Updated October 17, 2019
Argentina: An Overview
Political and Economic Environment
2.5% in 2018, and the IMF projects for a contraction of
Current President Mauricio Macri—leader of the center-
3.1% in 2019. As pressure on the peso increased in 2018,
right Republican Proposal and the Cambiemos (Let’s
the government turned to the IMF for support, which
Change) coalition representing center-right and center-left
approved an agreement to provide $57 billion in support
parties—won the 2015 presidential election in a close race.
through 2021. To date, the IMF has conducted four
Macri defeated the candidate of the leftist faction (Front for
performance reviews of Argentina’s progress under the
Victory, or FPV) of the Peronist party (officially known as
program, with a total of $44.1 billion made available.
the Justicialist Party) led by outgoing President Cristina
Fernández de Kirchner, who was ineligible to run for a third
Argentina at a Glance
consecutive term. Macri’s election ended 12 years of FPV
Population: 44.6 million (2018, IMF est.).
rule by the Kirchners (Néstor Kirchner, 2003-2007, and
Cristina Fernández, 2007-2015). The Kirchners’ rule helped
Area: 1.1 million square miles, about the size of the United
Argentina emerge from a severe economic crisis in 2001-
States east of the Mississippi.
2002 but was characterized by protectionist and unorthodox
GDP: $519 billion (2018, current prices, IMF est.).
economic policies and increasing corruption.
Real GDP Growth: 2.7% (2017, IMF est.); -2.5% (2018, IMF
est.); -3.1% (2019, projected)
Figure 1. Map of Argentina
Per Capita GDP: $11,658 (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, many
observers view his reelection as unlikely. A first
presidential electoral round is scheduled for October 27,
2019, along with elections for one-half of the Chamber of
Deputies (the lower house of Argentina’s Congress) and
one-third of the Senate. In the presidential race, if no

candidate receives 45% of the vote (or 40% and finishes 10
Source: CRS.
percentage points ahead of the second-place candidate),
President Macri moved swiftly to usher in economic policy
then a second round will be held in November.
changes. His government lifted currency controls; reduced
The race is essentially a competition between the center-
or eliminated agricultural export taxes; and reduced
right coalition of Macri and his Peronist vice presidential
electricity, water, and heating gas subsidies. The
running mate, Miguel Ángel Pichetto, (dubbed Juntos por
government reached a deal with private creditors in 2016
el Cambio or Together for Change), versus the center-left
that ended the country’s 15-year default, which allowed the
Peronist ticket of Alberto Fernández and former President
government to repair its “rogue” debtor status and resume
Cristina Fernández de Kirchner for vice president (dubbed
borrowing in international capital markets. Although
Frente de Todos or Front for All). In the August 2019
adjustment measures contributed to almost 2.1% economic
combined primary, which included 10 presidential tickets,
contraction in 2016, the economy grew by 2.7% in 2017,
Fernández’s coalition defeated Macri’s coalition by a vote
according to the International Monetary Fund (IMF).
of 47.7% to 32.1%.
In early 2018, the IMF was forecasting almost 2% growth
Macri’s poor performance triggered a run on the peso,
for the year, but Argentina’s economic difficulties,
wiping out about a quarter of its value. Macri subsequently
including a severe drought affecting agricultural exports,
announced emergency measures to provide relief to those
higher financing costs, and large budget deficits, thwarted
suffering from the sharp devaluation, and he is seeking to
those expectations. The economy ultimately contracted
defer payments on IMF loans. In early September, his
https://crsreports.congress.gov

