invest in · 2017-10-03 · invest in tierra del fuego : land of opportunities. - 1a ed. - ushuaia...

INVEST IN TIERRA DEL FUEGO Land of opportunities

Secretariat for Development and Investments Government of Tierra del Fuego, Antártida e Islas del Atlántico SurArgentine Republic

Our challenge is to transformexceptional opportunities,into permanent developments.

Authorities

Governor of the province of Tierra del Fuego, Antártida e Islas del Atlántico SurRosana Andrea Bertone

Secretary of Development and InvestmentsLeonardo Zara

Authorities of the Federal Investment Council

Board of Governors

Secretary GeneralJuan José Ciácera

Photo creditsGovernment of Tierra del Fuego, Antártida e Islas del Atlántico Sur / cover - left superior angle: María González / page 16: José Luis Martínez / page 22 : Darío Zambrano / page 22 middle: Emiliano Pinto / page 22 bottom: Jorge Castorina / page 24: Nicolás Easdale / pages 34, 35 middle left and left inferior angle: Facundo Santana / page 35 right inferior angle: Jorge Martín Pocai / pages 35 middle right, 40-41: Rogelio Espinosa / pages 44- 45: Carlos Jerónimo Varela / pages 35 right superior angle, 43, 54, 59, 60 – 61: Araz Hadjian.

1st. Edition550 copies

Provincia de Tierra del Fuego, Antártida e Islas del Atlántico Sur. Secretaría de Invest in Tierra del Fuego : land of opportunities. - 1a ed. - Ushuaia : Secretaría de Desarrollo e Inversiones, 2017. Libro digital, PDF

Archivo Digital: descarga y online Traducción de: Agostina Belén Coll. ISBN 978-987-46621-3-2 1. Inversiones. 2. Economía Argentina. I. Coll, Agostina Belén, trad. II. Título. CDD 332

© 2017, Publisher Secretariat for Development and Investments of Tierra del FuegoThe Publisher has complied with the deposit mandated by Argentine Law Act No. 11.723

Book edited in ArgentinaNo part of this publication may be reproduced, either in whole or in part, or stored, rented, transmitted or modified in any form or by any means, electronic, mechanical, photocopying, digitalized or otherwise, without the prior written permission of the publisher. Any violations shall be subject to Acts no. 11.723 and 25.446 under the Argentine Law.

Printed at:Akian Gráfica Editora S.A. Clay 2992, C1426DLDCiudad Autónoma de Buenos Aires September, 2017

INVEST IN TIERRA DEL FUEGO Land of opportunities

Secretariat for Development and Investments Government of Tierra del Fuego, Antártida e Islas del Atlántico SurArgentine Republic

PROLOGUE BY GOVERNORROSANA BERTONE

Our province has unique characteristics that make it stand out from the rest of the country, and which also provide an immense growth potential to the province: Tierra del Fuego, Antártida e Islas del Atlántico Sur is a huge part of Argentina that has a strategic geographic location, abundant natural resources, beautiful landscapes and tourist attractions. This is why the province is the scenario where numerous industrial services and activities are developed and the reason why it is home to a population that each day contributes with their work to have a better future.

In our territory, which is a special customs area, we were able to develop thriving industries like the textile, manufacturing, plastics, automobile and electronics industries, which today employ thousands of workers who make us feel proud of our national industry. However, we are exploring the possibility of developing other new industries such as the software and pharmaceutical industries.

Today, we can state that, among its natural resources, our province has a very important part of the oil and natural gas supplies of the country, with a great participation in the extraction activity, which places the province as the main offshore exploitation center of Argentina.

Furthermore, we have alternative energy sources such as wind energy thanks to constant and favorable winds, which in a near future could provide electricity for our cities.

On the other hand, forestry is of great importance to our traditional economy, which uses the abundant raw materials that are available in the Fuegian territory.

Our geography is suitable to develop the fishing industry in all its forms because it offers deep-sea fishing on the open sea and a coastal area suitable to small-scale fishing. Aquaculture, in the sea as well as inland, allows the development of species that are highly demanded both nationally and internationally.

The generous land of Tierra del Fuego also provides us with the necessary resources to develop a high quality sheep and beef cattle, which is shown by the ranches that today are considered to be living history of these activities. In addition, under the greenhouse effect, all our fields can develop a great fruit and vegetable potential, which is already starting to emerge in our province.

Around this reality, there exists a great ecosystem of small and medium-sized enterprises related to numerous areas such as commerce, which are essential to the success of the different existing productive sectors and the ones to be created in the future.

Our tourism sector deserves a whole new chapter: the mystic of the End of The World along with its beautiful landscapes and the many touristic activities we offer have resulted in a constant influx of both national and international travelers, which has contributed to the development of a burgeoning sector and a worldwide recognized destination.

We as Fuegians are committed to the growth of each provincial productive sector because we know that they are fundamental foundations to achieve a better quality of life and to contribute to the common welfare of society.

I have the certainty that development is achieved through the constant work of the State by its ability to organize public policies and through society as a whole.

I invite you to get to know our Tierra del Fuego and to be part of its future.

Rosana Bertone

THE FEDERAL COUNCIL OF INVESTMENTS

The Federal Council of Investments (CFI), founded more than 50 years ago by the Argentine provinces, aims at promoting the harmonic and comprehensive development of all the regions of the country. Its actions are based on federalism and regional development, operating as a permanent research, financing and advisory organization.

The CFI has presence in the whole territory of the Argentine Republic thanks to its structure which is based on a large network of liaison units, which help to give technical and financial assistance and allow the CFI to maintain an effective cooperation with provincial governments.

Within these activities, the CFI also offers trade assistance, which is a key aspect to business success. The Council offers to finance new or existing projects through lines of credit that have developing conditions that are shown mainly through interest rates and repayment terms. In this way and in an uninterrupted way, the CFI caters for the financing needs of Micro, Small and Medium-Sized Enterprises related to agriculture, industry, tourism, mining and other services, by providing businessmen with productive reactivation credit lines and support to exportable production.

INDEX

01. Tierra del Fuego, Antártida e Islas del Atlántico Sur 13

02. Economy in Tierra del Fuego 27

03. Establishing a company in Tierra del Fuego 41

04. Legal Framework for investing 45

05. Foreign Trade 57

06. Why invest in the province? 61

07. Frequently asked questions 69

Appendix 73

Information sources,bibliography and abbreviations 77

01. TIERRA

DEL FUEGO,

ANTÁRTIDA

E ISLAS DEL

ATLÁNTICO

SUR

1.1. The province at a glance

1.2. Location

1.3. Topography and climate

1.4. Population

1.5. Education

1.6. Institutional Framework

1.7. Provincial Government

1.8. Political Division

1.9. Infrastructure and communications

1.1. The province at a glance

OFFICIAL NAME: Tierra del Fuego, Antártida e Islas del Atlántico Sur – it’s abbreviated “Tierra del Fuego” in official documents and public buildings. It is the twenty third province of the Argentine Republic.

CAPITAL CITY: Ushuaia.

REGION: Patagonia1.

SURFACE AREA: 1,002,445 km² Isla Grande: 12,181 km² − Antártida: 964,847 km² − Islas del Atlántico Sur: 6,027 km²

POPULATION: 127,205 people according to the 2010 National Census. According to the INDEC, the total population of the province in 2017 is 160,720 inhabitants2.

POPULATION GROWTH: 26% (intercensal, with regards to the 2001 census).

LITERACY RATE: 99.3% of the total population.

GROSS DOMESTIC PRODUCT (GDP) PER CAPITA (PPP): US$ 26,600 (2014).

CURRENCY: Argentine Peso (AR$).

FISCAL YEAR: January-December.

MEASUREMENT SYSTEM: Metric.

TIME ZONE: GMT − 03:00.

OFFICIAL LANGUAGE: Spanish.

PHONE AREA CODES: 02901 (Ushuaia) / 02964 (Río Grande).

POLITICAL DIVISION: 4 departments and 3 districts.

POLITICAL SYSTEM: Democratic, Republican and Representative.

GOVERNOR: Rosana Andrea Bertone.

These lands were inhabited by several indigenous groups: the Selknam or Ona, the Yamana or Yaghan, the Alacalufes or Kaweskar and the Haush or Manneken. The Selknam (or better Shelknam) and the Mannekens were part of the “Tehuelche Complex”.

The first Europeans to explore the Fuegian territory were the sailors of the Spanish expedition commanded by Ferdinand Magellan in 1520. It was him who named this land “Tierra de los fuegos” when he saw from his boat the Selknam’s bonfires in the shore.

1 Patagonia is comprised of the following provinces: Neuquén, Río Negro, Chubut, Santa Cruz and Tierra del Fuego, Antártida e Islas del Atlántico Sur.2 INDEC: Estimations based on the last 2010 Census of People and Households. Demographic Analysis No.30

15INVEST IN TIERRA DEL FUEGO

1.2. Location

Tierra del Fuego is the southernmost province of the Argentine Republic. It is part of the Patagonia and its capital, Ushuaia, is the southernmost city in the world, located only 1,000 km away from Antarctica.

The archipelago “Isla Grande” of Tierra del Fuego is separated from the continent by the Strait of Magellan, which links the Atlantic and Pacific oceans. This characteristic makes Argentina, and particularly the province, bi-oceanic. It borders Chile to the west and south, the Atlantic Ocean to the north and southeast and the Pacific Ocean to the south through the Beagle Channel.

1.3. Topography and climate

Topography

The topography of the province is varied. It includes peat, valleys, plateaus, mountains, glaciers, vast forests and maritime coastlines.

Isla Grande of Tierra del Fuego has three different areas: the Magellanic Steppe to the north; the ecotone in the center and the mountain range to the south.

The Magellanic Steppe was the first area to be inhabited by the first explorers who arrived in the island in the late 19th and early 20th centuries. It is a treeless plain with soft undulations, small and large rivers like the rivers Cullen, San Martín, Chico and Grande. This area is the most suitable for livestock production.

The ecotone includes the central part of the island. It is characterized by the presence of trees which form small stains of open hills in the north, which become more high and dense to the south and west, where the lenga appears. This topography has more geographical features than the steppe.

The mountain range area comprises the whole south

of the island and owes its name to the Andes mountain range which has heights of no more than 1,500 meters above sea level. The valleys that border the mountain ranges form large peatlands and meadows, which are generally surrounded by waterways. Here, you can find the most important water mirrors of the island: lakes Yehuin, Chepelmesh, Escondido and Fagnano or Kami.

Climate

The Fuegian climate in the south is cold-oceanic whereas in the north the climate is cold- temperate to sub humid with a strong influence of the wind.

The average summer temperature in cities like Rio Grande, Ushuaia and Tolhuin is 10°C, whereas in winter the temperature ranges from 0°C to 1°C. However, because of the wind coming from the South Pacific the apparent temperatures are lower. The area of the Beagle Channel, however, is protected from the strong winds thanks to the mountain ranges that surround it. On the other hand, in Rio Grande, which is located in the middle of the steppe, winds are even more frequent.

During summer, Tierra del Fuego can have sun, rain and even snow, all in a single day. The most frequent changes are produced in spring and summer rather than in winter.

In the Magellanic Steppe, precipitations are evenly distributed throughout the year, though they slightly decline in August and October. Generally, snowfalls are rare, but when it snows the soil gets covered for a very short period of time. However, the soil and most waterways remain frozen in the surface during May and August.

In the ecotone area, the climate is more humid, which causes precipitations to increase. Snowfalls are more frequent and heavy, and during winter a large area remains covered in snow while the soil and most waterways remain frozen in the surface.

Periods of sunlight vary depending on the season of the year. In summer, the sun shines for more than 17 hours per day and it sets around 10 pm. In winter, natural light (not the sun) lasts for only 7 hours: the sun rises late in the morning and sets around 5.30 pm.

The 21st of July of each year, the national festival of the Longest Night of the Year is celebrated in Ushuaia.

The province has one of the highest population growth rates of the country: between 2001 and 2010 there was a 26% increase in the number of inhabitants.


1.4. Population

The population of the province has special characteristics due to its heterogeneity and growth rates. With the aim of reinforcing the sovereignty of this geopolitically strategic area to Argentina and thanks to the passing of the Economic Promotion Law, enacted in 1970, there was a large-scale internal migration, which contributed to the establishment of the population. This law encouraged the establishment of companies that attracted a lot of workforce. Currently, 91.1% of the population is native.

The two main urban centers are Ushuaia and Rio Grande. The INDEC estimates that the total population of the province in 2017 is 160,720 inhabitants. 98.8% of the population lives in the city- mainly because of the strong productive focus on the secondary and tertiary sectors of the economy. Its demographic profile is also young: 68.8% of the population is between 14 and 65 years old.

It has the lowest gross mortality rate of the country: 3% compared to a national mortality rate of 7.9%. It also has a gross birth rate equivalent to the national average rate.

Year Total population Growth between censuses (%)

Population figures and growth in Tierra del Fuego,according to national censuses – Years 1960 to 2010

7,955

13,527

27,358

69,369

101,079

127,205

57.7

70.0

102.2

153.6

45.7

25.8

1960

1970

1980

1991

2001

2010

Source: Compiled by author, based on IPEC and INDEC information (General Office of Statistics and Censuses and National Censuses of People and Household).

3 INDEC. Estimations based on the last 2011 Census of People and Households. Demographic Analysis No.30.

Some of the courses of study offered in Tierra del Fuego:

Geology

Certified Public Accountant

Law

Industrial Engineering

Fishing Engineering with specialization in catching and processing

Chemistry

Degree in Systems Analysis

Tourism

Biology

Political Sciences

Sociology

Business Management

Economy

Audiovisual Media

Environmental Sciences

Human Resources

Business Administration

Technical Degrees in administration and management of educational institutions, programming and information systems.

1.5. Education

The province has the second highest literacy rate in the country (99.3%) and the highest percentages regarding school attendance. 4

With regards to higher education, there are three universities in the province: two are public and have campuses both in Ushuaia and Rio Grande (the National University of Tierra del Fuego, Antártida e Islas del Atlántico Sur and the National Technologic University) and the third is private (the University of Business and Social Sciences or UCES for its acronym in Spanish). In total, there are more than 30 courses of study offered in the province: engineering, bachelor’s degrees and specializations according to the local productive demand. Also, there are several institutions that provide training in craft skills and technical fields.

Science and technology occupy a very important position in the province: in 2015 the Ministry of Science and Technology of Tierra del Fuego was created with the aim of developing innovations and doing research on new social and productive possibilities for the province.

1.6. Institutional Framework

The Argentine Republic has a republican, representative and federal government.

