Updated April 26, 2019
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: 44.6 million (2018, IMF est.).
Macri defeated the candidate of the leftist faction (Front for
Victory, or FPV) of the Peronist party (officially known as
Area: 1.1 million square miles, about the size of the United
the Justicialist Party) led by outgoing President Cristina
States east of the Mississippi.
Fernández de Kirchner, who was ineligible to run for a third
GDP: $518 billion (2018, current prices, IMF est.).
consecutive term. Macri’s election ended 12 years of FPV
Real GDP Growth: 2.7% (2017, IMF est.); -2.5% (2018, IMF
rule by the Kirchners (Néstor Kirchner, 2003-2007, and
est.).
Cristina Fernández, 2007-2015). The Kirchners’ rule helped
Per Capita GDP: $11,627 (2018, current prices, IMF est.).
Argentina emerge from a severe economic crisis in 2001-
2002 but was characterized by protectionist and unorthodox
Key Trading Partners (total trade): Brazil (21.1%), China
economic policies and increasing corruption.
(12.8%), United States (9.3%) (2018, 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 economy ultimately
contracted 2.5% in 2018. Looking ahead, the IMF’s
projection for 2019 is a contraction of 1.2%, and for 2020 a
growth rate of 2.2%. Inflation was almost 25% at the end of
2017, rose to almost 48% at the end of 2018, and in March
2019 reportedly rose to almost 55% year-on-year.
As pressure on the peso increased in April 2018, the
government turned to the IMF for support. The IMF
approved a three-year, $50 billion program in June; as the
economy continued to decline, the government reached a
revised agreement with the IMF in September 2018,

