Updated June 12, 2020
Argentina: An Overview
Situated on the Atlantic coast of South America’s Southern
supported the government with a $57 billion program. The
Cone, Argentina has a vibrant electoral democracy and
reforms and IMF support were not enough to stem
Latin America’s third-largest economy. U.S.-Argentine
economic decline, and the government reimposed currency
relations have been strong in recent years, with extensive
controls and took other measures to stabilize the economy.
trade and economic linkages.
Argentina at a Glance
Figure 1. Map of Argentina
Population: 45.1 mil ion (2019, IMF est.).
Area: 1.1 mil ion square miles, about the size of the United
States east of the Mississippi.
GDP: $445 bil ion (2019, current prices, IMF est.).
Real GDP Growth: 2.7% (2017); -2.5% (2018); -2.2% (2019,
est.); -5.7% (2020 projected) (IMF)
Per Capita GDP: $9,888 (2019, current prices, IMF est.).
Key Trading Partners (total trade): Brazil (19.5 %), China
(13.7%), United States (12.5%) (2019, INDEC).
Legislature: Bicameral Congress, with 72-member Senate
and 257-member Chamber of Deputies.
Sources: IMF (World Economic Outlook Database, October
2019 and April 2020) and National Institute of Statistics and
Census (INDEC, Argentina).
Upon taking office, President Fernández faced an economy
in crisis, with a recession expected to extend into 2020,

high poverty, and a high level of unsustainable public debt.
Source: CRS.
He pledged to restructure Argentina’s debt by the end of
March 2020 and opened talks with bondholders and other
Political and Economic Environment
creditors, including the IMF. He also rolled out several
Current President Alberto Fernández of the center-left
measures, including a food program and price controls on
Peronist Frente de Todos (FdT, Front for All) ticket won
basic goods, aimed at helping low-income Argentines cope
the October 2019 presidential election and was inaugurated
with inflation and increased poverty.
to a four-year term in December 2019. He defeated
incumbent President Mauricio Macri of the center-right
With the onset of the Coronavirus Disease 2019 (COVID-
Juntos por el Cambio (JC, Together for Change) coalition
19) pandemic, the Fernández government’s swift action
by a solid margin of 48.1% to 40.4% but by significantly
imposing strict quarantine measures in mid-March 2020
less than the 15 to 20 percentage points predicted by polls.
had a significant effect in keeping the death rate low. As of
The election also returned to government former President
June 12, 2020, the country registered 765 deaths (1.72
Cristina Fernández de Kirchner, from the leftist wing of the
deaths per 100,000, compared with 34.79 deaths per
Peronist party, who ran on the FdT ticket as vice president.
100,000 in the United States) according to data from Johns
In concurrent legislative elections, the FdT won a Senate
Hopkins University. Poorer sections of Buenos Aires have
majority; in the Chamber of Deputies, the JC won the
been hard-hit by the pandemic.
largest bloc (but not a majority) and the FdT won the
second-largest bloc.
With the economic shutdown, the IMF in April forecast an
A unified Peronist ticket and Argentina’s economic
economic contraction of 5.7% in 2020; other economists
predict a steeper decline. Private creditors holding $66
deterioration in 2018 and 2019, marked by high inflation
billion in sovereign bonds did not accept an initial May
and increasing poverty, were major factors in Macri’s
2020 debt restructuring offer made by the government. The
defeat. Elected in 2015, Macri had ushered in economic
policy changes in 2016-2017 that lifted currency controls;
government subsequently defaulted on its debt on May 22,
when it missed an interest payment, but negotiations with
reduced or eliminated agricultural export taxes; and reduced
bondholders are continuing. Although President
electricity, water, and heating subsidies. In 2018, as the
Fernández’s popularity rose to over 60% amid his
economy faced pressure from a severe drought and large
government’s response to the pandemic, the president could
budget deficits, the International Monetary Fund (IMF)
https://crsreports.congress.gov