The federal form of government establishes the division of powers between the federal government and provincial governments, which guarantees their autonomy in the establishment of their institutions and local constitutions and whose jurisdictions are limited to their own respective territories. In Argentina, the provinces have competence over matters like education, health, municipal institutions, provincial police, provincial tribunals and other matters of local or provincial nature. Furthermore, each province has exclusive competence over the monetary loans they offer, which are subject to federal approval and control mechanisms.

4 INDEC: Population and Social Inclusion in the Bicentennial Argen-tina; page. 140.

Kindergarten

Primary School

Secondary School

National Average

Tierradel Fuego

91.4 %

99 %

89 %

97.3 %

99.6 %

96.9 %

Tierra del Fuego is the youngest province of Argentina. In 1986, the legislative branch passed a law to turn the national territory of Tierra del Fuego, Antártida e Islas del Atlántico Sur into a new province. But the Law No. 23,774 that created the province was not enacted until the 26th of April 1990. The province approved its provincial constitution in 1991.

1.7. Provincial Government

Executive Branch

The executive branch of the province is led by the governor (or lieutenant governor). The governor and lieutenant governor are elected by direct vote of the people of the province for a term of four years. The provincial constitution allows them to be re-elected for one additional term

The governor is the chief executive of the provincial state and, among others, he has the following powers and duties: to legally represent the province in all its official relations, to appoint and remove ministers and accept their resignations; to appoint and remove all officials and public servants of the public provincial administration; to submit to the legislature the provincial and autarchic departments General Budget and Public Administration Resources Calculation draft Bill; and to remit the federal shared funds to municipalities and communes.

Today, the executive power is exercised by the Governor Rosana Bertone and Lieutenant Governor Juan Carlos Arcando, who took their respective offices the 17th of December 2015.


Preamble of the Fuegian Constitution

The people of the province of Tierra del Fuego, Antártida e Islas del Atlántico Sur, through its representatives gathered in a Constituent Assembly and by declaring themselves as part of the Patagonia, with the aim of ratifying their indissoluble inte-gration with the Argentine Nation; exalting human dignity by protecting individual and social rights; guaranteeing liberty, equa-lity, justice and security by establishing a State under the rule of law; ensuring access to education, cultural development and means to health protection for all inhabi-tants; protecting the environment, claiming the dominion of natural resources and pro-moting the economic development to pro-mote general welfare; organize their gover-nment which is subject to the principles of rationalization, decentralization and sub-sidiarity, under the democratic, federal and republican regime, by guaranteeing muni-cipal autonomy and invoking the protection of God, sanction and enact this Constitution for themselves, for posterity and for all men of good will who wish to dwell on the soil of the province.-

Legislative Branch

The legislative branch of the province is unicameral and is called “legislature”. It is made up of 15 legislators who are elected for a four-year period by popular vote. Its members can be reelected. The lieutenant governor is the president of the legislature.

Every four years, the legislature is renewed completely. The last provincial legislative elections took place the 27th of October 2015. The current legislators took office the 17th of December 2015 and their terms will end the 16th of December 2019.

Judicial Branch

The judicial branch of the province is made up of first instance courts, appellate courts and the Provincial Supreme Court, which have jurisdiction over civil, commercial, administrative, labor, family and criminal matters within the territory of the province. The legislature appoints the members of the Provincial Supreme Court on the recommendation of the governor. The Council of the Magistracy appoints the rest of the judges with approval of the legislature.

Judges hold office during good behavior. Justices from the Provincial Supreme Court can only be removed by impeachment whereas the rest of the justices can be removed by a jury made up of legislators and lawyers. Argentina also has federal courts with jurisdiction in matters involving a federal question in the province. The Public Ministry, formed by the Attorney General and the Public Defender, is in charge of promoting legal action on behalf of society s general interests and upholding legality.

In the province of Tierra del Fuego, the Public Ministry is part of the judicial branch and it is led by the Attorney General who appears before the Provincial Supreme Court in the city of Ushuaia. Furthermore, there are prosecutor’s offices in charge of a senior prosecutor in every judicial district (Rio Grande in the north and Ushuaia in the south).

Monitoring Bodies

The Court of Auditors is an autonomous body established by the provincial constitution with the aim of controlling the financial and economic functions of the three powers of the province, their autarchic and legally decentralized entities and companies or corporations that are partially or totally owned by the provincial government.

The Court of Auditors is in charge of informing the legislature of the budget’s investment accounts of the previous fiscal year, before the 30 of July of

the following year. In order to do that, an auditor is appointed to analyze the previous year accounts and he makes a report of each entity, which serves as a basis for the formulation of a resolution submitted to the legislature for approval or rejection of the general account for the fiscal year.

The Attorney General is responsible for reviewing the legality of the public administrative activities of the province and safeguarding provincial assets. He represents the province at contentious- administrative trials and all trials where the interests of the province are directly or indirectly affected. He is appointed by the executive branch with approval of the legislature and he holds office during good behavior.

The Accountant- General and the Treasurer of the province are appointed by the executive power with approval of the legislature. The Accountant-General makes sure that all payment orders comply with the General Budget Law or other special laws, the Accountancy Law and with other legal provisions on this matter. The Treasurer cannot make any payments without complying with other legal requirements and without being previously authorized by the Accountant-General.

1.8. Political Division

The province is divided into departments and uses the non-adjacent territory system with its municipalities and communes, which is why there are non-organized territories between them and why there can be more than one municipality or commune per department. There are four departments in the province (Antártida Argentina, Islas del Atlántico Sur, Rio Grande and Ushuaia) and three municipalities (Ushuaia, Rio Grande and Tolhuin).

The provincial constitution recognizes the municipality as a natural and essential sociopolitical community with life of its own, based on a sociocultural and socioeconomic development where families, tied by the sense of community and neighborhood work together for the common good. The constitution establishes a municipal regime based on political, administrative, economic and financial autonomy of their communities. Its inhabitants elect their own authorities (mayor and members of the deliberating council) and establish their own legal regulations by drafting their own municipal charters and governing themselves in accordance with the provincial constitution.


DEPARTAMENTS MUNICIPALITIES

Antártida Argentina

Islas del Atlántico Sur

Río Grande

Ushuaia

It consists of almost all the Argentine Antarctica except for the South Orkney Islands.

It consists of the Malvinas Islands and the archipelagos called Antillas del Sur.

It is located in the northeast of Tierra del Fuego’s Isla Grande.

It consists of the south argentine part of Tierra del Fuego’s Isla Grande.

There is no departmental head. There are 6 permanent scientific stations and 7 in summer.

Argentina makes its claim over the islands legitimate, (which is based on international law), by demanding the United Kingdom to implement the United Nations Resolutions.

Río GrandeTolhuin

Ushuaia

Isla Grande of Tierra del Fuego

Ushuaia, the capital of the province, is the southernmost city of the world and the only Argentine city that is located to the west of the Andes mountain range. Located in the coasts of the Beagle Channel, it is surrounded by the Martial mountain range. Besides having several industrial activities, it is a port city and a truly touristic center. “Ushuaia” comes from the Yagan language which means “deep bay”.

Rio Grande, straddling the mouth of the River Grande, is located in the northeast coast of Tierra del Fuego’s Isla Grande, along the Argentine Sea in the Atlantic Ocean. It is the urban center with the highest population density in the province and there is a lot of industrial activity.

Tolhuin became a municipality in 2012 because of its population growth. It is 100 km far from Ushuaia and a 105 km far from Rio Grande via Route No. 3, which crosses the entire province. “Tolhuin” comes from two words “tol-wen” which in Selknam language means “heart”.

1.9. Infrastructure and communications

Air transportation

The province has two international airports: the Malvinas Argentinas International Airport in Ushuaia and the Governor Ramón Trejo Noel International Airport in Rio Grande.

The Malvinas Argentinas International Airport was founded in November 1995 and it is located 4 km far from the city center. Nowadays, the airport is operated by the company London Supply.

It has a 2,914 meters long and 45 meters wide runway. It has an airport apron where two large aircrafts (B747- A340), two medium-sized aircrafts (MD80- B 737) and two small-sized aircrafts (F27- SW4) can be accommodated. The Concorde landed at Ushuaia twice in 1999. It also has a JP1 aircraft refueling station in charge of YPF, which has a 1,200,000 liters capacity, a back-up power supply and an equipped fire station.

With regards to its operational capacities it has two boarding areas (one for domestic flights with capacity for 500 people seated and another for domestic and international flights with space for 300 people seated), a VIP lounge for 24 people, 18 check-in desks that vary according to the different airlines, 4 departure areas and 4 arrival areas, luggage conveyor belts, baggage scanning machines and two baggage carousels in the baggage claim area. Furthermore, it has a cafeteria, a restaurant and shops in both levels of the terminal.

In 2015, the airport handled 686,125 passengers and there were 6,221 aircraft movements.5

The Airlines that fly frequently to this airport are: Aerolíneas Argentinas, Austral Líneas Aéreas, LAN Argentina, LAN Chile and L.A.D.E. – Líneas Aéreas del Estado (state airlines). During the high season, DAP also flies to this airport.

Domestic destinations include: Aeroparque (in Buenos Aires), El Calafate, Ezeiza (in Buenos Aires), Río Gallegos, Comodoro Rivadavia, Gobernador Gregores, Mar del Plata, Perito Moreno, Puerto Madryn, Río Gallegos and Córdoba. On the other hand, the international destinations are: Santiago de Chile, Puerto Montt and Punta Arenas (all in the neighboring country of Chile).

The Gobernador Ramón Trejo Noel International Airport in Rio Grande is operated by the company Aeropuertos Argentina 2000 and it is located 5 km far from the city.

It has a 2,000 meters long runway, a 11,500 m² taxiway, 1,700 m² hangars and a 230 m² fiscal warehouse. It also has small shops, cafeterias and a restaurant.

The Airlines that fly are LADE and Aerolíneas Argentinas. In 2015, the airport handled 164,810 passengers in 6,057 aircraft movements.6

INVEST IN TIERRA DEL FUEGO 23

During the high season, the province can sign agreements with different airlines to adjust the flights to the passengers’ demands. For example, in winter of 2017, the province signed an agreement with Aerolineas Argentinas to increase the flight frequency from 21 flights per week up to 38 flights per week.

5 Cf. ORSNA. National Airport Network Regulatory Authority (ORSNA for its acronym in Spanish) .2015. www.orsna.gov.ar/estadisticas/Estadistica_2015.pdf 6 Cf. ORSNA. National Airport Network Regulatory Authority. 2015.

Ground transportation

The National Route 3 connects the north of Tierra del Fuego’s Isla Grande with its south. This route that covers 405 km of Fuegian territory out of a total of 3,060 km, runs from the Autonomous City of Buenos Aires, borders the coast of the Atlantic Ocean on its way to the Patagonia until km 2674 in San Sebastian, located in the department of Rio Grande, passes through Rio Grande and Tolhuin, crosses the Andes mountain range through the Garibaldi path and ends at the bridge over Lapataia river in the Fuegian city of Ushuaia. Because Tierra del Fuego is an island, overland travel is only possible through two Chilean routes that cover 205 km and a 20-minutes ferry trip. Even though some parts of the Chilean side of the route are paved, there are other parts made of rubble.

The rest of the roads of the province are not paved and have little traffic. The Provincial Highway Administration is responsible for maintaining those roads. The most important roads that function as productive corridors are the Provincial Route 21 (because of the numerous peat deposits and forestal exploitation areas it crosses) and the road that goes to Puerto Almanza in the department of Ushuaia (where there are lots of fishing boats and the aquatic activity is being developed).

Sea transportation

Tierra del Fuego has a port in the centric shore of the city of Ushuaia, in the deepest area of the Ushuaia bay at the north coast of the Beagle Channel. Ushuaia’s port is essential to enter to sub Antarctic and American Antarctic waters.

Not only commercial and passenger ships arrive to this port but also cargo and scientific ships. It is the second biggest port in the country (right after Buenos Aires Port) and one of the main of the south hemisphere regarding cruise ships. It has a heavy flow of containers traffic.

The province is currently working on the coastal development of the Beagle Channel, which involves the opening of Route 30 and the improvement of Route J. (*)

Actions have been taken to build a port in Caleta La Misión, in the city of Rio Grande.

The province is also working on a project to build a new commercial port and is making great advances. (*)

* Information available at the Bank of Projects of theSecretariat for Development and Investments of the province.

Telecommunications system

The province has mobile connectivity also known as 4G thanks to the major cell phone carriers that are established in the Argentine territory.

With regards to physical connection, the province has several ISPs that provide internet access. Furthermore, within the framework of the national telecommunications plan “Argentina conectada”, there is an infrastructure construction plan being developed. The aim of this plan is to connect all the fiber-optic networks of the country and in the case of Tierra del Fuego, it will connect the province to the mainland. This plan is currently in its final execution stage, cables have already been laid on the sea bed and the installation of the necessary infrastructure in the province has already been done. This core development favors the implementation of new communication and information technologies and has a direct impact on the population and the progress of the province.


The provincial government is working on the tender documentto build the core optic fiber network that will connect the entire provincial territory. (*)

* Information available at the Bank of Projects of theSecretariat for Development and Investments of the province

02.ECONOMÍA EN TIERRA DEL FUEGO

2.1. Estructura Económica

2.2. Comercio Exterior

2.3. Condiciones de Vida y Empleo

2.4. Sistema Financiero

02.

ECONOMY IN

TIERRA

DEL FUEGO 2.1. Economic structure

2.2. Foreign trade

2.3. Quality of life and employment

2.4. Financial system

2.1. Economic structure

Composition of GDP by economic activity. Year 2014.As a percentage of the total, at 2004 prices.

Tierra del Fuego has a highly diversified economy. It has an important manufacturing industry that provides the whole country with textile and plastic goods, electronics and auto parts. The province has unique features that make it a widely recognized tourist center worldwide. Its natural resources are exploited in a sustainable way and it stands out for its hydrocarbon, fishing, aquatic, forest, timber and livestock activities. These activities promote the development of the province and, at the same time, boost construction and trade all over the provincial territory.

Source: Compiled by author, based on the Provincial Institute of Analysis and Research (IPEC for its acronym in Spanish).

51.9% Manufacturing industry

18.0% Mining and quarrying

0.9 % Agriculture and livestock

1.3 % Others

1.4 % Social services

3.2 % Teaching

6.2 % Public administration, defense and social security

1.8 % Financial services

1.8 % Communications

1.8 % Hotels and restaurants

1.4 % Transport and storage

6.1 % Trade

2.2 % Construction

2.2 % Electricity and gas

Tierra del Fuego is the second province with the highest level of per capita public investment made by the national government. In this way, productive infrastructure keeps improving every year, which benefits the establishment of private sector profitable businesses. This, together with the ongoing Economic Promotion Regime has encouraged an economic growth since 2003, which is also shown in the employment rate of the province.

