Deputy Secretary of State Wendy Sherman’s visit to the country this Thursday and Friday again highlights a zig-zag connection. And full of demands on both sides in the economic and commercial spheres.
United States is still the main foreign investor in this countrybeyond the complaints of the companies grouped in the American Chamber (AmCham) to operate here in the face of exchange controls, difficulties in withdrawing currency, inflation and changes in legal norms.
Argentine exports to the United States have been higher than $6.6 billion in 2022 and imports from there of as well $9,600. The deficit for Argentina was US$3,000 million.
United States is the third largest trading partner of the country and corporate problems outweigh local governments.
And although Sherman is a diplomat sent by Joe Biden’s kidney to give political continuity to the relationship with Argentina after his meeting with Alberto Fernández, he will listen to the statements of the three men who are leading the bilateral relationship today: the ambassador to the United States , Jorge Arguello and ministers Santiago Cafiero (foreign minister) and Sergio Massa (economy, agriculture and production).
What are the demands that the government is making on Washington for both political and commercial lines?
The government is asking the United States to make the country reincorporated in the General System of Preference, status which it lost in 2020 and which benefited from favorable conditions for numerous products.
On the other hand, it is worth mentioning a report by the Abeceb consultancy company, directed by former minister Dante Sica, in which the long-standing request to resolve the issue is also very important tariffs on imports of Argentine biodiesel, which caused local exporters to lose a market for $1.2 billion annually.
The United States prevailed in 2017 when two allies such as Donald Trump and Mauricio Macri governed. He then claimed that Argentina was subsidizing its production and export of biodiesel and that this implied unfair competition for biodiesel producers in the United States.
It is a long and unsuccessful battle, in which Argentina has been negotiating bilateral policies with the Department of State and Commerce. He filed lawsuits and appeals. He even filed a WTO complaint claiming that such US tariffs were unjustified.
The government of Alberto Fernández hoped that Joe Biden would lift the provision of the Trump government, but this did not happen. exports of biodiesel they came to weigh a 25% of exports to the United States in 2016.
Abeceb’s report brought up another issue that has to do with citrus fruits. In 2001, the United States suspended imports of Argentine lemons due to phytosanitary problems. After a series of negotiations, the United States finally lifted the ban in 2017 and allowed fresh Argentinean lemons to be imported into its market. However, in 2020, the access of Argentine lemons to the United States was temporarily suspended due to concerns about the presence of disease in Argentine lemons. And recently, the United States opened a new investigation into the export conditions of Argentine lemon juice, suspecting that it was exported from below its market value and at a discounted price. This qualifies as dumping. It has also opened a similar investigation against lemons from Brazil and South Africa.
Another front of conflict occurs in meats. Since 2001, the United States has blocked imports of fresh, chilled or frozen beef from all of Argentina and animals, meat and animal products from Patagonia due to foot and mouth disease. Argentina appealed to the WTO, arguing that the measure was unjustified and that it was responding to US farmer lobbies. Entry into the US market has since recovered; incipient in 2019 and growing from 2020, a market that will need to be closely monitored.
In late 2022, the US Department of Commerce sued Argentina for allegedly dumping and subsidizing the concentrated grape juice (wort), which is used as a natural sweetener for foods, desserts, jams and confectionery. This hits the economies of San Juan and Mendoza somewhat. Argentina is the world’s leading exporter by volume and second in value. The seriousness of the situation is that the United States represents 40% of total Argentine juice exports. The conflict was recently resolved by suspending the duties applied by the USA in exchange for setting an export quota of 40,000 tons per year, in line with historical sales.
“The relationship is fundamentally complicated because we are exporters of agriculture, grains, and so are the United States, so we cannot sell the same things that we sell to China, the European Union or India because they are agricultural products that we do not sell needs . The US is a competitor and therefore we sell manufactured products with a different profile than we have with other markets,” said Marcelo Elizondo, who manages DNI consultancy.
He also warned that you must be in order to enter the United States very competitive not only for the price, but above all for the quality. There are standards, requirements and demands of a complex market. And not only government regulations, but also companies are very demanding with their imports
Source: Clarin
