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Argentina: Market Profile

Picture: Argentina factsheet
Picture: Argentina factsheet

1. Overview

Argentina, one of the largest economies in Latin America with vast natural resources in energy and agriculture, is a leading food producer with large-scale agricultural and livestock industries. The country also has significant opportunities in some manufacturing sub-sectors and innovative services in high-tech industries. In addition, Argentina has taken a very active role on the international stage as it assumed the presidency of the G20, expressed intention to join the OECD and became an observer in the Pacific Alliance.

Sources: World Bank, Fitch Solutions

2. Major Economic/Political Events and Upcoming Elections

November 2015
Mayor of Buenos Aires, Mauricio Macri, won the presidential election and took office in December.

February 2016
Argentina agreed to settle multi-billion-dollar debt with the United States hedge funds over bond repayments, which had restricted the country's access to international credit markets.

October 2017
Macri's coalition won in the parliamentary election.

May 2018
The government raised interest rates significantly in an effort to shore up the value of the peso.

June 2018
The government reached a USD50 billion stand-by arrangement with the IMF that will help cover external financing needs over the coming quarters.

October 2018
The IMF completed its first review of Argentina’s economic performance under the 36-month stand-by arrangement approved in June, which has since been renegotiated to USD56.3 billion, the largest credit line in IMF history, until 2021. The IMF approved of the budgetary steps being taken through the Argentine government’s economic plan, which aims to achieve a primary fiscal surplus of 1% by 2020.

October 2019
General elections will be held in Argentina on October 27, 2019 to elect the president of Argentina, members of the national congress and the governors of most provinces. Mauricio Macri, the sitting president, may run for re-election.

Sources: BBC country profile – Timeline, Fitch Solutions Political Risk Analysis, World Bank

3. Major Economic Indicators

Graph: Argentina real GDP and inflation
Graph: Argentina real GDP and inflation
Graph: Argentina GDP by sector (2017)
Graph: Argentina GDP by sector (2017)
Graph: Argentina unemployment rate
Graph: Argentina unemployment rate
Graph: Argentina current account balance
Graph: Argentina current account balance

e = estimate, f = forecast
Sources: International Monetary Fund, Fitch Solutions, INDEC, World Bank
Date last reviewed: October 22, 2018

4. External Trade

4.1 Merchandise Trade

Graph: Argentina merchandise trade
Graph: Argentina merchandise trade

Source: WTO
Date last reviewed: October 22, 2018

Graph: Argentina major export commodities (2017)
Graph: Argentina major export commodities (2017)
Graph: Argentina major export markets (2017)
Graph: Argentina major export markets (2017)
Graph: Argentina major import commodities (2017)
Graph: Argentina major import commodities (2017)
Graph: Argentina major import markets (2017)
Graph: Argentina major import markets (2017)

Sources: Trade Map, Fitch Solutions
Date last reviewed: October 22, 2018

4.2 Trade in Services

Graph: Argentina trade in services
Graph: Argentina trade in services

Source: WTO
Date last reviewed: October 22, 2018

5. Trade Policies

  • The policies implemented by former President Cristina Fernández de Kirchner were aimed at promoting local production and reserving the benefits of natural resources for the domestic market. However, trade barriers are being gradually removed under the new administration. The lifting of capital controls and reduction of export taxes in December 2015 is making foreign currency more easily available and exporters face lower fiscal penalties. Businesses are able to freely access foreign currency on market terms, improving the ability to purchase imports, and can transfer dollar-denominated profits abroad without restrictions.

  • According to Argentina’s Customs Code, importers and exporters must be listed in the registry of importers and exporters at the Argentine Customs (Dirección General de Aduanas, DGA). Argentina applies import duties and a range of indirect taxes on import and local transactions. Products imported for consumption are generally subject to import duties, statistical tax, value-added tax (VAT), excise duties and anticipated profits tax. As a member of the Southern Common Market (MERCOSUR) customs union, Argentina utilises the MERCOSUR Common Nomenclature (NCM) classification, which is consistent with the Harmonised System (HS) classification.

