Transcript Argentina

Argentina:
Global perspective & recent outcomes
1st semester, 2013
INDEX
Development of Argentina’s economy
I.
I.
Argentinean features
II.
Current situation
Argentina's threats and opportunities
II.
I.
Sector and examples
II.
Key sectors
III.
Key clusters
IV.
Specific courses of action of the public sector
UIA action
III.
I.
Main objectives
II.
UIA role
Argentina
Strategical partner in a region with promising prospects
ARGENTINEAN
FEATURES:
•GDP: 746.9 billion
(2012 est)
•GDPpc: 18,200
(2012 est)
•Rise of middle class
income
•High life expectancy
(+77)
•Populat.: 42 million
•Area: 2.8 sq km
Source: CEU-UIA based on the CIA
ARGENTINEAN
STRENGHTS:
• Internal market
• Natural resources
•Manufacturing
•Trained human
resources
•R & D
Strong regional linkages
There are increasing business opportunities with Brazil, Argentina's main trading partner, to
complement each other and to specialize in specific manufactured goods
MERCOSUR: Common market
•As MERCOSUR member, Argentina has
tariff free market access of more than
253 million consumers (282 million
with Venezuela) and a combined GDP
of US$ 3,2 trillion (PPP 2012) (US$ 3,6
trillion with Venezuela)
•Remarkable industrial
complementarities with Brazil and
further opportunities for specialization
Source: SUINV based on IMF and World Bank
Members: Argentina, Brazil,
Uruguay, Paraguay, Venezuela
Associates: Bolivia, Chile, Colombia,
Ecuador, Peru
Sustainable growth
Argentina has had a sustained growth during the 2000. The IMF figures confirm this trend
Argentina’s GDP 2002-2012
(In thousands of millions of AR$ at constant prices)
500
450
400
350
300
250
200
150
100
50
0
∆ 2012/2002: + 99.15%
∆ 2012/1998: + 62.5%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Source: SUINV based on Ministry of Economy and Public Finance and IMF
Sustainable growth
Argentina has had a sustained growth during the 2000. Industrial performance figures confirm
this trend
Argentina’s Industrial Estimator 2002-2012
(Index 2004=100)
160
140
∆ 2012/2002: + 85.77%
∆ 2012/1998: + 43.14%
120
100
80
60
40
20
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Source: CEU-UIA based on data from industrial chambers and public and private institutions
Argentina: sustainable growth
The country has been showing a strong economic performance. The IMF figures for 2011
confirm this trend
Selected economies: GDP growth rates (2003-2011)
10,7%
10,3%
9,5%
10,1%
8,1%
World GDP Growth
9,2%
8,0%
7,8%
7,4%
4.0% (2011P)
7,5%
6,5%
5,4%
5,2%
3,8%
3,8%
3,8%
3,5%
3,0%
1,8%
China
India
Argentina
Chile
Prom. (2003-2009)
Source: SUINV based on IMF
Brasil
2010
2011 (p)
México
1,6%
1,5%
Estados Unidos
1,8% 1,6%
0,9%
UE
With a key role of the domestic market
And its effect on employment generation and unemployment contraction
25
Unemployment rate
•The unemployment rate
decreased up to 6.7% (from
22%) in 9 years
21,5
20
18,3
18,4
17,8
17,1
17,316,1
16,6
14,5
15
15,4
13,7
12,4
13,2
14,7
13,8
16,4
15,6
17,8
14,5
12,1
10,7 12,2
10
9,9
9,3
•More than 4.000 millon
formal jobs were created
14,8
10,4
10,1
8,7
8,5
7,5
7,3 8,8
8,0
7,9
8,4
7,3
7,3
6,7
7,2 6,9
5
may
oct
may
oct
may
oct
may
oct
may
oct
may
oct
may
oct
may
oct
may
oct
may
oct
may/ii
iv
ii
iv
ii
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ii
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ii
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ii
iv
ii
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ii
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ii
iv
ii
iv*
0
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Source: CEU - UIA based on INDEC.
