Updated October 2, 2020
Argentina: An Overview
Situated on the Atlantic coast of South America’s Southern
reforms and IMF support were not enough to stem
Cone, Argentina has a vibrant electoral democracy and
economic decline, and the government reimposed currency
Latin America’s third-largest economy. U.S.-Argentine
controls and took other measures to stabilize the economy.
relations have been strong in recent years.
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.); -9.9 (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, TDM).
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 World Economic Outlook Update,
June 2020) and Trade Data Monitor (TDM).
Upon taking office, President Fernández faced an economy
in recession, high poverty, and unsustainable public debt.

He pledged to restructure Argentina’s debt and opened talks
Source: CRS.
with bondholders and other creditors. He also rolled out
several measures, including a food program and price
Political and Economic Environment
controls on basic goods, aimed at helping low-income
Current President Alberto Fernández of the center-left
Argentines cope with inflation and increased poverty.
Peronist Frente de Todos (FdT, Front for All) ticket won
the October 2019 presidential election and was inaugurated
The Fernández government’s swift action imposing strict
to a four-year term in December 2019. He defeated
quarantine measures in March 2020 due to the onset of the
incumbent President Mauricio Macri of the center-right
Coronavirus Disease 2019 (COVID-19) pandemic initially
Juntos por el Cambio (JC, Together for Change) coalition
had a significant effect in keeping the death rate low. By
by a solid margin of 48.1% to 40.4% but by significantly
July 2020, however, the number of confirmed cases and
less than the 15 to 20 percentage points predicted by polls.
deaths had increased significantly. As of October 2, 2020,
The election also returned to government former President
the country reported 20,288 deaths (45.60 deaths per
Cristina Fernández de Kirchner, from the leftist wing of the
100,000), according to data from Johns Hopkins University.
Peronist party, who ran on the FdT ticket as vice president.
In concurrent legislative elections, the FdT won a Senate
In June 2020, the IMF forecast an economic contraction of
majority; in the Chamber of Deputies, the JC won the
9.9% in 2020 because of the pandemic-related economic
largest bloc (but not a majority) and the FdT won the
shutdown. Poverty increased to almost 47% at the end of
second-largest bloc.
June 2020 from almost 41% at the end of 2019.
A unified Peronist ticket and Argentina’s economic
deterioration in 2018 and 2019, marked by high inflation
Private creditors did not accept the Fernández government’s
initial May 2020 debt restructuring offer, but negotiations
and increasing poverty, were major factors in Macri’s
with bondholders continued and led to an August 2020
defeat. Elected in 2015, Macri had ushered in economic
restructuring agreement for $66 billion in bonds governed
policy changes in 2016-2017 that lifted currency controls;
reduced or eliminated agricultural export taxes; and reduced
under foreign law. The government reached a second debt
restructuring agreement in September 2020 for almost $42
electricity, water, and heating subsidies. In 2018, as the
billion in bonds governed under local law. The government
economy faced pressure from a severe drought and large
also wants to negotiate a new agreement with the IMF to
budget deficits, the International Monetary Fund (IMF)
supported the government with a $57 billion program. The
replace the arrangement signed by the Macri government,
for which Argentina owes $44 billion.
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Argentina: An Overview
Although President Fernández’s popularity spiked after his
FY2020, Congress appropriated $2.5 million in
government’s initial response to the pandemic, his approval
International Narcotics Control and Law Enforcement
has declined in recent opinion polls. Looking ahead, the
assistance to support Argentina’s counterterrorism,
government could face increased social unrest, given the
counternarcotics, and law enforcement capabilities. From
country’s difficult economic environment and outlook.
FY2017 to FY2020, the United States also provided $7.4
million in humanitarian assistance to help with the influx of
Foreign Policy. Under Macri, Argentina improved relations
an estimated 145,000 Venezuelan migrants, because of the
with neighboring Brazil; in 2019, Argentina joined with the
crisis in that country. In addition, as of August 2020, U.S.
other three countries of the South American customs union
agencies are providing $300,000 in previously announced
known as Mercosur (Mercado Común del Sur)—Brazil,
Migration and Refugee Account humanitarian assistance to
Paraguay, and Uruguay—to conclude a free-trade
support COVID-19 response efforts for refugees and host
agreement with the European Union. Mercosur does not
communities.
appear to be a priority for the Fernández government,
however, and analysts maintain that the ratification process
In addition to foreign aid, Argentina’s status as a major
will be complicated in both Europe and South America.
non-NATO ally since 1998 makes it eligible for preferential
treatment for U.S. exports of excess defense articles. The
The Macri government was strongly critical of the
U.S. International Development Finance Corporation has
antidemocratic actions of the Maduro regime in Venezuela
helped support numerous projects in Argentina involving
and joined with other regional countries to form the Lima
infrastructure, energy, and logistics.
