A list of countries Argentina have concluded free-trade agreement with
The Argentine Republic, or simply called Argentina is a federal republic located in the southern part of South America. The country is bordered by Chile to the west, Paraguay and Bolivia to the north, Brazil to the northeast and Uruguay to the east. Argentina is the second largest country in Latin America, eighth largest country and the biggest Spanish-speaking community in the world.
Benefiting from a highly literate population, rich natural resources, export-oriented agricultural sector and diversified industrial base, Argentina’s economy is the second largest in South America and the third largest in Latin America. Argentina is one of the G-20 major economies and historically has shown very uneven economic performance. The country that was the seventh richest country in the world in the early 20th century has since then experienced severe recessions, uneven income distribution and increasing poverty. Argentina is a founding member of such international organizations as UN, WTO, WBG and OAS. Since 2002, the country has emphasised its role in the integration of Latin America and sees a common supranational block as its key international priority.
In order to promote its export and foreign relations, Argentina has engaged in various trade unions and free trade agreements.
Mercosur is a customs union comprising Argentina, Brazil, Uruguay, Paraguay, Chile, Bolivia, Colombia, Ecuador, Peru and Venezuela (the last six countries joined the customs union later as associate members). New Zealand and Mexico are currently in a position of observer states. Mercosur entered into force in 1991 and currently represents 72% of the South American territory and 70% of its population. Cooperation between Argentina and Brazil is considered as the key to the integration process of Mercosur, which includes military and political elements in addition to a traditional customs union. Argentinian intra-Mercosur trade increased dramatically from 4 billion USD in 1991 to 23 billion USD seven years later. By the 2011, the trade reached 44 billion USD, which was 28% of the total trade by Argentina). Over 90% of intra-Mercosur trade is duty-free.
Mercosur – Andean Community
Mercosur as customs union has concluded numerous free trade agreements. As one of the most important is considered the Mercosur – Andean Community of Nations agreement concluded in 2004 with the key aim to liberalize the trade between both blocks. Due to this agreement, all four member states of Mercosur, including Argentina, have become associate members of Andean Community on July 7, 2005.
Mercosur – European Union
Argentina along with the three other member countries of Mercosur is currently negotiating a trade agreement with the EU as part of a bi-regional Association Agreement. Currently, trade between Mercosur and the EU is regulated by the “Inter-regional Framework Cooperation Agreement” established in 1999. The EU-Mercosur free trade negotiations have taken place for a considerable amount of time with a pause on negotiations between 2012 and 2016.
Argentina as part of Mercosur has signed other free trade agreements with Israel (in 2007), India (in 2009), Egypt (in 2010), the State of Palestine (in 2011) and Lebanon (in 2014) and Caribbean Community (CARICOM).
Latin American Integration Association or ALADI is a regional organization created on August 12, 1980, by the Montevideo Treaty which replaced the Latin American Free Trade Association (LAFTA). Currently, ALADI comprises Argentina, Colombia, Bolivia, Cuba, Brazil, Chile, Ecuador, Paraguay, Uruguay, Peru, Mexico and Venezuela, gathering more than 20 million square kilometres and over 455 million people. The general aim of ALADI is the establishment of economic preferences within the region creating a common market of Latin America. This is done through three mechanisms: a regional tariff preference, regional scope agreements and partial scope agreements.
Union of South American Nations or USAN (UNASUR in Spanish) is an intergovernmental regional organization comprising together 12 South American states: Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Guyana, Paraguay, Peru, Suriname, Uruguay and Venezuela. The treaty forming the USANUR was signed in 2008 and since then the member countries have expressed their intention to model a community after the EU, including a common market and currency, a parliament and passport.
Global System of Trade Preferences among Developing Countries is a preferential trade agreement established on April 13, 1988, in order to promote trade among developing countries and was established in the framework of the United Nations Conference on Trade and Development. Founding member states are Cuba, India, Bangladesh, Ghana, Nigeria, Sri Lanka, Singapore, Tanzania and Zimbabwe. Argentina became the member state of the GSTP along with other countries on July 16, 1989. A preferential trade agreement or area is a trading block that establishes a preferential access to particular products from the member countries. Unlike free trade agreements, PTA reduces tariffs instead of abolishing them completely. It is generally the first step in economic integration and almost all PTA’s are established with the main goal to become an FTA.