Source: Compiled by the author with information provided by IPIEC, using micro-data of the Permanent Household Survey.


Employment by sector in Ushuaia and Río Grande

2003 201514.000

12.000

10.000

8.000

6.000

4.000

2.000

0

Manufacture Construction Trade Transport andCommunications

Hotels andRestaurants

PublicAdministration

Education Health DomesticService

Others

Primary sector

Tierra del Fuego has a vast experience with regards to hydrocarbons, fishing and sheep cattle.

Oil and gas are extracted in the north of the province, where many international leading companies are established and where high international yields are achieved. In 2015, the province extracted 626,500 m3 of oil (which represents the 2% of the country’s production) and 3,033 million m3 of gas (which represents the 7% of the national production). Oil production has decreased due to a drop in international prices and because of the hydrocarbon policies that the national government has implemented. However, thanks to recent measures taken in order to boost the sector, the perspective has improved significantly. With regards to gas production, in 2016 the province registered its best values of the past five years and they keep increasing.

Hydrocarbon exploration and exploitation areas in Tierra del Fuego

Source: Secretariat of Energy and Hydrocarbons of the province of Tierra del Fuego, Antártida e Islas del Atlántico Sur.

There are high expectations to increase the extraction within the next few years because there are still many areas left to explore and exploit.

With regards to the generation of renewable energies, the province is working on a project to install a 4.5 MW wind farm next to Rio Grande. In Rio Grande, thanks to the stability and speed of the wind, it can be es-timated that a wind turbine will generate a capacity factor of 64%, which is one of the best capacity factors in the world.

In regard to fishing, in Tierra del Fuego small-scale fishing coexists with inshore fishing, which employ numerous families. There is also commercial fishing, which involves the processing of fish and mollusks on board of the same ships. Around 34,000 tons of fish are caught annually in the province. Among the cau-ght fish, the following species stand out: black hake (which has a very high commercial value), hake, po-llack, forkbeard, blackspot seabream, and salmon. The main product produced with fish is surimi (which is a minced fish paste). Crustaceans (mainly king crab) and mollusks (scallop and squid) are also caught in Tierra del Fuego.

CA 12 area block 1

CA 12 area block 2

CA 12 area off shore north

CA 12 area off shore south

Route 3

Austral 12 field - On shore and off shore bidding areas for exploitation in 2017

Exploitation areas granted under concession

The production of methane and propane gas has a great potentialand could make a real change in the economic future of the province.

MAG 1

POSE

LFUE CMA 1

VIOL

ANGO

RCUY CA1 TDF

CAM-2C

CMA 1

CA7 CHOR

CA12 I / CA12 II


Exports of the fishing industry of the province per destiny(In dollars − Year 2015)

Source: Compiled by author using data from the INDEC.

Japan

United States

France

United Kingdom

Vietnam

China

Spain

Canada

Rest

The environmental conditions for aquaculture in the province are similar to those of the biggest aquaculture producers in the world. The quality of the water (sea water as much as fresh water) and locations is exceptional, which is suitable for breeding salmonids. The most suitable fish species for fish farming are: the Atlantic salmon, the Pacific salmon and the Rainbow trout. The production has a huge growth potential: today only 46 tons of bivalve mollusks are farmed per year (mainly mussel and Magellan mussel, apart from clam) and another 1,800 tons of scallops per year.

Tierra del Fuego’s fish products are internationally recognized for their quality.Currently, the provincial government is exploring the fishing industry in order to stimulate a more strategic development.Its potential is the result of several consultations held with the private sector.

The provincial government is currently carrying out the Project INNOVACUA, which consists in experimenting with a multi-trophic farm in order to breed different species.

23,740,715

22,481,414

20,169,483

7,218,008

4,410,998

5,867,637

4,509,725

19,243,431

4,683,803

With regards to the agricultural production of the province, sheep farming is the most important activity and it is carried out in the north of the island. The main exploited species is the Corriedale, from which meat and wool (between 3 and 6 kilograms of wool per sheep per year) can be obtained. Tierra del Fuego has cutting-edge techniques regarding animal health and handling, including the implementation of biotechnology (area in which Argentina stands out as an innovative nation).

Since Tierra del Fuego was declared an “aphthous fever free-zone” in 2007, the livestock production has been focused on beef cattle and beef started being commercialized and shipped to the mainland. This situation has a huge growth potential because once a higher volume of production is achieved, beef could be exported to the most demanding markets in the world.

There are four slaughterhouses in the province, which are approved and regulated by the National Service for Agrifood, Health and Quality (SENASA for its acronym in Spanish). However, some producers fatten and kill their beef cattle in neighboring provinces.

Finally, the peat produced in Tierra del Fuego is first quality. The province has extracted between 25,000 and 40,000 m3 of peat every year, which is sold and exported to the rest of the country. 90% of the peat is used as substrate and it is a top-quality material. The potential of peat in Tierra del Fuego is huge, not only because it would make the production more efficient (for instance by increasing mechanization) but also because there is an immense native forest, located in the east of Isla Grande, which is full of peat and could be exploited in a sustainable way in order to make sure that its reproduction and commercialization are successful.

There are many developmentpossibilities and captive marketsfor agricultural production. Its farms (estancias) reflect the vast experience that the province has in the sector.


Industrial sector

Since the early 1970s7 and since the passing of the Law No. 19,640, the establishment of several industrial complexes through fiscal and customs incentives was encouraged. This tax benefits are key to the production of goods that in the rest of the country are levied with high internal and import taxes. Today, the manufacturing industry represents more than half of Tierra del Fuego’s added value.

The industrial activity specializes in transforming raw materials coming from the exterior into consumer electronic products. In 2015, for example, 11.9 million cellphones and 3.5 million monitors and televisions were manufactured. Tierra del Fuego provides multinational automotive companies with all kinds of electronic components for the over 40 different car models that are produced in the entire country. High standards of quality, constant product innovation and the ongoing projects to create research and technology application centers, make this chain of value the core of the provincial and national economy.

The plastic industry (potassium sorbate, PET preforms, and plastic molds for electronic devices are manufactured) and the textile industry (spinning, weaving and manufacturing stages) are also successful in the province.

The main factories and the medium-sized firms that provide transportation and logistics services, which are necessary for the commercialization to the rest of the country, are currently concentrated in the city or Rio Grande. 68% of the industrial jobs of the province are located in this city, particularly in its industrial

7 Law No. 19,640 on the special tax and customs regime in the province is developed in chapter 4.3.Legal Framework in Tierra del Fuego.

Source: Municipality of Rio Grande.

park, which is bigger than the one in Tierra del Fuego, with 226 plots distributed in 122 hectares and which provides all the necessary infrastructure and services for the companies to want to produce there.

Elevated viewpoint of part of the industrial park in Río Grande

Services sector: Tourism

Since 2002, tourism has become the driving force of the economy of the province, which also benefited the following sectors: hotels and restaurants, construction, transport and commerce. Ushuaia, located at the edge of the world, is a tourist destination that is unique in the world: it is the end of the Patagonia. It is the southernmost city in the world, which is combined with the characteristic exuberance of the forests and lakes of the Andes mountain range. Then, following the east coast, Tolhuin and Rio Grande can be found.

In 2015, Ushuaia welcomed 311,562 tourists. Most of them arrived through the international airport, though the more than 200 cruises that enter the Ushuaia port bring 35,000 visitors each season. 45% of the tourists that arrive at the province come from abroad, the rest come mainly from the cities of Buenos Aires, Córdoba and Rosario.

Though Tierra del Fuego’s location in the “End of the World” is the feature that stands out the most, the

Nationalvisitors

Internationalvisitors

Tourism demand per originin 2015 (in %)

32.8

67.2

32.7

67.3

42.45

57.54

Summer WinterAnnual

Source: Provincial Statistic Yearbook .Years 2015 – 2016 (INFUETUR).

province has numerous tourist attractions all across its territory:

• Protected natural areas: the Tierra del Fuego National Park, the Martial Glacier, the Costa Atlántica natural reserve, the Laguna de los Patos urban reserve and the Punta Popper urban reserve. In all of them, the native flora and fauna, which are unique in the planet, can be appreciated;

• Marine activities: visits to the lakes Escondido and Fagnano, marine fauna sighting and penguin colony tours, canoeing, sailing around the Beagle Channel, visits to the “Lighthouse at the End of the World”, recreational fishing and diving;

• Adventure tourism: Van tours, dog sleds, rides on snow bikes, trekking, snowshoeing, horseback riding, mountain biking, skiing and ice climbing and helicopter tours.

• Ski resorts: in Cerro Castor people can go alpine and cross-country skiing and snowboarding;

• Museums: Museo del Fin del Mundo, Museo Marítimo y del Presidio de Ushuaia, Museo Yámana and Museo Fueguino de Arte, among others;

• High quality international cuisine;

• Parties and festivals during the year: International Festival of Classical Music, International Jazz Festival, the National Festival of the Longest Night of the Year and the National Meeting of Fly-Fishing;

• Gateway to Antarctica: the province is the embarkation point for voyages to Antarctica;

• Academic and labor tourism: in Ushuaia, numerous conventions, conferences and scientific and professional meetings take place, as there is an excellent infrastructure and services’ capacity for this type of events.

Tourism will increase even more when ongoing infrastructure projects are finally implemented. Among these projects, the Program for the coastal development of the Beagle Channel, which involves an investment of 1,500 million Argentine Pesos, will help to build road infrastructure, which will be used by those who visit the province so that they can have access to new landscapes and activities in the Fuegian territory.

2.2. Foreign trade

In the last decade, Tierra del Fuego specialized in providing the internal market with industrial goods, in particular, consumer electronics. This boosted an exponential growth of imports of necessary supplies, which explains why since 2012, around 70% of the total of the foreign purchases has been made by the province.

At the same time, the consolidation of the national market as a preferential destination for big part of the Fuegian production generated a gradual decline in foreign sales. In particular, there was a decline of the total exports. After 2012, the US$ 20 million per year that were exported in concept of energy and oil, now remain in the country where it is commercialized.

Provincial foreign trade and total balance of the trade balanceIn US$ millions - years 2006 to 2014

Between 2006 and 2014, fuel and energy represented 61% of the province’s total exports. However, since 2014, these products have been purchased by the internal national market.

With regards to exports, during this decade primary products represented a 16.5% of the province s total exports, though it increased to 57.1% in 2015. This was followed, in order of importance, by exports of manufactured goods of agricultural origin (MAO) which represent a 12.6% of the total exports in the decade but only a 23.2% in 2015. Manufactured goods of industrial origin (MIO) came to 9.8% on average for the period from 2006 to 2015 and a 19.7% in 2015.

Provincial exports by major items – Estimated figures for the period from 2006 to 2015(As a percentage of the total)

The most exported products of the province for the period from 2006 to 2015 were the following fuels: petroleum gas (42%) and crude oil (19%) whose export was interrupted in 2014. This is followed, in order of importance, by export of fish and mollusks (28% of fish fillet and minced fish), plastics (4.1%), electronic devices (2.9%) and ships and airplanes (1.6%). Currently, all of them are still exported in great quantities and at good prices.

The main four trading partners of the province like Brazil, United States, Japan and France received 59.5% of the total of exports in 2015. In 2014, the province exported twice as much to Japan and Vietnam and it also started exporting to the United Kingdom. Sales to the Popular Republic of China, France, Russia and Canada also increased. In terms of trade blocs, the European Union is the destination of the 23% of the total of exports of Tierra del Fuego, followed by the MERCOSUR (21%) and the North American Free Trade Agreement (19%).

2006

2007

2008

2009

2010

2011

2012

2013

2014

Trade Deficit

Imports

-473

777

790

370

2,010

3,364

3,986

4,754

3,135

1,005

1,181

1,273

709

2,398

3,831

4,412

4,929

3,267

Exports

536

405

483

339

388

466

426

175

132

Source: Compiled by author, based on the Provincial Institute of Analysis and Research (IPEC).

61.1 % Fuel and energy

16.5 % Primary products

12.6 % Manufactured goods of agricultural origin (MAO)

9.8 % Manufactured goods of industrial origin (MIO)

Source: Compiled by author based on INDEC data.

Provincial exports by major items – Estimated figures for the period from 2006 to 2015(As a percentage of the total)

2.3. Quality of life and employment

There is a high quality of life in the province compared to the rest of the country and the world, in particular, in terms of social indicators such as health and education, in part due to its economic structure. In 2014, the province reached a GDP per capita of US$ 26,000. This places the province among countries that have advanced economies9 and which have similar GDPs per capita like South Korea (US$ 28,166) or Malta (US$ 25,222) and above countries like Saudi Arabia (US$ 24,362) or Portugal (US$ 22,122)10.

On the other hand, the province has the lowest unemployment rates of the country thanks to its productive diversity: in 2011, the unemployment rate for Ushuaia and Rio Grande (which cover the 97% of the population of the province) fell from 5% to 4.6% in September 2016. Moreover, thanks to employment thousands of workers, who have been continuously migrating to Tierra del Fuego looking for better conditions, were socially included. Workers who live in Tierra del Fuego have on average the best salaries in the country.

By the 30th of June 2016, only the 6.3% of the inhabitants of the province had incomes that were below the poverty line estimated by INDEC, which is considerably less than the national average.


Source: Compiled by author based on the Provincial Institute of Analysis and Research, Statistics and Censuses (IPEC).

42.0 % Petroleum gas

2.4 % Others

16.5 % Unprocessed fish and mollusks

11.5 % Processed fish and mollusks

4.1 % Artificial plastic materials

2.9 % Machines and electrical devices

1.6 % Air, sea and water transports

19.0 % Crude oil

9 “Advanced economies” according to the classification provided by the International Monetary Fund (IMF) on its database called World Economic Outlook of October 2009, where the following countries are included in the same category: South Korea, Malta and Portugal. Saudi Arabia is classified as an “emergent and developing” country just like Argentina.

10 Source: UN (data corresponding to year 2014).

2.4. Financial system

There are 9 banking entities operating in the province, with 23 branches in total. Tierra del Fuego has indicators of access to financial services which are higher than the average in Latin America. Its financial institutions show high levels of solvency and the capital stock subscription of the financial system comfortably exceeds the requirements of international provisions.

The presence of the Bank of Tierra del Fuego (BTF) stands out. Its objectives are to encourage access to credits for inhabitants and businesses in order to promote and support their economic development, to make housing more affordable and to achieve economic integration. At the same time, it provides different financial solutions for the public sector, institutions, companies and individuals. The Bank helps all social sectors and favors the provincial development. Apart from its branches in Ushuaia, Rio Grande and Tolhuin, this bank also has branches in El Calafate and Rio Gallegos (both located in the province of Santa Cruz) and in the Autonomous City of Buenos Aires.

