The IMF, World Bank, and Inter-American Development Bank have been major sources of funds to Argentina. The government and the IMF are expected to conclude an Extended Fund Facility in late 1996 or 1997. U.S. Exports One of the key market reforms of the Menem administration has been to open the Argentine economy to foreign producers and suppliers. The government abolished the import licensing system in 1989 and in 1990 cut the average tariff from nearly 29 percent to less than 10 percent. However, Mercosur common external tariff rates are slightly higher, so that Argentina's average tariff is now closer to 12 percent.
Restrictions apply to imports of a broad range of used and manufactured equipment as well.
In May 1996 the government issued a resolution requiring local generation of a majority of cable channels carried by cable and pay television operators in Argentina. The resolution also obliges all operators to register their programming with a government regulatory body. U.S. companies fear the measure will limit the entrance of new foreign channels and programming into Argentina and possibly force operators to reduce their current foreign offerings. Argentina also protects the automobile assembly industry through a combination of quotas and heavy tariffs. Nevertheless, the number of foreign manufactured vehicles on the roads is increasing through heavy demand that easily outstrips local production.