  • Argentina has been a World Trade Organization (WTO) member since January 1, 1995 and a member of GATT since October 11, 1967. On January 1, 1995, Argentina, along with the other Mercosur members (Brazil, Paraguay and Uruguay), implemented the Common External Tariff (CET). Most imports from non-MERCOSUR members are then subject to CET, which ranges from 0% to 35%. Argentina has adopted a July 2015 decision by the Common Market Council to extend the mechanism that allows MERCOSUR countries to have a national list of exceptions to the CET. In the case of Argentina, this exception will apply to up to 100 tariff lines through December 31, 2021.

  • Apart from free trade agreements with a range of countries, including Bolivia, Chile, Colombia, Ecuador, Mexico and Peru under MERCOSUR, Argentina also provides certain duty breaks to members of the Latin American Integration Association (ALADI) for goods not covered under the aforementioned agreements.

  • Argentina currently applies minimum specific import duties (DIEMs) on a range of imports from all destinations apart from Mercosur countries. DIEMs are applied only when the duty that results from their application is greater than that resulting from ad valorem tariff. Products currently subject to DIEMs include textile, apparel, footwear and certain toys.

  • Argentina has two types of import licences – automatic and non-automatic. On December 21, 2015 the Comprehensive Import Monitoring System (Sistema Integral de Monitoreo de Importaciones, SIMI) replaced the DJAI (Declaración Jurada Anticipada de Importación, or sworn advance import declaration) system for managing and processing import licences. The Argentine government is issuing automatic licences through SIMI for imports for consumption within Argentina of products under virtually all tariff lines. Non-automatic import licences are required for a range of goods due to their sensitive nature. These licences are typically issued within 10 days unless the application is incomplete, in which case authorities have up to 30 days to complete their review and make a decision. The government also recently increased from 90 days to 180 days the period of validity of non-automatic licences and amended the list of items subject to non-automatic licencing.

  • In November 2004, Argentina signed an agreement with China where it committed to grant market economy status to mainland China for purposes of anti-dumping (AD) and countervailing (CV) duty investigations. However, at the time of writing, it appears that Argentina has not amended its legislation to treat the Chinese mainland as a full market economy country. AD duty investigations of mainland Chinese products are still conducted in accordance with Decree 1219/2006, which sets forth investigative procedures for non-market economy and transition economy countries and requires the use of cost and pricing structures from a surrogate market economy country. As it now stands, Argentina imposed a number of AD measures on imports from the Chinese mainland, including ceramic tiles, bicycle tyres, spanners and wrenches, pipe fittings, dishware, water pumps, porcelain insulators and microwave ovens, along with a number of investigations and expiry or changed circumstances reviews. However, Argentina did not apply any AD measures on imports from Hong Kong or CV measures on imports from both Hong Kong and the Chinese mainland. China has been urging Argentina to abide by WTO anti-dumping rules. Although the Argentinian authorities having not expressly recognised China as a market economy, they appear to have started to treat China as a market economy in AD investigations.

  • Argentine authorities also implement, on an informal basis, a trade balancing/one-to-one matching requirement that, in many instances, requires importers to commit to export one dollar’s worth of merchandise for every dollar’s worth of merchandise they import into Argentina and/or make certain investment in the country. There is no formal legislation in Argentina governing these practices, however.

  • In May 2018, Argentina implemented new digital import certificate procedures for motor vehicles, trailers, semi-trailers, engine blocks, and self-propelled agricultural, road and industrial machinery that are expected to further facilitate the import process for these products. The digital certificates may be requested through the remote processing module (TAD) and will be issued electronically by the relevant body within the National Automotive Property Registries and Collateral Loans Directorate.

  • Separately, Argentina has banned the sale, importation and use in grains of the active principles Dichlorvos (DDVP) and trichlorfon, as well as any formulated products containing those active principles. Slated to enter into force on November 4, 2018, the ban covers grain production as well as post-harvest, transportation, manipulation and storage activities.

  • In April 2018, Argentina issued an updated list of imported products subject to non-automatic licensing in order to correct certain inadvertent errors and further simplify and facilitate import operations. The updated list includes a broad range of products, such as textiles, apparel, footwear and various other consumer goods.

