As a member of Mercosur, Argentina is also a party to the EU-Mercosur Framework Agreement on Trade Cooperation signed in 1995, which contains provisions on trade cooperation. Argentina participated in the negotiations of the EU-Mercosur Association Agreement. Argentina and Chile share one of Latin America`s longest land borders, but have always fought on the trade agreement front. Protocol 61 is the most comprehensive trade agreement to date between the two nations. It fully covers trade in goods, services and investment; what are their rates and what are the legal requirements. More importantly, Argentina also signed the WTO Trade Facilitation Agreement in 2017, becoming the 128th member of the WTO. The agreement commits to reducing bureaucracy, simplifying and modernizing all trade between WTO members, with the aim of reducing global trade costs by 14.3%, or about $1 trillion per year. The signing of this promise demonstrates Argentina`s resolute intention to continue to integrate into the structure of world trade and international affairs. Tags: Argentina | Business | Creating an Argentina | business Start-up argentina | Foreign direct investment | free trade agreement | Mercosur Argentina is one of the original members of the MERCOSUR trade group. The other full members are Brazil, Paraguay and Uruguay.
The MerCOSUR trading group, which is the third largest integrated market in the world, is undoubtedly the main trading group to which Argentina belongs and which is responsible for most of its trade in and a-a of the country. Much of Argentina`s trade is facilitated by multilateral agreements integrated into MERCOSUR. The bloc has free trade agreements with Mexico, Peru, India, Egypt, Israel and, more recently, the European Union. Argentina is a major producer of agricultural raw materials and is one of the world`s leading exporters of soybean and sunflower products, pears and lemons. Wine and beef are also known products, which are most often consumed in the country. Argentina also has significant mineral resources such as gold, copper and lithium, and the world`s second and fourth largest reserves of shale gas and oil. In addition, the company produces industrial products in sectors such as automotive, the nuclear industry and an emerging digital services sector. Six months after the ratification of the agreement, both nations benefited. Most of the trade currently takes place in the food industry, where Argentine farmers benefit from a better price of their products to each other, due to their recent economic situation.
Although Argentina has long been part of regional trading groups and global trading blocs, its role has been more passive than active. Macri tried to reverse this attitude of the Peronist government`s legacy. Mercosur is an economic and political agreement between Argentina, Brazil, Paraguay and Uruguay. In the field of trade, Mercosur aims to promote the free movement of trade and the fluidity of trade in goods, people and currencies between its members. The historic relationship between the EU and Argentina is reflected in the level of foreign direct investment by EU companies that held 43 billion euros of shares in Argentina in 2018. The EU conducts bilateral dialogues with Argentina on economic and trade issues through the EU-Argentina Joint Committee established as part of the EU-Argentina Framework Agreement on Trade and Cooperation. The last such meeting was held in 2017. In March 2019, Chilean President Piaera and Argentine Macri met to celebrate the ratification of the new trade agreement between the two nations, dubbed “Protocol 61.”