Argentina

Argentina is a country in the southeast of South America. Its name comes from the Latin "Argentum" — silver, and the Greek "Argentus" — white. This South American state has become famous for its original culture, non-standard atmosphere and mixed customs of the Old and New Worlds.

General information

The official name of the state — Argentine Republic. The state occupies an area of 2,780,400 km² (8th in the world). The population is about 46,235,000 people (as of the beginning of 2023).

Argentines — the third largest national group in South America. The vast majority of the population of the country — descendants of a mixture of European migrants with the local Indian population and Negro slaves from Africa, whose share in colonial Argentina was relatively small. The modern population was formed in the course of two important processes: miscegenation of the colonial period and mass European immigration. So, before the arrival of the Spaniards, Argentina was inhabited by relatively few Indian tribes. After the extermination of most of the men, the Spanish colonists intermarried with local Indian and imported African women, forming the mestizo gauchos class.

Constitutional Catholicism — state religion of Argentina. Until the mid-1990s, only a Catholic could be elected president of Argentina. As of 2023, Christians make up about 82.5% of the population, Protestants — 10.8% Muslim — about 500 thousand Jews — 180 thousand people. About 12.2% of the population consider themselves non-religious.

The official language of the country is Spanish, but with a local accent. The local dialect is called Castellano Rioplatense or «argentino» and has significant differences from the variants of the Spanish language spoken in Spain and in the countries of Central America. In Argentina, in the new natural, economic and ethno-cultural conditions, the Spanish language was enriched with new words and phrases, as well as peculiar semantic changes. Many Indian names and concepts have entered the national language of the Argentines. Later came borrowings from Italian, Portuguese, French and other European languages. There are more than forty spoken languages in Argentina. The dominant dialect in the country as a whole is the so-called Rioplat dialect, which developed in the Buenos Aires region under the powerful influence of the language of Italian immigrants.

The official currency of the country is the Argentine peso.

Buenos Aires — the capital of Argentina, the administrative, cultural and economic center of the country and one of the largest cities in South America. Buenos Aires — the largest port in Argentina, one of the largest in South America. The main offices of many large companies are located in the city. Buenos Aires — center of mechanical engineering, light and printing industry. Tourism is actively developing in the city. On the territory of Greater Buenos Aires there are enterprises of the automotive industry, agricultural engineering, production of equipment for the food industry, household and computer equipment. The enterprises of the food industry were greatly developed: the production of vegetable oils, the flour-grinding industry, and winemaking. In addition, enterprises of fruit and vegetable, canning, sugar industries, and beverage production operate in the city. Most of the slaughterhouses are located in Buenos Aires and in close proximity (in La Plata, Zarate). The city is the center of shipbuilding, shipyards are owned by state-owned companies — Astillero Río Santiago, CINAR Ministry of Defense complex, uniting the shipyards Tandanor and Astillero Almirante Storni. One of the important industries of the city — leather and footwear. One of the most dynamic sectors of the city's economy is construction, with the number of properties under construction increasing due to the increase in the number of building permits.

The largest cities of the country — Cordoba, Rosario, Mendoza, San Miguel de Tucuman, La Plata, Mar del Plata.

Cordova — important industrial center of Argentina. Automotive, aerospace, military and light industries are located in the city. In recent years, the production of electronics has been developing at an accelerated pace.

Rosario is a major center for the meat-packing, flour-grinding, leather and footwear industries, steel-rolling, and the final processing of yerba-mate tea. Previously, the city was one of the centers of Argentina for the production of small arms. For the northeast of Argentina, the city is an important railway junction and seaport; ships reach Rosario along the Parana River. The main port of the country for the export of grain, the second — by cargo turnover.

The city of Mendoza is considered the gateway to Chile and its region of Santiago de Chile and is an important industrial center. The dominant branch of the economy — winemaking and related wine industry. Oil production and refining follow. The aircraft industry is represented by the Laviasa plant, which produces light aircraft "Puelche".

Mar del Plata is one of the largest fishing ports on the Atlantic coast and an important seaside resort. The city has two large shipyards. There are enterprises of the textile, food and polymer industries, a developed industry of packaging machines.

Argentina is a federal republic and is divided into 23 provinces and one federal district, Buenos Aires.

The provinces are divided into departments, except for the province of Buenos Aires, which is divided into 135 districts. Federal District — the capital of the country, the city of Buenos Aires, is divided into 48 quarters, which are combined into 15 communes.

History, geography, culture, mentality

Argentina has its origins in the 16th century, when the Italian navigator Sebastian Cabot established his first colony in the future territory of Argentina in 1527.