  • Export taxes affect traders from China, Vietnam, Indonesia, Iran, Philippines, US and the EU the most. The impact of export taxes varies by industry. Most export taxes on agricultural products, minerals and manufactured goods were lifted by the new government in 2016. However, in September 2018 Macri announced an export tax of four pesos per dollar on exports of primary products, including agricultural goods (affecting soybean meal, soybean oil and corn), and three pesos per dollar on other exports. The tax is expected to raise more than USD11 billion next year. Export taxes on crude oil are indexed to the price per barrel of Brent crude, with a 1% tax levied if the price remains under USD70 per barrel.

Sources: WTO - Trade Policy Review, Fitch Solutions, Marval, O’Farrell & Mairal

6. Trade Agreement

6.1 Multinational Trade Agreements

Active

  1. MERCOSUR: A Regional Customs Union with Brazil, Argentina, Paraguay, Bolivia and Uruguay (Venezuela was suspended in 2018). The MERCOSUR agreement facilitates trade with these neighbouring countries through the removal of tariff and non-tariff barriers. The customs union is still in the process of being fully implemented, however, with some significant exceptions to the common external tariff in individual countries and double-application of import tariffs on goods imported to one member and consequently moved into another. Bolivia is in the process of becoming a full member. MERCOSUR encompasses approximately 75% of South America’s GDP and is one of the world’s largest economic blocs.

  2. MERCOSUR-Israel: In December 2007, after almost two years of negotiations, Mercosur member states and Israel signed an agreement that establishes a free trade area. This agreement reduces barriers to foster trade, but the impact is limited, given the small trade volume between the two countries.

  3. MERCOSUR-SACU: An agreement on goods with the Southern African Customs Union (Botswana, Lesotho, Namibia, South Africa and Eswatini – formerly Swaziland) that came into force on April 1, 2016.

  4. MERCOSUR-Mexico: An agreement on goods that came into force on December 28, 2016.

  5. MERCOSUR-Egypt: An agreement on goods that came into force on September 1, 2017.

  6. MERCOSUR-Associate Members: The FTA between MERCOSUR and associate members such as Chile and Peru also facilitates regional trade and is especially beneficial for trade with Chile, one of Argentina's top trade partners. However, Mercosur's associate members – Chile, Colombia, Ecuador, Guyana, Peru, and Suriname – do not enjoy full voting rights or complete access to markets.

  7. MERCOSUR-India Preferential Trade Agreement (PTA): The PTA between MERCOSUR and India entered into force on June 1, 2009. India is an important trade partner for Argentina, listed as the country's seventh biggest trading partner. India is expected to grow faster than third-highest partner China over the medium term, creating even greater opportunities for Brazilian exporters.

Under Negotiation

  1. MERCOSUR-EU: A trade pact is being negotiated, which will provide a boost to trade flows with important export markets in the EU and help to stimulate new trade and investment opportunities. Talks between the two blocs are moving forward and an agreement on remaining issues is expected in 2018, allowing the deal to be finalised.

  2. MERCOSUR-Caribbean Community (CARICOM): A trade pact is under negotiation; however, progress has been slow. This agreement is set to ease the trade process and help Argentina diversify trade partners, but trade flows with Caribbean countries are limited and there is little potential for significant expansion.

Sources: WTO Regional Trade Agreements database, Fitch Solutions

7. Investment Policy

7.1 Foreign Direct Investment

Graph: Argentina FDI stock
Graph: Argentina FDI stock
Graph: Argentina FDI flow
Graph: Argentina FDI flow

Source: UNCTAD
Date last reviewed: October 22, 2018

7.2 Foreign Direct Investment Policy

  1. Argentina offers investors a large and diversified market based on commodities exports and the services industry, with the oil and gas and agricultural sectors, as well as consumer demand, driving international trade and economic growth over the medium term. There are no regulatory barriers on foreign investment in Argentina, and the government continues to express its desire to increase foreign direct investment (FDI) inflows.

