society or civil association.  Financial entities may hold shares in other financial entities, subject to 
authorization by the BCRA, but are prohibited from operating commercial, industrial, agricultural or 
other business enterprises. 
125. The minimum capital requirement depends on th e Argentine jurisdiction within which the 
entity's main activity is carried on, with reduced requirements in those areas which are comparatively 
less well supplied with banking services.  For the financial entities operating as at 30 June 2005, the 
requirement is that prescribed for their area but with a maximum of Arg$15 million.  For entities authorized to operate as of 1 July 2005 the am ounts vary between Arg$5 million and Arg$25 million. 
126. The opening of branches in Argentina, whether do mestic or foreign financial entities, requires 
the prior approval of the BCRA and depends on compliance with the prudential regulations 
concerning minimum capital, liquidity, solvency, ri sk and return.  For foreign entities to establish 
branches in Argentina, the country of origin must  have a consolidated s upervisory regime, and the 
capital required must be located effectively and pe rmanently in Argentina.  Representative offices of 
foreign financial entities also require the prior au thorization of the SEFyC, which is contingent upon 
the record and responsibility of the entity to be represented and its representative and upon the 
country of origin (except in the case of a nei ghbouring country) having a consolidated supervisory 
system.   
127. As distinct from private institutions, provinci al and municipal financial entities may establish 
branches within their jurisdictions only after havi ng first notified the BCRA, which may object if the 
qualifying requirements are not met.  Before an Arge ntine financial entity can acquire more than 5 per 
cent of the capital or the votes in another such entity domiciled abroad, it must first obtain authorization from the SEFyC;  the authorization of the SEFyC is also a prerequisite for establishing 
representative offices abroad.  For financial entities to establish branches abroad, they must first 
obtain the authorization of the BCRA. 
128. The SEFyC has adopted the basic rules on cap ital adequacy established by the Basel 
Committee on Banking Supervision and requires a ratio of total capital to risk-weighted assets of at 
least 8 per cent.  The capital requirements of each financial entity are determined by taking into 
account the risks implicit in its various assets.  Three types of risk are considered:  credit or 
counterparty, interest rate and market.  Entities mu st maintain a basic mini mum capital fixed by the 
BCRA, which is the greater of the basic capital previously defined and the sum of the capital 
requirements for credit risk and interest rate risk  (for assets not quoted on the securities market).  The 
minimum capital requirement for credit risk is de termined by weighting the requirements for the 
different assets according to their risk.  Moreover,  entities must comply with a capital requirement for 
market risk calculated daily, for assets traded on securities markets.  The capital requirement obtained 
by adding up the above is weighted by means of a rating factor determined by the SEFyC on the basis of the entity's performance and which vari es between 0.97 (better) and 1.15 (worse). 
129. To facilitate compliance with the bank solvency regulations following the crisis period, from 
1 January 2004 up to the end of 2008 a coefficient that temporarily reduces the capital requirement for Argentina WT/TPR/S/176 
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non-financial public-sector financing granted up to 31 May 2003 is being applied, together with, up to 
the end of 2006, another coefficient that temporarily reduces the capital charge on interest rate risk.   
130. The banks can receive financial assistance fro m the BCRA for temporary illiquidity, if, 
among other requirements, the liquidity ratio of the requesting entity is less than 25 per cent.  
Assistance is offered for a period of 90 days, which can be renewed for periods of the same length.  
Law No. 25.780, O.J. of 8 September 2003, stipulates th at the BCRA is authorized to exclude certain 
assets and liabilities from a bank's restructuring process.  This Law also provides that when a financial 
entity goes into liquidation, priority should be give n to the refunding of the deposits made by natural 
and/or legal persons up to the amount of Arg$50,000 , followed by larger deposits and by liabilities 
originating in commercial facilities granted to the entity  that directly affect international trade.  Bank 
deposits are protected by the Deposit Guarantee F und, in accordance with Law No. 24.485, O.J. of 
18 April 1995.  The Fund is administered by Seguro de Depósitos S.A.  (SEDESA), a limited company 
created by Decree PEN No. 540/95.  The Fund covers  several types of deposits in pesos and foreign 
currency up to Arg$30,000 per depos itor and entity.  The Fund dealt with 27 cases between October 
1996 and November 2005 (16 since 1999), disbursing a total of Arg$2,135.4 million.  On 30 June 
2006, the available balance in the Fund amount ed to Arg$1,440.3 million (some US$480 million).104 
131. Decree No. 32/01, O.J. of 27 December 2001, created the Banking Liquidity Fund (FLB) for 
injecting liquidity into the financial system in times of crisis, with resources contributed by the 
financial entities, in proportion to the private-sect or deposits held, and by the State.  SEDESA was 
given provisional responsibility for administering the FLB as a trustee.  As from 2002, the 
contributions of the entities were suspende d by the BCRA (Communiqué "A" No. 3582).105  In 2002, 
the FLB granted only two loans, which were sub sequently written off in April of that year.106 
132. The SEFyC requires financial entities to provide periodic reports on their asset position and 
compliance with technical, operational and institutiona l regulations.  It is mandatory to report share 
transfers or capital contributions made in a form that is not proportional to shareholdings which, 
considered individually or collec tively over a six-month period, represent 5 per cent or more of the 
capital and/or votes, as well as subscriptions to sh ares on stock markets in Argentina or abroad.  
Significant changes in the capital ownership of fo reign enterprises that control financial entities 
established in Argentina must also be notified. 
133. The BCRA is responsible for authorizing the operations of foreign exchange entities, in 
accordance with the provisions of Law No. 18.924,  O.J. of 28 January 1971, and its Regulatory 
Decree No. 62/71 (as amended by Decree No. 427/79),  which may be established as exchange houses, 
exchange agencies or exchange offices.  The mi nimum capital requirement depends on the kind of 
entity involved and the jurisdiction within which it is  to be set up.  Moreover, to operate as a broker, 
either individually or in partnership, th e authorization of the BCRA is required.  
134. Credits and debits entered in current accounts,  together with all movements of funds in 
financial entities, are subject to the tax on debits and credits in current accounts, in accordance with 
Law No. 25.413, O.J. of 26 March 2001, and Decr ee No. 380/01 of 30 March 2001 and amendments.  
The general rate is 6 per mil for credits;  for move ments of funds it is 12 per mil,  for transactions 
covered by the tax exemption or social works regime  it is 2.5 or 5 per mil;  for credit card payments a 
                                                      