Before the discoverers, these territories were inhabited by Indian tribes, who were able to build even large cities, including Tastil.

It is believed that the Spaniards were the first to step into uncharted territory, but according to other sources, it was the Portuguese in the early 16th century, who discovered the territory where the Uruguay and Parana rivers confluence.

It was only in 1534 that an expedition of 2,000 men and 14 ships set off up the river and established a colony; it was there that the foundation of the future capital of Buenos Aires was laid. One of the main discoverers of the territory of the country was the Spaniard Don Pedro de Mendoza, who returned to Europe a few years later, having not justified his hopes for the development of the territory. However, his successors who remained moved on and went up the Paraguay River, establishing the territory of Asuncion.

Over the next century, Spain continued to develop land near the river until the 18th century. A little later, the founded kingdom was given the name Rio de la Plata, and its possessions included territories that today belong not only to Argentina, but also to countries such as Uruguay, Paraguay and Bolivia.

In 1826, the first Constitution was adopted and Argentina became a confederation. During this time, many areas in the country have been improved, such as education, the creation of a judicial system, and the improvement of the social sphere. The first dictator came to power and ruled the country for 15 years, and this period was nicknamed "the era of bloody Rosas" until he was overthrown.

In 1853, the dictatorial power ended and the Constitution was adopted, where the president became the head of state. However, not all provinces accepted the new regime and constitution, which started the war.

Argentina, as a country, appeared after the revolution at the beginning of the 19th century, when the Spaniards were liberated from colonial dependence. One of the main events was the adoption of the Constitution in 1853, which gave impetus to the development of industry and agriculture.

The development of the country took place in a difficult period, as much depended on foreign capital. But despite this, different strata of society began to appear, and at the end of the 19th century the first political parties. Until about the 30s of the 20th century, radicals were engaged in government, who began to implement the model of the state, which was spelled out in the Constitution. However, the period of the Great Depression forced the rulers to think about how to follow and develop.

There were several important periods during the 20th century:

• an attempt to establish the political model of "Limited Democracy", where the people had practically no power;
• the creation of another model, where national entrepreneurs and the working class were connected, this direction was headed by H.D. Peron, which led to a new type of regime — populist;
• struggle for power between the oligarchic trend and the reformist-democratic one;
• military regime during the late 70s and early 80s;
• Reign of R. Alfonsin;
• economic stabilization during the third Peronist rule at the end of the 20th century.

In the following years, many trials fell to the lot of Argentina: from the "Dirty War" to and the Falklands conflict to the restoration of democracy, from economic stabilization to the 2002 crisis. Now the economy of Argentina is developing, and the country is on the rise.

Argentina occupies the southern part of South America and the eastern part of the Tierra del Fuego archipelago, separated from the continent by the Strait of Magellan. In the west it borders with Chile, in the north — with Bolivia and Paraguay, in the northeast — with Brazil and Uruguay. In the east and southeast, it has a fairly long (5,117 km) coastline of the Atlantic Ocean, including the most important transport hub — La Plata estuary at the confluence of the Uruguay and Parana rivers, from which the sea coast begins in its northern part.

Andes — the longest and second highest mountain system in the world — extend along the entire western border of the country.

On the border with Brazil there is a complex of 275 waterfalls — Iguazu, which are considered one of the seven natural wonders of the world.

The coast of Argentina occupies almost 10 thousand kilometers of the border of the Atlantic basin. The territorial waters of Argentina extend for 12 nautical miles in the Atlantic Ocean. In addition, the country owns part of the continental shelf — that's another 200 nautical miles offshore.

There is a special economic zone near the coastal borders of Argentina. This is the continental shelf. There are certain claims from Argentina and the UK about the boundaries of their special zones near the Falkland Islands, the South Sandwich Islands and South Georgia Island. Tensions still remain, since the extraction of fish and mineral resources in this part of the Atlantic Ocean is always relevant and has great potential.

There are 11 names on the list of UNESCO World Heritage Sites in Argentina. The architectural heritage of Le Corbusier — a series of monuments of architectural heritage of the French architect, numbering 17 objects in seven countries of the world, including Argentina.  This is the Curucet House (a private residential mansion in La Plata, the capital of the Argentinean province of Buenos Aires) — recognized as a masterpiece of the human creative genius of Los Glaciares. Iguazu and Los Alerces National Parks — recognized as natural phenomena or spaces of exceptional natural beauty and aesthetic importance.

