U.S. direct investment in Argentina is largely concentrated in manufacturing, banking, energy, telecommunications and transportation. A U.S.-Argentina bilateral investment treaty came into force in October 1994. Under the treaty U.S. investors enjoy national treatment in all sectors except shipbuilding, fishing, insurance and nuclear power generation. An amendment to the treaty removed mining, except uranium production, from the list of exceptions. The treaty provides for arbitration of disputes by the international center for the settlement of investment disputes or other mutually acceptable international bodies.
Significant barriers remain, however.
The CET ranges from zero to twenty percent. Capital goods and informatics and telecommunications equipment are excepted from the CET until 2001 and 2006 respectively. In 1995 Argentina raised the tariffs on these goods to help counter an expected fiscal shortfall. The United States will also continue to engage this group of countries on a bilateral basis in an effort to expand trade and investment and reduce barriers to commerce. The specific duties are based on imputed values, and appear to violate Argentina's WTO commitments, especially under the Customs Valuation Code.