Updated September 29, 2021
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 democratic tradition and has
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.
Upon taking office, President Fernández faced an economy
Figure 1. Map of Argentina
in recession, high poverty, and unsustainable public debt.
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.);
-9.9% (2020 est.); 6.4% (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
Source: CRS.
and 257-member Chamber of Deputies.
Political and Economic Environment
Sources: IMF (World Economic Outlook Database, April 2021,
Current President Alberto Fernández of the center-left
and World Economic Outlook Update, July 2021) and Economist
Peronist-led Frente de Todos (FdT, Front for All) coalition
Intelligence 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
defeated incumbent President Mauricio Macri of the center-
agreements with private creditors in 2020 for over $100
right Juntos por el Cambio (JC, Together for Change)
billion in bonds. In August 2020, the government reached
an agreement for $66 billion in bonds governed under
coalition by a margin of 48.1% to 40.4%. The election also
returned to government former President Cristina
foreign law; in September 2020, it reached a second
Fernández de Kirchner, from the leftist wing of the Peronist
agreement for almost $42 billion in bonds governed under
national law. The Fernández government also is seeking a
party, who ran on the FdT ticket as vice president. In
concurrent legislative elections, the FdT won a Senate
new agreement with the IMF to replace the arrangement
majority, while in the Chamber of Deputies, neither
signed by the Macri government, for which Argentina owes
$44 billion. In August 2021, Argentina received $4.3 billion
coalition won a majority. Midterm legislative elections for
one-third of the Senate and one-half of the Chamber of
in financing from the IMF as part of a special program to
Deputies are scheduled for November 14, 2021.
help countries cope with the Coronavirus Disease 2019
(COVID-19) pandemic.
In the 2019 presidential election, a unified Peronist ticket
and Argentina’s economic deterioration, marked by high
Argentina has been hard hit by the pandemic. COVID-19
cases and deaths surged in May and June 2021 but have
inflation and increasing poverty, were major factors in
Macri’s defeat. Macri had ushered in economic policy
since declined. As of September 29, 2021, the country
changes in 2016-2017 that lifted currency controls; reduced
reported over 115,000 deaths, with a mortality rate of 255
per 100,000 people, according to Johns Hopkins University.
or eliminated agricultural export taxes; and reduced
electricity, water, and heating subsidies. In 2018, as the
Although the procurement and rollout of vaccines was
economy faced pressure from a severe drought and large
initially slow compared with some other countries, as of
September 29, 48.1% of Argentina’s population was fully
budget deficits, the International Monetary Fund (IMF)
supported the government with a $57 billion program. The
vaccinated. The IMF estimates Argentina’s economy
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Argentina: An Overview
contracted 9.9% in 2020 due to pandemic-related
counternarcotics assistance, anti-corruption assistance, and
restrictions and projects 6.4% economic growth in 2021
technical assistance to improve Argentina’s efforts to deter
(boosted in large part by rising prices for Argentina’s
money laundering. Argentina’s status as a major non-
agricultural exports). Progress in COVID-19 vaccinations
NATO ally since 1998 makes it eligible for preferential
will be a key factor in restoring growth. Poverty was
treatment for U.S. exports of excess defense articles. The
increasing in Argentina even before the pandemic, reaching
U.S. International Development Finance Corporation also
35.5% at the end of 2019, and it grew to 42% by the end of
currently supports financing for five projects in Argentina
2020, according to Argentina’s National Institute of
involving oil and gas, wind farm, and transportation and
Statistics and Census.
warehousing projects.
