Doing Business In Argentina

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an opinion on whether construction of the plant violated a 1975 Argentine-Uruguayan treaty dealing with its shared river. A decision is expected in 2008. Corruption Return to top Government corruption and private sector business fraud are sometimes the subjects of complaints from some U.S. investors. They also argue that their adherence to the letter of the tax and regulatory codes at times places them at a competitive disadvantage. Transparency International (TI) has a local chapter in Argentina. In the latest TI Corruption Perceptions Index (CPI) that ranks countries and territories by their perceived levels of corruption, Argentina ranked 105 out of 180 countries and territories, below the average among Latin American countries. Transparency International’s 2007 Corruption Perceptions Index (CPI) can be found at http://transparency.org/policy_research/surveys_indices/cpi/2007. Such surveys have contributed to more open debate in Argentina about corruption and fraud. There are indications that the GOA is trying to reduce tax evasion by stepping up enforcement efforts and encouraging the use of credit card purchases while at the same time using the media to increase public awareness of tax obligations and to shame evaders. While Argentina’s growing economy has contributed substantially to the government of Argentina’s solid fiscal performance, anti-evasion efforts played a key role in the federal government’s record tax collections of about 200 billion pesos in 2007, up from around 163 billion in 2006 and 150 billion in 2005. In 2007, a major corruption investigation involving alleged bribe payments by employees of a foreign multinational corporation working on a gas pipeline expansion project to government authorities was widely reported in the press. Also in 2007, a federal congressman denounced an attempt by a foreign multinational to pay a bribe in exchange for supporting legislation favorable to the company's future business. Media reports that the Foreign Ministry plans to take this latter case to the OECD Anti- Corruption Committee. Argentina is a party to the OAS Anti-Corruption Convention and ratified the OECD Anti- Corruption Convention in 2001. Argentina has signed and ratified the UN Convention Against Corruption (UNCAC). It is an active participant in UNCAC’s Conference of State Parties and is participating in the pilot review of the implementation of UNCAC. It is also an active participant in the Mechanism for Follow-up on the Implementation of the Inter- American Convention Against Corruption (MESICIC). The government has regulations against bribery of government officials, but many observers feel that enforcement is uneven. An anti-corruption office under the Ministry of Justice reviews the financial disclosure statements that are now required of all senior public officials. The Anti- Corruption Office (ACO) also carries out investigations into cases of alleged corruption involving Executive branch officials or in matters involving federal funds, except for funds transferred to the provinces. Although nominally a part of the judicial branch, the ACO does not have authority to independently prosecute cases, but can refer cases to other agencies or serve as the plaintiff and request a judge to initiate a case. Most high-profile corruption cases, however, are investigated by individual judges. These judges, however, may request assistance from the ACO in gathering or analyzing evidence, especially when related to complicated financial transactions. 3/4/2008
A recent ACO investigation of GOA public purchases between 2002 and 2005 revealed that about 75 percent were accomplished via direct contracts, often with a sole provider, and not via public tenders. The ACO report expressed concern that this process can facilitate corruption and does not allow competition among providers. The ACO report noted that some GOA officials defended this practice, claiming that many contracts were below the legally-mandated limit of 10,000 pesos (about USD 3200), under which tenders are not required. GOA officials also claimed that sometimes only one provider was able to meet contract specifications. In response, the ACO report noted that GOA officials often avoided the 10,000 peso limit by disaggregating contract components so that no part exceeded this limit, that contract specifications were sometimes written so that only one provider could meet the requirement, or failed to widely advertise tenders so that other providers could be made aware of them. This report can be found at http://www.anticorrupcion.gov.ar/. Inefficiencies in the Argentine judicial system limit the effectiveness of efforts to stem corruption. Anti-corruption experts point to various shortcomings, which make corruption difficult to prosecute and make convictions rare. Bilateral Investment Agreements Return to top The governments of Argentina and the United States signed a BIT in 1991. The agreement was amended, ratified by the Congresses of both countries, and entered into force on October 20, 1994. The Argentina-United States BIT can be found on the following site: http://www.state.gov/documents/organization/43475.pdf.htm. Argentina does not have a bilateral tax treaty (Treaty for the Mutual Avoidance of Double Taxation) with the United States. At present, the GOA has signed and ratified bilateral treaties for the protection and promotion of investment with all of its major trade and investment partners. More information regarding Argentina's bilateral tax and investment treaties is available at www.infoleg.gov.ar. Argentina has valid double taxation treaties with the following countries: Australia, United Kingdom, Denmark, Germany, Belgium, Austria, France, Italy, Sweden, Switzerland, Spain, Canada, Chile, Bolivia, Brazil, Finland, Norway, and the Netherlands. In addition, a number of treaties concerning the exemption of income from international transport are in force. OPIC and Other Investment Insurance Programs Return to top The government of Argentina signed a comprehensive agreement with the Overseas Private Investment Corporation (OPIC) in 1989. The agreement allows OPIC to insure U.S. investments against risks resulting from expropriation, inconvertibility, war or other conflicts affecting public order. OPIC programs are currently used in Argentina. Argentina is also a member of the World Bank's Multilateral Investment Guarantee Agency (MIGA). 3/4/2008
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Doing Business in Argentina: 2008 C
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3/4/2008 Argentina’s banking syst
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3/4/2008 The zero percent import du
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Policy Short-term Short/Medium Term
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meetings. The service includes at l
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approximately 87 percent of the tot
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more limited and delivery is a grow
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Goods: Preference will be given to
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material, input, or material needed
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terminals at international airports
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As in many countries, personal rela
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"Clarin", "La Nacion", and "Ambito
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Av. de Mayo 605, Piso 3 C1084AAB Bu
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Business Facilitation Service: CS A
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organizations, both Argentine or U.
