Updated June 4, 2021
Argentina: An Overview
Situated on the Atlantic coast of South America’s Southern
reimposed currency controls and took other measures to
Cone, Argentina is an electoral democracy and has Latin
stabilize the economy.
America’s third-largest economy. U.S.-Argentine relations
have been strong in recent years.
Upon taking office, President Fernández faced an economy
in recession, high poverty, and unsustainable public debt.
Figure 1. Map of Argentina
He pledged to restructure Argentina’s debt and opened talks
with bondholders and other creditors. He also rolled out
several measures, including a food program and price
controls on basic goods, aimed at helping low-income
Argentines cope with inflation and increased poverty.
Argentina at a Glance
Population: 45.4 mil ion (2020, IMF est.).
Area: 1.1 mil ion square miles, about the size of the United
States east of the Mississippi.
GDP: $388 bil ion (2020, current prices, IMF est.).
Real GDP Growth (constant prices): -2.1% (2019, est.);
-10.0% (2020 est.); 5.8% (2021, projected). (IMF)
Per Capita GDP: $8,555 (2020, current prices, IMF est.).
Key Trading Partners: Exports—Brazil (14.5%), China
(9.6%), United States (5.9%); Imports—Brazil (20.5%), China
(20.4%), United States (10.3%). (2020, EIU)
Legislature: Bicameral Congress, with 72-member Senate

and 257-member Chamber of Deputies. (Elections for one-
Source: CRS.
third of the upper house and one-half of the lower house are
Political and Economic Environment
scheduled for November 2021).
Current President Alberto Fernández of the center-left
Sources: IMF (World Economic Outlook Database, April
Peronist-led Frente de Todos (FdT, Front for All) coalition
2021) and Economist Intel igence Unit (EIU).
won the October 2019 presidential election and was
Negotiations with bondholders led to two debt-restructuring
inaugurated to a four-year term in December 2019. He
agreements with private creditors in 2020 for over $100
defeated incumbent President Mauricio Macri of the center-
billion in bonds. In August 2020, the government reached
right Juntos por el Cambio (JC, Together for Change)
coalition by a margin of 48.1% to 40.4%. The election also
an agreement for $66 billion in bonds governed under
foreign law; in September 2020, it reached a second
returned to government former President Cristina
agreement for almost $42 billion in bonds governed under
Fernández de Kirchner, from the leftist wing of the Peronist
local law. The Fernández government also is seeking a new
party, who ran on the FdT ticket as vice president. In
concurrent legislative elections, the FdT won a Senate
agreement with the IMF to replace the arrangement signed
by the Macri government, for which Argentina owes $44
majority; in the Chamber of Deputies, the JC won the
billion.
largest bloc (but not a majority) and the FdT won the
second-largest bloc.
Like other South American countries, Argentina has been
hard hit by the Coronavirus Disease 2019 (COVID-19)
A unified Peronist ticket and Argentina’s economic
pandemic. Cases and deaths have surged in recent months.
deterioration, marked by high inflation and increasing
As of June 4, 2021, the country reported almost 80,000
poverty, were major factors in Macri’s defeat. Macri had
ushered in economic policy changes in 2016-2017 that
deaths, with a mortality rate of 177 per 100,000 people,
according to Johns Hopkins University. The procurement
lifted currency controls; reduced or eliminated agricultural
and rollout of vaccines has been slow compared with some
export taxes; and reduced electricity, water, and heating
other countries, and some analysts maintain that vaccine
subsidies. In 2018, as the economy faced pressure from a
severe drought and large budget deficits, the International
availability will not be widespread until 2022. According to
the New York Times vaccination tracker, Argentina had
Monetary Fund (IMF) supported the government with a $57
fully vaccinated 6.5% of its population as of June 4. To
billion program. The reforms and IMF support were not
date, over half of Argentina’s administered doses have been
enough to stem economic decline, and the government
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Argentina: An Overview
from Russia (Sputnik V) and almost a third have been from
technical assistance to improve Argentina’s efforts to deter
China (Sinopharm). Argentina also has received vaccines
money laundering. The United States has provided
through the COVID-19 Vaccines Global Access (COVAX)
$300,000 in humanitarian assistance to support the COVID-
Facility, a mechanism developed by global health
19 response efforts for refugees and host communities. On
organizations to facilitate equitable vaccine distribution.
