5 Great Reasons to Do Business in Argentina
As Argentina re-enters the global market, investor interest has surged by people wanting to do business there. The emerging economy has taken great leaps towards reducing their well-known economic problems. There have been numerous government initiatives aimed at improving the economic state of the country and encouraging foreign participation. Some of these government-led initiatives include, but are not limited too:
- The lifting of foreign-exchange controls.
- Creation of the Argentinian Simplified Shares Company (S.A.S Sociedad de Acciones).
- Constitution of the Argentinian Investment and Trade Promotion Agency.
- Strong investment in the renewable energy sector with the government looking abroad for investment.
- Hosting the biennial World Trade Organization and the G20 summit.
- Increasing involvement in the international trading market, not only MERCOSUR but with other countries such as Peru, Mexico, India, Egypt, and Israel.
- Establishment of an attractive legal framework (which mirrors the legal framework for locals) for foreigners interested in doing business in the region.
Strong Push For International Investment in Argentina
As can be seen from the above initiatives, the current government has identified that increasing foreign participation in Argentina will play an essential role in improving the economic state of Argentina. Two key legislation aimed at increasing the participation of foreigners is the recent creation of the S.A.S, in addition to more flexible international trading regulations. These two, along with many others have been key to promoting Argentina as a country open for business. The country is more attractive than it has even been to investment and foreign participation, with this trend only set to continue over the coming years.
A Variety of Strong Investment Sectors in Argentina
Argentina has always had a vast array of strong sectors/industries, which helped the country greatly during periods of economic struggle (this is particularly true for the Agricultural industry). The future growth sectors include agriculture (soy, meat, wine, animal fodder), automotive/automotive parts, oil and gas, among others. Previous economic problems now mean that many of these sectors are in need of investment, opening a door of opportunities for foreign experts with specific skills and knowledge. In addition, the Argentine government has pledged a strong commitment to the environment through the creation renewable sector projects(ranging from small to large) in a variety of sectors.
Large, Young and Educated Population
The Macri Government constituted the Argentinian Investment and Trade Promotion Agency to promote trade and investment in Argentina.
Argentina boasts a large, young and educated population. Currently, the population sits at over 43 million with a high proportion of individuals completing secondary education. In addition, Argentines have some of the highest rates of English in Spanish Speaking Latin American – another added advantage for foreigners considering the country as their investment location of choice.
A growing international perspective, high education levels and high level of English among Argentines make hiring local staff a great option for foreigners who are interested in constituting a company in Argentina.
Member of MERCOSUR
Being a member of MERCOSUR has a great array of benefits. In terms of international trade, it allows access to 3 countries and numerous associate countries with reduced legal requirements and limited taxes. Consider it as something similar to the E.U – a great concept for foreign commerce. With further trade negotiations underway, there is no doubt that over the coming years, Argentina will sign trade agreements with various other countries, unions and regions, further facilitating their trading capacities. Mexico has adopted this open trade strategy and has seen the benefits that it brings the economy and the people.
High Quality of Life
Argentina enjoys a high quality of life, top-class health and education as well as a rich history with a diverse European culture, which is still very prevalent in day-to-day life in Argentina. Buenos Aires, the business hub of Argentina, has seen huge growth over the past decade. Foreigners from across the globe are flocking for more than just the attractive business environment.
An attractive environment for investment and a high quality of life make Argentina one of the most attractive countries to invest and live in. With a reduction in formerly regulated markets and a government looking outside of Argentina as a means to promote economic growth in the country, now is the perfect opportunity to look towards Argentina as an investment location.
From commercial representation to accounting and tax assistance, a partnership with Biz Latin Hub will prove to be a strategic business move. Partner with us and take advantage of all that the Argentinian business environment has to offer.