In Argentinean art, architecture, literature, lifestyle, there is a connection with Europe. The mutual influence of cultures is especially noticeable in the literature. Among world-class Argentine writers — Jorge Luis Borges, Julio Cortazar, Adolfo Bioy Casares, Ernesto Sabato, Manuel Puig, Osvaldo Soriano, Federico Andahazi.

Probably the most popular part of Argentine culture — tango, the plasticity and melodies of which are appreciated by romantics of the whole world.  

Despite the incredible mixture of ethnic groups and cultures, Argentina — one of the most "Europeanized" states of the continent, managed to form its own special culture, similar and not similar to neighboring countries. There are a lot of immigrants from the British Isles, Germany, Slavic countries, but there are practically no Indians left, only small isolated groups of them live in the far north and south of the country. The influence of various ethnic groups in the local culture is both clearly visible, and at the same time, when the conversation turns to the country as a whole, national differences merge into one capacious concept of "Argentine".

Argentines are famous for their "Latin" temperament, equally characteristic of both men and women. At the same time, the attitude towards each other and towards foreigners is very attentive. Politeness here seems to be as much a custom as following fashion trends or attention to one's appearance. At a meeting, well-known people kiss each other on the cheek, unfamiliar — shake hands in European style. Everyone is literally obsessed with politics and football, as well as the impression they leave on the interlocutor. A rather frivolous attitude of local residents to their words and promises. When it comes to business, then it is still possible (and necessary) to wait for the impeccable fulfillment of these promises. Being late for a meeting by half an hour to an hour — quite common practice.   The Argentines themselves are very touchy, but not vindictive.

Most Argentines only speak Spanish. Moreover, in many places, various jargons and slangs are used, such as the Buenos Aires “lunfardo”. English is understood only by hotel employees and some sellers of large stores, but even those at every opportunity will switch to their native language. The languages of ethnic groups can be heard everywhere, but most often even here all the words will be abundantly interspersed with Spanish.  

Argentines get up late, so they also have lunch and dinner later than usual. Lunch usually takes place around 16:00 —18:00, and dinner — after 21:00, even on weekdays, moreover, more attention is paid to dinner. The meal usually takes place very sedately, with the observance of some small rituals (each family may have their own) and is necessarily accompanied by long conversations about everything — about politics, football, tango, family, business, weather and so on. Moreover, the real clarification of the interlocutor's views on a particular problem under discussion as a whole is not so important, the main thing — the ability to show oneself and equally — listen to the interlocutor.

Power

Argentina is federal presidential republic. The executive and legislative powers are separated, act independently and are not responsible to each other. The legislative body is the Congress, consisting of the Chamber of Deputies (257 seats) and the Senate (72 seats).

The executive power consists of the President elected by the population of the country and the Cabinet of Ministers appointed by him. Elected in tandem with the President, Vice President — formally presides over the Senate. In 1995, for the general management of the activities of the Cabinet of Ministers, — according to the European model — position of Head of Cabinet. In addition, a special position in the Argentine cabinet is occupied by the Minister of Foreign Affairs, who bears the title of Chancellor.

The judicial system of the country is headed by the Supreme Court, which also performs the functions of the constitutional court. The formation of the Supreme Court in Argentina has its own characteristics, its members are appointed by the President with the approval of the Senate, but candidates for judges in Argentina are proposed by the Council of Magistracy — self-governing body of the judiciary, borrowed from the French constitutional system. The Council of Magistrates is formed by the President from the Justices of the Supreme Court and members of Congress.

Economy

Argentina — the second largest economy in South America (after Brazil). This — emerging economy (IMF classification): in 2022, the country ranked 24th in terms of nominal GDP in the world (and 11th among developing countries) with a figure of $630 billion. Argentina is a member of the WTO, G-20 and MERCOSUR (an interstate economic association of South American countries, the organization includes Argentina, Brazil, Uruguay, Paraguay and Venezuela). Argentina has also applied for BRICS membership and may join the BRICS New Development Bank as early as August this year.

The IMF predicts Argentina's economy will grow by 2% in 2023, below the global average of 2.7%.

In January 2023, the World Bank also revised the June forecast for the country's GDP growth downward to 2%.

The country's government expects to see the economy grow by 2% in 2023.

OECD analysts are less optimistic in their forecasts and suggest that GDP growth will be at the level of 0.5% in 2023 and 1.8% in 2024.

The main share of GDP is occupied by wholesale and retail trade with a share of 16.3%. It is followed by the manufacturing industry (15.5%), and activity in the field of real estate, business and rental (9.4%) closes the top three (9.4%).