  2. Under the country’s Investment Development Strategy, industries such as food and beverages, renewable energies, biotechnology, software and IT, creative industries, wine industry, automotive industry, technical and professional services and capital goods are the key priority sectors.

  3. While some restrictions on FDI will remain in place, particularly over the short term, many restrictive policies have been reversed with the election of President Mauricio Macri in November 2015, such as the removal of capital controls. The new administration has moved to improve relations with states such as the United States and the UK, reached an agreement with holdout investors that has allowed it to return to international capital markets, and actively sought FDI into industries such as hydrocarbons and power, which have suffered from years of underinvestment.

  4. The Argentine government offers a number of incentives in order to attract FDI, some of which apply to all industries, and some of which are sector-specific. The free trade zones (FTZs) and special customs area of Tierra del Fuego offer a number of tax breaks and customs duties exemptions for all export-oriented industries located within them.

  5. The lifting of capital controls in December 2015 and the deal agreed with Argentina's holdout investors in March 2016 have considerably improved the outlook for the banking sector and the availability of credit for businesses. Banks can now access hard currency without restrictions for the first time since 2011, paving the way for more expansionary lending policies. This will also be encouraged by falling inflation and a more stable economy, which will allow interest rates to come down. Consequently, businesses will be able to obtain credit at more affordable market rates, promoting new ventures and the expansion of existing projects. Loan demand is expected to grow robustly in line with improving business and consumer confidence, while banks will be increasingly willing to lend as inflation tempers.

  6. State-owned enterprises are present in a number of sectors in Argentina, including transportation, banking, utilities and energy. Most provide public services and face the same tax and regulatory obligations as private businesses.

  7. To attract productive FDI that leads to job creation and to promote the development and diversification of domestic exports, Argentina has established numerous incentive programmes which have been designed to facilitate domestic and foreign investment in the country. These programmes are implemented by the national, provincial and municipal authorities and include sector incentives as well as relocation, innovation, technological development, employment, investment financing and export promotion incentives.

  8. Foreign ownership of rural land in Argentina is restricted to 15% of the entire productive area.

  9. Mining companies are required to use Argentine-flagged ships to export minerals and must purchase capital goods, spare parts, inputs and services domestically. They are also exempt from national taxes on basic utilities (telecommunications, gas, electricity, mains water, sewerage and drainage) provided within the zones.

Sources: WTO - Trade Policy Review, ITA, US Department of Commerce, Fitch Solutions

7.3 Free Trade Zones and Investment Incentives

Free Trade Zone/Incentive ProgrammeMain Incentives Available
FTZs have been established in Argentina since 2004, and there are 10 in existence. However, most of them only carry out storage and service activities. So far, the main free trade zone is La Plata, inaugurated in 1997 in Buenos Aires Province.Imports of parts and components into an FTZ are free of import duties, while goods produced in an FTZ can be imported duty-free into the rest of the Argentine territory. By receiving the ‘Made in Argentina’ origin qualification, goods produced in an FTZ will also be granted a preference margin within Mercosur. Generally, investors located in FTZs benefit from customs duties exemption, removal of non-tariff trade barriers and 100% foreign ownership permission. They are also exempt from national taxes on basic utilities (gas, electricity, mains water and sewerage) provided within the FTZ.
Special Customs Area - Tierra del FluegoBenefits available include: customs duties exemption, removal of non-tariff trade barriers, 100% foreign ownership permitted, lower taxes on electronic goods and profit tax exemption.
Sector-specific incentivesSome sector-specific incentives for the software development, biotechnology, forestry, hydrocarbon exploration and mining industries include guaranteed fiscal stability for a set period of time (no increase in income tax liabilities), tax exemptions on imports of capital goods, and early VAT reimbursement. For micro-, small- and medium-sized businesses, government subsidised loans and credit from the National Development Fund are available. In 2014, the government also introduced more favourable terms for investment in the hydrocarbons industry, including the lengthening of exploitation concessions from 10 to 35 years for non-conventional production and 30 years for offshore fields, in order to attract more funds to develop this vital sector.

