Updated August 15, 2019
Argentina: An Overview
Political and Economic Environment
2.5% in 2018, and the IMF’s projection for 2019 is a
Current President Mauricio Macri—leader of the center-
contraction of 1.2%.
right Republican Proposal and the Cambiemos (Let’s
As pressure on the peso increased in 2018, the government
Change) coalition representing center-right and center-left
turned to the IMF for support, which approved an
parties—won the 2015 presidential election in a close race.
agreement to provide $57 billion in support through 2021.
Macri defeated the candidate of the leftist faction (Front for
To date, the IMF has conducted four performance reviews
Victory, or FPV) of the Peronist party (officially known as
of Argentina’s progress under the program, with a total of
the Justicialist Party) led by outgoing President Cristina
$44.1 billion made available. In July 2019, the IMF lauded
Fernández de Kirchner, who was ineligible to run for a third
consecutive term. Macri’s election ended 12 years of
Argentina for steadfast implementation of its economic
FPV
policy program, noting that its policies are yielding results,
rule by the Kirchners (Néstor Kirchner, 2003-2007, and
with inflation expected to fall in coming months.
Cristina Fernández, 2007-2015). The Kirchners’ rule helped
Argentina emerge from a severe economic crisis in 2001-
Argentina at a Glance
2002 but was characterized by protectionist and unorthodox
economic policies and increasing corruption.
Population: 44.6 million (2018, IMF est.).
Area: 1.1 million square miles, about the size of the United
Figure 1. Map of Argentina
States east of the Mississippi.
GDP: $518 billion (2018, current prices, IMF est.).
Real GDP Growth: 2.7% (2017, IMF est.); -2.5% (2018, IMF
est.).
Per Capita GDP: $11,627 (2018, current prices, IMF est.).
Key Trading Partners (total trade): Brazil (21.1%), China
(12.8%), United States (9.3%) (2018, INDEC).
Legislature: Bicameral Congress, with 72-member Senate
and 257-member Chamber of Deputies.
Sources: International Monetary Fund (IMF) and National
Institute of Statistics and Census, (INDEC, Argentina).

October 2019 Presidential Race. Argentina’s economic
difficulties have taken a toll on President Macri’s popularity
and are a major factor in his bid for reelection; after Macri’s
poor performance in an August 11 combined primary

