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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