•As a result of this poverty
shoot down
•And domestic market was
strengthened
Global openness (X+M /GDP)
It has been increasing during the 2000, even after the international crisis
Openness coefficient
(as GDP percentage)
50%
44% 44% 44%
45%
45%
45%
43%
42%
40%
41%
40%
41%
37%
•Exports grew 217%
between 2001 and 2011
(from 26,543 million dollars
to 84,269)
35%
30%
25%
21%
23% 23%
20%
20%
16%
21%
22% 22%
18%
15%
10%
5%
0%
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Source: CEU - UIA based on MECON.
•Imports grew 264%
between 2001 and 2011
(from 20,319 million dollars
to 73,992)
INDEX
Development of Argentina’s economy
I.
I.
Argentinean features
II.
Current situation
Argentina's threats and opportunities
II.
I.
Sector and examples
II.
Key sectors
III.
Key clusters
IV.
Specific courses of action of the public sector
UIA action
III.
I.
Main objectives
II.
UIA role
Diversified economy to meet global market needs
Argentina presents profitable investment opportunities in a variety of strategic sectors for
the world economy
Agro
Industry
Value added
and design
manufactures
Professional
services,
software and IT
Source: SUINV based on IMF and World Bank
Pharmaceutical
Industry
Agricultural
machinery
Renewable
Energies
Biotechnology
Autoparts
Creative
Industries
Tourism
…and other important industrial sectors in Argentina
Iron and steel
sector &
metallurgical
industry
Textile - Clothing
Soybean & oil
industry
Poultry and bovine
meat
Plastics, chemicals
and petrochemicals
Creative industries
Diversity of investment opportunities
Film Industry:
 Argentina won two Academy Awards for Best
Foreign Movie (“El secreto de sus ojos”, 2010 &
“La Historia Oficial”, 1986)
Publishing Industry:
Buenos Aires was named World Book Capital
2011 by UNESCO
Over 370 libraries, 540 publishers and one of
the largest and most diverse book offerings in
Latin America.
Video Game Industry:
1500 professionals from 20 companies
develop games for PC Computers, Web pages
and Cell Phones
TV Industry:
 Export leader in television: 4th exporter of TV
content around the world
Wine industry
Diversity of investment opportunities
Outstanding opportunities:
 Sophisticated varietals (high consistence and
quality)
 Supplies for production (agricultural
machinery, traceability techniques, glass
bottles, corks and capsules)
 Grape juice concentrate
 Wine tourism
Source: SUINV based on Fondo Estratégico de la Vitivinicultura Argentina.
 Great ability to adapt to the demand
requirements in developed countries
 Emergence of new markets with increasing
purchasing power (China, Brazil)
 Increasingly sophisticated tastes of
domestic demand
Public sector supportive of investors
Welcoming investors: protection and equal rights for foreign investors

The Argentine Constitution guarantees equal treatment and rights for local and foreign investors

The Foreign Investments Act (No. 21,382) defines the legal framework for foreign investments
Foreign investors may:
 Remit abroad liquid profits arising as a return on their investment as well as repatriate their investment
 Avail themselves of any of the legal forms of incorporation foreseen by Argentine legislation
 Make use of domestic credits and loans with the same rights and under the same conditions as domestic
companies of domestic capital
 Access all sectors of economic activity as there are no activities reserved exclusively for local enterprises
Source: SUINV
Public sector incentives
Horizontal incentives
Sector incentives
✓Investment Promotion Law (No. 26,360): early VAT
Specific benefits and incentives for diverse
return and/or accelerated depreciation allowances for
sectors: automotive and auto parts, software,
investment on capital goods and infrastructure
biofuels, biotechnology, mining, forestry, public
✓0% tariff on imports of capital goods
infrastructure and hydrocarbons
✓0% tariff on imports of goods which are part of a large
investment project
Exemptions from provincial taxes for a determined
period of time
✓For every new job created, 50% reduction on employers’
•Gross income
contributions during the first year of employment and a
•Stamp taxes
25% reduction in the second year
✓Others: FONTAR, FONSOFT, SEPyME programs, incentives
to foster employment and exports (for further details
please see “Investment Incentives” published by SUINV)
•Property tax
Financial support for infrastructure investments and
purchase of relevant equipment
Source: SUINV
INDEX
Development of Argentina’s economy
I.