Group seeking a democratic resolution. In 2019, Argentina
recognized the head of Venezuela’s National Assembly,
Trade and Investment Issues. The United States ran a
Juan Guaidó, as the country’s interim president. Among its
$3.2 billion trade surplus with Argentina in 2019, exporting
foreign policy changes, the Fernández government does not
$8.1 billion in goods to the country (led by machinery and
recognize Guaidó as Venezuela’s interim president but has
mechanical appliances, oil, electrical machinery and
criticized the Maduro government for human rights
equipment) and importing $4.9 billion (led by oil,
violations. In August 2020, Argentina joined the European-
aluminum, silver and gold, organic chemicals, and wine).
backed International Contact Group on Venezuela.
The stock of U.S. foreign direct investment in Argentina
was $10.7 billion in 2019. Argentina has been on the U.S.
U.S.-Argentine Relations
Trade Representative’s Special 301 Priority Watch List
U.S.-Argentine relations have been characterized by robust
since 1996 due to problems with intellectual property rights
commercial linkages and cooperation on is sues such as
protection and enforcement.
nonproliferation, human rights, education, and science and
technology. There were periodic tensions under the
The United States and Argentina have made progress on
Kirchner governments (2003-2015), but Macri’s election
some trade issues. In 2018, Argentina gained access to the
brought to power a government committed to improving
U.S. market for lemons and fresh beef, which it had sought
relations. President Obama engaged the Macri government
since 2001; the United States gained access to the
on a range of bilateral, regional, and global issues.
Argentine market for pork (the first access since 1992) and
full market access for beef and beef products banned for
Strong bilateral relations have continued under the Trump
more than a decade. Challenges remain on other trade
Administration. Macri visited the White House in April
issues. The United States imposed countervailing and
2017, and the two leaders underscored their commitment to
antidumping duties on biodiesel imports from Argentina in
expand trade and investment and pledged strengthened
2018 because of Argentina’s subsidies to its producers.
partnership to combat narcotics trafficking, money
laundering, terrorist financing, and corruption and to
AMIA Bombing. Congress has expressed concern over the
increase engagement on cyber issues. In September 2018,
years about progress in bringing to justice those responsible
President Trump reaffirmed strong U.S. support for
for the July 18, 1994, bombing of the Argentine-Israeli
Argentina’s engagement with the IMF, and he met with
Mutual Association (AMIA) in Buenos Aires that killed 85
President Macri in Argentina in November 2018 on the
people. Both Iran and Hezbollah (the radical Lebanon-
sidelines of the G-20 summit, which Argentina hosted.
based Islamic group) allegedly are linked to the attack, as
well as to the 1992 bombing of the Israeli Embassy, which
In the aftermath of the 2019 presidential race, Secretary of
killed 29 people. On July 18, 2019, Argentina designated
State Mike Pompeo said the United States looked forward
Hezbollah a terrorist organization and ordered the freezing
to working with the Fernández administration to promote
of its assets. In July 2019, the House approved H.Res. 441,
regional security, prosperity, and the rule of law.
reiterating condemnation of the AMIA attack and
expressing strong support for accountability; the Senate
U.S. Foreign Aid. The United States provided $5.2 million
followed suit in October 2019 when it approved S.Res. 277.
in assistance to Argentina in FY2018 (latest full-year data
available) and at least $14 million in FY2019 (partially
Also see CRS In Focus IF10991, Argentina’s Economic
reported), according to the U.S. Agency for International
Crisis and Default, by Rebecca M. Nelson; and CRS
Development’s Foreign Aid Explorer database. The United
Insight IN11184, Argentina’s 2019 Elections.
States has provided International Military Education and
Training to Argentina for many years, including an
Mark P. Sullivan, Specialist in Latin American Affairs
estimated $600,000 in FY2020. For each of FY2018-
IF10932
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Argentina: An Overview


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