104 See http://www.sedesa. com.ar/saldo_fgd.php. 
105 See http://www.sedesa.co m.ar/que_es_sedesa.htm. 
106 SEDESA (2003). WT/TPR/S/176 Trade Policy Review 
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rate of 0.75 per mil is applied.  Under Law No. 23.427, O.J. of 3 December 1986, and amendments a 
tax of 2 per cent is levied on the capital of cooperatives.107 
(c) Securities market 
135. The securities market in Argentina is mainly concentrated in the Mercado de Valores de 
Buenos Aires  (Merval) and although there are markets ope rating in other cities, they collectively 
represent barely 1 per cent of the Merval volume.108  There are also other types of entities such as 
stock exchanges without an associated securities market, clearing houses, a futures and options 
clearing house, an electronic open market, a securities depository, and futures and options markets.   
136. There are 133 stockbrokers and brokerage firms operating in the securities market.  The value 
of the stocks traded on the Merval in 2005 amounted to Arg$145.523 billion (US$48.35 billion).109  
Two thirds of the stock market turnover in 2005 was in public-sector securities;  share turnover 
accounted for 13.7 per cent of the total.  To tal market capitalization on 31 December 2005 was 
Arg$771.321 billion (US$254.561 billion), equivalent to 145 per cent of GDP, with the 10 largest 
companies accounting for over 90 per cent.110  At the end of 2005, there were 195 investment funds in 
operation with assets of Arg$9.5 billion (US$3.15 bil lion);  the assets of the Retirement and Pension 
Fund Administrators (AFJP) totalle d Arg$67.92 billion (US$22.7 billion). 
137. The Merval is a self-regulated entity.  Its capita l consists of shares;  provided they meet 
certain requirements, the shareholders (natural or legal persons) are authorized to act as stockbrokers or brokerage firms, for the purpose of buying and selling securities for their own account or for the account of third parties.  The main functions of  the Merval are related with the coordination, 
settlement, supervision and guaranteeing of market operations.  The Merval is empowered to take 
disciplinary action against stockbrokers and brokerage  firms that fail to comply with the rules and 
regulations of Argentina's stock market system, pur suant to Law No. 17.811 (see below), or with the 
rules of the Merval itself.  The main function of the Argentine Capital Market Institute (IAMC), an 
integral part of the Merval, is to advise stockbroke rs and brokerage firms and promote the use of the 
capital market through its publications and training courses. 
138. The National Securities Commission (CNV), a national self-governing technical body, with 
jurisdiction throughout Argentina, is responsible fo r monitoring the stock market institutions and the 
public offer and trading of securities issued by pr ivate and semi-public companies.  The CNV also 
oversees the secondary securities markets and their brokers, as well as the public offer of forward, 
futures and options contracts, their markets and clearing houses, and their brokers.
111  T h e  C N V  
administers the register of stockbrokers and that of  the natural and legal persons authorized to offer 
securities to the public.  The CNV is authorized to  apply sanctions in cases of infringement of the 
securities market laws and regulations. 
139. Law No. 17.811 on the Public Offer of Securities,  as amended by Laws No. 22.000, O.J. of 
24 May 1979, and No. 24.241 on Trusts, O.J. of 16 January 1995, and by Decree No. 677/01, O.J. of 28 May 2001, regulates the whole of the securities ma rket, including the public offer of securities, the 
                                                     
 
107 National Investigations and Fiscal Analysis Directorate, Public Revenue Undersecretariat, Finance 
Secretariat, Ministry of the Economy and Production (2006). 
108 As at August 2006, the Córdoba, Mendoza and Rosario securities markets and the Mercado de 
Valores del Litoral  were in operation.  National Securities Commission (2006). 
109 Mercado de Valores de Buenos Aires, S.A ., Argentine Capital Market Institute (2006). 
110 National Securities Commission (2006). 
111 See http://www.cnv.gov.ar/. Argentina WT/TPR/S/176 
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organization and operation of the stock market ins titutions and the conduct of stockbrokers and others 
engaged in securities trading.112  Under this Law, the authorization of the CNV must be obtained 
before securities issued by private or semi-public  companies can be offered to the public.   
140. Securities markets must be set up as limited companies with registered shares and must be 
associated with a stock exchange, which, in its tu rn, must be established as a civil association with 
legal personality or as a li mited company.  Securities markets can  only deal in securities whose listing 
has been authorized by the relevant stock excha nge, which depends on their having previously been 
authorized by the CNV for public offer.  Stockbrokers must be registered with and shareholders in the 
securities market in which they are to operate, as well as being members of the relevant stock 
exchange;  there are no nationality or residence restri ctions on being a shareholder, but to operate as a 
stockbroker or brokerage firm it is necessary to be domiciled in the City of Buenos Aires, within a 
radius determined by the Board of the Merval.  The securities markets supervise the stockbrokers and 
can exercise disciplinary powers if the law is br oken.  These disciplinary measures may include 
suspension or expulsion.  
(d) Insurance 
Main features 
141. In the last 10 years there has been a decline in  the number of insurers, which was accentuated 
by the crisis of 2001-2002.  The devaluation a nd debt moratorium produced severe imbalances 
between the assets and liabilities of the insurance companies which ha d to face surrenders and legal 
actions by the insured.  The authorities have pointed out that, during this period, the policy of the 
Insurance Supervisory Authority was directed to ward safeguarding the insured, by seeking to 
strengthen the market and establish emergency rules fo r dealing with the crisis.  The authorities have 
also noted that, since 2004, the insurance market h as been growing again, albeit with changes in the 
structure and dynamics of the various categories of insurance.   
142. On 30 June 2006, there were 188 enterprises ope rating in the Argentine insurance market as 
compared with 247 in 1999.  Of the 188 functioni ng enterprises, 23 were operating exclusively in 
retirement insurance, 46 only in life insurance, 16 onl y in employers' liability insurance and the other 
103 in non-life or mixed (non-life and life) insuran ce.  Most of these enterprises are private, with 
national or foreign capital, five are branches of fore ign enterprises, and three are State-owned.  As at 
30 June 2005, there were 84 enterprises operating in the reinsurance market, as compared with 114 in 
1999.113  The authorities have indicated that as at 30 June 2006 there were 89 enterprises enrolled in 
the Reinsurers Register, most of them established abroad.  The authorities have also noted that the 
reduction in the number of reinsurers reflects th e financial crisis and th e reorientation of the 
reinsurance strategy by th e international reinsurers. 
143. As at June 2006, insurance market premiums  were valued at Arg$15.914 billion (some 
US$5.305 billion).  Casualty and property insurance accounted for 70 per cent of the total, while 30 per cent corresponded to personal insurance (lif e, retirement and personal injury).  In 2005, 
insurance contributed 2.8 per cent to GDP.  As at 30 June 2006, per capita direct premium was 
Arg$359 (US$117).  Between 1995 and 2004 the insuran ce business was loss-making, due to high 
                                                     