Sources: US Department of Commerce, Fitch Solutions, Agencia Argentina de Inversiones y Comercio Internacional, World Free Zones Organisation

8. Taxation – 2018

  • Value Added Tax: 21%
  • Corporate Income Tax: 30%

Source: PwC Tax Summaries 2018

8.1 Important Updates to Taxation Information

  • Comprehensive tax reforms were passed in Argentina in late December 2017, which will ease the fiscal and administrative burden on businesses over the coming years. The most beneficial measure is a reduction in corporate income tax from 35% to 30% for fiscal years starting between January 1, 2018 and December 31, 2019, and to 25% for fiscal years beginning after January 1, 2020. Though this will be somewhat offset by new withholding taxes on dividends, it will nonetheless reduce the tax burden on businesses and generate greater investor confidence. In addition, over the longer term, social security payments by employers will be simplified by the unification of contributions into a single rate of 19.5% on gross salaries by January 1, 2022.
  • As part of the reform package, the Argentine Congress also approved a one-time tax aimed at offsetting the absence of inflation adjustments rules with an optional revaluation of assets for companies and individual entrepreneurs. Under this revaluation tax, taxpayers are entitled to adjust their tax basis in fixed and movable assets (except automobiles), shares in Argentine companies, and intangible assets. Assets that have been fully depreciated are excluded. The revaluation has to be made by computing certain factors, although an external appraisal instead of those factors can be used for real estate that is not treated as inventory, as well as for movable assets, provided that the revaluation does not exceed 1.5 times the revaluation that would have resulted had those factors been applied. The tax is levied on the amount of the adjustment at a rate of 8% in the case of real estate (15% if it is considered inventory), 5% for shares if held by individuals, and 10% for other assets. The taxpayer can select which class of assets to adjust, but once the category has been selected, all of the assets included in that category have to be adjusted.

  • There is also a personal assets (wealth) tax, which is levied on an individual's worldwide assets, if that individual is a resident in Argentina. This is payable on assets over ARS305,000, on a sliding scale of 0.50-1.25%.

8.2 Business Taxes

Type of TaxTax Rate and Base
Corporate Income Tax
30% on profits (for fiscal years beginning after January 1, 2018)
Withholding TaxAs a result of the 2017 tax reform, a new witholding tax has been introduced for resident registered taxpayers at a rate of 7% (while the applicable profits tax rate is at 30%) and 13% (when the profits tax rate lowers to 25%) on dividend distributions and branch profit remittances, 6% on interest and 6% on royalties.
Stamp TaxThis tax, levied by each of the 24 jurisdictions into which Argentina is divided, applies principally to contracts and agreements, deeds, mortgages, and other obligations, agreements, and discharges that are the subject of entries in books of account. The average tax rate is 1%, applicable on the economic value of the contract.
VATThere is a standard rate of 21% on the sale of goods and services. An increased rate of 27% applies to telecommunications, water, gas and other utilities not rendered to dwelling-purposes real estate. A reduced rate of 10.5% applies to a range of other things, including housing construction and the sale and import of living bovine animals. A number of transactions are VAT exempt, including sales of books, bread, milk, medicine and the rental of real estate for housing purposes.
Turnover TaxThis is a tax on gross revenues from the sale of goods and services. Exports of goods are exempt, and certain industries are subject to a reduced tax rate. Rates, rules and assessment procedures are determined locally in each of Argentina's 24 jurisdictions. In the largest economic jurisdictions the rates range from 1% to 10.5%.
Real Estate TaxThis is similar to the turnover tax, assessed by the local tax authority and based on the property's fiscal value.
Financial Transactions Tax0.6% on any payment debited or credited to bank accounts; 1.2% on any transaction in a bank without using an account.
Wealth Tax0.25% levied on the shares or holding in the capital of local companies owned by individuals or undivided estates. Argentina's Supreme Court has ruled that this tax does not apply to Argentine branches of foreign companies.
Export Tax on soybeans30% on export earning
Social security contributionsEmployer contributions add 23-27% to gross salaries (6% for the social health care plan and 17-21% for the pension fund), and there is a compulsory 13th month salary. Employees pay a total of 17% (3% for the social health care plan, 3% for the social services institute for pensioners and 11% for the pension fund).