Traditionally, the agro-industrial complex occupies an important place in the country's economy. The leading sectors of agriculture are the production of cereals (wheat, corn), oilseeds (soybeans, sunflowers), fresh fruits (apples, pears, citrus fruits), wine, honey, as well as meat and dairy farming, and poultry farming. The mining industry is developing quite actively, as well as mechanical engineering and metalworking (production of vehicles, agricultural machinery, metalworking machine tools, and some types of power equipment). Agricultural products remain the leading Argentinean export. Argentina is one of the world's leading exporters of soybeans and by-products of soybeans, corn and sunflowers. This country is also a major producer and exporter of other cereals, beef and dairy products.  

Argentina — export-oriented economy. Since the beginning of the century, the country has predominantly experienced a trade surplus (exports exceed imports).

As for imports, the main share is occupied by machines, tools and other electrical appliances, which showed an increase of 25% compared to 2021. In second place are products of the chemical and related industries (+18.4% compared to 2021), and in third — minerals (compared to 2021, the volume of this article has almost doubled).

The most important markets for Argentine exports in 2021 were:

• Brazil (15% share of total exports),
• China (8%)
• USA (6%),
• India (6%)
• Chile (5%)
• Vietnam (4%)
• Netherlands (4%),
• Peru (3%)
• Indonesia (2%)
• Spain (2%)

The main suppliers of goods to Argentina were:

• China (21% share of total imports),
• Brazil (20%)
• USA (9%),
• Paraguay (5%),
• Germany (4%)
• Thailand (2%)
• Mexico (2%),
• India (2%)
• Italy (2%)
• Vietnam (2%)

Торгово-экономические отношения с Россией

Аргентина является одним из старейших торгово-экономических партнёров России в Латинской Америке. По данным ФТС России, товарооборот между Россией и Аргентиной в 2019 г. составил 1,1 млрд. долл. США.

Основными товарами российского экспорта в 2019 г. стали нефтепродукты (преимущественно дизельное топливо и автомобильный бензин), удобрения, металлопрокат, каучук, ферросплавы и бумага. Наибольшую долю в российском импорте из Аргентины заняли свежие фрукты, мясные субпродукты, сыры, орехи, ракообразные и рыба.

27-28 мая 2019 г. в Буэнос-Айресе состоялось XIV заседание Межправительственной Российско-Аргентинской комиссии по торгово-экономическому и научно-техническому сотрудничеству. Помимо задач расширения номенклатуры и объёмов товарооборота в его повестке дня были перспективы совместной реализации крупных проектов производственной кооперации. Речь шла об участии российских компаний (ЗАО «Трансмашхолдинг», ОАО «РЖД») в модернизации и развитии железнодорожной инфраструктуры, добыче углеводородов и разработке крупнейшего сланцевого месторождения Аргентины Вака-Муэрта (ПАО «Газпром», АО «Зарубежнефть»), сооружении в Аргентине АЭС российского дизайна (Госкорпорация «Росатом»).

Особое место в российско-аргентинском торгово-экономическом сотрудничестве занимает совместная реализация крупных проектов производственной кооперации, имеются также перспективы развития взаимодействия в нефтегазовой отрасли, космической области и транспортной сфере.

Business climate

Argentina has a huge potential for business and investment, including rich natural resources, a large domestic market, a high level of education and a talented workforce.

Opening a business in Argentina is quite simple, as foreign and domestic investors have extensive legal protection. For example, the Law on Foreign Investments (La Ley de Inversiones Extranjeras) No. 21.382 gives the same rights and on equal terms to foreign firms on an equal basis with local firms to use domestic credit. Argentina also put into effect bilateral agreements on the promotion and mutual protection of investments (signed with Russia in 1998), signed agreements with major countries on the avoidance of double taxation. The country has many incentive programs aimed at encouraging investment.

Benefits of registering a company in Argentina

• There are no strict requirements for the status of shareholders. They can be legal entities and individuals.
• Personal information about the owner of the business is not entered into a public registry.
• On income received for the provision of services outside the country, export activities are not taxed.
• It is quite easy to register a company in Argentina.
• Firms do not require a secretary. But you need a local registered agent.

Information about the organization is entered into an open register. Entrepreneurial activity is subject to various types of taxes. Both local firms and companies opened by non-residents must keep accounting records, form and submit regular reports on their activities, and be audited by auditors.

Types of company registration in Argentina

• Corporation — convenient for foreign investors. Allows you to issue shares and freely transfer them to other persons. For its foundation, two founders are needed. The company must be registered in the commercial register. Registration documents are notarized. The authorized capital must be at least 12 thousand dollars.
• Joint Organizations — most often temporary companies are created. They do not need to register a legal entity.
• Limited Liability Company — has the right to issue shares, but cannot transfer them to third parties. Registration is faster than in the case of a corporation. The value of the authorized capital must be at least 20 thousand dollars. Foreign partners-shareholders must confirm their status in government bodies.