 
112 The legal framework of the securities market in cludes:  Law No. 20.643 on the Regime for the 
Purchase of Private Securities, O.J. of 11 February 1974;  Law No. 23.299 on the Registration of Private 
Securities, O.J. of 8 Novemb er 1985;  Law No. 23.576 on Negotiable Bonds, O.J. of 27 July 1988;  and Law 
No. 24.083 on Mutual Funds, O.J. of 18 June 1992.   
113 See http://www.ssn.gov.ar/stor age/info-estadistica/mercado/. WT/TPR/S/176 Trade Policy Review 
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operating costs, a fragmented market structure, and an unfavourable underwriting experience, a 
situation partly offset by the profitability of the fina ncial structure.  During this period, the insurance 
companies accumulated losses totalling Arg$4.29 billi on (US$1.4 billion), equivale nt to 82 per cent of 
their net worth in 2005.114  However, the insurance sector has been  returning to profitability:  as at 30 
June 2006, the bottom line for the year was show ing a profit of Arg$686 million (US$229 million). 
Legal framework 
144. The regulatory and supervisory authority for th e sector is the National Insurance Supervisory 
Authority (SSN), a decentralized public ag ency operating under the Financial Services 
Undersecretariat of the MEP.   
145. Law No. 20.091 on Insurance Entities and their S upervision, O.J. of 7 February 1973, and its 
amendments, regulates the insu rance business in Argentina.115  Law No. 24.241, O.J. of 18 October 
1993, established the Integrated Retirement and Pens ions System, creating provident retirement and 
life insurance.  Under Law No. 24.557 on Occupa tional Risks, O.J. of 4 October 1995, every 
employer has to be insured through an Occupational Risk Insurer (ART).  The resolutions of the SSN 
also constitute the regulatory framework for the insurance market.  Resolution No. 21.523/92 and 
amendments contain the General Regulations of the Insurance Busi ness.  SSN Resolution 
No. 24.805/96 and amendments constitute the regulatory framework for reinsurance.   
146. Public Emergency Law No. 25.561, O.J. of 7 January 2002, and Decree No. 214/2002 
introduced measures that had a significant effect on the operation of the insurance market.  Decree 
No. 558/2002 was issued to prop up insurers by authorizing the SSN to intervene and manage the processes of insurance company regularization and re organization.  In the case of life and retirement 
insurance companies, the SSN adopted Resolution No. 28.905/2002 laying down the rules for 
planning their restructuring. 
147. The Insurance Entity Law appli es to insurers and reinsurers throughout the territory of 
Argentina.  To operate as an insurer or a reinsu rer in Argentina it is nec essary to obtain the prior 
authorization of the SSN.  Only the following may ca rry out insurance and reinsurance transactions:  
(a) limited companies, cooperatives and mutual funds;   (b) foreign branches or their agencies, if the 
laws of the country of domicile provide for recipr ocity;  and (c) national, provincial or municipal, 
official or joint bodies and entities.  To obtain auth orization to operate, companies must have been 
established for the sole purpose of carrying out in surance transactions, and all the capital required 
must have been paid up.  The supervisory author ity therefore establishes as a uniform and general 
standard for all insurers the minimum amount of capital and the corresponding rules with which the 
insurers must comply.  Moreover, the authorization of new operators is subject to the expediency of 
their role in the insurance market .  Insurers are not allowed to ope rate in any branch of insurance 
unless they have been expressly authorized to do so.  Changes in the memorandum or articles of 
association or in the registered capital require the prior approval of the SSN. 
148. Insurance for risks that could arise on Argen tine territory can only be taken out through 
companies established in the country.  Law No. 12.988, O.J. of 11 July 1947, prohibits the insuring abroad of persons, goods or any insurable in terest within the national jurisdiction. 
                                                     
 
114 Undersecretariat of Financial Services, Secretar iat of Finance, Ministry of the Economy and 
Production (2006). 
115 Other relevant laws are Law No. 17.418 on Insurance Contracts, O.J. of 6 September 1967, and Law 
No. 22.400 on the registration of insurance intermediaries, O.J. of 18 February 1981.   Argentina WT/TPR/S/176 
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149. Insurance entities can take out re insurance with national reinsure rs, with foreign reinsurers 
that operate in their country of origin and register  with the SSN, and, through the intermediation of a 
broker, with foreign reinsurers not registered with the SSN.  In this latter case, the reinsurance broker 
must be registered with the SSN and the reinsuri ng enterprise must be accredited by an international 
rating agency.  For a reinsurer to re gister with the SSN it must meet, inter alia , the following 
requirements:  show that it has a minimum capital of US$30 million and appoint a representative with broad administrative and legal powers, who must est ablish legal residence in the Autonomous City of 
Buenos Aires. 
150. Insurance intermediation, which includes advisi ng the insured and insurable, is governed by 
Law No. 22.400 on the Insurance Intermediaries Re gime, O.J. of 18 February 1981.  As at 
30 June 2005, 24,870 natural persons and 387 legal persons were enrolle d in the Register of Insurance 
Intermediaries, as compared with 18,346 natural pers ons and 386 legal persons in 1995, respectively. 
151. Premiums and commissions are freely determined by the insurers, but in the case of 
commissions the SSN is authorized to establish minima and maxima.  Where premiums are concerned, the SSN may approve, by resolution, uniform minimum premiums net of commission if 
the stability of the market is affected and at the request of any of the insurers' associations, after 
hearing the other associations.  According to the au thorities, no use is being made of these powers.  
152. Insurance premiums are subject to a tax at a rate which varies depending on whether the 
enterprise is established in Argentin a or abroad, in which case it is hi gher.  For enterprises established 
in Argentina, the rate is 0.1 per cent in genera l, in accordance with De cree No. 687/98, O.J. of 
17 June 1998, and 2.5 per cent for industrial accidents;   for insurers established outside Argentina, the 
rate is 23 per cent.  Revenue from insurance pr emiums totalled Arg$8.1 million (US$2.7 million) in 
2005, and Arg$6.2 million (US$2.1 million) in  the first nine months of 2006. 
(iv) Air transport and airports 
(a) Main features 
153. Argentina's National Airport System (SNA) is composed of a total of 54 airports, of which 
8 are international.  The main airport (Ezeiza) is located 22 km outside the City of Buenos Aires and 
handles 85 per cent of international traffic.  Th e number of passengers carried on scheduled domestic 
flights was 5 million in 2004 and 2.32 million in th e first half of 2005;  the number of passengers 
carried on international flights w as 1.83 million and 918,000, respectively.
116  As at August 2006, 
28 national and international airlin es were operating on a regular basis in Argentina.  Moreover, there 
were some 50 authorized facilities for providing technical services, of which 11 were Argentine and 
the rest foreign.  Argentina has made no commitme nts with respect to air transport under the GATS. 
(b) Air transport services 
154. Public policy for the air transport sector is  established and implemented by the Commercial 
Air Transport Undersecretariat of the Transport Secret ariat of the Ministry of Federal Planning, Public 
Investment and Services, the aeronautical author ity under the Aviation Code.  The Undersecretariat 
supervises commercial air transport services, analyses and proposes policies for the sector, and 
participates in the negotiation of bilateral agreements.117  The Undersecretariat must approve the 
routes, flight frequencies, capacity and timetable s of domestic and international scheduled air 
                                                      
