Category: Geopolitics

Information about international economic affairs that can impact the Argentinian economy.

Buenos Aires launches comprehensive carbon-neutral plan for 2050

The city of Buenos Aires has just launched a comprehensive green plan to reverse the adverse effects of climate change and its impact, in line with the axes required by the Paris Agreement, to which Argentina signed up in 2016. It is working to reduce emissions of the leading greenhouse gases (GEis), which account for 13.1 million tonnes of CO2 according to the latest official measurements. It focuses on three key sectors with high participation in emissions: responsible energy of 58%, transport of 28% and residues of 14%. The initiative will seek to make the city carbon neutral by 2050

The trade deficit with Brazil was $147 million in July

Trade with Brazil recorded a deficit of $ 147 million in July, totalling three consecutive months in red, as a result of a drop in Argentine exports, which recorded a sharp fall of 38.9% year-on-year in July. The value of exports was $554 million, while imports shrank by 18.6% and totalled $701 million, according to official information from the government of the neighbouring country.

Gold climbed almost 2% against the collapse of the dollar in the world

Spot gold climbed 1.8% to $1,934.62, a new record after an escalation in the geopolitical dispute between the United States and China, which affected the dollar and threatened to hit the global economy even harder. Gold has climbed 28% this year. The dollar is losing its appeal as a refuge. The dollar depreciated on Monday to a nearly two-year low against the EUR, which rose 0.9% to $1.18. In a similar vein, the Yen gained 0.8%.

ECLAC projects 8.5 million jobs losses and 2.7 million company closures in Latin America

The latest estimate by the Economic Commission for Latin America and the Caribbean (ECLAC) is that the region will lose 8.5 million formal jobs and 2.7 million legal businesses will disappear, not including job reductions by companies that will continue to operate. Although the crisis affects all enterprises, the impact will be much more significant on microenterprises and SMEs, because of their weight in the regional business structure.

World’s biggest trade deal in trouble over EU anger at Brazil deforestation

The European Union-Mercosur free trade agreement, finalized one year ago last June, faces growing opposition from European national governments, EU parliamentarians, and non-profit organizations, in addition to Latin American entities, putting its ratification at risk. At the heart of this resistance: the EU’s strong dissatisfaction over Brazil’s destructive environmental policies and rapidly rising deforestation rate under President Jair Bolsonaro. One of the biggest opponents of the trade agreement to date is the French government of Emmanuel Macron, whose party failed to triumph in municipal elections against the victorious Green Party on June 28, 2020.