---

Argentina: An Overview
government imposed currency controls in an attempt to
appropriations legislation (P.L. 116-6; H.Rept. 116-9),
stabilize markets. Government statistics released in
Congress provided $2.5 million in INCLE; this amount is
September show that during the first half of 2019, poverty
also included in FY2020 House and Senate foreign
increased to 35.4%, 8.1% higher than the first half of 2018. operations bills, House-passed H.R. 2740 (H.Rept. 116-78
to H.R. 2839) and S. 2583 (S.Rept. 116-126). For FY2019,
Foreign Policy. In the foreign policy arena, the Macri
the United States also provided almost $5.6 million in
government has improved relations with neighboring Brazil
humanitarian assistance to help with the influx of
and Uruguay and other pro-market countries in the region.
Venezuelan migrants. In addition to foreign aid,
In June 2019, the four countries of the South American
Argentina’s status as a major non-NATO ally since 1998
customs union known as Mercosur (Mercado Común del
makes it eligible for preferential treatment for U.S. exports
Sur)—Argentina, Brazil, Paraguay, and Uruguay—
of excess defense articles.
concluded a free trade agreement with the European Union.
Some analysts maintain that that the ratification process
Trade and Investment Issues. The United States ran a
will be complicated, which could delay implementation
$5.1 billion trade surplus with Argentina in 2018, exporting
until 2021 at the earliest. President Macri has been strongly
$9.9 billion in goods to the country (led by oil, machinery
critical of the antidemocratic actions of the Maduro regime
and mechanical appliances, electrical machinery and
in Venezuela. He supported efforts at the Organization of
equipment, and soybeans) and importing $4.9 billion (led
American States to press Venezuela to change its behavior,
by oil, aluminum, precious stones [silver and gold], and
and joined with other regional countries in 2017 to form the
wine). The stock of U.S. foreign direct investment in
Lima Group seeking a democratic resolution. In January
Argentina was $14.9 billion in 2017, led by manufacturing,
2019, Argentina recognized the head of Venezuela’s
information services, and finance/insurance. Argentina has
National Assembly, Juan Guaidó, as the country’s interim
been on the U.S. Trade Representative’s Special 301
president. According to the United Nations, some 130,000
Priority Watch List since 1996 due to problems with
Venezuelans have migrated to Argentina because of the
intellectual property rights protection and enforcement.
crisis in Venezuela.
U.S.-Argentine Relations
The United States and Argentina have made progress on
some trade issues. In 2018, Argentina gained access to the
U.S.-Argentine relations have been characterized by robust
U.S. market for lemons and fresh beef, which it had sought
commercial linkages and cooperation on issues such as
since 2001; the United States gained access to the
nonproliferation, human rights, education, and science and
Argentine market for pork (the first access since 1992) and
technology. There were periodic tensions under the
full market access for beef and beef products banned for
Kirchner governments, but Macri’s election brought to
more than a decade.
power a government committed to improving relations.
President Obama engaged the Macri government on a range
The United States imposed countervailing and antidumping
of bilateral, regional, and global issues.
duties on biodiesel imports from Argentina in 2018 because
of Argentina’s subsidies to its producers. In response to a
Strong bilateral relations are continuing under the Trump
request from Argentina, the Commerce Department
Administration. President Macri visited the White House in
initiated a review of the duties in November 2018, and in
April 2017, and the two leaders underscored their
early July 2019 issued preliminary results that would
commitment to expand trade and investment and pledged
significantly reduce the countervailing duties, but keep the
strengthened partnership to combat narcotics trafficking,
antidumping duties in place.
money laundering, terrorist financing, and corruption, and
to increase engagement on cyber issues. In September 2018,
AMIA Bombing. Congress has expressed concern over the
President Trump reaffirmed strong U.S. support for
years about progress in bringing to justice those responsible
Argentina’s engagement with the IMF.
for the July 18, 1994, bombing of the Argentine-Israeli
Mutual Association (AMIA) in Buenos Aires that killed 85
President Trump met with President Macri in Argentina in
people. Both Iran and Hezbollah (the radical Lebanon-
November 2018, on the sidelines of the G-20 summit,
based Islamic group) allegedly are linked to the attack, as
which Argentina hosted. The two countries reached
well as to the 1992 bombing of the Israeli Embassy, which
bilateral agreements on educational exchange programs,
killed 29 people. On July 18, 2019, Argentina designated
national park conservation efforts, health cooperation,
Hezbollah a terrorist organization and ordered the freezing
aviation safety, and energy sector cooperation. The
of its assets. In July 2019, as the 25th anniversary of the
Overseas Private Investment Cooperation signed letters of
AMIA bombing approached, the House approved H.Res.
interest for $813 million in U.S. support for several projects
441, reiterating condemnation of the attack and expressing
involving infrastructure, energy, and logistics.
strong support for accountability. In September 2019, the
U.S. Foreign Aid. Argentina traditionally has not received
Senate Foreign Relations Committee reported out S.Res.
much U.S. foreign assistance because of its relatively high
277, expressing commitment to hold accountable those who
per capita income. In FY2018, Congress appropriated a
planned and executed the AMIA bombing.
total of $2.9 million for International Military Education
and Training (IMET), export-control security assistance
Also see CRS In Focus IF10991, Argentina’s Economic
(NADR) to enhance Argentina’s strategic trade control
Crisis, by Rebecca M. Nelson.
compliance and enforcement, and International Narcotics
Control and Law Enforcement (INCLE) assistance to
Mark P. Sullivan, Specialist in Latin American Affairs
support Argentina’s counterterrorism, counternarcotics, and
IF10932
law enforcement capabilities. In FY2019 foreign operations
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 11 · UPDATED

---