The following banking entities also operate in the province: the National Bank of Argentina, Banco Santander Río, Banco Galicia, Banco Patagonia, Banco BBVA Francés, HSBC Bank, Banco Hipotecario and Banco Macro. Also there are two insurance companies: SanCor and La Caja.


Banco de Tierra del FuegoCasa CentralMaipú 897 (esq. Juan Manuel de Rosas)[V9410BJQ] Ushuaia, Tierra del FuegoTel.: (02901) 44-1602 / 609

Sucursal UshuaiaSan Martín 396 (Esq. Roca)[V9410BFQ] Ushuaia, Tierra del FuegoTel.: (02901) 44-1714 / 44-1706

Sucursal Río GrandeSan Martín 193[V9420CIB] Río Grande, Tierra del FuegoTel.: (02964) 43-6312 / 32

Sucursal Río GallegosAv. Pres. Dr. Néstor Carlos Kirchner 831[Z9400BAH] Río Gallegos, Santa CruzTel.: (02966) 42-0936 / 0937 / 2207

Sucursal Buenos AiresSarmiento 741[C1041AAO] Capital FederalTel.: (011) 3984 - 1800 / 09 Sucursal Malvinas ArgentinasSan Martín 1064[V9410BFX] Ushuaia, Tierra del FuegoTel.: (02901) 42-5151 / 43-1904

Sucursal KuanipKuanip 850[ V9410BQR] Ushuaia, Tierra del FuegoTel.: (02901) 444-464 / 65

Sucursal TolhuinMinkiol 331[V9412AFH] Tolhuin, Tierra del FuegoTel.: (02901) 492030 / 052

Sucursal El Calafate25 de Mayo 34[Z9405ACB] El Calafate, Santa CruzTel.: (02902) 492-283/284

Sucursal Chacra IIPellegrini 206[V9420FYF] Río Grande, Tierra del FuegoTel.: (02964) 436-396 / 392

Banco de la Nación ArgentinaSan Martín 190Ushuaia, Tierra del FuegoTel.: (02901) 422087

San Martín 201Río Grande, Tierra del FuegoTel.: (02964) 430837

Banco Santander RíoPres. Bernardino Rivadavia 34Ushuaia, Tierra del FuegoTel.: (02901) 429100

Libertad 793Río Grande, Tierra del FuegoTel.: (02964) 436900

Banco GaliciaGobernador Godoy 162Ushuaia, Tierra del FuegoTel.: (02901) 434198 / 435012 / 435216 / 435251

San Martín 158Río Grande, Tierra del FuegoTel.: (02964) 433119 / 433121 / 433183 / 433184

Banco PatagoniaSan Martín 302Ushuaia, Tierra del FuegoTel.: (02901) 432080 / 432083

San Martín 145Río Grande, Tierra del FuegoTel.: (02964) 427165 / 430215 / 432319

BBVA Banco FrancésAv. Maipú 65Ushuaia, Tierra del FuegoTel.: (02901) 432565 / 66 / 67 / 68

HSBC BankAv. Maipú 297Ushuaia, Tierra del FuegoTel.: (02901) 421136 / 423410 / 431910

Banco HipotecarioPres. Bernardino Rivadavia 141Ushuaia, Tierra del FuegoTel.: (02901) 422541

Banco MacroAv. Maipú 761Ushuaia, Tierra del Fuego

Rosales 241Río Grande, Tierra del FuegoTel.: (02964) 431918

Islas Malvinas 3001Río Grande, Tierra del Fuego






03.

ESTABLISHING

A COMPANY

IN TIERRA

DEL FUEGO 3.1. Setting up a business

3.2. Settling in Argentina

3.3. Lease and purchase of real estate

When setting up a business in the province, investors can choose between establishing a foreign branch office, acquiring ownership interests in an existing company or creating a new company.

3.1. Setting up a business

The Business Associations Law No. 19,550 sets the legal framework for the establishment of a company in the country. It is mandatory to register both new companies and foreign branch offices with the Registry of Companies.

Branches are managed by a legal representative on behalf of their head office. The head office can carry out all its business transactions through the branch and is financially responsible for it. In order to open a branch office, the following procedures must be followed: 1) registration with the Superintendence of Corporations (IGJ for its acronym in Spanish), 2) obtain a prequalification report issued by a lawyer or a notary public. If non-cash contributions are made, a report issued by an accountant will also be required, 3) present the legal documentation of the head office (bylaws, certificate of registration issued in its home country, appointment of the representative and location of the branch’s principal place of business in Argentina, financial statements and a list of all its partners, 4) pay the registration fee imposed by the Federal Administration of Public Revenues (AFIP for its acronym in Spanish).

If investors prefer to create a new company in Argentina, they can choose between establishing a Limited Liability Company (SRL for its acronym in Spanish) or a corporation (SA for its acronym in Spanish). Also, there are other business association forms: general partnerships, limited partnership, sociedad de capital e industria (T.N: a type of partnership where one or more partners invest money and one or more other partners contribute their labour or service11), joint ventures or partnerships and limited partnerships issuing shares.

In Limited Liability Companies, the capital is divided into quotas and the liability of its partners is limited to the number of quotas to which they subscribe.

In Corporations, the capital is represented by shares and the liability of its partners is limited to the amount they have invested in the corporation.

In any case, the company must register with the provincial Public Registry of Commerce and submit the following documentation: application for reservation of a name, a prequalification report issued by a lawyer or a notary public. If non-cash contributions are made, a

Documents issued abroad must be filed with their Spanish translation done by a sworn translator licensed in Argentina, whose signature must be certified or registered according to the requirements established by the legislation in force.

In all cases, it is recommended to consult with local professionals (accountants, economists, lawyers) who can give detailed counsel on these procedures and help to carry out each transaction according to the characteristics of each company. For that purpose, it is suggested to consult with the public registry of licensed professionals of the professional associations that represent and control each profession in the province. The Rio Grande lawyer association, the Ushuaia lawyer association and the Tierra del Fuego Council of Economic Sciences are among these professional associations.

For specific needs referred to each investment project, it is also suggested to consult with the Professional Surveying Council of Tierra del Fuego or the Engineers Association of Tierra del Fuego, among others.

11 Ghersi, Carlos y Debonis, Silvana; Diccionario Jurídico Bilingüe, La Ley, 1ª ed, Ciudad Autónoma de Buenos Aires, 2014.

report issued by an accountant will also be required, the establishment of the head office’s location, a copy of the articles of incorporation, organization and formation with all the partners’ signatures and a document certifying the acceptance by members of the managing and surveillance bodies of the company, among other legal obligations. Also, the following requirements must be met: payment of the incorporation or formation fee at the Federal Administration of Public Revenues; publication of a notice in the official gazette, containing the creation of the company; make an initial deposit in cash of 25% of the capital with National Bank of Argentina (BNA for its acronym in Spanish).

3.2. Settling in Argentina

Argentina guarantees equal treatment for both foreigners and Argentine citizens. It also guarantees equal access for any immigrant to the basic rights and services that national citizens enjoy, such as health, education, justice, employment and social security.

Resident permits are issued by the National Immigration Office or by Argentine consulates abroad and they are a prerequisite to obtain the residency visa to live in the country.

Foreigners can apply for a permanent residency (which provides foreigners with legal protections to carry out any remunerated or lucrative activity), a temporary residency (which provides foreigners with full legal protection to carry out remunerated or lucrative activities but only during an authorized period) or a transitory residency for which personal documentation must be presented to the National Immigration Office.

The law grants investors (those who invest a minimum of AR$1,500,000 in the productive, commercial or services sectors in the country) a three-year temporary residency, which can be extended and includes multiple arrivals and departures from the national territory. To that end, the investment project in question must be presented to the National Immigration Office, also indicating the origin and lawfulness of the funds. Before the National Immigration Office grants investors the temporary residency, the previously mentioned project has to be evaluated by the Ministry of Production to determine its legal viability, economic and financial sustainability and the nature of the investment.

3.3. Lease and purchase of real estate

The Argentine Civil Code regulates the development, purchase and lease of real estate within the whole national territory with a few specific regulations in each province and municipality. Leases are private written

agreements between parties for a period of two to ten years in the case of residential properties and a period of three to ten years in the case of office spaces.

The purchase of property involves several stages: first, a contract of purchase and sale is drafted, which serves as a guarantee of the transaction, then the transaction is completed with the execution of the title deed in the presence of a notary public.

In order to do that, a personal identification must be obtained from the Federal Administration of Public Revenues12. Foreigners do not require any prior authorization in order to purchase properties except in the case of real estate which are located in border security areas.

Rural land purchases by foreigners are limited to the 15% of the (national, provincial or municipal) territory where the properties are. Foreigners are also forbidden from owing real estate located near to large and permanent water bodies. Within the framework of current bilateral investment treaties, Argentina does not consider the purchase of rural lands to be an investment.

12 For companies, a Tax Registration Number (CUIT for its acronym in Spanish) is required; for individuals a Labor Registration Number (CUIL for its acronym in Spanish) is required. Foreigners who do not have any of those identification numbers can apply for a Tax Identi-fication Number (CDI for its acronym in Spanish). For that purpose, foreigners should have a valid passport and appoint an Argentine representative for tax-related purposes.


It is recommended to seek legal advice before purchasing or renting real estate.

04. LEGAL

FRAMEWORK

FOR

INVESTING

4.1. International legal framework

4.2. National legal framework

4.3. Provincial legal framework

4.4. Tax system

4.5. Hiring employees

4.6. Intellectual property

4.7. Environmental legislation

In 2017, the province adhered to the National Law, which regulates the public-private participation (PPP) in investments.

Argentina and, therefore, the province, protect their national and international investors in order to protect their interests and guarantee the safety of the capital they invest in our country.

4.1. International legal framework to invest directly in Argentina

Argentina is a founding member of the World Trade Organization (WTO) and it has always complied with the WTO regulations, and whenever there were disagreements with regards to the interpretation or implementation of those regulations, Argentina has followed all its rulings. Furthermore, Argentina has brought disagreements with other countries to the WTO in search for a resolution.

The country has signed 53 bilateral investment treaties13, which protect foreign investors and give them the right to bring controversies with the state to international courts in order to force the state to respect their rights. In Argentina, bilateral investment and protection treaties are superior to national laws.

Argentina has participated as an observer in the investment committee of the Organization for Economic Co-operation and Development (OECD) since 1996 and it is a member of the Multilateral Investment Guarantee Agency (MIGA), an organization which is part of the World Bank, whose aim is to mitigate the investment risks and advise and inform of the different investment opportunities in emerging economies.

Moreover, Argentina is a founding member of the Southern Common Market (MERCOSUR for its acronym in Spanish), which is a large economic bloc with a high level of development and an even higher potential. The economies of the members combined represent more than 82% of the GDP of all South America. The group encompasses 275 million inhabitants (70% of South America’s population).

The information of this chapter has been gathered from the chapter How to do business in Argentina – An investor’s Guide.

13 Argentina has signed bilateral investment treaties with the following countries: Germany, Algeria, Armenia, Australia, Austria, Benelux, Bulgaria, Canada, Chile, China, Korea, Croatia, Costa Rica, Cuba, Denmark, Ecuador, Egypt, El Salvador, Spain, United States, Philippines, Finland, France, Guatemala, Hungary, Indonesia, Israel, Italy, Jamaica, Lithuania, Malaysia, Morocco, Mexico, Nicaragua, The Netherlands, Panama, Peru, Poland, Portugal, United Kingdom, Czech Republic, Romania, Russia, Senegal, South Africa, Sweden, Switzerland, Thailand, Tunisia, Turkey, Ukraine, Venezuela and Vietnam.


BRAZIL

ARGENTINA

URUGUAY

PARAGUAY

BOLIVIA

VENEZUELA

Member States

Acceding Countries

Associate Member Countries

14 Concerning the agro-industrial sector, even though less than 4% of the world population lives in the MERCOSUR, the following products are produced: more than 5% of the cereals of the world; 15% of oil-seeds (Argentina and Brazil produce the 48% of the total soy produc-tion in the world); 12% of vegetable oils; 25% of sugars and molasses, 20% of cow meat, 15% of chicken, 10% of wines, 8% of beer and 7% of cotton. In the last years, the world production of pork, eggs and milk has increased. Thanks to the surplus of food production, MERCOSUR is a natural food provider to other regions of the world.

MERCOSUR has signed free trade and preferential trade agreements with Israel, Peru, Bolivia, Chile, Mexico, Colombia, Ecuador and India14 and is currently negotiating agreements with other countries and trade blocs (among them, the European Union) in order to help national production to enter new markets. These agreements provide a higher legal certainty and demonstrate the insertion of Argentina as a capitalist market economy into the world of investments, financial flows and trade.

MERCOSUR

4.2. National legal framework for Foreign Direct Investments in Argentina

The preamble of the National Constitution promotes equal treatment and it expressly states that its content is valid to “all men in the world who wish to dwell on Argentine soil” regardless of the place they were born. More specifically, section 20 states that:

The Foreign Investments Law No. 21,385 protects foreign capital in any economic activity within the national territory. It defines the following terms as:

• “Foreign capital investment”: a capital contribution from a foreign investor destined to economic activities in the country.

• “Foreign investor”: all individuals or legal persons residing outside the national territory that invest foreign capital in the country.

• “Local Company of foreign capital”: a company with domicile in Argentina, in which persons domiciled abroad own the 49% (or more) of the capital and have the majority of the votes in shareholders’ meetings.

Following the definition provided by the International Monetary Fund (IMF), the Central Bank of Argentina (BCRA for its acronym in Spanish), considers a Foreign Direct Investment (FDI) any investment made by a non-resident, which expresses interest in obtaining a long-lasting participation in a local company, which

cannot be less than 10% of the capital stock or the votes of the company. Once that small percentage has been reached, all subsequent contributions made by the non-resident investor/partner will be considered as a FDI regardless of its sum or percentage.

Foreign investors have rights to:

• Make investments in the country with the aim of promoting economic activities or perfecting the existing ones, in the same conditions as investors residing in the country.

• To remit abroad net profits earned as a return on their investment and to repatriate their investment15.

• To establish a business according to the legal forms of business organization foreseen by Argentine legislation.

• To obtain domestic credit facilities with the same rights and subject to the same conditions as local companies with local capital.

• Investments may be made in: 1) convertible foreign currency; 2) capital goods, spare parts and other components; 3) capital or profits in domestic currency belonging to foreign investors as long as they meet all the legal requirements to be transferred abroad.; 4) capitalization of foreign loans in convertible foreign currency; 5) intangible assets, according to the specific legislation; or 6) other forms of contributions contemplated in special or promotion regimes.

