Category: Geopolitics

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

USA decision jeopardises Argentine trade benefits

The U.S. Department of Commerce has decided to remove Argentina and other 24 countries of their list of developing countries, which may restrict trade benefits granted to nations in this category. According to Argentine Foreign Ministry sources, the measure “still has no direct consequences” and the Embassy in Washington will continue to monitor the issue.

The trade deficit with the US fell 23% and 70% with China in 2019

The trade deficit with the United States fell 22.5% in 2019 (from $ 5.314 billion in 2018 to $ 3.589 billion), because Argentina imported almost $ 1.9 billion less, according to official data from Washington. The fall of the bilateral deficit with China reached 70% ($ 2.2 billion against $ 7.6 billion in 2018), according to the Argentine Chamber of Exporters. In December, 32.7% of Argentine exports went to China, Brazil and the US, while 52.3% of imports came from those three countries, according to Indec.

Insect business: Mendoza exported 440 mn flies to Morocco

The Institute of Agricultural Health and Quality of Mendoza (Iscamen) announced the sale of 440 million sterile Mediterranean flies to Morocco. So far, the material used by Morocco was provided by the sterile insect production plant in Valencia, Spain. From March, Argentine province of Mendoza will send from the Bioplanta Santa Rosa, located 90 km from the capital, shipments of 10 million sterile flies per week.

Mexico’s Grupo Axo takes over Nike in Argentina

Mexico’s Grupo Axo acquired Nike’s operations in Argentina, Chile and Uruguay in a deal that still needs Argentine government approval. The agreement figure was not disclosed but could exceed $ 200 million. Axo operates 800 stores and owns Promoda, an off-price retailer, and Privalia, a multibrand e-commerce platform. It also has exclusive rights to more than 30 brands, including Calvin Klein, Guess, Speedo and Tommy Hilfiger.

ECR’s shares were up 12% after announcing selling of gold mine in Argentina

The London-based precious metals explorer ECR Minerals PLC has sold its Argentinian subsidiary Ochre Mining SA, which holds the SLM gold project in the province of La Rioja, to Chinese-owned Hanaq Argentina SA, in order to focus on the company’s core gold exploration activities in Australia. ECR retained a net smelter return royalty of up to 2%, to a maximum of $2.7 million in respect of future production from the SLM gold project.

$140mn wind farm in Neuquén will start operations in March

Five turbines of the first wind power project in the Argentine province of Neuquén will start generating electricity at the end of March, according to AES, the USA company leading the $140 million project with capacity to generate 100 MW. In June, all 29 wind turbines of Neuquinos I Winds will be operational, as agreed with Nordex Acciona, the firm that hired AES for the work.

Argentina leads 2019 boom in Mercosur beef exports

Beef exports from the four Mercosur member countries increased 17% in 2019, reaching a total of 2,704,000 tons, according to data from Rosgan – Rosario Stock Exchange. Argentina recorded a year-on-year increase in volume of exported meat of 54% (566,272 tons). Brazil, the largest exporter of the block, had an increase of 16%, Uruguay had no changes and Paraguay contracted its exports by -8%.