I.
Argentinean features
II.
Current situation
Argentina's threats and opportunities
II.
I.
Sector and examples
II.
Key sectors
III.
Key clusters
IV.
Specific courses of action of the public sector
UIA action
III.
I.
Main objectives
II.
UIA role
For more than 120 years, the Argentinean Industrial Association has been
representing the industry interests
• UIA was founded on February 7th 1887
• Currently, it has 171 members. All of them associations of the different
industrial sectors.
– Manufacturing Sector Associations, representing local and foreign companies
including automotive sector: Ford Motors Company, General Motors, Peugeot
Citroen, Renault, FIAT, Toyota. Food companies such as Cargill, Kraft Foods, Coca
Cola, Cadbury Stani, Danone, Seaborg, Quick Food, Unilever. Laboratories:
Abbott, Lilly, Merck, Bayer, Astra Zeneca, 3M. Steel companies: Arcelor Mital.
Additionally, are members companies like Telefónica and Telecom, Pan American
Energy, Petrobras, John Deere, Accenture…
– Local Associations (Provincial Industrial Unions)
• And it is governed by:
– Executive Committee
– Board of directors
– Professional staff and different sections covering technical areas
The main goals
MAIN
OBJECTIVES
To represent industry interest actively
To propose and elaborate proposals to foster
economy and industry competitiveness
To give support to its members
UIA Structure: Technical areas
Technical areas
• Fields where all members can take part and discuss key
issues that concern industry competitiveness
• Run by members representatives with strong technical skills
SME´s
Infrastructure
Education, Science
and Technology
Regional
Development
Social Policies
Members
CEU
Centre of Economic
Studies
Technical
analysis related
to
macroeconomics,
manufacturing
sectors and
international
trade issues
Trade and International
Negotiation
Taxation
Environment
Legislation
Support to
members through
the Departaments
UIA in action
•Platform for Technology
Transfer: Technology
Innovation Demands
AL INVEST IV
Euro centre UIA – jointly with Argentinean
Chamber of Commerce and the economic
support of European Union Council (ALInvest Programme for Latin America)
•Antenna Technology:
Technology Watch and
Competitive Intelligence
SCIENCE AND
TECHNOLOGY
UIA IN
ACTION
ENERGY
EFFICIENCY
PROGRAM
LINKING
TECHNOLOGY
UNIT
•170 projects
•More than 15 sectors
involved
•Pilot test: 25 companies
•Phase II: 400 companies
21
Asignaturas pendientes del MERCOSUR
In terms of SME policies, the UIA is working in the creation and
implementation of programs for industrial development
I.
Enlargement of industrial base
II.
Innovation
III. Competitiveness improvements
IV. Sustainable production (environment problems)
V.
Major international insertion
UNION INDUSTRIAL ARGENTINA - Av. de Mayo 1147/57 C.P. (C1085ABB) Buenos Aires, Argentina Tel. (54 11) 4124-2300 (Líneas Rotativas) Fax (54 11) 4124-2301. E-mail: [email protected]
Asignaturas pendientes del MERCOSUR
Some examples
33 Value Chains y 6 Federal
forums of the Industry
15 Territorial pacts y
21 Regional SMEs observatories
150 Associative and Technical
Assistance Projects (1000 SMEs
involved )
Studies on economy and
Industrial Policy
Internationalization of SMEs
Promotion of Innovation and Industrial Design
Link between University and
Company
Promotion of Entrepreneurs and
Young Entrepreneurs
UNION INDUSTRIAL ARGENTINA - Av. de Mayo 1147/57 C.P. (C1085ABB) Buenos Aires, Argentina Tel. (54 11) 4124-2300 (Líneas Rotativas) Fax (54 11) 4124-2301. E-mail: [email protected]