• To perform legal acts between a local company with foreign capital and the company that directly or indirectly controls the branch of the later. These acts will be considered performed between independent parties.

Inflows arising from new contributions and purchases of shares of local companies and real estate must be registered in the foreign exchange market. There are no restrictions with regards to interest payments abroad, dividends, earnings, royalties and any other commercial payment duly registered by the relevant documentation.

“Within the national territory, foreigners enjoy all the civil rights of citizens: they can develop their industry, engage in commerce and practice a profession; own, purchase and sell real estate; navigate the rivers and coasts; freely practice their religion; make wills and get married according to the law. They are not obliged to accept citizenship nor to pay extraordinary compulsory taxes. They may obtain naturalization papers residing two uninterrupted years in the Nation; but the authorities may shorten this term in favor of those so requesting it, alleging and proving services rendered to the Republic.” Section 20 of the National Constitution.

15 This right may be exercised at any moment. To the 30th of July 2017, foreign direct investments in the country are exempt from the man-datory non- transferable deposit established by Decree No. 616/2005, which is retained for 365 days. This deposit, also known as “encaje” in Spanish, must be made in US Dollars for the equivalent of 30% of the amount involved in the transaction and it cannot be used as collate-ral of credit transaction and will not accrue interests. The only foreign incoming funds that must comply with the deposit are those pertai-ning to external financial liabilities, with a two-year repayment term. So, in general, Foreign Direct Investments are free to be repatriated at any time investors want.

There are two main regimes that benefit the import of capital goods and equipment to the country:

· Reduction to 2% of import duties on new capital goods that are not produced in the country.

· Reduction to 0% of import duties on imported capital goods that make up a complete and independent production line. According to this regime, those who purchase new and local fixed assets for an equal or for a 20% superior amount of the total value of new imported goods will be able to import the rest with a complete exemption of import rights.

On the other hand, the Entrepreneurs Law No. 27,394 facilitates the creation and functioning of new companies based in the country. In this sense, and in order to run his business, the entrepreneur can, among other benefits:

• Register his company in 24 hours through a new business association form called Simplified Joint-Stock Company (SAS for its acronym in Spanish).

• Open a bank account easily and rapidly.

• Write digital signatures, keep digital books and issue digital powers of attorney.

• Get tax benefits for investment in national enterprises, like deducting 75% and 85% of the capital from income taxes with a 10% ceiling on annual profits.

• Have access to collective funding platforms for investments.

The Ministry of Production launched 10 funds and 12 business accelerators, destined to finance and boost high impact projects, in co- investments with science and technology private companies. Each co- investment will have a capital of US$ 30 million, which must be invested within a first implementation stage and until 2019. Furthermore, there are also historic well-functioning programs like the Seed Capital which grants interest-free credits to finance new productive projects.


The Investment Law recognizes that foreign investors have the same rights and obligations as Argentine investors. It is not necessary to have a prior authorization from the government to start or purchase a new enterprise but for investing in specific sectors such as the financial and telecommunications sectors or to purchase real estate located in border security areas. There are not restrictions regarding inflows and outflows of capitals either.

There are also programs and benefits that the province of Tierra del Fuego has implemented in order to boost entrepreneurial activities, which serves as a complement to the Entrepreneurs Law.

4.3. Provincial Legal Framework to invest in Tierra del Fuego

On the 16th of May 1972, the Law No.19,640 was passed, which established a special Economic Promotion Regime in the province of Tierra del Fuego, with important tax and customs benefits. Its aim is to encourage the economic activity and to assure the permanent settling of the argentine province in the national territory.

First of all, the Promotion Regime turned the Isla Grande of Tierra del Fuego into a special customs area (AAE for its acronym in Spanish) and a free trade zone. As a special customs area, Tierra del Fuego has a tariff system with fewer restrictions to imports and exports. As a free trade zone, goods are not subject to the ordinary customs controls and foreign trade transactions are exempt from several custom duties16. These advantages will be valid until the 31st of December 2023, period which could be extended by presidential decree.

Furthermore, tax benefits are implemented to the sales of goods manufactured in the special customs area of Tierra del Fuego. In particular, income resulting from the sales of those products is exempt from income taxes (provided that those sales are made by promoted companies) and the amount of Value Added Tax (VAT) paid for those sales can be accounted as tax credits. Goods are fully exempt from Minimum presumed income taxes and in the case of taxes levied on debit and credit bank transactions, only a reduced rate is paid. With regards to excise taxes, products manufactured in the special customs area by companies supported by the Promotion Regime pay a reduced rate.

Industries established in the province receive strong national support. These benefits allowed companies to achieve a better positioning in the Argentine industry by improving their competitiveness and promoting an import substitution process with the aim of creating a technologic hub in the province.

16 More detailed information on this regime can be found in Chapter 5.

Because Tierra del Fuego is a special customs area, the entry of goods into the province is considered an import, even when goods come from the country; and the withdrawal of goods from the province, is considered an export even when goods are destined to the national continental territory.

The Promotion Regime exempts all these operations from import and export rights and other taxes (except for the current antidumping rights). These operations can also benefit from the existing promotion export incentives.


4.4. Tax System

In Argentina, the tax system is based mainly on taxes levied on income, assets and consumption.

At a national level, the Federal Administration of Public Revenues is the autarchic entity in charge of levying, collecting and monitoring taxes. The main national taxes are: income tax, value added tax (VAT), minimum presumed income tax, excise tax, personal assets tax and taxes on debits and credits in bank accounts and other operations.

At a provincial level, taxes are collected and administered by provincial revenue agencies in each jurisdiction. In the province of Tierra del Fuego, the agency responsible for collecting and monitoring taxes is the autarchic entity called the Fuegian Tax Collection Agency (AREF for its acronym in Spanish).

Fuegian Tax Collection Agency: www.aref.gob.ar

Thanks to the Economic Promotion Regime and the existence of a special customs area in Isla Grande in Tierra del Fuego, inhabitants and companies established in the province are exempt from paying most national taxes.

Municipal Taxes

Finally, municipalities collect fees for several services related to industrial security, lighting, and hygiene, among others. Those fees can be calculated based on income or other parameters (like the number of employees and driving force capacity, for example).

Exempt national taxes by Law No.19,640:

• Income tax

• Value added tax

• Excise tax

• Minimum presumed income tax

• Taxes on real estate conveyances and undivided inheritance

• Taxes on gambling and winning

Exempt national taxes in the province by the law that creates them:

• Personal assets tax

• Taxes on debits and credits in bank accounts

• Taxes on cooperatives’ capital

• Taxes on liquid fuels

4.5. Hiring employees

The Argentine labor regime is regulated by the following laws: labor regime laws, the Employment Contract Law, the Employment protection law, the occupational hazards law and the labor reform law.

The Employment Contract Law No. 20,744 applies to all workers, except for those who have a particular work regime like rural workers.

Work contracts have non-fixed terms unless there is a specific legislation that states otherwise. The law establishes a three-month trial period which can be extended to six months if a collective agreement is signed. During this period, the employee can be dismissed without receiving any severance payment. After that period, the employer must give the employee a one-month notice before the dismissal. If the employer does not comply with this, the employee has the right to be paid a severance, which consists in a month’s salary.

There is also a minimum living wage. Employer and employee can freely establish the salary, as long as it is not less than the minimum living wage foreseen in the law, in collective agreements or in conciliation agreements. Moreover, employees are entitled to an Annual Complementary Salary17 (SAC for its acronym in Spanish) payment, which consists in the payment of 50% of the highest monthly salary paid in the last six months, once in June and the other in December.

Employees and employers are obliged to make contributions to cover old-age pension plans and medical services, among others. Percentages are calculated based on the gross salary paid to the employee. The employer is responsible for withholding the employee’s salary and submitting it to the AFIP.

All employers must take out a life insurance policy and risk insurance with a workers’ compensation insurer (ART for its acronym in Spanish) for each worker. Also, the employer must give the employee an ordinary annual leave (aka vacations) whose duration depends on seniority; maternity and paternity leave and other forms of paid leave (illnesses and work-related accidents, death of a relative, exams in university or high school, etc)

Finally, there are other contractual forms for training purposes, like apprentice contracts and educational internships, which provide a legal framework so that companies can hire and train workers with no work experience.

17 Supplementary annual salary. Also called “aguinaldo”.


Argentina is a signatory to the following international agreements: the Washington Inter-American Convention (1946), the Geneva Universal Copyright Convention (1952), the Berne Convention (1886) and their subsequent amendments (including the Paris Union Convention), the Strasbourg Agreement concerning the International Patent Classification (signed in 1971) and the 1957 Nice Agreement concerning the International Classification of Goods and Services for the Purposes of the Registration of Marks.

4.6. Intellectual Property

With regards to intellectual property, Argentina has laws that regulate copyright and industrial property.

The following laws stand out: Intellectual Property Law No. 11,723 (protects the copyright of scientific, literary and artistic works); Industrial Property Law No. 22,362 (establishes that brands should be registered for a ten-year valid period, which can be renewed for an equal period); Law No. 25,380 (protects geographic indications and designations of origin); the Patents Law No. 24,481 (establishes that invention of new products or procedures that involve creative invention and can be used for industrial application purposes are patentable); Law No. 22,426 (regulates the transfer, assignment or license of technology or brands by persons residing abroad) and Law No. 24,766 (for the case of pharmaceutical drugs).

4.7. Environmental legislation

In Argentina, there are many laws and procedures that regulate the environmental impact of the development of industries. In general, provincial governments need an environmental assessment prior to the approval of a project. Once the assessment is completed, the company obtains an environmental certificate that allows companies to operate.

The environmental legislation applicable in the whole territory of the Argentine Republic is embodied in the Environmental Law No. 25,675 and the Integrated Management of Industrial Waste and Services Activities Law No. 25,612. There are other regulations that address specific cases like waste generation, treatment and disposal; natural resources protected by law and specific waste-generating industries (like mining and hydrocarbons).

On the other hand, the Law of Integrated Management on Industrial Waste and Services Activities establishes the minimum thresholds of environmental protection with regards to the integrated management of waste generated throughout the country and waste derived from industrial processes or from service-related activities.

At the same time, the Hazardous Waste Law No. 24,051 creates a system for the generation, handling, transport, treatment and final disposal of hazardous waste, meaning, those that can affect people or the environment or those that require special hygiene or safety measures.

The Environmental Law establishes the preservation and protection of the biologic diversity and implements sustainable development policies to achieve a sustainable and appropriate management of the environment. For that purpose, it provides an environmental assessment procedure to be used prior to the undertaking of any work or activity that may damage the environment or any of its components or, which may affect significantly the population’s quality of life.

All individuals and legal persons, public or private, which undertake activities that may pose a threat to the environment must take out an insurance policy in order to guarantee the redress of any damages caused. The law also establishes a kind of liability attributable to those who cause an environmental damage.


In the province, socioenvironmental sustainability is protected by the Provincial Constitution in its section 54, which establishes: “the compatibility between economic and social programing of the province and the preservation and improvement of the environment”. More specifically, the 1992 Law No. 55 aims at preserving, protecting, defending and improving the environment of the province. Due to the low contamination rates of the province, there are vast opportunities for the development of tourism and “green” productive activities.

Other environmental protection regulations

• The Environmental Water Management Law No. 25,688 establishes the rational use, exploitation and conservation of water resources.

• Law No. 23,922: adopts the Basel Convention which controls the trans-frontier movements of hazardous waste.

• Law No. 25,018 on radioactive waste management

• Law No. 25,670 on the management of polychlorinated biphenyls

• Law No. 25,916 on household waste

• Law No. 26,011: adopts the Stockholm Convention on persistent organic pollutants.

• Law No. 20,284: prevents atmospheric contamination by setting standards for the conservation of air resources.

• Law No. 23,724: ratifies the Vienna Convention for the Protection of the Ozone Layer.

• Laws No. 23,778, No. 24,040 and No. 24,167: ratify the Montreal Protocol on Ozone- Depleting Substances.

• Law No. 24,292: ratifies the International Convention on Oil Pollution Preparedness, Response and Co-Operation.

• Laws No. 24,498 and No. 24,585: establish that natural areas affected by the exploitation of nuclear minerals must be restored and measures must be taken to protect the environment and the natural and cultural heritage affected by mining activities.






05. FOREIGN

TRADE

5.1. Special customs area

5.2. Free trade zone

c) Full exemption from import duties under certain circumstances (for example if the import duty was less than 50%, or less than 90% and it was a capital good or a raw material destined to industrial activities in the AAE) and reduction to half for the rest of the cases: full exemption of all current and future import duties and full exemption from statistics taxes and verification of destination taxes. When importing goods from abroad or free trade zones to the AAE, all restrictions and licenses (except for economic or tariff restrictions) apply to the goods.

With regards to imports to the AAE of goods coming from the TCN, goods are exempt from any import duty, statistic taxes and verification of destination taxes, and completely exempt from prior deposits, exchange requirements and economic restrictions.

Goods coming from the AAE and imported to the TCN for their consumption receive a different treatment: if goods come from the AAE they receive a preferential treatment.

Exports

Exports from the AAE to foreign territory, national free trade zones and the TCN are exempt from all exchange requirements or economic restrictions from the total of import duties and statistic taxes.

All exports from the TNC to the AAE are exempt from exchange requirements, export restrictions, fully exempt from export duties and any other federal shared tax. Thanks to the draw back (if applicable) exporters are refunded for export taxes just as if the export was made to foreign territory.

In the province, foreign trade activities are subject to Law No. 19,640, which divides the province into two areas:

1) a special customs area, which comprises Isla Grande and;

2) a free trade zone, which comprises the territory of the province except for Isla Grande

Both areas have the same tax system but different customs system. Goods transactions between the special customs area (AAE) established in the province and the National Continental Territory (TNC for its acronym in Spanish), the free trade zone or abroad are considered imports or exports according to the type of goods that enter or leave that area.

5.1. Special customs area

Imports

The Law No. 19,640 establishes benefits for goods imported from abroad or national free trade zones to the special customs area (AAE):

a) Exemption from prior deposits and any other exchange requirement;

b) Exemption from existing or future economic restrictions Source: www.gendarmeria.gob.ar/pasos-chile/san-sebastian.html

The special customs area (AAE for its acronym in Spanish) established in the province is an economic promotion technique linked to the international trade of good and services, which consists in a special customs system whose main characteristic is a tariff system with lower economic restrictions in the general customs territory.

5.2. Free trade zone

According to the Argentine Customs Code, Part 7, Section 590, the free trade zone is an area where goods entering or leaving the country are not subject to the ordinary customs controls or to any economic restriction or duty except for retributive rates for services.

