GENERAL INTRODUCTION:

Argentina offers many opportunities to investors because of its highly population and its geographic advantages-extensive lands mainly in the temperate zone, a variety of climates and plentiful natural resources. The Argentine economy has traditionally been based on agriculture and livestock, but the industry has become an increasingly important primary activity's, however are the main sources of foreign revenues.
Major river systems are located mainly in the north, although there are some in the south. These river basins make natural irrigation feasible in large areas and also help production of hydroelectric power. The Andes range, which runs along the western border of the country, forms a natural boundary with Chile.
Because Argentina is south of the equator, the seasons are the reverse of those in the northern hemisphere ,and the weather becomes cooler as one goes further south. Due to the country's long shape, there is a great variety of climates from the sub tropical north to the ice-covered south. The central portion of the country has warm summer weather and mild winters. Buenos Aires, Argentina's capital, and most other major cities (such as Rosario, Cordoba and Bahia Balanca) are located in this region, which has the greatest population density.
Argentina's population is estimated at over 33 million inhabitants, mostly of European Ancestry. The south is sparsely populated.

Spanish is the official language, for legal purposes, business documents and records must be in Spanish. Documents in a foreign language must be translated by a registered public translator. English is widely used and understood in the business community. In large cities, it is possible to engage personnel with knowledge of foreign languages.

Peso is the official currency and the major religion is Roman Catholicism. Literacy is 90% The US dollar is frequently used in Argentina, and its exchange rate floats freely. This value is generally determined by supply and demand. Occasionally, however the monetary authorities manage the value of the dollar against the Argentine Peso by purchasing or selling currency.

ECONOMY :

The Argentine economy has traditionally been based on agriculture and livestock, but the industry has become increasingly important. The natural woodland produces hard and soft woods, which are used in timber and related industries. Forestation supplies the wood pulp and paper industries with raw materials. The central-western area is rich in Vineyards, and the Wine industry is highly developed. The predominant manufacturing industries are those producing machinery and equipment, foodstuffs, beverages, tobacco, chemicals and textiles.

IMPORTING ENVIRONMENT:

The Argentine government is seeking growth through strict tax and monetary discipline and a reorganisation of the public sector through privatisation of state-owned companies, restoration of a market economy and a willingness to achieve full integration with international markets. To this end, the government has taken fundamental steps to open up the economy.

They include :
1 Simplification of the import tariffs structure
2 A reduction of import tariffs
3· Almost total elimination of taxes on exports
4· Elimination of restrictions and discriminatory procedures against capital
and technology from abroad.

A combination of fiscal discipline, consistent monetary and financial policies, rescheduling of the foreign debt and structural changes in areas such as trade liberalisation, privatisation and deregulation have strengthened the Argentine economy. As a result, the fiscal deficit was completely eliminated in 1991. Resources went up by US $5.3 billion between 1988 and 1991, and expenditures have been reduced by US $ 1 billion in the same period.

The revitalisation of the economy triggered a significant increase in imports during 1991, while exports remained constant. The 1991 trade surplus declined when compared to 1989 and 1990, but it was more in line with the budget surplus, which provided a genuine source of financing for government purchases of foreign currency.

Imports consist mainly of manufactured products and, on a lesser scale, raw materials for local manufacturing. Although domestic production is usually sufficient to supply consumption petroleum and petroleum fuels are occasionally imported.

The Central Bank of Argentine Republic (BCRA) is the exchange authority. There are currently no exchange controls, and foreign currency may be bought and sold through banks and foreign exchange brokers at market price. No tax is imposed on foreign exchange transactions, the only cost is the spread between buying and selling prices. Importers must file a number of documents with customs, even if the imported goods are subject to no duties. Required documents include :
· The commercial invoice (Original or a facsimile)
· The bill of lading
· An entry summary document specifying the items being imported and their values
· A customs duties deposit slip

Importers must use the services of Custom House brokers to carry out the documentation and filling procedures. Custom House brokers are generally engaged in the business of representing importers and exporters, and must be licensed.

The, following organisation can offer advice on Commercial information :

Camara de Commercio, Indusria y Produccion de la
Republic Argentina (CACIPRA), Relaciones Public as e Internacionales, Floria I, Piso 4, 1005 BUENOS AIRES, Tel :(54I)343563S, Fax:(541)3319116
Tlx: 18693 ccira ar