Investment climate

According to the Subsecretariat for Investment Development and Trade Promotion of Argentina, the following sectors of the Argentine economy are currently the most attractive and promising for foreign investors:

• food and beverage production. The products of this sector make up a significant part of Argentinean exports;
• biotechnology. The country has a developed pharmaceutical sector, modern equipment and technologies, qualified personnel;
• software and computer science. There are about 1,600 companies in this area in the country, which allows Argentina to occupy one of the leading positions in the world in this area;
• Winemaking. It is one of the promising sectors of the economy due to high domestic demand and the popularity of Argentinean wines on the world market;
• automotive industry and production of spare parts and components.

In accordance with the legislation of Argentina, special zones may be created on its national territory, which are not subject to the provisions of the current Customs Code. Their legal regulation is carried out by special laws.

Such territories include free zones, special economic zones and special customs territories.

Currently, Law No. 24.331 of May 18, 1994 "On Free Zones" is in force, which determines the general provisions, objectives, procedures and other issues related to free trade zones.

In accordance with the Law, free zones are designed to promote the economic development of territories by increasing the number of jobs and attracting investment. Their activities are carried out in accordance with the country's trade policy, aimed at increasing the competitiveness of the economy and its full inclusion in the process of regional integration.

The investment policy of Argentina, including the creation of free zones, is aimed primarily at ensuring equal protection of the rights, interests and property of investment entities, regardless of the form of ownership. At the same time, the ongoing economic policy of Argentina is aimed at ensuring the principle of public-private partnership, which consists, first of all, in providing program measures of financial and material support to business entities that will operate in the territory of free zones.

Business and investment support structures

State regulation of foreign investment in Argentina is carried out by the Law "On Foreign Investment"; No. 21382 of August 13, 1976 (as amended by Decree No. 1853 of September 2, 1993), as well as relevant intergovernmental agreements in the field of promotion and protection of investments.

In accordance with the said Law, national and foreign investors have the same rights and obligations in the production and credit and financial areas, as well as in the legal and tax areas.

Capital investments can be made in the following forms:

• freely convertible foreign currency;
• means of production, spare parts and accessories;
• reinvestment by a foreign investor of profits received in the country;
• capitalization of external loans;
• intellectual property (licenses, patents, know-how, trademarks, etc.).

The legal regime for the activities of foreign investors and the use of profits received from investments cannot be less favorable than the legal regime for the activities and use of profits received from investments provided to national investors.

Foreign investment can take any form, from entering into service contracts to opening branches, establishing local foreign-owned business companies, or participating in national business companies.

The creation and liquidation of a commercial organization with foreign investment is carried out in the manner prescribed by applicable law. Legal entities that are commercial organizations with foreign investments are subject to state registration in the Commercial Register at the General Legal Inspectorate of Argentina in the manner prescribed by Law No. 19550 "On Commercial Companies"; and Law No. 22315 "On the Main Legal Inspectorate".

In accordance with Law No. 2592 of September 2, 2004, Argentina has a temporary tax relief regime to encourage exports and attract investment in new fixed assets (excluding cars) and infrastructure (excluding civil works). In accordance with the established regime, benefits are provided in the form of early VAT refunds from the relevant fixed assets and infrastructure works, as well as in the case of accelerated depreciation of fixed assets when calculating income tax. This regime can be used by individuals residing in the territory of Argentina, and legal entities established in the national territory.

Since January 2005, the Government of Argentina has introduced tax incentives for private companies (profit tax refund or VAT refund) that invest in the development of infrastructure and production facilities.

Mechanisms and institutions of state support for investments in Argentina

Issues of attracting foreign investment fall within the competence of the Sub-Secretariat for Investment Development and Trade Promotion of the Secretariat for Foreign Economic Relations of the Ministry of Foreign Affairs and Cult of Argentina.

In addition, in 2016 on the basis of the Exporters Support Fund "ExportAr" with the active participation of President M. Macri, the Ministry of Foreign Affairs and Cult of Argentina, together with the Ministry of Production of Argentina, created the Argentine Agency for Investment and International Trade (Agencia Argentina de Inversiones y Comercio Internacional). The purpose of the creation of the Agency is to attract foreign direct investment in strategic sectors of the economy, help Argentine companies expand their presence in world markets, improve the business climate and regulatory environment in the country, provide information on the markets for goods, services and capital to help both Argentine and foreign companies .