116 See http://www.aerocomercial.gov.ar/ estadisticas/ofertaydemanda.html. 
117 See http://www.aerocomercial.gov.a r/institucional/objetivos.html. WT/TPR/S/176 Trade Policy Review 
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transport services.  The Air Force's National Airworthiness Board (DNA) administers the National 
Aircraft Register and grants operating permits.118   
155. The main provisions relating to air transport and the services linked directly or indirectly with 
the use of public and private aircraft in Arge ntina are contained in the Aviation Code (Law 
No. 17.285, O.J. of 23 May 1967) and amendments.  Registration in the National Aircraft Register 
confers Argentine nationality on the aircraft, annulling any previous registration.  In order to own an 
Argentine aircraft, a natural person must be an actua l resident of Argentina;  if there are several 
co-owners, then the majority, who se rights exceed half the value of th e aircraft, must maintain their 
actual residence in Argentina.  In the case of a company, it must have been established under 
Argentine law and have its registered office in Argentina.  Persons who perform aviation duties on 
board Argentine-registered aircraft and those w ho perform aviation duties on the ground must be in 
possession of a certificate issued by the DNA (Decree No. 1.954/1977, O.J. of 14 July 1977).  The 
revalidation of certificates issued abroad is govern ed by agreements concluded between the issuing 
countries and Argentina;  if there is no such ag reement, revalidation is subject to reciprocity. 
156. Domestic (cabotage) air services are reserved for Argentine enterprises or nationals.  
However, on grounds of public interest, the Executiv e may authorize such ente rprises to provide such 
services on condition of reciprocity.  Natural persons  providing domestic air transport services must 
be Argentinian and maintain their actual domicile in Argentina.  Where enterprises are concerned, 
they must have been established and have their regi stered offices in Argentina, and they must be 
controlled and managed by persons act ually domiciled in Argentina.  In  the case of a partnership, at 
least half plus one of the partners must be Ar gentine citizens domiciled in  the country and own a 
majority of the equity;  in the case of a joint-stoc k company, a majority of the shares, corresponding 
to a majority of the countable votes, must be re gistered and owned by Argentine nationals actually 
domiciled in the country, a criterion applicable both to natural persons and to  legal persons actually 
domiciled in Argentina (Decree No. 52/1994, O.J. of  21 January 1994).  The chairman of the board, 
the managers and at least two thirds of the directors must be Argentine nationals. 
157. The provision of domestic air transport services requires a concession in the case of scheduled 
services or an authorization in the case of unscheduled air transport.  Concessions are granted on 
specified routes and for a period of not more than 15 years, which can be extended on request, and are 
non-exclusive.  Flight crews must be Argentine na tionals;  for technical re asons a percentage of 
foreign personnel may exceptionally be authorized for a period of not more than two years.  Aircraft 
assigned to domestic transport services must be Arge ntine-registered;  exceptionally, to ensure the 
provision of those services or for reasons of nationa l expediency, foreign-registered aircraft may be 
used.  
158. Foreign enterprises may provide internationa l air transport services, under international 
conventions or agreements to which Argentina is party, or with the prior authorization of the 
Executive.  The authorization granted to foreign ente rprises must contain at least the same obligations 
as those imposed on Argentine enterpri ses providing similar services.   
159. The Aviation Code authorizes the subsidizing of air transport services on routes of public 
interest.  Law No. 19.030 (Regul ations on the Provision of Commercial Air Services), O.J. of 
27 May 1971, also stipulates that "the National Executive shall economically complement national 
carriers holding concessions to provide scheduled air services if as a result of the imposition of 
uneconomical fares on routes or segments of routes decl ared to be of public interest for the Nation, 
                                                      
118 See http://www.dna.org.ar/dnaportal/institucional/Home/home.htm. Argentina WT/TPR/S/176 
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the commercial operation of the totality of the routes declared to be of public interest proves to be 
loss-making ".  Moreover, the Executive is empowered to  subsidize the operation of aerial work 
services of the same nature.119   
160. Decree No. 1.654/2002 imposed a state of emerge ncy on commercial air transport throughout 
Argentine territory for domestic operators within the jurisdiction of the national authority while the 
Public Emergency Law was in force.  Under the state of emergency imposed by this Decree, from 1 September 2002 national air transport enterprises were  no longer required to take out commercial air 
insurance policies in Argentina, as stipulated by Law No. 12.988 of 1947, so as to reduce their 
insurance costs.   
161. Executive (P.E.N.) Decree No. 1.012/06 declared  the continuation of the state of aviation 
emergency and established the Aviation Fuel Comp ensation Regime (RCCA) to be applied to 
domestic scheduled air passenger transport services.   Transport Secretariat Resolution No. 806/206 
regulated this regime.  Decree No. 1.012/06 also au thorized the providers of domestic scheduled air 
passenger transport services to adjust fares, provide d that they fell within the bands between the 
reference fare and the maximum fare for each of th e points of origin/destinat ion listed in Annex I to 
the Decree.  Moreover, the above-mentioned Decree  No. 52/1994, which had been suspended since 
2000, was brought back into force to facilita te investment in the aviation industry. 
162. Air carriers submit the fares for air transport services to the Commercial Air Transport 
Undersecretariat, the registering authority.  Domestic airfares are deemed to have been approved if they fall within the fare band regime, in accordance with the levels established in Annexes I and II to 
Decree No. 1.012/2006.  International airfares ar e deregulated and carriers, whether national or 
foreign, only have to register them.  Neverthel ess, bilateral understandings with other countries may 
contain fare clauses that provide for different criteri a for approving the fares of designated carriers on 
bilateral routes.   
163. Argentina is a party to several international air transport services agreements and conventions, 
including the Chicago Convention of 1944.  Law No. 25.806, O.J. of 2 December 2003, ratified the Agreement on Subregional Air Services (Fortaleza Agreement) between the members of MERCOSUR, Bolivia, Chile and Peru, which is intended to facilitate the introduction of new 
subregional scheduled air services, on routes not actua lly operated within the framework of bilateral 
agreements.  Argentina has bilateral air transport agreements with 22 countries.
120  Moreover, it has 
concluded bilateral unde rstandings on commercial air transport services with 23 countries.121  
Agreements that involve arrangements for the pooli ng, linking, consolidation or merging of services 
or business operations must be submitted for approval to the Commercial Air Transport 
Undersecretariat.   
                                                      