Source: CRS.
increasing its total support to about $57 billion through
2021. Despite wide-scale protests over austerity measures
President Macri moved swiftly to usher in economic policy
in the second half of 2018, the Macri government secured
changes. His government lifted currency controls; reduced
legislative approval in November for spending cuts and tax
or eliminated agricultural export taxes; and reduced
increases required under the IMF program. The IMF has
electricity, water, and heating gas subsidies. The
conducted three performance reviews of Argentina’s
government reached a deal with private creditors in 2016
progress under the program; the most recent in April 2019
that ended the country’s 15-year default, which allowed the
noted that a key priority is protecting the most vulnerable
government to repair its “rogue” debtor status and resume
from the impact of the recession and from high inflation.
borrowing in international capital markets. Although
More recently, Argentina’s economic turbulence has taken
adjustment measures contributed to almost 2.1% economic
a toll on President Macri’s popularity, which could threaten
contraction in 2016, the economy grew by 2.7% in 2017,
the president’s bid for reelection in October 2019. Some
according to the International Monetary Fund (IMF).
polls from April 2019 show that former President Cristina
In Argentina’s October 2017 midterm legislative elections,
Fernández could defeat Macri in a second round.
in which one-third of the Senate and one-half of the
Fernández, however, is also reported to have high negative
Chamber of Deputies were at stake, Macri’s coalition made
ratings, likely because of pending corruption charges. Some
significant gains but did not win a majority in either
observers contend that a single centrist Peronist candidate
chamber. Following the election, President Macri
could pose a strong bid for the presidency; potential
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Argentina: An Overview
candidates include Sergio Massa (a former deputy in
counterterrorism, counternarcotics, and law enforcement
Argentina’s Congress who came in third in the 2015
capabilities. In addition to foreign aid, Argentina’s status as
presidential race), Roberto Lavagna (former economy
a major non-NATO ally since 1998 makes it eligible for
minister), and Juan Manuel Urtubey (governor of the state
preferential treatment for U.S. exports of excess defense
of Salta in northern Argentina).
articles.
In the foreign policy arena, the Macri government has
Trade and Investment Issues. The United States ran a
improved relations with neighboring Brazil and Uruguay
$5.1 billion trade surplus with Argentina in 2018, exporting
and other pro-market countries in the region. Argentina
$9.9 billion in goods to the country (led by oil, machinery
took over the rotating presidency of the Group of 20 (G-20)
and mechanical appliances, electrical machinery and
in December 2017 and hosted the annual G-20 summit from
equipment, and soybeans) and importing $4.9 billion (led
November 30 to December 1, 2018. President Macri has
by oil, aluminum, precious stones [silver and gold], and
been strongly critical of the antidemocratic actions of the
wine). The stock of U.S. foreign direct investment in
Maduro regime in Venezuela. He supported efforts at the
Argentina was $14.9 billion in 2017, led by manufacturing,
Organization of American States to press Venezuela to
information services, and finance/insurance.
change its behavior, and joined with other regional
Argentina has been on the U.S. Trade Representative’s
countries in 2017 to form the Lima Group seeking a
(USTR) Special 301 Priority Watch List since 1996 due to
democratic resolution. In January 2019, the Macri
government recognized the head of Venezuela’s National
problems with intellectual property rights protection and
enforcement. In its 2019 Special 301 report, USTR pointed
Assembly, Juan Guaidó, as the country’s interim president;
to problems with Argentina’s patent protection regime,
it has also supported U.S. economic sanctions.
which has interfered with the ability of companies investing
U.S.-Argentine Relations
in Argentina to protect their intellectual property. The
U.S.-Argentine relations have been characterized by robust
report also cited widespread unfair competition from sellers
commercial linkages and cooperation on issues such as
of counterfeit and pirated goods and services.
nonproliferation, human rights, education, and science and
The United States and Argentina have made progress on
technology. There were periodic tensions under the
some trade issues. Since 2001, Argentina had sought access
Kirchner governments, but Macri’s election brought to
to the U.S. market for lemons and fresh beef. The U.S.
power a government committed to improving bilateral
Department of Agriculture (USDA) ruled in 2016 that
relations. President Obama engaged the Macri government
lemons could be imported; after multiple delays and a court
on a range of bilateral, regional, and global issues, and he
challenge, the United States started importing lemons from
visited Argentina in 2016.
Argentina in April 2018. Although USDA issued rules in
Strong bilateral relations are continuing under the Trump
2015 allowing fresh beef imports from Argentina, it was not
Administration. President Macri visited the White House in
until November 2018 that USDA’s Food and Safety
April 2017, and the two leaders underscored their
Inspection Service determined that Argentina was eligible
commitment to expand trade and investment and pledged
to export fresh beef to the United States. In April 2018,
strengthened partnership to combat narcotics trafficking,
U.S. officials announced U.S. access to Argentina’s market
money laundering, terrorist financing, corruption, and other
for pork—the first since 1992. In November 2018,
illicit finance activities. They also agreed to establish a
Argentina restored full market access for U.S. beef and beef
working group for engagement on cyber issues. In
products that had been banned in Argentina for more than a
September 2018, amid Argentina’s economic difficulties,
decade. Argentina had been concerned about the potential
President Trump reaffirmed strong U.S. support for
imposition of U.S. duties on steel and aluminum imports,
Argentina and Macri’s engagement with the IMF.
but it received a permanent exemption in May 2018 after
reaching a quota agreement with the United States.
President Trump met with President Macri in Argentina on
November 30, 2018, on the sidelines of the G-20 summit.
The United States imposed duties on biodiesel imports from
The two countries reached bilateral agreements on
Argentina in 2017, when the Department of Commerce
educational exchange programs, national park conservation
issued a final determination to impose countervailing duties
efforts, health cooperation, aviation safety, and energy
up to 72% because of Argentina’s subsidies to its
sector cooperation. The Overseas Private Investment
producers. In April 2018, the U.S. International Trade
Cooperation signed letters of interest for $813 million in
Commission ruled that biodiesel imports from Argentina
U.S. support for several projects in Argentina worth over $3
have materially injured the domestic U.S. industry, which
billion involving infrastructure, energy, and logistics.
led to the imposition of additional antidumping duties. In
November 2018, in response to a request from Argentina,
U.S. Foreign Aid. Argentina traditionally has not received
the Commerce Department initiated a review of the duties,
much U.S. foreign assistance because of its relatively high
which remain in place.
per capita income. In recent years, the United States has
provided relatively small amounts of assistance for military
Also see CRS In Focus IF10991, Argentina’s Economic
education and training and for export-control security to
Crisis, by Rebecca M. Nelson.
enhance Argentina’s strategic trade control compliance and
enforcement. In addition, Congress also provided $2.5
Mark P. Sullivan, Specialist in Latin American Affairs
million in assistance for FY2018 (P.L. 115-141) and
IF10932
FY2019 (P.L. 116-6; H.Rept. 116-9) to support Argentina’s

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Argentina: An Overview



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https://crsreports.congress.gov | IF10932 · VERSION 7 · UPDATED

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