June 3, 2021, the Biden Administration announced its
strategy for sharing 80 million U.S. vaccine doses
The IMF estimates that Argentina’s economy contracted
worldwide, including with Argentina; most vaccines will be
10% in 2020 due to pandemic-related restrictions and
shared through COVAX.
projects 5.5% economic growth in 2021. Progress in
COVID-19 vaccinations will be a key factor in restoring
In addition to foreign aid, Argentina’s status as a major
growth. Poverty was increasing in Argentina even before
non-NATO ally since 1998 makes it eligible for preferential
the pandemic, reaching 35.5% at the end of 2019, and it
treatment for U.S. exports of excess defense articles. The
grew to 42% by the end of 2020, according to Argentina’s
U.S. International Development Finance Corporation has
National Institute of Statistics and Census.
helped support numerous projects in Argentina involving
infrastructure, energy, and logistics.
Amid the pandemic and its economic fallout, President
Fernández’s popularity has declined. Midterm legislative
Trade and Investment Issues. The United States ran a
elections, delayed a month until November 2021 due to the
$1.8 billion trade surplus with Argentina in 2020, exporting
pandemic, will be a key test for Fernández and his FdT
$6.0 billion in goods to the country (led by machinery and
coalition.
mechanical appliances, oil, and electrical machinery and
equipment) and importing $4.2 billion (led by oil, gold,
On foreign policy, the Fernández government shifted
aluminum, and wine). In 2019 (latest available), U.S.
Argentina’s stance on Venezuela in 2020, withdrawing
services exports to Argentina amounted to an estimated
recognition of Juan Guaidó as interim president and joining
$7.9 billion and U.S. services imports were $2.6 billion.
the European-backed International Contact Group to work
The stock of U.S. foreign direct investment in Argentina
through dialogue to bring about transparent elections. In
was $10.7 billion in 2019, led by manufacturing,
March 2021, Argentina withdrew from the Lima Group,
information services, and finance and insurance. Argentina
maintaining that the group’s policy of isolating Venezuela
has been on the U.S. Trade Representative’s Special 301
under the government of Nicolás Maduro had “led to
Priority Watch List since 1996 due to problems with
nothing.” The Macri government had been strongly critical
intellectual property rights protection and enforcement.
of the Maduro government’s antidemocratic actions and
helped form the Lima Group with other Western
The United States and Argentina have made progress on
Hemisphere countries in 2017.
some trade issues, with the main mechanism for discussion
the Trade and Investment Framework Agreement signed in
U.S.-Argentine Relations
2016. In 2018, Argentina gained access to the U.S. market
U.S.-Argentine relations have been characterized by robust
for lemons and fresh beef, which it had sought since 2001;
commercial linkages and cooperation on issues such as
the United States gained access to the Argentine market for
nonproliferation, human rights, education, and science and
pork (the first access since 1992) and full market access for
technology. There were periodic tensions under the
beef and beef products that had been banned for more than
Kirchner governments (2003-2015), but Macri’s election
a decade. Challenges remain on other trade issues. The
brought to power a government committed to improving
United States imposed countervailing and antidumping
relations. Both the Obama and the Trump Administrations
duties on biodiesel imports from Argentina in 2018 because
engaged Argentina on various bilateral, regional, and global
of Argentina’s subsidies to its producers.
issues, and this engagement has continued under the Biden
Administration. President Fernández participated in the
AMIA Bombing. Congress has expressed concern over the
April 2021 virtual Leaders Summit on Climate that
years about progress in bringing to justice those responsible
President Biden hosted. In an April 2021 call with
for the July 18, 1994, bombing of the Argentine-Israeli
Argentina’s foreign minister, Secretary of State Antony
Mutual Association (AMIA) in Buenos Aires, which killed
Blinken underscored the importance of working together to
85 people. Both Iran and Hezbollah (the radical Lebanon-
combat the climate crisis and the imperative for regional
based Islamic group) allegedly are linked to the attack, as
diplomatic engagement to address threats to democracy,
well as to the 1992 bombing of the Israeli Embassy in
human rights, and security in the hemisphere.
Buenos Aires, which killed 29 people. On July 18, 2019,
Argentina designated Hezbollah a terrorist organization and
U.S. Foreign Aid. The United States provided $17.6
ordered the freezing of its assets. In July 2019, the 25th
million in assistance to Argentina in FY2019 (latest full-
anniversary of the AMIA attack, the House approved
year data available) according to the U.S. Agency for
H.Res. 441, reiterating condemnation of the attack and
International Development’s Foreign Aid Explorer database
expressing strong support for accountability; the Senate
(https://explorer.usaid.gov/). This total included support to
followed suit in October 2019 when it approved S.Res. 277.
help with the influx of Venezuelan migrants (currently
estimated at 179,000) due to the crisis in that country,
Mark P. Sullivan, Specialist in Latin American Affairs
training and equipment support to Argentina’s military,
IF10932
assistance to support the elimination of child labor,
counternarcotics assistance, anti-corruption assistance, and
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Argentina: An Overview


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