(discussed below), some observers view his reelection as
Source: CRS.
unlikely. A first presidential electoral round is scheduled
for October 27, 2019, along with elections for one-half of
President Macri moved swiftly to usher in economic policy
the Chamber of Deputies (the lower house of Argentina’s
changes. His government lifted currency controls; reduced
Congress) and one-third of the Senate. In the presidential
or eliminated agricultural export taxes; and reduced
race, if no candidate receives 45% of the vote (or 40% and
electricity, water, and heating gas subsidies. The
finishes 10 percentage points ahead of the second-place
government reached a deal with private creditors in 2016
candidate), then a second round will be held in November.
that ended the country’s 15-year default, which allowed the
government to repair its “rogue” debtor status and resume
The race is essentially a competition between the center-
borrowing in international capital markets. Although
right coalition of Macri and his Peronist vice presidential
adjustment measures contributed to almost 2.1% economic
running mate, Miguel Ángel Pichetto, (dubbed Juntos por
contraction in 2016, the economy grew by 2.7% in 2017,
el Cambio or Together for Change), versus the populist
according to the International Monetary Fund (IMF).
leftist Peronist ticket of Alberto Fernández (former cabinet
chief to Néstor Kirchner) and former President Cristina
In early 2018, the IMF was forecasting almost 2% growth
Fernández de Kirchner for vice president (dubbed Frente de
for the year, but Argentina’s economic difficulties,
Todos or Front for All).
including a severe drought affecting agricultural exports,
higher financing costs, and large budget deficits, thwarted
On August 11, 2019, Argentina held a single combined
those expectations. The economy ultimately contracted
primary with 10 presidential candidates (essentially a dress
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Argentina: An Overview
rehearsal election), in which Fernández’s Front for All
education and training and for export-control security to
trounced Macri’s coalition by a vote of 47.7% to 32.1%.
enhance Argentina’s strategic trade control compliance and
Macri’s poor performance triggered a run on the peso,
enforcement. In addition, Congress also provided $2.5
wiping out about a quarter of its value, until talks between
million in assistance for FY2018 (P.L. 115-141) and
Macri and Fernández on August 15 appeared to calm the
FY2019 (P.L. 116-6; H.Rept. 116-9) to support Argentina’s
markets. Macri announced emergency measures to provide
counterterrorism, counternarcotics, and law enforcement
relief to those suffering from the sharp devaluation.
capabilities. For FY2019, the United States also is
providing $3 million in assistance to help with the influx of
Foreign Policy. In the foreign policy arena, the Macri
Venezuelan migrants. In addition to foreign aid,
government has improved relations with neighboring Brazil
Argentina’s status as a major non-NATO ally since 1998
and Uruguay and other pro-market countries in the region.
makes it eligible for preferential treatment for U.S. exports
In June 2019, the four countries of the South American
of excess defense articles.
customs union known as Mercosur (Mercado Común del
Sur)—Argentina, Brazil, Paraguay, and Uruguay—
Trade and Investment Issues. The United States ran a
concluded a free trade agreement with the European Union.
$5.1 billion trade surplus with Argentina in 2018, exporting
Some analysts maintain that that the ratification process
$9.9 billion in goods to the country (led by oil, machinery
will be complicated, which could delay implementation
and mechanical appliances, electrical machinery and
until 2021 at the earliest.
equipment, and soybeans) and importing $4.9 billion (led
by oil, aluminum, precious stones [silver and gold], and
President Macri has been strongly critical of the
wine). The stock of U.S. foreign direct investment in
antidemocratic actions of the Maduro regime in Venezuela.
Argentina was $14.9 billion in 2017, led by manufacturing,
He supported efforts at the Organization of American States
information services, and finance/insurance. Argentina has
to press Venezuela to change its behavior, and joined with
been on the U.S. Trade Representative’s Special 301
other regional countries in 2017 to form the Lima Group
Priority Watch List since 1996 due to problems with
seeking a democratic resolution. In January 2019,
intellectual property rights protection and enforcement.
Argentina recognized the head of Venezuela’s National
Assembly, Juan Guaidó, as the country’s interim president;
The United States and Argentina have made progress on
it has also supported U.S. economic sanctions. According to
some trade issues. In 2018, Argentina gained access to the
the United Nations, some 130,000 Venezuelans have
U.S. market for lemons and fresh beef, which it had sought
migrated to Argentina because of the crisis in Venezuela.
since 2001, and the United States gained access to the
U.S.-Argentine Relations
Argentine market for pork (the first access since 1992) and
full market access for beef and beef products banned for
U.S.-Argentine relations have been characterized by robust
more than a decade.
commercial linkages and cooperation on issues such as
nonproliferation, human rights, education, and science and
The United States imposed countervailing and antidumping
technology. There were periodic tensions under the
duties on biodiesel imports from Argentina in 2018 because
Kirchner governments, but Macri’s election brought to
of Argentina’s subsidies to its producers. In response to a
power a government committed to improving bilateral
request from Argentina, the Commerce Department
relations. President Obama engaged the Macri government
initiated a review of the duties in November 2018, and in
on a range of bilateral, regional, and global issues, and he
early July 2019 issued preliminary results that would
visited Argentina in 2016.
significantly reduce the countervailing duties, but keep the
antidumping duties in place.
Strong bilateral relations are continuing under the Trump
Administration. President Macri visited the White House in
AMIA Bombing. Congress has expressed concern over the
April 2017, and the two leaders underscored their
years about progress in bringing to justice those responsible
commitment to expand trade and investment and pledged
for the July 18, 1994, bombing of the Argentine-Israeli
strengthened partnership to combat narcotics trafficking,
Mutual Association (AMIA) in Buenos Aires that killed 85
money laundering, terrorist financing, and corruption, and
people. Both Iran and Hezbollah (the radical Lebanon-
to increase engagement on cyber issues. In September 2018,
based Islamic group with strong ties to Iran) allegedly are
President Trump reaffirmed strong U.S. support for
linked to the attack, as well as to the 1992 bombing of the
Argentina’s engagement with the IMF.
Israeli Embassy, which killed 29 people. As the 25th
anniversary of the AMIA bombing approached, the House
President Trump met with President Macri in Argentina in
approved a bipartisan resolution, H.Res. 441, reiterating
November 2018, on the sidelines of the G-20 summit,
strong condemnation of the attack and expressing strong
which Argentina hosted. The two countries reached
support for accountability, including against those Iranian
bilateral agreements on educational exchange programs,
and Hezbollah operatives deemed responsible. On July 18,
national park conservation efforts, health cooperation,
2019, Argentina designated Hezbollah a terrorist
aviation safety, and energy sector cooperation. The
organization and ordered the freezing of its assets.
Overseas Private Investment Cooperation signed letters of
interest for $813 million in U.S. support for several projects
Also see CRS In Focus IF10991, Argentina’s Economic
involving infrastructure, energy, and logistics.
Crisis, by Rebecca M. Nelson.
U.S. Foreign Aid. Argentina traditionally has not received
Mark P. Sullivan, Specialist in Latin American Affairs
much U.S. foreign assistance because of its relatively high
per capita income. In recent years, the United States has
IF10932
provided relatively small amounts of assistance for military
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Argentina: An Overview


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https://crsreports.congress.gov | IF10932 · VERSION 10 · UPDATED

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