According to Law No. 19,640, imports and exports to the free trade zone are exempt from prior deposits and any other exchange requirements and are not subject to any import or export duty. Those exports do not have the benefits establishes in the export refund regimes as the exports made from the rest of the country.

Imports to the TNC coming from the free trade zone of the province are subject to prior deposits, exchange requirements, import restrictions and import duties as if they were imports coming from foreign countries. Imports are also subject to federal shared taxes, sales taxes and domestic taxes on consumer goods.


The free trade zone is not part of the customs territory, it is a different territorial area where the trade of goods with the AAE and the National Continental Territory (TCN) and also between the free trade zone and foreign countries are considered imports or exports, depending on each case.






06.

WHY

INVEST

IN THE

PROVINCE

Because of its GEOSTRATEGIC LOCATION

Tierra del Fuego provides unique opportunities with regards to maritime commerce and sustainable exploitation of the oceanic resources thanks to its natural connection with the Atlantic and Pacific oceans and its proximity with the Antarctic continent.

Its privileged geographic location fosters various economic activities, for which the province keeps improving its infrastructure, communication system and transport networks, which include ports capable of meeting the needs of the maritime, commercial and tourist transport. Private enterprises have total access to the sustainable exploitation of the opportunities that the province offers thanks to its unique location in the world.

Because of its DIVERSITY ANDPRODUCTIVE POTENTIAL

The productive and commercial structure of the province is diverse and it is mainly focused on the following areas: tourism, the plastic industry, consumer electronic products, hydrocarbon exploitation, livestock and fisheries and real estate construction and development.

In the same way, there are developing economic activities, which bring big investment opportunities: specifically with regards to the wood industry, the exploitation of natural resources like peat, the generation of renewable energies, aquaculture, among others.

Because it has TRAINED HUMAN RESOURCES

Thanks to the productive diversity and the demands of the industries established in the province, Tierra del Fuego has highly qualified and flexible human resources, who are able to meet the demands of any company who wishes to settle in the province.

Besides, the province has a literacy rate of 99.3% and a higher education academic offer in accordance to the provincial socio productive requirements.

Tierra del Fuego has numerous strengths, which make the province a perfect scenario to do business and develop investments. Why?

Because it has NATURAL RESOURCES AND SOCIO ENVIRONMENTAL SUSTAINABILITY

The provincial constitution establishes in its section 54 “the compatibility between the economic and social programing of the province and the preservation and improvement of the environment”. Also, the provincial Law No. 55, section 4, establishes the sustainable development principle as the only possible mechanism for the socio economic growth and development of the province, which is in harmony with the availability of renewable and non-renewable natural resources as time goes by, by guaranteeing future generations its rational use.

Because of its INTERNATIONAL FRAMEWORK

Argentina is a member of the World Trade Organization (WTO), which deals with the global rules of trade between nations.

Argentina has also signed 53 bilateral investment treaties with different nations, which protect foreign investors and give them the right to bring controversies with the state to international courts in order to force the state to respect their rights. In Argentina, bilateral investment and protection treaties are superior to national laws.

In turn, Argentina is a founding member of the Southern Common Market (MERCOSUR for its acronym in Spanish). Mercosur has a large market with a high level of development and an even higher potential. The economies of the members combined represent more than 82% of the GDP of all South America and the group encompasses 275 million inhabitants (70% of South America’s population). Mercosur has signed free trade and preferential trade agreements with Israel, Peru, Bolivia, Chile, Mexico, Colombia, Ecuador and India. Currently it is negotiating new trade agreements with other countries and trade blocs, among which the agreement with the European Union stands out because of the impact it will have on Argentine exports.

Because of the TAX INCENTIVES FOR INVESTMENTS

The law No. 19,640 established a special economic and investment promotion regime inside the special customs area (AAE) or the free trade zone of the province. Because it is a general promotion regime,


it comprises all economic activities conducted in the province. With the aim of fostering the settlement of companies with productive investment incentives, all individuals and legal entities are exempt from the payment of all national taxes on activities or transactions conducted in the province and taxes on goods located or imported to the province.

However, the law has two exceptions to the exemption: 1) When national tariff rates are 50% higher than the total revenue raised and 2) taxes on services, import and export duties and national import or export taxes. These tax benefits favor the economic sustainability of the productive projects developed in the province of Tierra del Fuego.

Because of the NATIONALINCENTIVES

Argentina has several regulations that promote investment in the territory, including Tierra del Fuego:

• Decree No. 966/2005: Regime of public infrastructure works. It promotes the participation of the private sector in infrastructure works.

• Decree No. 1026/2012: Reduction to 2% of import duties on new capital goods that are not manufactured in the country.

• Decree No. 493/2001, Decree No. 496/2001, Decree No. 615/2001, Decree No.733/2001, Decree No. 959/2001: A reduced VAT rate of 10.5% is applied to the purchase and import of finished capital goods and IT & telecommunications products.

• Decree No. 362/2011: it provides local manufacturers with a tax refund equivalent to 14% of the value of capital goods, IT, telecommunications and agricultural machinery produced. This tax credit can be applied against national taxes.

• Resolution No. 256/2000: Reduction to 0% of tariffs on imported capital goods that make up a complete and independent production line.

• Law No. 26,270: Promotion of the development and production of state-of-the-art biotechnology. It provides benefits for research projects and their development and the production of goods and services.

• Law No. 26,093: Regulation and Promotion Regime for the sustainable production and use of biofuels.

• Law No. 25,080: Promotion of investments in new forest projects and in the expansion of the existing forests.

Some of the projects developed within the Bank of investment projects, which strengthen strategic areas of the province are:

Strategic Area: Transport

Name of the Project: “Caleta La Misión” Port.Objective: Construction of “Caleta La Mision” Port, in order to make the transport of goods in and out of the Province, more efficient.Planned work: Completion of the construction of “Caleta La Mision” PortProcurement Method: directSupporting documents: Logistic Master Plan of the Province of Tierra del Fuego; legal status of the port in accordance with the Attorney General of the Province; Analysis of the demand for port services in the City of Rio Grande; Environmental Impact Assessments; Technical and Operational Report.

Because it has an entity with SPECIFIC FUNCTIONS FOR INVESTMENTS

The SECRETARIAT FOR DEVELOPMENT AND INVESTMENTS is the provincial entity responsible for connecting the public and private sectors with regards to productive investments.

It aims at promoting the province as an investment opportunity; identifying business, investment and financing opportunities for the productive and services sectors; proposing development strategies and policies to improve the competitiveness of the province with regards to infrastructure, services, legislation and other aspects related to the development of investments; broadening the participation of Fuegian products in the markets and representing the province in all things related to the search for investment projects financing.

The Secretariat provides investors with direct counseling and assistance during the whole investment and business process (analysis, decision-making process, execution, post investment).

Within this framework, the Secretariat works as a SINGLE INVESTMENT SYSTEM of the province.

Because the Secretariat for Development and Investments created a BANK OF INVESTMENT PROJECTS

Thanks to the combined effort of the private sector and the different state entities present in Tierra del Fuego, numerous high potential projects have been identified, which contribute to the Fuegian socio economic development through the association between companies and entities. These projects can be carried out by an Argentine investing company or a foreign company or by an association of both. The association with an Argentine company, especially with a company operating in Tierra del Fuego, provides the investor with all the necessary knowledge concerning the national market, current legislations and regulations and contacts who will help to increase the efficiency in the chain of value and in harmony with the local customs and codes.

Some of the investment projects that are part of the Bank of Projects are in advance stages, in which supporting documents that support the investment are being evaluated.

In each project, the confidentiality of both the foreign investor and its local counterpart is preserved until both give their express consent to share the necessary information with the other party.


Strategic Area: Hydrocarbons

Name of the Project: Natural Gas Exploration at CA-12 Area in Tierra del FuegoObjective: Find exploitable gas reserves at CA-12 Area.Planned work: Exploration activities in Block II of CA-12 Area (aka “Magallanes Sur” or “Rio Grande Sur”) which is 1,937.71 km2 (748 mi2).Procurement Method: Open national and international tender.Supporting documents: Partial 2D seismic surveys and well logs in LAS format.

Strategic Area: Renewable Energies

Name of the Project: Rio Grande 4.5 MW Wind FarmObjective: Generate wind power in the north of Tierra del Fuego by delivering electricity to the City of Rio Grande, without risking the stability of the local distribution network. Planned work: Installation of a 4.5 MW wind farm and its connection to the local medium-voltage grid.Procurement Method: directSupporting documents: analysis of wind energy potential; definition and selection of the wind turbine to be used (technical specifications and power curve); breakdown of the total cost of the project and the exploitation and financing costs of the park; profitability and energy production estimates; characterization of wind conditions; wind farm design (type and number of wind turbines); economic viability of the project.

Strategic Area: Energy

Name of the Project: Interconnection between Rio Gallegos 220 kV transformer station in the Province of Santa Cruz and Río Grande wellhead power plant in the Province of Tierra del Fuego; interconnection between Rio Grande and Ushuaia and development of Tierra del Fuego electric subtransmission system.Objective: Construction, operation and maintenance of the interconnection between Rio Gallegos 220/33/13,2 kV transformer station located in the Province of Santa Cruz and Ushuaia 220/33/13,2 new transformer station located in the Province of Tierra del Fuego.Planned work: Expansion of the National Interconnected System from Rio Gallegos transformer substation to Ushuaia passing through the wellhead power generation substation in Río Cullen, which is located in the north of Tierra del Fuego (including the underwater interconnection pipeline) Procurement Method: Open national and international tender.Supporting documents: technical studies of analyzed alternatives; definition of transport networks for the interconnection and in the system of Tierra del Fuego, final determination of the wellhead generation plant, definition of transport networks inside the province of Tierra del Fuego from the wellhead power generation substation to Ushuaia, analysis of the electric demand for electricity in the province from 2018 to 2033, blueprints of the supporting structures for the lines, substation blueprints and environmental impact assessments.

Strategic Area: Energy

Name of the project: Chile. Alternate Binational Interconnection between Argentina and Chile. Interconnection project between Rio Gallegos 220 kV transformer station in the Province of Santa Cruz and Río Grande wellhead power plant in Rio Grande, Tierra del Fuego; interconnection between Rio Grande and Ushuaia and development of the Fuegian electric subtransmission system.Description of the alternative to the initial project: Construction, operation and maintenance of the interconnection between the 220/33/13,2 kV Rio Gallegos transformer station and the new 220/33/13,2 kV transformer station in Ushuaia, by constructing an underwater crossing nearby Punta Delgada in Chile. For this case, a new transformer station must be built so that the voltage adjusts to Chile (for example 138 kw).The alternative to this project must be perfected by a Chilean committee.

Strategic Area: Telecommunications Connectivity

Name of the project: Provincial fiber-optic network.Objective: Laying of high capacity fiber-optic cables in the southernmost area of the country in order to strengthen the digital industry, encourage the national production and employment generation and promote the training and research on communication technologies, among other objectives. Planned Work: Laying of 370 km of fiber-optic cable, passing through San Sebastián, Río Grande, Tolhuin, Ushuaia and Puerto Almanza.Procurement Method: Open national and international tender.

Strategic Area: Tourism

Name of the project: New commercial dock destined to operations of cargo ships and fishing boats – Development of a new fiscal yard for containers.Objective: Strengthen the local economy through the improvement of spaces suitable for maritime traffic, allowing the docking of big cruises, cargo ships and fishing boats. Planned Work: construction of approximately 7,500 m2 of new dock, extending the current one 251 meters more; total replacement of the electricity network, the drinking water system and the fire suppression system; and repairment of the concrete layer and bearing of the structure and replacement of the embankments so that ships can be safer. Place: Ushuaia.Procurement Method: Open national and international tender.


Strategic Area: Transport and Trade

Name of the project: New commercial dock destined to operations of cargo ships and fishing boats – Development of a new fiscal yard for containers.Objective: Strengthen the local economy through the improvement of spaces suitable for maritime traffic, allowing the docking of big cruises, cargo ships and fishing boats. Planned Work: construction of approximately 7,500 m2 of new dock, extending the current one 251 meters more; total replacement of the electricity network, the drinking water system and the fire suppression system; and repairment of the concrete layer and bearing of the structure and replacement of the embankments so that ships can be safer. Place: Ushuaia.Procurement Method: Open national and international tender.

Strategic Area: Aquatic - Fishery

Name of the Project: Coastal development of the Beagle Channel.Objective: Strengthen a local economy that tends to diversify the productive infrastructure. Within this framework, fishing is a key activity to the development process.Planned Work: Build a dock in Ushuaia and another in Puerto Almanza.Place: Coast of the Beagle Channel, from Olivia-Túnel to Puerto Español.Procurement Method: Open national and international tender.

01. TIERRA

DEL FUEGO,

ANTARTIDA

E ISLAS DEL

ATLÁNTICO

SUR

1.1. La Provincia en Líneas

1.2. Ubicación

1.3. Relieve y Clima

1.4. Población

1.5. Educación

1.6. Marco Institucional

1.7. Gobierno Provincial

1.8. División Política

1.9. Infraestructura y Comunicaciones

07. FREQUENTLY

ASKED

QUESTIONS

1. What entity of the state concentrates all the information concerning investment opportunities in the province?The Secretariat for Development and Investments works as a Single Investment System (VUDI for its acronym in Spanish), where all doubts, procedures and projects related to attracting investments to the province converge.

2. What is the Economic Promotion Regime established by National Law No. 19,640 about?With the aim of fostering the establishment of companies by creating incentives for productive investments, the National Law No. 19,640 exempts all individuals and legal entities from national taxes on activities or transactions conducted in the province and taxes on goods located or imported to the province with the following exceptions: 1) When national tariff rates are 50% higher than the total revenue raised and 2) taxes on services, import and export duties and national import or export taxes.

3. Who can have access to the economic promotion benefits?All individuals, legal persons and undivided estates. Because it is a general promotion regime, it comprises all economic activities conducted in the province.

4. What is a special customs area and a free trade zone?A special customs area is an area where 1) import and export taxes do not exceed the 75% of those applied in the general customs territory, except for the services tax and 2) goods are not subject to economic restrictions unless stated otherwise.

On the other hand, a free trade zone is an area where goods entering or leaving the country are not subject to the ordinary customs controls or to any economic restriction or duty except for retributive rates for services.

5. Which is the main customs benefit that the province offers with regards to the establishment of the industry? The especial customs area established in the province is an economic promotion technique linked to the international trade of good and services, which consists in a special customs system whose main characteristic is a tariff system with lower economic restrictions in the general customs territory.

