Updated December 20, 2018
Argentina: An Overview
Political and Economic Environment
successfully moved tax and pension legislation through
Current President Mauricio Macri—leader of the center-
Congress despite protests.
right Republican Proposal and the Cambiemos (Let’s
Change) coalition representing center-right and center-left
Argentina at a Glance
parties—won the 2015 presidential election in a close race.
Population: 44.1 mil ion (2017, IMF est.).
Macri defeated the candidate of the leftist faction of the
Peronist party (Front for Victory, or FPV) led by outgoing
Area: 1.1 mil ion square miles, about the size of the United
President Cristina Fernández de Kirchner, who was
States east of the Mississippi.
ineligible to run for a third consecutive term. Macri’s
GDP: $638 bil ion (2017, current prices, IMF est.).
election ended 12 years of FPV rule by the Kirchners
Real GDP Growth: 2.9% (2017, MF est.); -2.6% (2018, IMF
(Néstor Kirchner, 2003-2007, and Cristina Fernández,
forecast).
2007-2015). The Kirchners’ rule helped Argentina emerge
Per Capita GDP: $14,463 (2017, current prices, IMF est.).
from a severe economic crisis in 2001-2002 but was
characterized by protectionist and unorthodox economic
Key Trading Partners (total trade): Brazil (21.9%),
policies and increasing corruption.
United States (11%), China (11%) (2017, INDEC).
Legislature: Bicameral Congress, with 72-member Senate
Figure 1. Map of Argentina
and 257-member Chamber of Deputies.
Sources: International Monetary Fund (IMF) and National
Institute of Statistics and Census, (INDEC, Argentina).

In early 2018, the IMF was forecasting almost 2% growth
for the year, but Argentina’s economic difficulties,
including a severe drought affecting agricultural exports,
thwarted those expectations; the IMF is now forecasting an
economic contraction of 2.6%. Inflation, which was almost
25% at the end of 2017, is forecast to rise to 40% by the
end of 2018. As pressure on the peso increased in April, the
government turned to the IMF for support. The IMF
approved a three-year, $50 billion program in June, with
almost $15 billion made available immediately for budget
support. As the economy continued to decline, the
government reached a revised agreement with the IMF in
September to increase its total support to about $57 billion
through 2021. After an October 2018 IMF review,

Argentina received an additional $5.7 billion, bringing total
Source: CRS.
IMF disbursements to date to about $20.4 billon.
President Macri moved swiftly to usher in economic policy
Despite wide-scale protests over austerity measures, the
changes. His government lifted currency controls; reduced
Macri government secured legislative approval in
or eliminated agricultural export taxes; and reduced
November 2018 for spending cuts and tax increases
electricity, water, and heating gas subsidies. The
required under the IMF program. Argentina’s economic
government reached a deal with private creditors in 2016
turbulence has taken a toll on President Macri’s popularity,
that ended the country’s 15-year default, which allowed the
which could threaten his political coalition and make a
government to repair its “rogue” debtor status and resume
reelection bid in October 2019 more difficult. Although the
borrowing in international capital markets. Although
Peronist party remains divided, a candidate from its
adjustment measures contributed to a 1.8% economic
moderate faction could pose a strong bid for the presidency.
contraction in 2016, the economy grew by 2.9% in 2017,
according to the International Monetary Fund (IMF).
In the foreign policy arena, the Macri government has
improved relations with neighboring Brazil and Uruguay
In Argentina’s October 2017 midterm legislative elections,
and other pro-market countries in the region. Argentina
in which one-third of the Senate and one-half of the
took over the rotating presidency of the Group of 20 (G-20)
Chamber of Deputies were at stake, Macri’s coalition made
in December 2017 and hosted the annual G-20 summit from
significant gains but did not win a majority in either
November 30 to December 1, 2018.
chamber. Following the election, President Macri
https://crsreports.congress.gov