119 Decree No. 2.836/1971, O.J. of 13 August 1971, permits the subsidization of aerial work for the 
purposes of agricultural pest control or disaster management. 
120 Bolivia, Brazil, Canada, Denmark,  France, Germany, Italy, Korea,  Malaysia, Mexico, Netherlands, 
New Zealand, Norway, Paraguay, Russian Federation , Singapore, Spain, Sw eden, Switzerland, United 
Kingdom, and United States. 
121 Australia, Austria, Canada, Chile , China, Colombia, Costa Rica, Cuba, Czech Republic, Ecuador, 
Greece, Israel, Italy, Luxembourg, Panama, Peru, Syria,  South Africa, Turkey, Unite d Arab Emirates, Uruguay 
and Venezuela. WT/TPR/S/176 Trade Policy Review 
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(c) Airports and auxiliary services 
164. Argentina's airports are owned by the State.  Th e administration of airfields and airports, with 
the exception of military airfields, and their supe rvision are the responsibility of the Transport 
Secretariat's National Airport System Regulat ory Authority (ORSNA), established by Decree 
No. 375/97.  However, the law allows the administration of airports to be put out to concession.  As at 
August 2006, 33 of the National Airport System 's 54 airports were being administered by 
concession-holders.122   
165. Under Decree No. 1.142/2003, the Commercial Air Transport Undersecreta riat is responsible 
inter alia  for coordinating with ORSNA and the other ai rport authorities the activities relating to the 
provision of support services for commercial air tr ansport and the development of the aviation 
infrastructure.  ORSNA establishes the rules, systems and technical procedures required to administer, 
operate and maintain the airports that form pa rt of the National Airport System and monitor 
compliance, and submits to the Executive draft pr oposals for the amendment and repeal of laws, 
decrees and/or resolutions relating to aviation.  OR SNA has jurisdiction over airport matters and, in 
particular, those relating to the approval of ta riff schedules for the services provided under the 
National Airport System, both by concession-holders and airport administrators. 
166. The Argentine Air Force is responsible for ov erseeing security, the provision of air transit 
and/or air traffic control and/or flight protection services, aeronautical regulations and the provision of 
communications, meteorological, rescue and salvage services and, in general, for the technical aspects of the SNA.  The Air Force's DNA admini sters the airworthiness rules and procedures.
123 
167. A concession or authorization is required to carry on any commercial air transport activity.  
Market access without restricti ons and national treatment apply to  all auxiliary services, with the 
exception of navigation services, which are reserved for the State.  There are no limitations on 
domestic or foreign private participation in the provision of auxiliary services such as maintenance, 
contracts for which can be placed abroad.  Technical aviation personnel must obtain a certificate of competency and a licence.  Certificates of comp etency and licences granted abroad are valid in 
Argentina subject to revalidation.   
168. Decree No. 698/2001 authorizes domestic air tran sport enterprises and/or their agents that 
hold concessions or authorizations to provide gr ound servicing for aircraft assigned to their own 
traffic or to that of third parties.  The maxi mum tariffs for services relating to the use of public 
airports are approved by ORSNA.  The procedures for determining the airport service tariffs for 
domestic and international traffic are la id down in Annex I (Initial Tariff Schedule
) of Resolution 
No. 53/98, O.J. of 1 June 1998.  The rates vary with  increase in the weight of the aircraft.  Decree 
No. 698/2001 amended, with respect to the tariffs a pplicable to domestic flights, the Initial Tariff 
Schedule approved by Decree No. 500/97 and ame nded by Decree No. 57 of 22 January 2001.  
Decree No. 698/2001 significantly reduced the landing and parking fees for domestic flights, but the 
tariffs applicable to internati onal flights remained unchanged. 
                                                      
122 See http://www.orsna.gov.ar/contents/aeroports.html. 
123 See http://www.dna.org.ar/dnaportal/institucional/Home/home.htm. Argentina WT/TPR/S/176 
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(v) Maritime transport 
(a) Main features 
169. Argentina has 33 main ports, 8 under provinc ial administration and the rest privately 
operated.  The port of Buenos Aires is the country 's main port for both general and container cargo, 
and in the period January-May 2006 it handled some 4.04 million tonnes of goods transported by river 
or by sea.  Of the total cargo handled, 1.36 milli on tonnes corresponded to imports and 1.71 million to 
exports.  San Lorenzo, San Martín  and Rosario on the Paraná River are the country's main ports for 
cereals and oils.  
170. As at August 2006, there were 27 shipping lines,  with domestic or foreign capital, operating 
in Argentina.  A substantial proportion of the intern ational goods traffic uses foreign-flag vessels.  
Despite the steps taken by the authorities to implem ent policies to increase the volume of traffic using 
Argentine ships, the Argentine me rchant fleet has been shrinking.  In 2002, the national merchant 
fleet had 70 units, as compared with 149 in 1991.  However, in response to incentives, 55 vessels 
were registered under the national flag between August 2004 and April 2006;  in August 2006, the 
Argentine fleet consisted of 212 units.  Argentin a has no maritime transport commitments under the 
GATS. 
(b) Maritime and river transport services 
171. The Ports and Navigable Waterways Undersecretariat of the Transport Secretariat of the 
Ministry of Federal Planning, Public Investment and Services is responsible, among other things, for 
the formulation, implementation and monitoring of policies and plans relating to river and maritime 
transport.124 
172. Law No. 20.094 (Shipping Law), O.J. of 15 January 1973, and Decree No. 4516 of 
16 May 1973 and succeeding enactments on the Ma ritime, River and Lake Navigation Regime 
(REGlNAVE) contain the rules applicable to mari time and river transport.  Decree No. 817/97 of 
26 May 1992 on Port Activities introduced the dere gulation of the waterborne transport sector, 
providing for it to develop within a context of fr ee play between supply a nd demand, under conditions 
of reciprocity and with minimum requirements.  The Decree contains rules for the administrative 
reorganization and privatization of maritime, river and lake transport activities.  Decree No. 817/97 
revoked the administrative provisions relating to the approval of tariffs, with the exception of those 
relating to conference freight.  It requires shipowne rs and/or ship's brokers to communicate their 
tariffs, routes, schedules and standard of service to the Ports and Navigable Waterways 
Undersecretariat and that they be made public.  
173. Decree Law No. 19.492 of 25 July 1944, ratifie d by Law No. 12.980, provides for coastal 
shipping and trade (cabotage) to be reserved for Arge ntine-flag vessels.  This restriction also applies 
to cargoes which are ultimately to be exported and wh en during the voyage the vessel puts in at one or 
more foreign ports. In addition, it applies to transhipment, dredging and towing operations and any other service or commercial activity carried out in Arge ntine (maritime, river or lake) waters.  Vessels 
providing cabotage services within Argentina must be owned by Argentine citizens or companies 
legally established in Argentina and registered as shipowners in the National Shipowners Register. 
174. Article 6 of Decree Law No. 19.492 of 25 July 1944 empowers the National Executive to 
authorize foreign vessels to provide national cabotag e services if there are no Argentine units capable 
                                                     