6. Which national taxes are people exempt from in the province?In the province, people are exempt from the

following taxes: Income tax, Value added tax, Excise tax, Minimum presumed income tax, taxes on real estate conveyances and undivided inheritance, taxes on gambling and winning, personal assets tax, taxes on debits and credits in bank accounts, taxes on cooperatives’ capital and taxes on liquid fuels

7. To which markets could we export from the province?The province has access to all markets that are open to the Argentine Republic with regards to commercial and phytosanitary matters, including all markets with which the country has signed free trade, preferential trade or investment agreements. The main trading partners of the province are Brazil, United States, Japan and France, which combined received 59.5% of the total of exports in 2015. Vietnam is now an important destination of Fuegian sales and the province started exporting to the United Kingdom. Sales to the Popular Republic of China, France, Russia and Canada also increased. In terms of trade blocs, the European Union is the destination of the 23% of the total of exports of Tierra del Fuego, followed by the MERCOSUR (21%) and the North American Free Trade Agreement (19%). Apart from its industry, the province has a high potential with regards to meat export to any destination of the world since the province was declared an aphthous fever free-zone.

8. What do I have to do to establish a company in Tierra del Fuego?According to the Business Associations Law No. 19,550, the first thing to do in order to establish a company is to register the new company or the foreign branch with the Registry of Companies. In all cases, it is recommended to consult with local professionals (accountants, economists, lawyers) who can give detailed counsel on these procedures and help to carry out each transaction according to the characteristics of each company.

9. Is it easy to establish a foreign company in Tierra del Fuego? In Argentina, foreign investors are given the same treatment as Argentine nationals. This includes investors, who invest a minimum of AR$1,500,000 in the productive, commercial or services sectors in the country. In this case, a three-year temporary residency is granted, which can be extended and includes multiple arrivals and departures from the national territory.

To that end, the investment project in question must be presented to the National Immigration Office, also indicating the origin and lawfulness of the funds. Money must enter the country through financial entities authorized by the Central Bank of Argentina.


10. Where can I get more information about the national framework to invest? The Argentine Investment and Trade Promotion Agency (AAICI for its acronym in Spanish) has published its own guide on how to do businesses in Argentina. Furthermore, the Ministry of Foreign Affairs and Worship also offers to the public an investor’s guide.

11. Which are the most important productive sectors of the province?The most important productive sectors of the province are the following: industrial, fishing, wood, forestry, tourism, hydrocarbon, peat and livestock and fishery.

12. Where can I get more information about investment opportunities in the province?The Secretariat for Development and Investments has a Bank of Projects where the main available investment opportunities in the province are detailed. You can have access to the bank of projects by visiting the website: sdi.tierradelfuego.gov.ar

13. I WANT TO INVEST. Who should I contact?The Secretariat for Development and Investments of Tierra del Fuego is the entity responsible for providing technical assistance and to facilitate the establishment of productive investments in the province.

SECRETARIAT FOR DEVELOPMENT AND INVESTMENTS

Ushuaia office: Av. San Martín 450 - P.B. Phone Numbers: +54 (02901) 441288 / 441111

Autonomous City of Buenos Aires office: Av. Roque Sáenz Peña 938 - 8ª APhone Numbers: +54 (11) 5258 0515 / 5258 0517

Website: sdi.tierradelfuego.gov.arE-mail: [email protected]

Fuente: Secretaría de Desarrollo e Inversiones de la Provincia (SDI) en base a Instituto Provincial de Análisis e Investigación, Estadística y Censos (IPEC). Notas: “Admin. Púb.” incluye Administración Públi-ca, Defensa y Seguridad Social; “Sv.” es la abreviación de “Servicios”, “Ind.” abrevia la palabra “Industria” y “Almacen.” es “Almacena-miento”.


APPENDIXProvincial authorities

EXECUTIVE BRANCH

GOVERNMENT HOUSEAv. San Martin 450, 1° piso, Ushuaia, (02901) 441227 / 42 1272, fax 441264

GOVERNORRosana Andrea BERTONE

VICE GOVERNOR Juan Carlos ARCANDO

CHIEF OF THE CABINET OF MINISTERS Leonardo GORBACZ E-mail: [email protected] Phone Numbers: (02901) 441211 / 441219 San Martín 450, Piso 1 - Ushuaia MINISTRY OF GOVERNMENT AND JUSTICEMINISTER OF GOVERNMENT AND JUSTICE José Luis ÁLVAREZ E-mail: [email protected] Phone Numbers: (02901) 441215

MINISTRY OF ECONOMYMINISTER OF ECONOMY José Daniel LABROCA E-mail: [email protected] Phone Numbers: (02901) 441288 / 441111San Martín 450 – P.B. – Ushuaia

MINISTRY OF INDUSTRYMINISTER OF INDUSTRY Ramiro Carlos CABALLERO E-mail: [email protected] Phone Numbers: (02901) 430300 / 423404 / 423440Fitz Roy 164, 1er Piso - Ushuaia

MINISTRY OF AGRICULTURE, LIVESOTCK AND FISHERIES MINISTER OF AGRICULTURE, LIVESTOCK AND FISHERIES in charge of SECRETARY OF AGRICULTURE AND FISHERIES Kevin Emilio COLLIE-mail: [email protected] 60 Viviendas, Tira 4, Casas 24 y 25 - Ushuaia

MINISTRY OF HEALTHMINISTER OF HEALTH Marcos Arturo COLMAN E-mail: [email protected] Phone Number: (02901) 425306Río Grande 9 – Ushuaia

MINISTRY OF EDUCATIONMINISTER OF EDUCATIONDiego Rubén ROMERO E-mail: [email protected] / [email protected] Phone Numbers: (02901) 441403 / 441434 / int. 1403 – 1434Patagonia 416, Tira 10, Casa 53 – Ushuaia

MINISTRY OF SCIENCE AND TECHNOLOGY MINISTER OF SCIENCE AND TECHNOLOGYGabriel Alejandro KOREMBLIT PELLEGRINIE-mail: [email protected] / [email protected] Phone Number: (02901) 435399Kuanip 666 - Ushuaia

MINISTRY OF SOCIAL DEVELOPMENT MINISTER OF SOCIAL DEVELOPMENT Paula Elizabeth GARGIULO E-mail: [email protected] Phone Numbers: (02901) 435208 / Fax 433275Güiraldes 576 - Ushuaia

MINISTRY OF LABOR, EMPLOYMENT AND SOCIAL SECURITY MINISTER OF LABOR, EMPLOYMENT AND SOCIAL SECURITY Carlos Claudio CARRERAE-mail: [email protected] Phone Numbers: (02901) 436095 int. 2598 / fax 422731 int. 273Juana Fadul 204 – Ushuaia

MINISTRY OF WORKS AND PUBLIC SERVICESMINISTER OF WORKS AND PUBLIC SERVICESLuis Alberto VÁZQUEZE-mail: [email protected]

SECRETARIAT OF ENERGY AND HYDROCARBONS SECRETARY OF ENERGY AND HYDROCARBONS Omar Daniel NOGAR E-mail: [email protected] Phone Number: (02964) 443040

SECRETARIAT OF THE OFFICIAL REPRESENTATION OF THE GOVERNMENT OF THE CITY OF BUENOS AIRES Phone Numbers: (011) 43255625 / 4098Sarmiento 745, 6º Piso - (1041) Capital Federal

SECRETARIAT OF STRATEGIC PLANNING, LAND USE PLANNING AND HABITAT SECRETARY OF STRATEGIG PLANNING, LAND USE

PLANNING AND HABITAT Olaf Leopoldo Lucas JOVANOVICH E-mail: [email protected] Phone Number: (02901) 441280San Martín 450, 2do Piso – Ushuaia

SECRETARIAT OF ENVIRONMENT, SUSTAINABLE DEVELOPMENT AND CLIMATE CHANGE SECRETARY OF ENVIRONMENT, SUSTAINABLE DEVELOPMENT AND CLIMATE CHANGE Mauro Javier PÉREZ TOSCANI E-mail: [email protected] Phone Numbers: (02901) 422576 / 431156 / 432103 San Martín 1401 - Ushuaia

SECRETARIAT GENERAL OF GOVERNMENT SECRETARY GENERAL OF GOVERNMENT Javier Marcelo EPOSTO E-mail: [email protected] Phone Number: (02901) 441244San Martín 450, Piso 1 – Ushuaia

LEGAL AND TECHNICAL SECRETARIAT LEGAL AND TECHNICAL SECRETARYGimena Araceli VITALI E-mail: [email protected] Phone Number: (02901) 441204San Martín 450, 2do Piso - Ushuaia

SECRETARIAT OF AFFAIRS RELATED TO THE ANTARCTICA, THE MALVINAS ISLANDS, THE SOUTH ATLANTIC ISLANDS AND THE SURROUNDING MARITIME SPACE SECRETARY OF AFFAIRS RELATED TO THE ANTARCTICA, THE MALVINAS ISLANDS, THE SOUTH ATLANTIC ISLANDS AND THE SURROUNDING MARITIME SPACEJorge Ernesto LÓPEZ E-mail: [email protected] / [email protected] Phone Number: (02901) 441274San Martín 450, Piso 1 - Ushuaia

SECRETARIAT OF STATE SECURITYSECRETARY OF STATE SECURITYEzequiel Eduardo MURRAY E-mail: [email protected] Phone Number: (02901) 441209 – Int. 1209San Martín 450, Piso 1 - Ushuaia

SECRETARIAT FOR DEVELOPMENT AND INVESTMENTS SECRETARY OF DEVELOPMENT AND INVESTMENTS Leonardo ZARA E-mail: [email protected] Number: +54 (11) 5258 0515 / 5258 0517Av. Roque Sáenz Peña 938 - 8ª A - C.A.B.A

LEGISLATIVE BRANCH

PROVINCIAL LEGISLATUREVICE GOVERNOR AND PRESIDENT OF THE LEGISLATIVE BRANCH Juan Carlos ARCANDO E-mail: [email protected] Avda. Maipú 1495 – Ushuaia Phone Numbers: (02901) 421133 / 433844 / 435023

JUDICIAL BRANCH

SUPERIOR COURT OF JUSTICE PRESIDENT Dr. Carlos Gonzalo SAGASTUME Private secretary: Soledad MARTINEZPhone Number: (02901) 441501E-mail: [email protected]

PUBLIC MINISTRY General Defender Vacant positionE-mail: [email protected]

ATTORNEY GENERAL’S OFFICEProsecutor Guillermo MASSIMI

FEDERAL CRIMINAL ORAL TRIAL COURT OF TIERRA DEL FUEGOPRESIDENT Luis Alberto GIMENEZ E-mail: [email protected]

PUBLIC MINISTRY BEFORE THE FEDERAL CRIMINAL ORAL TRIAL COURT OF TIERRA DEL FUEGOE-mail: [email protected] Phone Numbers: (02901) 423958 / Fax. (02901) 435653GENERAL PROSECUTOR Adrián Jorge GARCÍA LOISE-mail: [email protected]

FIRST INSTANCE FEDERAL COURT OF USHUAIA FEDERAL JUDGE Federico Herberto CALVETEPhone Numbers: (02901) 42 1454/3065/3119/2159/3776/3798E-mail: [email protected] / [email protected] /[email protected] / [email protected] / [email protected]

FIRST INSTANCE FEDERAL COURT OF RÍO GRANDELibertad 731 – Río Grande Phone Numbers: (02964) 42-3798 – 42-5000 – 42-2814FEDERAL SUBSTITUTE JUDGE Federico Herberto CALVETEPhone Numbers: 02901) 42 1454/3065/3119/2159/3776/3798E-mail: [email protected] / [email protected] / [email protected]

PUBLIC MINISTRY BEFORE THE FEDERAL COURT OF RÍO GRANDEPUBLIC INTERVENOR DEFENDER Guillermo Miguel GARONE

E-mail: [email protected] Phone Number: (02964) 423508San Martín 261 – Río Grande

JUDICIAL COUNCIL PRESIDENT Javier Darío MUCHNIK (Superior Court of Justice)

STATE PROSECUTOR’S OFFICE OF THE PROVINCE STATE PROSECUTOR Virgilio MARTINEZ DE SUCRE E-mail: [email protected] Avda. Alem 2302 - UshuaiaPhone Number: (02901) 43-4440

COURT OF AUDITORS OF THE PROVINCE PRESIDENT OF THE COURT OF AUDITORSAccountant Member Julio DEL VALE-mail: [email protected] / [email protected] de Octubre 131 - UshuaiaPhone Numbers: (02901) 425026 / 421041 / 421705 - Int. 13

MUNICIPAL AUTHORITIES

MUNICIPALITY OF USHUAIAMAYOR Walter VUOTOE-mail: [email protected] Phone Number: (02901) 432110 / Fax. 436439 San Martín 660 – Ushuaia

MUNICIPALITY OF RIO GRANDEMAYOR Gustavo MELELLAPhone Numbers: (02964) 42-2476 / Fax. (02964) 42-256Sebastián El Cano 203 – Río Grande

MUNICIPALITY OF TOLHUIN MAYOR Claudio Eduardo QUENOPhone Numbers: (02901) 492125 – 492020Santiago Rupatini N° 285 - Tolhuin.

AUTARCHIC ENTITIES

PROVINCIAL INSTITUTE OF HOUSING (IPV FOR ITS ACRONYM IN SPANISH)PRESIDENT Luis Alberto CÁRDENASE-mails: [email protected] / [email protected]. González 651 – UshuaiaPhone Number: (02901) 42-1939 / Fax 1010 – 1824

PROVINCIAL DEPARTMENT OF WORKS AND SANITATION SERVICES PRESIDENT Guillermo Pablo WORMANE-mail: [email protected]. Campos y Rivadavia – UshuaiaPhone Number: (02901) 42-1421 - int. 107 / Fax 43-2754

PROVINCIAL DEPARTMENT OF ENERGYPRESIDENT Juan Carlos SALDIVIAE-mails: [email protected] / [email protected] y Deloqui – UshuaiaPhone Numbers: (02901) 43-4234 / 42-1725 - int. 172 / 421170 / 422291 / Fax. 219 / 117

PROVINCIAL HIGHWAY DEPARTMENT PRESIDENT Gastón Fernando NATALE Phone Number: (02964) 443454 – int. 101 / 103

PROVINCIAL INSTITUTE OF GAMBLING REGULATIONS (I.P.R.A. FOR ITS ACRONYM IN SPANISH)PRESIDENT Abel Omar GALEANOE-mails: [email protected] / [email protected] Martín 360 – UshuaiaPhone Number: (02901) 43-1238 – Int. 1140 / Fax 133

PROVINCIAL DEPARTMENT OF PORTSPRESIDENT Néstor Ramón LAGRAÑAE-mails: [email protected] / [email protected] Number: (02901) 43-5200 – int. 122 / 125

FUEGIAN TOURISM INSTITUTE ( IN.FUE.TUR. FOR ITS ACRONYM IN SPANISH)PRESIDENT Luis Antonio CASTELLIAvenida Maipú 505 – UshuaiaE-mail: [email protected] / [email protected] Numbers: (02901) 42-1423 / 43-2067 / 43-2068 - int. 110 / Fax. 43-0694

TIERRA DEL FUEGO SOCIAL SECURITY FUND (CPSPTF FOR ITS ACRONYM IN SPANISH)PRESIDENT Rubén Alberto BAHNTJEE-mail: [email protected] /[email protected] Number: (02901) 432754Av. Leandro N. Alem 2410 – Ushuaia

SOCIAL SECURITY OF THE PROVINCE OF TIERRA DEL FUEGO (OSPTF FOR ITS ACRONYM IN SPANISH)PRESIDENT Aída Margarita GALLARDO

FUEGIAN AGENCY OF TAX COLLECTION (AREF FOR ITS ACRONYM IN SPANISH)EXECUTIVE DIRECTOR Luis María CAPELLANOE-mail: [email protected] Numbers: (02901) 436995 / 424475 - int. 223 / Fax 121San Martín 110, 3er Piso – Ushuaia


Fuente: Secretaría de Desarrollo e Inversiones de la Provincia (SDI) en base a Instituto Provincial de Análisis e Investigación, Estadística y Censos (IPEC). Notas: “Admin. Púb.” incluye Administración Públi-ca, Defensa y Seguridad Social; “Sv.” es la abreviación de “Servicios”, “Ind.” abrevia la palabra “Industria” y “Almacen.” es “Almacena-miento”.