---

Argentina: An Overview
President Macri has been deeply critical of the
restrictions on U.S. imports. In April 2018, however, U.S.
antidemocratic actions of the Venezuelan government. He
officials announced U.S. access to Argentina’s market for
has supported efforts at the Organization of American
pork—the first since 1992. Argentina has been on the U.S.
States to press Venezuela to change its behavior and joined
Trade Representative’s Special 301 Priority Watch List
with other regional countries in 2017 to form the Lima
since 1996 due to problems with IPR enforcement, although
Group, aiming for a peaceful resolution to Venezuela’s
it has taken some positive actions over the past two years.
political crisis. In September 2018, Argentina joined several
regional countries in urging the International Criminal
Argentina had sought access to the U.S. market for lemons
Court to investigate human rights abuses in Venezuela.
and fresh beef since 2001. The U.S. Department of
Agriculture (USDA) ruled in 2016 that lemons could be
U.S.-Argentine Relations
imported; after multiple delays and a failed court challenge
U.S.-Argentine relations have been characterized by robust
from U.S. citrus producers, lemon imports from Argentina
commercial linkages and cooperation on issues such as
began arriving in April 2018. Although USDA issued rules
nonproliferation, human rights, education, and science and
in 2015 allowing fresh beef imports from Argentina, it was
technology. There were periodic tensions under the
not until late November 2018 that USDA’s Food and Safety
Kirchner governments, but Macri’s election brought to
Inspection Service determined that Argentina was eligible
power a government committed to improving bilateral
to export fresh beef to the United States.
relations. President Obama engaged the Macri government
on a range of bilateral, regional, and global issues, and he
The United States imposed duties on biodiesel imports from
visited Argentina in 2016.
Argentina beginning in late 2017, when the Department of
Commerce issued a final determination to impose
Strong bilateral relations are continuing under the Trump
countervailing duties up to 72% on U.S. biodiesel imports
Administration. President Macri visited the White House in
from Argentina because of the country’s subsidies to its
April 2017, and the two leaders underscored their
producers. In April 2018, the U.S. International Trade
commitment to expand trade and investment and pledged
Commission ruled that biodiesel imports from Argentina
strengthened partnership to combat narcotics trafficking,
have materially injured the domestic U.S. industry, which
money laundering, terrorist financing, corruption, and other
led to the imposition of additional antidumping duties. In
illicit finance activities. They also agreed to establish a
November 2018, in response to a request from Argentina,
working group for engagement on cyber issues. In
the Commerce Department initiated a review of the duties.
September 2018, amid Argentina’s economic difficulties,
President Trump reaffirmed strong U.S. support for
Argentina had been concerned about the potential
Argentina and Macri’s engagement with the IMF.
imposition of U.S. duties on steel and aluminum imports,
but it received a permanent exemption in May 2018 after
President Trump held a bilateral meeting with President
reaching a quota agreement with the United States.
Macri in Argentina on November 30, 2018, on the sidelines
of the G-20 summit. The two countries reached bilateral
Congressional Interest. Congress has expressed support
agreements on educational exchange programs, national
for close relations with Argentina. In the 115th Congress,
park conservation efforts, health cooperation, aviation
the House passed H.Res. 254 (Sires) in April 2017, which
safety, and energy sector cooperation. The Overseas Private
expressed commitment to the bilateral partnership and
Investment Cooperation signed letters of interest for $813
commended Argentina for its economic reforms. In June
million in U.S. support for several projects in Argentina.
2017, the Senate Committee on Foreign Relations reported
a similar resolution, S.Res. 18 (Coons). Over the years,
U.S. Foreign Aid. Argentina traditionally has not received
Congress has expressed concern about Argentina’s progress
much U.S. foreign assistance because of its relatively high
in investigating two terrorist bombings in Buenos Aires—
per capita income. In recent years, the United States has
the 1992 bombing of the Israeli embassy that killed 29
provided relatively small amounts of assistance for military
people and the 1994 bombing of the Argentine-Israeli
education and training and for export-control security to
Mutual Association (AMIA) that killed 85 people—as well
enhance Argentina’s strategic trade control compliance and
as the 2015 death of AMIA special prosecutor Alberto
enforcement. This amounted to $624,000 in FY2017 and
Nisman. H.Res. 201 (Ros-Lehtinen), reported by the House
$400,000 in FY2018; the Trump Administration requested
Foreign Affairs Committee in May 2017, would express
$600,000 for FY2019. In FY2018, Congress also provided
support for Argentina’s investigation of the bombings. Two
$2.5 million in assistance (P.L. 115-141) to support
other resolutions, S.Res. 354 (Rubio) and H.Res. 704
Argentina’s counterterrorism, counternarcotics, and law
(Deutch) would commend Nisman’s work and life and call
enforcement capabilities.
for a swift, transparent investigation into his death.
Trade and Investment Issues. The United States ran a
Also see CRS In Focus IF10991, Argentina’s Economic
$4.8 billion trade surplus with Argentina in 2017, exporting
Crisis, by Rebecca M. Nelson, and CRS In Focus IF10373,
$9.6 billion in goods to the country (led by machinery and
Fresh Beef Import Rules for Brazil and Argentina, by Joel
oil) and importing $4.8 billion (led by biodiesel, aluminum,
L. Greene.
and wine). The stock of U.S. foreign direct investment in
Argentina was $14.9 billion in 2017.
Mark P. Sullivan, Specialist in Latin American Affairs
U.S. officials have raised concerns about Argentina’s
IF10932
intellectual property rights protection (IPR) and various
https://crsreports.congress.gov

---

Argentina: An Overview


Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff to
congressional committees and Members of Congress. It operates solely at the behest of and under the direction of Congress.
Information in a CRS Report should not be relied upon for purposes other than public understanding of information that has
been provided by CRS to Members of Congress in connection with CRS’s institutional role. CRS Reports, as a work of the
United States Government, are not subject to copyright protection in the United States. Any CRS Report may be
reproduced and distributed in its entirety without permission from CRS. However, as a CRS Report may include
copyrighted images or material from a third party, you may need to obtain the permission of the copyright holder if you
wish to copy or otherwise use copyrighted material.

https://crsreports.congress.gov | IF10932 · VERSION 6 · UPDATED

---