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available in Chapter 9: Contacts, M
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Agricultural Machinery, Equipment a
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Electric Power Systems Overview Ret
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Food Processing and Packaging Equip
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Information Technology Overview Ret
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Other market conditions will foster
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market. The market has been growing
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Mining Sector Specialist at the U.S
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significantly smaller than in the U
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A gradual recovery has taken place
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Best sales prospects for U.S. elect
Page 55 and 56: Travel and Tourism Services Overvie
Page 57 and 58: Telecommunications Equipment and Se
Page 59 and 60: Agricultural Sectors Return to top
Page 61 and 62: Food Ingredients Overview Return to
Page 63 and 64: Pioneer Argentina: www.pioneer.com/
Page 65 and 66: Average Tariff Rates by Type of Pro
Page 67 and 68: In 2006, there was a significant in
Page 69 and 70: 3/4/2008 Certain imported goods for
Page 71 and 72: Please note that VAT and Profits Ta
Page 73 and 74: 3/4/2008 Goods covered by Decree 73
Page 75 and 76: A fax of the commercial invoice may
Page 77 and 78: you through this process. You may a
Page 79 and 80: violate export control laws is foun
Page 81 and 82: Initial period: 1 year Extension: 1
Page 83 and 84: Article 6: - Importers, manufacture
Page 85 and 86: emanufactured) and certified by a "
Page 87 and 88: 3/4/2008 Normalizacion) --composed
Page 89 and 90: 3/4/2008 continuing shortage of ind
Page 91 and 92: 3/4/2008 Record No. S01:0116093/200
Page 93 and 94: 3/4/2008 Internet: www.anmat.gov.ar
Page 95 and 96: subject to the orders, guidelines o
Page 97 and 98: In January 2002, the government end
Page 99 and 100: The GOA has established a number of
Page 101 and 102: legality of this pesification decre
Page 103 and 104: deterrent penalties such as prison
Page 105: Law 17811 of 1968 regulates public
Page 109 and 110: Foreign-Trade Zones/Free Ports Retu
Page 111 and 112: Argentine Parliament (www.diputados
Page 113 and 114: Registry of Foreign Investments. Fo
Page 115 and 116: Local bankers report that the major
Page 117 and 118: The International Bank for Reconstr
Page 119 and 120: total project costs for new venture
Page 121 and 122: Return to table of contents Chapter
Page 123 and 124: C1104AC) Buenos Aires, Argentina Ph
Page 125 and 126: Buenos Aires has a large number of
Page 127 and 128: Travelers should note that since Ar
Page 129 and 130: Internet: www.buyusa.gov/argentina/
Page 131 and 132: U.S. Department of Commerce Trade I
Page 133 and 134: (Argentine Chamber of Importers) Mr
Page 135 and 136: (Ministry of Federal Planning, Publ
Page 137 and 138: C1020AC Buenos Aires Switchboard: (
Page 139 and 140: 25 de Mayo 487, primer piso C1002AB
Page 141 and 142: C1036AAJ Buenos Aires Phone: (54-11
Page 143 and 144: Fax: (54-11) 4312-7184 E-mail: mdem
Page 145 and 146: E-mail: fargosi@fibertel.com.ar BAS
Page 147 and 148: Bolivar 332, Piso 6 C1088AAH Buenos
Page 149 and 150: Mr. Klaus Bertram, President 25 de
Page 151 and 152: EXOLGAN TERMINAL PORTUARIA S.A. Mr.
Page 153 and 154: C1006ACI Buenos Aires Phone: (54-11
Page 155 and 156: Fax: (54-11) 4131-3900 E-mail: info
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www.starwoodhotels.com/sheraton/pro
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