 
124 Decrees Nos. 1.824/2004, 1.283/2003 and 1.142/2003. WT/TPR/S/176 Trade Policy Review 
Page 136 
 
 
of providing them.  A total of 94 exceptions were gr anted in 2005, and 50 in the first seven months of 
2006.125  There were also 16 exceptions granted for dre dging in 2005 and 5 in the first half of 2006. 
175. Decree No. 1.010/2004 repealed Decree No. 1. 772/91, which had established a provisional 
suspension of flags regime in favour of the Arge ntine flag.  A regime wa s created for Argentine 
shipowners under which they are granted facilities for bare-boat chartering of vessels in accordance 
with their gross registered tonnage under the natio nal flag, with the exclusion of vessels and floating 
structures that can be built in Argentina.126  Vessels eligible for the regi me are authorized to carry out 
coastal and international operations, being considered  to be under the national flag for a period of 
between one and three years from the date of enrolmen t in the Register.  Vessels incorporated in the 
Register are placed under the temporary admission pro cedure.  The requirements for enrolment in the 
Register include permanent domicile (natural persons ) or establishment (legal persons) in Argentina, 
the registration under their ownershi p or the operation of at least one  Argentine-flag vessel, or the 
conclusion of a shipbuilding contract with an Argentine shipyard and registration as a shipowner. 
176. To promote shipbuilding in national shipyards,  Decree No. 1.010/2004 authorizes, for up to 
24 months, shipowners with vessels under constructi on in Argentine shipyards to use for coastal 
traffic foreign-registered vessels with characteristi cs similar to those of the vessels under construction 
and up to 100 per cent of the tonnage contracted, and to charter vessels intended for activities in 
support of off-shore petroleum operations for the equi valent of 200 per cent of the tonnage to be built 
in national shipyards.  Decree No. 1.010/2004 al so established an import regime for inputs, parts 
and/or components not produced in MERCOSUR, in tended for the construction and repair in the 
country of vessels and floating structures classifiab le in headings 8901, 8 902, 8904, 8905 and 8906 of 
the MERCOSUR Common Nomenclature, at a tariff ra te of zero per cent.  Foreign-flag vessels and 
floating structures covered by Decree No. 1.010/20 04 must have exclusively Argentine crews and 
modifications to and repairs to vessels and structur es covered by the regime must be carried out in 
shipyards and workshops in Argentina. 
177. Argentina participates in a number of internati onal shipping agreements administered by the 
International Maritime Organization (IMO).  Arge ntina is a signatory to the Inter-American 
Convention on Facilitation of Intern ational Waterborne Transportati on (Convention of Mar del Plata) 
of 7 June 1963. Together with Bolivia, Paraguay,  Uruguay and Brazil, Argentina is party to the 
Agreement on Facilitation of Navigation and Co mmercial Transport on the Paraguay-Paraná 
Waterway, approved by Law No. 24.385, O.J. of 21 November 1994, and has also signed bilateral 
river transport agreements with Boliv ia, Brazil, Paraguay and Uruguay. 
178. The Maritime Transport Agreement between Ar gentina and Brazil, signed on 15 August 1985 
and approved by Law No. 23.557, O.J. of 18 July 1988,  grants reciprocity in the transport of cargoes 
and reserves for vessels registered in the two count ries the transport of goods between their ports, 
whether those goods be in commercial trade or tr anshipments for or from third countries.  The 
Maritime Transport Convention between Argentin a and Cuba of 13 November 1984, approved by 
Law No. 23.432, O.J. of 27 March 1987, reserves th e carriage of their foreign trade for vessels 
registered in the two countries.  
                                                      
125 Transport Secr etariat (2006). 
126 Vessels to be used for fishing;  for sporting or recreational or technical, scientific and/or research 
activities;  for transporting passengers and/or vehicles, up  to 5,000 tonnes;  for transporting cargo, not self-
propelled;  for extracting sand and/or pebbles; and tugs  and support and auxiliary craft.  Floating structures 
include dredgers, landing stages, platforms, buoys, etc. Argentina WT/TPR/S/176 
 Page 137 
 
 
(c) Port services 
179. Under Decree No. 1.824/2004, O.J. of 15 December 2004127, the Ports and Navigable 
Waterways Undersecretariat is the authority r esponsible for formulating, implementing and 
monitoring policies relating to port services. The Undersecretariat supervises the operation of the 
Administración General de Puertos Sociedad del Estado  (AGPSE), which administers the Port of 
Buenos Aires. 
180. Law No. 24.093 (Port Law), O.J. of 26 June 1992, governs all matters relating to the 
authorization, administration and operation of St ate-owned and private ports.  Decree No. 769/1993 
on Port Activities contains the implementing regulatio ns for Law No. 24.093.  The Port Law classifies 
ports according to their ownership into national, provincial, munici pal and privately owned, according 
to their use into public and private, and accordi ng to their purpose into commercial, industrial and 
recreational.  It also establishes the conditions and requirements for the authorization of ports.  The 
Port Law stipulates that private individuals may build , administer and operate public or private ports 
for commercial, industrial or recreational purposes,  on public land or on their own property.  
Commercial and industrial ports must have the auth orization of the Executive, which remains in force 
as long as they continue to operate.  The Law requir es the fees, prices and other consideration paid by 
users to be strictly proportional to the service provided.   
181. Decree No. 817/92 provided for the dissolu tion of the AGPSE once the ports under its 
jurisdiction had been privatized, transformed or  transferred.  In the meantime, individual 
administrations were provisionally established, un der the AGPSE, for six ports, namely:  Buenos 
Aires, Rosario, Quequén, Bahía Blanca, Santa Fe, and Ushuaia.  Decree No. 19/2003 provided for the 
elimination from the title of the AGPSE of the addition "in liquidation ".  
182. The fees charged by the ports under private admi nistration are freely fixed.  The fees charged 
in the Port of Buenos Aires and in those ports s till under State administration are centrally fixed and a 
distinction is made between cabotage and international trade.  For example, in the case of the charges 
for wharfage services and vessel taxes, cabotage vess els pay only 25 per cent of the charge or general 
tax at an exchange rate of Arg$1 to the US dollar.   Similarly, the cargo tax structure favours internal 
transport operations, since the rate  is US$3 per net registered t onne (NRT) for exports and US$1.50 
for imports, and US$0.562, at an exchange rate  of Arg$1 per US dollar by weight, for internal 
transport operations.128 
183. Pilotage, marshalling and towing services are compul sory for foreign-flag vessels.  Argentine-
flag vessels with certain dimensions and draught  can opt to dispense with the above-mentioned 
services if their captains or owners comply with cer tain requirements with regard to experience.   
(vi) Professional services 
(a) Main features 
184. According to Article 41 of Law No. 24.521 (Higher Education), O.J. of 10 August 1995, to 
exercise a profession it is necessary to have the un iversity diploma officially recognized by the 
Ministry of Education.  Article 42 stipulates that officially recognized diplomas shall certify the 
academic training received and confer the right to exercise the profession throughout the national 
territory, subject to the powers of the provinces to regulate the professions. 
                                                      
