There were no leaks regarding trade agreement negotiations between the United States and Argentina. Those who participated in the conversation signed non-disclosure agreements. Finally, part of the agreement reached between the two governments was revealed in the “Framework of Agreement on Mutual Trade and Investment.”
The United States is a very important partner for Argentina. In 2024, it will become Japan’s second largest export destination after Brazil, with sales of 6.454 billion US dollars. In terms of import value, it was Argentina’s third largest source of imports from abroad, after Brazil and China, with USD 6.226 billion.
So far, what is known about the bilateral agreement generates some confidence and many questions. It’s still a “framework”.
Tariffs are low, but details are scarce
What are they on social networks? It is not yet known.
President Trump imposed a 10% tariff (minimum amount) on Argentina from April 5 of this year, but it is worth remembering that half of Argentina’s exports to northern countries did not pay the tariff. These are products in that field Petroleum and petrochemical industry (second export complex in the country), gold and silver (Argentina’s 5th export complex) lithium (further listed in external sales table). The two countries will “work together to facilitate investment and trade in critical minerals,” the document claims.
Meanwhile, the United States has already imposed general tariffs of 50% on the following products: steel and aluminum. The economic impact is significant, as almost half of Argentina’s exports in this sector go to Argentina. “united states of america It might be a good idea to look ahead the national security implications of the agreement, including when evaluating trade measures under the agreement; Article 232 Provisions of the Trade Expansion Act of 1962. ” This paragraph indicates that rates may be reviewed based on this regulation, but it is somewhat diffuse.
Specifically, Argentina is improving tariff conditions for pharmaceuticals, chemicals, machinery, information technology products, medical equipment, automobiles and a wide range of agricultural products. It is worth remembering that our country 150 customs positions can be negotiated bilaterally outside Mercosur.
Amcham said the products most likely to enter the U.S. market include frozen shrimp, wine, barley, frozen boneless beef, raw sunflower oil, legume pellets (soybeans), lemons, honey, lemon essential oil, citrus juice, grape juice (including must), molluscs, raw or chilled garlic, raw cranberries, fermented and partially fermented black tea, yerba mate and raw yerba mate. such as peanut oil. Each company has high expectations to develop or improve its market presence.
The United States will eliminate reciprocal tariffs on “certain unobtainable natural resources and unpatented products used for pharmaceutical applications.”
On top of that, Both countries committed to improving mutual conditions of access to bilateral markets for beef trade..
non-tariff barriers
Reducing bureaucracy and lowering costs are demands not only from Argentina’s importers and exporters, but also from other trading partners, including the United States.
In this sense, the text states, “Argentina has eliminated many non-tariff barriers that limited access to its market, including import permits.” And he added that another point that was urged and achieved in these conversations was that Argentina stop making demands.“Consular Procedures for Export to the United States”
It also plans to phase out statistical taxes on U.S. products. it is A surcharge imposed on almost all imported goods.
“Both countries will cooperate to address non-tariff barriers affecting trade in food and agricultural products,” the document reads.
Between the lines it says: “Argentina is committed to addressing this issue.” Possibility of distortive behavior by state-owned enterprises”, which suggests agreement with the United States on excluding China from bidding for waterway maintenance work, something that already happened in the failed first bid and could be retained in the next bid.
Patents and intellectual property
One issue that appears to have eased is patents. According to AmCham, in the following areas: pharmaceutical and agriculture; “Patentability standards implemented from 2011 to 2012 They put Argentina on a similar intellectual property regime as Venezuela”
Martín Bensadon, an industrial property specialist at Marval O’Farrell Myral, explains: Argentina failed to comply with the Patent Cooperation Treaty (PCT)which is an international agreement administered by the World Intellectual Property Organization (WIPO). through PCT Patents can be filed uniformly in multiple countries through a single international application.. “There are very few countries outside the PCT, plus Argentina, Venezuela, Bolivia, Pakistan and Afghanistan,” he analyzes.
“A patent gives an inventor the exclusive right to use his invention for 20 years from the date of filing. That way he can recover his investment. Without a patent, copies will come out,” the expert added. Argentina’s accession to the PCT must be passed by Congress.
Against this background, the agreement reflects Argentina’s commitment to:Working to align intellectual property systems with international standards”.
Another point of discussion is based on the 2012 resolution.Limiting the possibility of new patents for improvements to already patented productsThis is what Bensadon calls “incremental invention.” This is a point that causes extensive debate. On the other hand, products introduced to the market can continue to be improved through research. However, on the other hand, in some, but not all cases, patents are subject to abuse in order to remain in force.
Biodiesel, no news
According to the American Chamber of Commerce in Argentina, one of the most relevant opportunities is the possible reduction of anti-dumping duties applicable to biodiesel in Argentina, negotiations for which began in November 2024.
This progress will allow exports to the United States, which have been severely affected since 2017, to resume. Marcelo Kuszniec is a biofuels expert and president of the Santa Fe Renewable Energy Chamber. In a conversation with LA NACION, he said: Local industry has little hope that the situation will resolve itself.That’s because “in the previous term, it was Donald Trump himself who pushed for tariffs on Argentine biodiesel, in some cases reaching 120%.”
“Currently, the available biodiesel capacity in Argentina is 80%,” he asserts. “Opening the US market is very important as only 900,000 tons of the 4 million tons of potential production have been produced yet. Export volume in the first half of this year did not reach 30,000 tons. Once the biodiesel issue is resolved, the value of grains will also improve,” he asserts.
As you can see, there is still a lot to negotiate.
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