Ministerio de Producción

Secretary of Industry

Lic. Martín Etchegoyen

Argentina: Global Perspectives

ARGENTINEAN

FEATURES:

•GDP: USD 569.5

billion (est. 2015)

•GDP pc: USD 13,202

(est. 2015)

•Rise of middle class

income

•High life expectancy

(+77)

•Population: 43 million

•Area: 2.8 million km2

ARGENTINEAN

STRENGTHS:

• Domestic market

• Natural resources

• Manufacturing

• Trained human

resources

• R+D

Source: CEU-UIA based on the CIA and SUINV

2

ARGENTINA: STRETEGIC PARTNER IN A REGION WITH PROMISING PROSPECTS

There are increasing business opportunities with Brazil, Argentina's main trading

partner, to complement each other and to specialize in specific manufactured goods

• As a member of MERCOSUR, Argentina

has access to a tariff free market,

accounting for over 282 million consumers

and a combined GDP of USD 3.1 trillion

(2014)

• Remarkable industrial

complementarities with Brazil and further

opportunities for specialization

Source: SUINV based on IMF and World Bank

MERCOSUR: Common market

Members: Argentina,

Brazil, Uruguay,

Paraguay, Venezuela

Associates: Bolivia,

Chile, Colombia,

Ecuador, Peru 3

STRONG REGIONAL LINKS

Argentina presents profitable investment opportunities in a variety of strategic sectors serving the global economy

Agro Industry

Value added and design manufactures

Renewable Energies

Professional services, software and IT

Creative Industries

Agricultural machinery Autoparts

Pharmaceutical Industry

Tourism

Biotechnology

Source: SUINV based on IMF and World Bank

4

DIVERSIFIED ECONOMY TO MEET GLOBAL MARKETS NEEDS

Textile - Clothing

Poultry and bovine meat Plastics, chemicals and

petrochemicals

Iron and steel sector & metallurgical industry

Soybean & oil industry

5

OTHER IMPORTANT INDUSTRIAL SECTORS

Employment:

•Manufacturing sector employed 1.25 million workers in 2015, about 20.1 percent of total employment in the private and formal sector.

•Manufacturing has a higher capacity of creating indirect jobs (2 per every direct new employee) than other sectors such as Construction (0.58) or Retail & wholesale (0.11).

Value added:

•The manufacturing sector accounts for 22,3% of the gross value added in the economy (2014).

Foreign trade:

• In 2015, Manufacturing explained 72,2% of the exports and 71,1% of the imports in the country.

6

THE MANUFACTURING SECTOR IN NUMBERS

Welcoming investors: protection and equal rights for foreign investors

The Argentine Constitution guarantees equal treatment and rights for local and foreign

investors

Foreign Investments Act (No. 21382) defines the legal framework for foreign investments

Foreign investors may:

Remit abroad liquid profits arising from return on their investment as well as repatriate their

investment

Avail themselves of any of the legal forms of incorporation foreseen by Argentine legislation

Make use of domestic credits and loans with the same rights and under the same conditions

as domestic companies of domestic capital

Access to all sectors of economic activity as there are no activities reserved exclusively for

local enterprises

Source: SUINV

7

PUBLIC SECTOR SUPPORTIVE OF INVESTORS

Horizontal incentives

Investment Promotion Law (No. 26360): early VAT return and/or accelerated depreciation allowances for investment on capital goods and infrastructure

0% tariff on imports of capital goods

0% tariff on imports of goods which are part of a large investment project

For every new job created, 50% reduction on employers’ contributions during the first year of employment and a 25% reduction in the second year

Buy National: preferential procurement by companies based in the country to the National State in strategic sectors

Others: FONTAR, FONSOFT, SEPyME programs, incentives to foster employment and exports (for further details please see “Investment Incentives” published by SUINV

Sector incentives

Specific benefits and incentives for diverse sectors: automotive and autoparts, software, biofuels, biotechnology, mining, forestry, public infrastructure and hydrocarbons

Provincial tax exemptions for a determined period of time

•Gross income

•Stamp tax

•Property tax

Financial support for infrastructure investments and purchase of relevant equipment

Source: SUINV

8

PUBLIC SECTORS INCENTIVES

50 Japanese companies in Argentina 13 industrial companies

9

JAPANESE PRESENCE IN ARGENTINA