127 See http://www.transport.gov.ar/html/sub_ports.htm. 
128 See www.portbuenosaires.gov.ar. WT/TPR/S/176 Trade Policy Review 
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185. Under Decree No. 2293/92, the freedom to exercise a profession is subject only to the 
requirement of a single registration, where appropriate.  However, those professions whose exercise could place the health, safety, rights, property or e ducation of the population directly at risk are 
regulated by the State.  Article 43 of Law No . 24.521 specifies that for diplomas corresponding to 
professions regulated by the State, the Ministry of  Culture and Education (MECYT) shall determine, 
in agreement with the Universities Council, the basic contents of th e curriculum, the extent of the 
practical training requirements and the list of such  diplomas, together with the professional activities 
reserved exclusively for their holders.  Twenty-four professions have been declared to be of public 
interest and must be periodically accredited by the National Evaluation and University Accreditation 
Commission (CONEAU).  These include medicine, pharmacy, biochemistry, veterinary science, 
architecture, dentistry and psychology, together with  18 engineering specialties, while the inclusion of 
lawyers, notaries, chartered accountants and actua ries among those who practise professions of public 
interest is under study.
129  According to the authorities, there are no professions reserved for Argentine 
nationals. 
186. Under Law No. 24.521, O.J. of 10 August 1995, for foreign diplomas (whether awarded to 
Argentine nationals or to foreigners) to be rec ognized in Argentina and authorize the exercise of a 
professional activity they must have been revalid ated by a National University (i.e. a public 
national-government university, not a provincial or pr ivate establishment).  The recognition of studies 
pursued abroad which qualify the student to exercise a profession depends on the diploma being authenticated by the National University Manageme nt Directorate (DNGU) of the University Policy 
Secretariat of the Ministry of Culture and Educatio n.  For this purpose, the diploma must have been 
certified by the educational authorities and the Argentin e Consulate in the country of origin and by the 
Ministry of External Relations in Buenos Aires, unless the country is party to the Hague Convention 
of 5 October 1961, in which case the diploma is exem pt from the requirement of authentication by the 
Ministry. 
187. Where Argentina has signed bilateral or mu ltilateral agreements on the recognition of 
university diplomas, the system of equivalences a pplies.  The diplomas issued by Bolivia, Colombia, 
Chile, Ecuador, Peru and Spain fall within this category.
130  The procedure for recognizing diplomas 
awarded by these countries for the exercise of a profession varies according to the agreement.   
188. Decree No. 240/99 on Economic Deregulation c ontains provisions that deregulate the 
activities of a series of professional regimes.  Specifically, the Decree annulled the previous 
provisions concerning the determination of scal es establishing all forms of remuneration for 
professional services and inventoried the provisions revoked in the case of each of the main 
professions.  Public or private entities, including professional associations and societies, are 
prohibited from obstructing the free negotiation of any form of remuneration.  Decree No. 2284/91 
annulled the restrictions on the supply of goods and services throughout Argentina, including all 
limitations on the exercise of professions. 
189. Argentina has made full specifi c commitments in the professional services sector under the 
GATS, in various areas such as legal, accounting,  auditing and book-keeping services, architecture 
and engineering.  This applies to market access and national treatment both for cross-border supply 
and for consumption abroad and commercial presen ce.  Argentina has also made commitments in 
                                                      
129 CONEAU (2006). 
130 For diplomas issued by Ecuador, Spain and Colombia (for non-accredited professions only) and 
Peru, Ministerial Resolution No. 252/03 provides for a procedure that includes the formation of Assessment 
Committees of Specialists from CONEAU  to analyse each application for th e recognition of a degree and advise 
on the relevant academic requirements.  Argentina WT/TPR/S/176 
 Page 139 
 
 
other sectors, which, in their turn, involve the concession of certain types of professional services 
such as information technology, communications, cons truction, distribution, financial, and tourism 
services, among other business services.  The supply of services through the presence of natural persons is unbound with respect to market access an d national treatment for all the sectors included in 
Argentina's GATS schedule, except for measures concerning the entry and temporary stay of 
managers, executives and specialists.
131  The authorities have pointed out that in presenting its initial 
offer in April 2003, Argentina significantly improved its level of commitments by incorporating the 
categories of businessmen, professionals and specialis ts, intra-corporate transfers, and representatives 
of foreign enterprises.132 
190. In 1996, in accordance with Article VII.4 of the GATS, Argentina notified the WTO that it 
had ratified diploma recognition agreements with 10 countries.133 
(b) Legal services 
191. To practise as a lawyer it is necessary to have  a national law diploma awarded by a public or 
private university or by a foreign university.  In this latter case, the diploma must have academic 
validity under a bilateral treaty or have been reva lidated by a national university.  In all cases, to 
practise as a lawyer it is necessary to obtain pr ofessional authorization through enrolment in the 
Register of the Colegio Legal de Abogados  (Law Association) of the corresponding jurisdiction.  
Under the Argentine constitutional system, each local jurisdiction adopts laws organizing and 
governing the power to regulate the professions by establishing the requirements for exercising the 
national university qualification. 
192. There are various regimes of compulsory asso ciation for lawyers in Argentina's 22 local 
districts (21 provinces and the Autonomous City of Buenos Aires), while lawyers must register with 
the Judiciary in the Provinces of Santa Cruz and Ch aco.  There are 73 public law associations in the 
provinces and the Federal Capital.  In some provin ces there are several public law associations, and in 
others only a single professional association for the entire territory;  lawyers enrolled in one association of a particular local jurisdiction may practise throughout the jurisdiction, even though it 
may have several associations. 
193. Law No. 23.187, O.J. of 28 June 1985, contai ns provisions concerning the requirements for 
practising as a lawyer in the Federal Capital, toge ther with provisions concerning registration and 
association.  The provinces have similar procedures and requirements, with the exceptions mentioned 
in connection with the provinces of Santa Cruz a nd Chaco, where lawyers must register with the 
Judiciary.  To practise as a lawyer in the Fede ral Capital it is necessary to possess a practising 
certificate issued by the competent authority and to be enrolled in the register of the Colegio Público 
de Abogados  of the Federal Capital, except in the case of lawyers who plead before the Supreme 
Court.  Lawyers must have an office or special do micile within the jurisdiction in which they are 
enrolled.   In the case of the provinces, the laws governing the power to regulate the professions lay 
down requirements similar to those mentioned, but it is not necessary to be actually domiciled in the 
particular jurisdiction in which the profession might be  practised in view of the fact that lawyers can 
practise anywhere in their provincial territory su bject to enrolment in the register of the law 
association of their actual domicile.   
                                                     