---

Argentina: An Overview
face more difficult times ahead as socioeconomic indicators
FY2018-FY2020, Congress also appropriated $2.5 million
worsen amid the recession.
in International Narcotics Control and Law Enforcement
(INCLE) assistance to support Argentina’s
Foreign Policy. Under Macri, Argentina improved relations
counterterrorism, counternarcotics, and law enforcement
with neighboring Brazil; in 2019, Argentina joined with the
capabilities. From FY2017 to FY2020, the United States
other three countries of the South American customs union
also provided $7.4 million in humanitarian assistance to
known as Mercosur (Mercado Común del Sur)—Brazil,
help with the influx of an estimated 145,000 Venezuelan
Paraguay, and Uruguay—to conclude a free-trade
migrants, according to the United Nations, because of the
agreement with the European Union. Mercosur does not
crisis in that country. Amid the COVID-19 pandemic, the
appear to be a priority for the Fernández government,
State Department announced in May 2020 that $300,000 in
however, and analysts maintain that the ratification process
previously announced Migration and Refugee Account
will be complicated in both Europe and South America.
humanitarian assistance would support COVID-19 response
efforts for refugees and host communities.
The Macri government was strongly critical of the
antidemocratic actions of the Maduro regime in Venezuela
In addition to foreign aid, Argentina’s status as a major
and joined with other regional countries to form the Lima
non-NATO ally since 1998 makes it eligible for preferential
Group seeking a democratic resolution. In 2019, Argentina
treatment for U.S. exports of excess defense articles. The
recognized the head of Venezuela’s National Assembly,
U.S. International Development Finance Cooperation
Juan Guaidó, as the country’s interim president. Among its
(formerly the Overseas Private Investment Cooperation) has
foreign policy changes, the Fernández government does not
helped support numerous projects in Argentina involving
recognize Guaidó as Venezuela’s interim president,
infrastructure, energy, and logistics.
although it has criticized the Maduro government at times.
Trade and Investment Issues. The United States ran a
U.S.-Argentine Relations
$3.2 billion trade surplus with Argentina in 2019, exporting
U.S.-Argentine relations have been characterized by robust
$8.1 billion in goods to the country (led by machinery and
commercial linkages and cooperation on issues such as
mechanical appliances, oil, electrical machinery and
nonproliferation, human rights, education, and science and
equipment) and importing $4.9 billion (led by oil,
technology. There were periodic tensions under the
aluminum, silver and gold, organic chemicals, and wine).
Kirchner governments, but Macri’s election brought to
The stock of U.S. foreign direct investment in Argentina
power a government committed to improving relations.
was $15.2 billion in 2018. Argentina has been on the U.S.
President Obama engaged the Macri government on a range
Trade Representative’s Special 301 Priority Watch List
of bilateral, regional, and global issues.
since 1996 due to problems with intellectual property rights
protection and enforcement.
Strong bilateral relations have continued under the Trump
Administration. Macri visited the White House in April
The United States and Argentina have made progress on
2017, and the two leaders underscored their commitment to
some trade issues. In 2018, Argentina gained access to the
expand trade and investment and pledged strengthened
U.S. market for lemons and fresh beef, which it had sought
partnership to combat narcotics trafficking, money
since 2001; the United States gained access to the
laundering, terrorist financing, and corruption and to
Argentine market for pork (the first access since 1992) and
increase engagement on cyber issues. In September 2018,
full market access for beef and beef products banned for
President Trump reaffirmed strong U.S. support for
more than a decade. Challenges remain on other trade
Argentina’s engagement with the IMF. He met with
issues. The United States imposed countervailing and
President Macri in Argentina in November 2018 on the
antidumping duties on biodiesel imports from Argentina in
sidelines of the G-20 summit, which Argentina hosted. The
2018 because of Argentina’s subsidies to its producers.
two countries reached agreements on educational
exchanges, national park conservation, health cooperation,
AMIA Bombing. Congress has expressed concern over the
aviation safety, and energy sector cooperation.
years about progress in bringing to justice those responsible
for the July 18, 1994, bombing of the Argentine-Israeli
In the aftermath of the 2019 presidential race, the U.S.
Mutual Association (AMIA) in Buenos Aires that killed 85
Secretary of State congratulated Argentina on its successful
people. Both Iran and Hezbollah (the radical Lebanon-
election and stated that the United States looked forward to
based Islamic group) allegedly are linked to the attack, as
working with the Fernández administration to promote
well as to the 1992 bombing of the Israeli Embassy, which
regional security, prosperity, and the rule of law.
killed 29 people. On July 18, 2019, Argentina designated
Hezbollah a terrorist organization and ordered the freezing
U.S. Foreign Aid. The United States provided a total of
of its assets. As the 25th anniversary of the AMIA bombing
$4.9 million in assistance to Argentina in FY2018 (latest
approached in July 2019, the House approved H.Res. 441,
full-year data available) and at least $10.5 million in
reiterating condemnation of the attack and expressing
FY2019 (partially reported), according to the U.S. Agency
strong support for accountability; the Senate followed suit
for International Development’s Foreign Aid Explorer
in October 2019 when it approved S.Res. 277.
database. The United States has provided International
Military Education and Training (IMET) to Argentina for
Also see CRS In Focus IF10991, Argentina’s Economic
many years, including $589,000 in FY2019 and $600,000
Crisis, by Rebecca M. Nelson; and CRS Insight IN11184,
requested in each of FY2020 and FY2021. For each of
Argentina’s 2019 Elections.
https://crsreports.congress.gov

---

Argentina: An Overview

IF10932
Mark P. Sullivan, Specialist in Latin American Affairs


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 14 · UPDATED

---