New regulations, which allow for some flexibility in personnel management, would help create a more conducive environment for job growth. In 1998 the government introduced labor reform legislation which falls far short of private sector expectations. The law permits establishment of four zones. In addition, each province can establish a foreign trade zone. The foreign trade zone of La Plata, in the province of Buenos Aires, is by far the most active, due in large part to its proximity to the port of Buenos Aires.
Foreign firms have the same opportunities as Argentine firms.
Still, Argentina remains a large net recipient of foreign direct investment. Foreign investors are not required to register investments. Foreign investment in Argentina has grown rapidly since 1989. Together with the United States, Chile, the European Union, Canada and Japan are very important sources of investment capital. Construction, food processing, mining, telecommunications, energy, transportation, and motor vehicle production are of great interest to foreign investors.