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Great Opportunities for U.S. Exporters in Argentina

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Argentina has passed through a severe economic crisis in 2001-2002, but in 2007 its gross domestic product (GDP) has grown to an estimated $225 billion. Imports of consumer goods reached $5.147 billions. Imports have grown 20% between 2006 and 2007 because of the high costs for local production. In 2007, total imports in Argentina reached 31% of the total amount of imports, 12% less than in 2006 and 3% less than in 2005. US products enjoy great appeal in the Argentine market. As the Argentines are seeing their purchasing power grow, and as Argentine companies are becoming more profitable, the country is getting more and more interested in foreign products. Argentine imports of consumer goods are expected to rise 30% in 2009. “Customers that purchase imported products are those from the middle and upper socioeconomic classes that look for more sophisticated products that are already ingredients of their consumer habits. But apart from this group, there are customers with weaker purchasing power that occasionally allow themselves to splurge by buying an imported product”, said Cencosud, owner of the supermarket chains “Disco and Jumbo”, which registered, in the first three months of 2008, increased sales of imported goods. In 2003, Argentina abolished import duties for capital goods from non-MERCOSUR countries, such as the United States. This measure has been renewed every year since 2006 and will remain in effect until at least December 31, 2008. U.S. exporters have significant opportunities in the following sectors: equipment and parts, packaging equipment and parts, mining machinery and equipment, telecommunication equipment, medical equipment and supplies, information technology, electrical power systems, agricultural machinery. Even though most imported items come from Asia, United States exports 10% of its goods and services among a few other countries. Argentine companies import many products from the U.S. because they believe these are quality products, durable and high technology. American companies export mostly watches and cotton. Argentine experts say that U.S. firms should try to be more competitive when it comes to export prices so that they can improve their market share. Argentine businesses catering to the consumer market are interested in products like house appliances, beach accessories, USB ports, keyboards, pen drives, digital photo frames, or even MP3/MP4 devices. Textiles are still an important part of the imports: caps, jackets, polo shirts. Over the next two years, experts estimate that the Argentine market will show growing demand for products like desk kits and writing instruments, IT products like portable drives, MP3/MP4 devices and notebook sets, and leisure time products, such as wine sets, watches, bags, barbecue sets. When it comes to packaging equipment, United States is the fourth largest exporter to Argentina, having recently overtaken France. More than $5 billion worth of packaging equipment has been shipped to Argentina in 2007. Demand for such equipment is expected to continue to grow. Other opportunities for American exporters of packaging equipment interested in the Argentine market are: pouches, blister wraps, vacuum packing, machinery parts like jars, tubes, bags, boxes etc. Even though packing machinery constitutes a niche sector of great promise for U.S. exports, it seems American companies are feeling the heat from their competitors in Italy and Germany, as well as France and Spain.

 

Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

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Aug 03, 2015 12:54 PM