Sources: PwC, Fitch Solutions
Date last reviewed: October 22, 2018

9. Foreign Worker Requirements

9.1 Foreign Worker Permits

There are various forms of work and residence visas available to foreign workers. Technical residence visas are issued to foreign workers engaging in specific technical or professional activities over the short term. Permits are valid for between 30 and 90 days, and may only be issued to the same worker twice in one year. A labour contract visa applies to workers employed by a local company for an extended period, and is initially valid for one year, but may be extended indefinitely.

9.2 Localisation Requirements

There are generally few barriers to employing foreign workers in Argentina, though the process of obtaining work and residence permits is arduous and bureaucratic. Nevertheless, there are no minimum thresholds for the number of local workers, quotas for employment of expatriates, or requirements for training or knowledge transfer for Argentine nationals. Consequently, businesses are free to hire as many foreign staff members as necessary.

9.3 Visa/Travel Restrictions

In addition to working visas, foreigners must apply for an entry permit and a national identity card, which requires documents including the employment contract, birth certificate, criminal record and qualifications certificates, all of which must be officially translated into Spanish and legalised. These obligations are greatly reduced for Mercosur citizens, who do not require entry permits.

Sources: Argentine Ministry of Interior, Fitch Solutions, Agencia Argentina de Inversiones y Comercio Internacional

10. Risks

10.1 Sovereign Credit Ratings


Rating (Outlook)Rating Date
Moody's
B2 (stable)29/11/2017
Standard & Poor'sB+ (watch)31/08/2018
Fitch Ratings
B (stable)04/05/2018

Sources: Moody's, Standard & Poor's, Fitch Ratings

10.2 Competitiveness and Efficiency Indicators


World Ranking
201620172018
Ease of Doing Business Index
118/189116/190117/190
Ease of Paying Taxes Index
170/189178/190169/190
Logistics Performance Index
66/160N/A61/160
Corruption Perception Index
95/17685/180N/A
IMD World Competitiveness55/6158/6356/63

Sources: World Bank, IMD, Transparency International

10.3 Fitch Solutions Risk Indices


World Ranking
201620172018
Economic Risk Index Rank87/202
Short-Term Economic Risk Score
37.956.744.2
Long-Term Economic Risk Score45.957.053.7
Political Risk Index Rank103/202
Short-Term Political Risk Score
61.965.862.1
Long-Term Political Risk Score63.461.661.6
Operational Risk Index Rank109/201
Operational Risk Score46.446.646.9

Source: Fitch Solutions
Date last reviewed: October 22, 2018

10.4 Fitch Solutions Risk Summary

ECONOMIC RISK
Argentina’s short-term economic risk outlook is expected to improve as its fiscal consolidation and growth momentum continue to make positive gains. Significant economic reforms and improving investor sentiment will drive an uptick in investment over the coming quarters. Nonetheless, inflation remains elevated and the fiscal deficit will remain wide over the coming year.

OPERATIONAL RISK
Argentina's operating environment has seen a steady improvement following the election of the moderate president, Mauricio Macri, in November 2015. The reforms implemented by the Macri administration are allowing foreign investors greater opportunities to take advantage of Argentina's developed economy, with a broad agricultural and industrial base, regionally low crime rates, adequate transport connections to major cities and ports, and a skilled workforce. However, obstacles such as underinvestment in logistics infrastructure, high credit costs and unevenly implemented education reforms still exist.

Source: Fitch Solutions
Date last reviewed: October 23, 2018

10.5 Fitch Solutions Political and Economic Risk Indices

Graph: Argentina short term political risk index
Graph: Argentina short term political risk index
Graph: Argentina long term political risk index
Graph: Argentina long term political risk index
Graph: Argentina short term economic risk index
Graph: Argentina short term economic risk index
Graph: Argentina long term economic risk index
Graph: Argentina long term economic risk index

100 = Lowest risk; 0 = Highest risk
Source: Fitch Solutions Economic and Political Risk Indices
Date last reviewed: August 21, 2018

