Download DOING BUSINESS IN ARGENTINA

DOING BUSINESS IN ARGENTINA
– A SIZABLE MARKET WITH UNTAPPED POTENTIAL
A dynamic market with untapped
potential and growing sectors
Despite difficult framework conditions in
Argentina, doing business in this country is
far from impossible. Argentina is still a
country, where Danish companies and
technologies are greatly valued for their
professionalism, effectiveness and quality.
Commercial success depends on thorough
preliminary work, the right business
partners and a thorough understanding of
the local business environment.
business
in
Since 2003 Argentina has experienced a
strong economic annual growth of 7-9%.
According to the World Bank, in 2010 and
2011, there has been a growth of 9.2% and
8.9% respectively.
General information
 Area: 2.780.400 km2
 Population: 43.4 million
 Capital: Buenos Aires
Since 2003, Danish exports to
Argentina have been increasing
steadily. From 2007 there has been
an average fluctuating export,
resulting in average of 3% growth
from DKK 7,4 billion in 2007 to DKK
8,4 billion in 2014.
 President: Mauricio Macri
Argentina
Doing business in Argentina can be
challenging. Argentina has introduced a
number of trade barriers, for example, the
non-automatic import regime, which
covers 600 tariff lines, aiming at
protecting the Argentine industry from
foreign competition. However, following a
decision by WTO Argentina is set to
remove these barriers by December 31st
of this year.
Argentina at a glance:
Business opportunities for
Danish
companies
Further business opportunities can
be found in the continuous demand
for high-tech products, machineries
and
technologies
improving
productivity and energy efficiency.
Did you know that…
Doing
However, as a result of the
weakening economy, growth has
slowed
to
0,4%
in
2014.
 Currency: Argentine Peso
 Government structure:
Bicameral Parliamentary
system. Senate with 72
members elected for 6 years
and a Chamber of Deputies
with 257 members elected for
4 years.
Economic Outlook
 GDP pr. Capita PPP (2014):
USD $ 14,337
 GDP (2014): USD $ 599.4
billion
 GDP growth (2014): 0.4%
 Inflation, GDP deflator (2014):
29.3%
Furthermore, the agricultural sector
is one of the most important drivers
in the Argentine economy, which
creates a demand for high-tech
machinery
and
equipment.
Argentina
needs
considerable
investments within infrastructure,
energy, health and education.
 Danish export to Argentina
(2015): DKK 1,1 mia.
 Annual growth in Danish
export to Argentina (200714): 14.5%
 Competitiveness
Index
(2016): 106th place of 140
 WB Doing Business (2016): 121
place of 189
Source: World Bank databank
DOING BUSINESS IN ARGENTINA
– A SIZABLE MARKET WITH UNTAPPED POTENTIAL
Challenges when doing
business in Argentina
 Challenging framework conditions





for trade.
Regular introduction of trade
barriers.
Scarce local financing.
Macroeconomic challenges.
Understanding local business
culture and bureaucracy.
Access to decision-makers.
Promising sectors in
Argentina
Pharmaceuticals & Medical equipment

Argentina has an increasing
demand for high quality medical
equipment and pharmaceutical
products.

Danish
exports
of
pharmaceuticals and medical
equipment was DKK 295 million in
2014 – an increase of almost 26%
since 2009.

Approximately
10
million
Argentinas are more than 50
years old which generates a need
to modernise the health sector.
Machinery and special equipment

The agricultural sector is one of
the most important drivers in the
Argentine economy. The constant
necessity to improve efficiency
results in a sustained demand for
high-tech machinery, equipment
and solutions.
Did you know that…
How can we add value to
your company?
The Embassy of Denmark in Argentina
can add value to your company by:


In 2014, Danish exports of
machinery and special equipment
was DKK 137,3 million.
The considerable need for
improving
efficiency
and
productivity in the industrial
production
generates
an
increased demand for special
machines,
machinery
and
accessories to the industrial
sector.
Energy and efficiency

Argentina has become an energy
importer which has contributed
to speeding up efforts to initiate
renewable energy projects.

There is a rather large potential
for products and solutions
improving the energy efficiency
in general since energy prices
have increased by up to 55% after
the government decided to
gradually
remove
energy
subsidies in November 2011.

Using our local network of public
and private stakeholders, related
business associations, chambers
and exhibitions to acquire relevant
market information.

Using our
‘knock’ on
obtain
information
contacts.

Endorsing your company to key
decision makers and potential
distributors.

Participating
meetings
stakeholders.
local knowledge to
the correct doors to
pertinent
market
and key stakeholder
and
with
arranging
relevant
Contact us:
The commercial team at the Danish Embassy
in Buenos Aires
Rating Argentina
 Corruption Index (2014):
107th place of 183
 S&P’s
Economic/Industry
Risk: 8/8 out of 10
 Heritage Economic

Jonas Bøving Christiansen | [email protected] | Head of
Commercial Department
Tea Marie Nielsen | [email protected] | Commercial
Department
Thomas Pinós Reither | [email protected] | Commercial
Department