The Argentine government will pay next week a maturity of around $300 million to the International Monetary Fund (IMF) to keep negotiations open. The negotiations between Argentina and the IMF for a new programme are a key piece of the economic chessboard for 2021. The official intention is to reach an agreement with enough time to be able to start negotiations with the Paris Club.
The US and Argentina have signed a competent authority agreement to exchange country-by-country reports describing aspects of the tax affairs of large multinational groups, the US IRS announced today. The aim of the exchange is to allow country tax authorities better insight into the activities of the multinational and it’s into its tax liabilities and payments.
Argentina’s 2020 trade volume was $97.24 billion, 14.9% down from the previous year, but with a trade surplus of $12.528 billion, the INDEC statistics bureau reported. Exports totalled $54.884 billion, 15.7% less than the previous year (down 13.2% in volume and 2.9% in price) while imports were $42.356 billion, 13.8% less than in 2019 (with volume down 10.7% and prices 3.5% lower).
Economic activity contracted 3.7% in November 2020 year-on-year, the INDEC national statistics bureau revealed. The data means that activity slumped by 10.6% in the first 11 months of 2020, when compared to 2019, mainly as a result of the coronavirus pandemic.
Wine consumption in the domestic market closed 2020 with a 6.5% rebound over 2019, representing some 57 million litres more than the previous year, said a report by the National Institute of Viticulture. The study points out that the fall in consumption had been accentuated since 2016, worsening in 2018, when the lowest historical figure of 18.7 litres per capita was reached, but in 2020 per capita consumption reached 21 litres.
Argentina has formalised restrictions and the reduction of the frequency of flights to and from the United States, Europe, Mexico and Brazil due to a resurgence of coronavirus cases in the country. This reduction of between 30% and 50% from these countries has the objective of “reducing the possibilities of entry of new strains into the country, allowing an exact control and monitoring of the number of passengers per day,” explained the Minister of Transport, Mario Meoni.
Argentina posted its first trade deficit since August 2018 as exports collapsed after a lengthy strike in some port operations. The country recorded a trade deficit of $364 million in December, compared to a $500 million surplus forecast by economists in a Bloomberg survey, government data showed. While imports grew 25% in annual terms driven by an economic recovery, exports slumped by 34%.
Galaxy Resources, an international lithium producer and developer, reported today on activities undertaken in the December 2020 quarter. At Sal de Vida project in Argentina, FEED nears completion, the wellfield to ponds package is ~95% complete and the plant and infrastructure is ~25% complete. Piloting onsite successfully produced 0.8 tonnes of high-grade lithium carbonate peaking at 99.9% purity.
Argentina’s state-owned satellite operator Arsat announced an agreement to join Chile’s Humboldt transoceanic cable project to connect South America with Oceania and Asia. The deal is part of a telecommunications integration framework between both countries signed by Argentine president Alberto Fernandez and his Chilean counterpart Sebastian Piñera.
Argentina is looking for ways to ensure ample domestic wheat supplies without resorting to shutting down exports, a top official said, as farmers fretted about possible state intervention in the markets. The government, worried about food price inflation, recently tried to limit corn exports, but the idea was beaten back by growers. Now the focus is on wheat, with rumors swirling around the Pampas grains belt that export limits might be on the way.