10.6 Fitch Solutions Operational Risk Index


Operational RiskLabour Market RiskTrade and Investment RiskLogistics RiskCrime and Security Risk
Argentina Score46.951.439.050.646.7
Central and South America Average44.948.245.547.139.0
Central and South America Position (out of 20)8
71595
Latin America Average47.950.249.445.146.7
Latin America Position (out of 42)2519351222
Global Average49.649.749.9
49.149.8
Global Position (out of 201)1099113891105

100 = Lowest risk; 0 = Highest risk
Source: Fitch Solutions Operational Risk Index

Graph: Argentina vs global and regional averages
Graph: Argentina vs global and regional averages
Country
Operational Risk Index
Labour Market Risk Index
Trade and Investment Risk IndexLogistics Risk IndexCrime and Security Risk Index
Chile64.161.367.762.764.7
Panama54.847.160.067.144.9
Costa Rica53.249.860.253.249.7
Uruguay54.048.751.155.261.1
Mexico51.458.658.657.730.7
Peru49.1
59.752.947.136.8
Colombia49.054.456.950.134.6
Argentina46.951.439.050.646.7
Brazil46.846.746.350.743.6
Ecuador45.654.036.552.040.0
El Salvador41.742.045.351.028.3
Nicaragua38.740.637.037.2
39.9
Paraguay40.141.845.736.636.3
Guatemala38.341.845.541.324.6

Honduras

37.338.047.139.424.6
Bolivia35.542.429.537.832.2
Venezuela28.844.119.931.919.2
Regional Averages45.648.447.048.338.7
Emerging Markets Averages46.848.047.545.746.0
Global Markets Averages49.649.749.9
49.149.8

100 = Lowest risk; 0 = Highest risk
Source: Fitch Solutions Operational Risk Index
Date last reviewed: October 22, 2018

11. Hong Kong Connection

11.1 Hong Kong’s Trade with Argentina

Graph: AR13HKEXgoodsEN
Graph: AR13HKEXgoodsEN
Graph: Major import commodities from Argentina (2017)
Graph: Major import commodities from Argentina (2017)

Note: Graph shows the main Hong Kong imports from/exports to Argentina (by consignment)
Date last reviewed: October 22, 2018

Graph: Merchandise exports to Argentina
Graph: Merchandise exports to Argentina
Graph: Merchandise imports from Argentina
Graph: Merchandise imports from Argentina

Note: Graph shows Hong Kong imports from/exports to Argentina (by consignment)
Exchange Rate HK$/US$, average
7.76 (2013)
7.75 (2014)
7.75 (2015)
7.76 (2016)
7.79 (2017)
Sources: Hong Kong Census and Statistics Department, Fitch Solutions
Date last reviewed: October 22, 2018


2017
Growth rate (%)
Number of Argentine residents visiting Hong Kong18,34910.4

Source: Hong Kong Tourism Board


2017
Growth rate (%)
Number of Latin American residents visiting Hong Kong195,8541.8

Source: Hong Kong Tourism Board
Date last reviewed: October 22, 2018

11.2 Commercial Presence in Hong Kong


2017
Growth rate (%)
Number of Argentine companies in Hong KongN/A
N/A
- Regional headquarters
- Regional offices
- Local offices


11.3 Chamber of Commerce (or Related Organisations) in Hong Kong

Argentina Chamber of Commerce in Hong Kong (ARCHAM)
Address: 9A, 9/F, Hilltop Plaza, 49 Hollywood Road, Central, Hong Kong
Email: info@argentinahk.com
Tel: (852) 9197 7683

Source: Argentina Chamber of Commerce in Hong Kong

Consulate General of the Argentine Republic in the Hong Kong SAR
Address: Room 1517 - 1519, Jardine House, 1 Connaught Place, Central, Hong Kong
Email: chong@mrecic.gov.ar
Tel: (852) 2523 3208
Fax: (852) 2877 0906

Source: Consulado General en Hong Kong

11.4 Visa Requirements for Hong Kong Residents

A visa is not required for Hong Kong residents for stay up to 90 days.

Source: Visa on Demand
Date last reviewed: October 22, 2018

Content provided by Picture: Fitch Solutions – BMI Research