Doing Business In Argentina

3/4/2008
The zero percent import duty on a broad range of new capital goods produced in
non-MERCOSUR countries, such as the United States, was implemented in
2003, renewed in 2006, and will remain will remain in effect until at least
December 31, 2008.
Some goods not produced within the four MERCOSUR countries (Argentina,
Brazil, Paraguay, Uruguay), such as newsprint and books, and certain petroleum
products, also pay zero percent import duties on entering the Argentine market.
Ex-Im Bank is open for short and medium-term financing for U.S. exports to
private sector clients in Argentina. Long-term (15 years) financing is available for
environmental projects on a case-by-case basis.
The Overseas Private Investment Corporation (OPIC) offers assistance to U.S.
private investors in the form of political risk insurance, as well as loans and loan
guarantees for their direct investment in Argentina.
Leading U.S. exports to Argentina in 2006 were boilers, machinery, etc. and
parts thereof (26.6%); organic chemicals (12%); electric machinery etc., sound
equipment, TV equipment and parts thereof (10.3%); and plastics and articles
thereof (6%).
The following sectors offer the most significant growth potential for U.S.
exporters: agricultural machinery, equipment and parts; electrical power systems;
food processing and packaging equipment and parts; information technology;
medical equipment and supplies; mining machinery and equipment; pleasure
boats; plastics production machinery; security and safety equipment;
telecommunication equipment; travel and tourism services.
The following agricultural sectors offer the most significant growth potential for
U.S. exporters: animal genetics (bovine semen), food ingredients, and planting
seeds (for more information, click here).
Market Entry Strategy Return to top
U.S. companies typically market their products and services through an
Argentine agent/representative or distributor.
After analyzing the product and its uses, and defining the potential customers,
U.S. companies intending to export to Argentina should identify the geographical
areas where the major users of the product reside.
Segmentation is key. It is increasingly difficult to establish a "typical customer",
due to new consumption habits and to the dynamics of income distribution and
demography.
Personal relationships are fundamental when doing business in Argentina.
Success requires taking the time to develop a close personal relationship with
the representative, agent, or distributor.
U.S. companies intent on exporting to Argentina should consider economic,
demographic, and cultural characteristics that distinguish it from other Latin
American countries.
Marketing U.S. products and services in Argentina requires a high level of
research, preparation, and involvement.
An important component of the marketing-mix is promotion. Companies are
encouraged to visit or exhibit at local and regional trade shows, and to visit trade
shows in the U.S. attended by Argentine buyers.