References and Information Sources

Public Entities and Supranational Authorities

• Argentine Investment and Trade Promotion Agency (AAICI)

• Inter- American Development Bank (IADB).• Federal Investment Council (CFI).• Andrés Bello Collective Agreement.• Department of Statistics and Censuses of the

Province of Tierra del Fuego, Antártida e Islas del Atlántico Sur.

• Food and Agriculture Organization of the United Nations (FAO).

• House of Representatives.• Senate • Fuegian Tourism Institute (INFUETUR).• National Institute of Statistics and Censuses

(INDEC). • National Institute for Agricultural Technology (INTA).• Provincial Institute of Analysis and Research.

Statistics and Censuses of the Cabinet of Ministers of the Province of Tierra del Fuego, Antártida e Islas del Atlántico Sur.

• Legislature of Tierra del Fuego.• Ministry of Agriculture, Livestock and Fisheries of

the Province of Tierra del Fuego, Antártida e Islas del Atlántico Sur.

• Ministry of Agroindustry • Ministry of Science, Technology and Productive

Innovation.• Ministry of Industry of the Province of Tierra del

Fuego, Antártida e Islas del Atlántico Sur.• Ministry of Foreign Affairs and Worship • Ministry of Tourism.• Municipality of Río Grande.• Municipality of Tolhuin.• Municipality of Ushuaia.• International Labour Organization (ILO).• World Tourism Organization • Secretariat of Energy and Hydrocarbons of the

Province of Tierra del Fuego, Antártida e Islas del Atlántico Sur.

• National Service for Agrifood Health and Quality (SENASA)

Companies and Business Chambers

• Association of Automotive Makers (ADEFA).• Argentine Association of Electronic Factories

(AFARTE).• Association of Autoparts Factories (AFAC).• Rural Association of Tierra del Fuego.• AustralTex S.A.• Argentine Chamber of Shipping and Vessels

Companies (CAENA).

• Argentine Chamber of Plastic Industry (CAIP).• Tierra del Fuego Chamber of Manufacturers of

Furniture, Openings and Carpentry• Chamber of Furniture, Tapestry and similar

(CAFYDMA).• Fuegian Chamber of National Industry• Dano S.A.• Argentine Federation of the Wood Industry

(FAIMA).• Argentine Federation of Shipping Companies

(FENA).• Arakur Hotel• I.P.E.S.A. Silo.• Argentine Institute of Oil and Gas (IAPG).• Logant, Logistica Antártica.• Mirgor.• Plásticos Isla Grande.• Princz.• Prolana.• Rural Association of Tierra del Fuego.• Trejo Logistic.

Legislation

• Constitution of the Province of Tierra del Fuego, Antártida e Islas del Atlántico Sur

• National Constitution of the Argentine Republic • National Decree No. 479/1995 on the Product

substitution regime• National Decree No. 479/1995 and its

supplementary regulations and subsequent amendments.

• National Decree No. 490/2003 and its supplementary regulations and subsequent amendments

• Nat ional Law No.17,741 and subsequent amendments, National Decree No. 1,248/2001 on taxes on cinematographic shows and recorded videograms.

• National Law No. 19,640 and its supplementary regulations and subsequent amendments (among others, National Decree No. 9,208/1972).

• National Law No. 19,642 and its supplementary regulations and subsequent amendments.

• National Law No.19,800 of the Special Tobacco Fund.

• National Law No. 23,349 (t.o. 1997) of the Value Added Tax (VAT)

• National Law No. 23,905, Part 7, on taxes on real estate conveyances and undivided inheritances.

• National Law No. 24,674 on Excise Taxes, t.o. Decree No. 2682/1979.

• National Law No. 25,561 of Emergency and National Decree No. 490/2003.

• National Law No. 25,997 of taxes on tickets to travel abroad

• National Law No. 26,181 of taxes on the import of oil and natural gas destined to GNC

• National Law No. 26,522 of taxes on audiovisual communication service providers

• National Law No. 26,573 of taxes on cellphone credit.• National Law No.26,784 of Investment Promotion

and its supplementary regulations and subsequent amendments

• National Law No. 27,263 of the Regime for development and strengthening of Argentine Autoparts – Benefits and Incentives.

• National Law No. 27,264 of the Program for productive recovery.

• National Law No. 27,539 and its supplementary regulations and subsequent amendments.

• National Law No. 27,231 and Regulatory Decree No. 263/2015.

• National Law No. 24,922 and its supplementary regulations and subsequent amendments (among others: SENASA Resolution No. 506/2000, M.P Resolution No. 384/2004, M.EC. Resolution No. 966/2007, National Decree No. 670/2007, National Decree No. 2,159/2000, Procedures and Control Manual for bivalve mollusks, passed by Resolution No. 193/2009, SENASA Resolution No. 433/2010).

• Provincial Law of Ministries No.1,060 • National Law No. 20, 628 (t.o. 1997 and

subsequent amendments) and No. 26,545 of Personal Income Tax.

• National Laws No. 20,630 and 26,072 of taxes on gambling and winning

• National Laws No. 23,427 and 26,545 of taxes on Cooperatives’ Capital

• National Laws No. 23,966, Part 3, and No. 25,560 of taxes on compressed natural gas

• National Laws No. 23,966, Part 3, and No. 25,560 of taxes on liquid fuels

• National Laws No. 23,966, Part 6, and No. 26,545 of taxes on personal assets

• National Laws No. 24,065 and No. 23,681 of taxes on electric energy

• National Laws No. 24,241, No. 19,032, No. 24,013, No. 23,660, No. 24,714 and Decree No. 1,382/2001 of Contributions to Social Security.

• National Laws No. 24,625 and No. 26,730 of emergency additional tax on cigarettes

• National Laws No. 24,977 and No. 26,545 of the Simplified Regime for Small Tax payers (Monotributo).

• National Laws No. 25,063, Part 5, No. 25,123, No. 25,239, No. 25,360 and No. 26,545 of Minimum presumed income tax.

• National Laws No. 25,080 and No. 26,432 and Regulation CIRSOC 601 of the Secretariat of Public Works on wood constructions.

• National Laws No. 25,413 and No. 26,730 of taxes on taxes on debits and credits in bank accounts and other operations.

• National Laws No. 26,028 and No. 26,422, Section 37, of taxes on fuel and liquid gas for vehicle

• Provincial Laws No. 244 and No. 537 of fishing and aquaculture.

Academic Works and Working Documents

• 2014 Statistical Yearbook of the province of Tierra del Fuego.

• 2015 Statistical Yearbook of FAIMA.• 2015 Statistical Yearbook of INFUETUR.• Provincial Statistical Yearbook of tourism for the

period 2015 – 2016 (INFUETUR)• Inter- American Development Bank (2016).

“Regional Integration in perspective: context and opportunities”. Collection of Integration Ideas No. 235, Conexión INTAL.

• Bruera, I. et al. (2014). “Survey of the innovation circuit and the innovation capacities and activities of industrial businesses in Tierra del Fuego (National Law No. 19,640)”. Ministry of Industry and Productive Innovation. Secretariat of Innovation and Federal Investment Council.

• Bruera, I.; Granero, P. y Paryson, J. (2012). “Quantification and characterization of the MIP and ME economic and productive structure of the Province of Tierra del Fuego, Antártida e Islas del Atlántico Sur”. Secretariat of Local Development and SMEs. Ministry of Industry and Productive Innovation and the Federal Investment Council.

• National Census of the 2010 population and INDEC demographic and population results.

• Patagonia Sur Regional Center (2015). “Current situation and perspective of Patagonia. Patagonia Sur Regional Center”. National Institute for Agricultural Technology

• Cerezani (2011). “Diagnosis of the livestock and agriculture sectors of Tierra del Fuego”. Ministry of

Agriculture, Livestock and Fisheries of the Province of Tierra del Fuego, Antártida e Islas del Atlántico Sur.

• The Federal Investment Council and the Secretariat of Local Development and SMEs (2015).“ Quantification and characterization of the economic and productive structure of MiSMEs of the Province of Tierra del Fuego, Antártida e Islas del Atlántico Sur”. Ministry of Industry and Productive Innovation of the Province of Tierra del Fuego, Antártida e Islas del Atlántico Sur.

• The Federal Investment Council and Technology Management and Innovation (2012). “Logistic Master Plan of the Province of Tierra del Fuego”. Stage 5, date of the report: 25/04/2012.

• Aquaculture Department (2002). “Potential assessment of aquaculture in the Province of Tierra del Fuego. Basic Information”. Secretariat of Agriculture, Livestock, Fisheries and Food.Subsecretariat of Fishery and Aquaculture. National Department of Fishery and Aquaculture.

• Department of exportable offer (2011). “Specific Report – Plastic Industry”. General Department of Foreign Trade Strategies, Subsecretariat of International Trade, Ministry of Foreign Affairs and Worship.

• General Department of Industry and Commerce (2014). “Annual Industrial Survey”. Secretariat of Industrial Promotion and Investments. Ministry of Industry of the Province.

• General Department of Industry and Commerce (2015). “Annual Industrial Survey”. Secretariat of Industrial Promotion and Investments. Ministry of Industry of the Province.

• FAO (2016). “The condition of fishing and aquaculture around the world. Contributions to food security and nutrition for everybody”. Rome. page 224.

• Fernández Massi, M.; Giosa Zuazua, N. y Zorattini, D. (2015). “The Argentine Plastic Industry in the

MerCoSur: an analysis of its incorporation in the regional value chain”. International Political Economy Congress. National University of Moreno.

• Idígoras, G. y Santarcángelo, J. (2013). “Technological analysis and sector-wide approaches: the future of technology in the year 2020 at a world level with regards to industrial and agroindustrial productive complexes”. Ministry of Science, Technology and Productive Innovation.

• INFUETUR (2013). “Positioning study on Tierra del Fuego as a destination”.

• Institute of Appropriate Technology Transferences for marginal zones (ITACAB) (2010). “Scenarios and strategic action framework for the productive competitive work formation in 2020 in countries signatories of the Andres Bello Collective Agreement”. Lima, Peru. Andrés Bello Collective Agreement.

• Máttar, J. y Cuervo, M. (compilers) (2016). “Planification and prospective studies on the construction of a future for Latin America and the Caribbean. Selected Texts 2013-2016”. CEPAL. Santiago de Chile, Chile.

• Ministry of Industry and Productive Innovation (2014). “Provincial Strategy for the agroindustrial sector”. Province of Tierra del Fuego, Antártida e Islas del Atlántico Sur and PROSAP.

• Moya, D. (2014). “Technological Diagnosis for the Automotive sector”. Ministry of Science, Technology and Productive Innovation.

• OIT-FAUTAPO (2010). “Training Module for entrepreneurs”. Education for development Collection, FAUTAPO Fundation. La Paz, Bolivia.

• Strategic Agri- food Plan (PEA) 2011-2020 of the Ministry of Agroindustry (former National Ministry of Agriculture, Livestock and Fisheries).

• PROFECyT, Scientific and Technologic Promotion Agency, SECyT and UIA (2006). “Technologic weaknesses and challenges in the productive

sector – forestry industry”• Rozenwurcel, G. y Bezchinsky, G. (2013). “Survey

and geographic distribution of the regional value chains. Working Paper No. 160 – Textile and Garment Industry”. Red Latin, BID, IDRC, CRDI.

• Osiroff, S. (2010). “Fishing in Tierra del Fuego”. National Technological University of Río Grande, Ushuaia classroom- based extension.

• 2017 TDF Protocole.• PROSAP (2014), “Provincial Strategy for the Agri-

food sector – Province of Tierra del Fuego and South Atlantic Islands”. Program for Provincial Agricultural Services (PROSAP).

• Schorr, M. y Porcelli, L. (2015). “The industry of electronic consumer goods in Tierra del Fuego.Promotion Regime, specialization profile and development alternatives for the sector in the post convertibility”. IDAES – UNSAM. Buenos Aires.


Abbreviations

International Entities IMF: International Monetary FundMerCoSur: Southern Common MarketMIGA: Multilateral Investment Guarantee AgencyOECD: Organization for Economic Co-operation and DevelopmentWTO: World Trade Organization

National and Provincial Entities AFIP: Federal Administration of Public RevenuesAREF: Fugian Tax Collection Agency BCRA: Central Bank of ArgentinaBTF: Bank of Tierra de FuegoINDEC: National Institute of Statistics and CensusesINTI: National Institute for Industrial TechnologySDI: Secretariat for Development and Investments of the Province of Tierra del Fuego, Antártida e Islas del Atlántico Sur SENASA: National Service for Agri-food Health and QualityTDF: Tierra del Fuego, Antártida e Islas del Atlántico Sur

Abbreviations and Acronyms of technical termsAAE: Special Customs Area ART: Workers’ Compensation InsurerCDI: Tax Identification NumberCUIL: Labor Registration Number CUIT: Tax Registration Number FDI: Foreign Direct Investment ISP: Internet Service Provider VAT: Value Added Tax SAS: Simplified Joint-Stock CompanyTNC: Continental National TerritoryVUDI: Single Investment Systemkm: kilometers (1 km = 0,621371 miles)m: meters (1 meter = 3,28084 feet)