 
131 WTO document GATS/SC/4 of 15 April 1994. 
132 WTO document TN/S/O/ARG of 8 April 2003. 
133 WTO document S/C/N/13 of 27 February 1996.  The various agreements involve Argentina and one 
or more of the following countries:  Brazil, Bolivia, Co lombia, Ecuador, the Holy S ee, Paraguay, Peru, Spain, 
Uruguay and Venezuela. WT/TPR/S/176 Trade Policy Review 
Page 140 
 
 
194. Since there are no nationality requirements, a fore ign lawyer may open a law office, subject to 
compliance with the relevant immigration legislat ion.  Foreign lawyers with national diplomas can 
enrol with the public law association of their Arge ntine domicile.  Foreign diplomas need to be 
revalidated.134 
195. Under Law No. 23.187, it is the Colegio Público de Abogados  of the Federal Capital that 
monitors the exercise of the legal profession and is responsible for supervising registration within the 
geographical area of the Federal Capital.  Registra tion is compulsory and entails the exercise of 
disciplinary powers over the person registered.   
(c) Accounting and auditing services 
196. The requirements relating to chartered account ancy and other economics diplomas are laid 
down in Law No. 20.488, O.J. of 23 July 1973, and in Resolutions of the Ministry of Culture and 
Education No. 1.560 of 1 September 1980 and No . 1.627 of 25 October 1983.  Access to the 
Argentine market for foreign-trained accountants de pends on revalidation of the professional diploma, 
professional accreditation and registration in Argentina.  Foreign accountancy firms may set up and offer services in Argentina.  Balance sheets must  be certified by a public accountant whose signature 
must be attested by the professional economics council of its jurisdiction.  The activities of 
accountants are regulated by the professional ec onomics councils of the corresponding province or 
jurisdiction, which grant and administer the regist ration that enables the economics professions to be 
practised legally.
135  The rules to be followed are laid down  in each jurisdiction in accordance with the 
legislation of each province or the Autonomous City of Buenos Aires.  In the Autonomous City of 
Buenos Aires, for example, it is Law No. 466 of 3 August 2000 that governs the accountancy and 
other similar professions.  The professional bodies appr ove technical standards and codes of ethics. 
197. Argentina is not party to any agreemen t on the mutual recognition of accountancy 
qualifications.  However, it does participate in several accounting procedure harmonization processes.
136  Argentina is involved in the MERCOSUR Integration Group on Accountancy, 
Economics and Administration (GIMCEA) with a view to harmonizing the rules on the exercise of the relevant professions within MERCOSUR.  Argentin a was also involved in the Working Party on 
Professional Services and replied to the questionnaire on accounting services.
137 
 
                                                      
134 Information available on the website of the Colegio Legal de Abogados  of the Federal Capital:  
http://www.cpacf.org.ar/azul/A _ReqMatric.htm#extranje. 
135 Argentina's professional councils were establishe d by law and are required to perform the functions 
stipulated in the corresponding legal provisions.  These functions have been delegated by the State and may not be performed by other institutions.  Each professional body has jurisdiction in its respective province. 
136 For example, through the Inter-American Accounting Association, the International Federation of 
Accountants and the International Accounting Standards Board. 
137 WTO document S/WPPS/W/7/ Add.7 of 17 July 1996. Argentina WT/TPR/S/176 
 Page 141 
 
 
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the operation of IRAM technical bodies), Bue nos Aires, December.  Consulted at:  
http://www.iram.com.ar/Documentos/Normalizacion/Reglamento.pdf. 
Krueger, Anne (2002), "Crisis Prevention and Resolution:  Lessons from Argentina" , Conference on 
"The Argentina Crisis ", National Bureau of Economic Research (NBER), Cambridge, 17 July.  
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Mercado de Valores de Buenos Aires, S.A.  (Buenos Aires stock market) and Argentine Capital Market 
Institute (IAMC) (2006), Anuario Bursátil '05  (Fact Book '05), Buenos Aires,  February.  Consulted at:  
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Page 144 
 
 
Ministry of the Economy and Production (MEP) (2006a), Entidades habilitadas para emitir 
certificados de origen  (Entities authorized to issue certificates of origin).  Consulted at:  
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MEP (2006b), Informe Económico Trimestral N° 54,  Apéndice Estadístico  (Quarterly economic 
review No. 54,  Statistical appendix).  Consu lted at:  http://www.mecon.gov.ar/peconomica/informe/ 
informe54/apendice_estadistico.htm. 
MEP (2006c) , Presupuesto 2006 (2006 Budget), Buenos Aires.  Consulted at:  
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Organisation for Economic Coopera tion and Development (OECD) a nd Inter-American Development 
Bank (IADB) (2006), Competition Law and Policy in Argentina: A Peer Review , Paris, October. 
Redrado, Martín (2005), Presentación del Programa Monetario 2006 (Presentation of the 2006 
monetary programme), Buenos Aires, December. 
Secretariat of Communications (2006), Antecedentes y principios para la desregulación de las 
telecomunicaciones en la Argentina (Background to and principles for telecommunications 
deregulation in Argentina),  Buenos Aires, June.  Consulted at:  http://www.secom.gov.ar/ 
municipios/ver.asp?MID=10&tipo=nota&id=122. 
Secretariat of Energy, Undersecretariat for Fuel (2006), Misiones y Funciones (Missions and 
functions).  Available at:  http://energia.m econ.gov.ar/contenidos/cont enidos.asp?id=252. 
Secretariat of Transport (2006), Excepción a la Ley de Cabotaje (Exceptions to the cabotage law).  
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Undersecretariat of Financial Services, Secretar iat of Finance, Ministry of the Economy and 
Production (2006), Situación del Mercado Asegura dor en Argentina, 1995-2005 (Overview of the 
Argentine insurance market, 1995-2005), Report produced by Gastón Eyerbe, Buenos Aires.  
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Unidad de Renegociación y Análisis de Contratos de Servicios Públicos , UNIREN (Public Utility 
Contracts Renegotiation and Analysis Unit) (2006a), Estado de la Negociación (Status of 
renegotiations).  Consulted at:  http://www.uniren.gov.ar/energia.htm. 
UNIREN (2006b), Proceso de Renegociación de Cont ratos de Servicios Públicos (Public utility 
contracts renegotiation process), 24 May.  Consulted at:  http ://www.uniren.gov.ar/.