On foreign policy issues, the Fernández government shifted
In July 2021, the United States donated 3.5 million doses of
Argentina’s stance on Venezuela in 2020, withdrawing
COVID-19 vaccine (Moderna) to Argentina. In addition,
recognition of Juan Guaidó as interim president and joining
according to the U.S. Embassy in Buenos Aires, the United
the European-backed International Contact Group to work
States has donated more than $4 million in COVID-19
through dialogue to bring about transparent elections. In
relief supplies, including three relief hospitals and other
March 2021, Argentina withdrew from the Lima Group,
supplies provided by the U.S. Southern Command.
maintaining that the group’s policy of isolating Venezuela
under the government of Nicolás Maduro had “led to
Trade and Investment Issues. The United States ran a
nothing.” The Lima Group was formed in 2017 with the
$1.8 billion trade surplus with Argentina in 2020, exporting
backing of the Macri government and has been focused on
$6.0 billion in goods to the country (led by machinery and
rejecting the rupture of democracy in Venezuela.
mechanical appliances, oil, and electrical machinery and
equipment) and importing $4.2 billion (led by oil, gold,
Amid the pandemic and its economic fallout, President
aluminum, and wine). In 2020, U.S. services exports to
Fernández’s popularity has declined. The November 14,
Argentina amounted to an estimated $4.2 billion and U.S.
2021, midterm legislative elections will be a key test for
services imports were $1.7 billion. The stock of U.S.
Fernández and his FdT coalition. In an open unified
foreign direct investment in Argentina was $8.7 billion in
congressional primary held on September 12, the FdT fared
2020, led by information services, holding companies,
poorly compared with the opposition JC. If such a vote
manufacturing, and finance. Argentina has been on the U.S.
were replicated in November, the FdT could lose control of
Trade Representative’s Special 301 Priority Watch List
the Senate and the JC could gain enough seats in the
since 1996 due to protection and enforcement problems
Chamber of Deputies to block Fernández’s legislative
with intellectual property rights.
proposals. The primary results led to open sparring between
the vice president and president and a Cabinet reshuffle.
The United States and Argentina have made progress on
some trade issues, with the main mechanism for discussion
U.S.-Argentine Relations
the Trade and Investment Framework Agreement signed in
U.S.-Argentine relations have been characterized by robust
2016. In 2018, Argentina gained access to the U.S. market
commercial linkages and cooperation on issues such as
for lemons and fresh beef, which it had sought since 2001;
nonproliferation, human rights, education, and science and
the United States gained access to the Argentine market for
technology. Both the Obama and the Trump
pork (the first access since 1992) and full market access for
Administrations engaged Argentina on various bilateral,
beef and beef products that had been banned for more than
regional, and global issues, and this engagement has
a decade. Challenges remain on other trade issues. The
continued under the Biden Administration. In an April 2021
United States imposed countervailing and antidumping
call with Argentina’s foreign minister, Secretary of State
duties on biodiesel imports from Argentina in 2018 because
Antony Blinken underscored the importance of working
of Argentina’s subsidies to its producers.
together to combat the climate crisis and the imperative for
regional diplomatic engagement to address threats to
AMIA Bombing. Congress has expressed concern over the
democracy, human rights, and security in the hemisphere.
years about progress in bringing to justice those responsible
for the July 18, 1994, bombing of the Argentine-Israelite
President Fernández participated in the April 2021 virtual
Mutual Association (AMIA) in Buenos Aires, which killed
Leaders Summit on Climate hosted by President Biden. On
85 people. Argentina has linked both Iran and Hezbollah
September 8, 2021, Argentina hosted a virtual High-Level
(the radical Lebanon-based Islamic group) to the attack, as
Dialogue on Climate Action in the Americas, with
well as to the 1992 bombing of the Israeli Embassy in
representatives from more than 20 countries reinforcing
Buenos Aires, which killed 29 people. On the 25th
their commitment to ambitious climate action.
anniversary of the AMIA attack in 2019, the House and
Senate approved resolutions (H.Res. 441; S.Res. 277)
U.S. Foreign Aid and Other Support. The United States
reiterating condemnation of the attack and support for
provided $20.1 million in assistance to Argentina in
accountability. Argentina also designated Hezbollah a
FY2019 (latest full-year data available). This total included
terrorist organization and ordered the freezing of its assets.
support to help with the influx of Venezuelan migrants
(currently estimated at 174,000) due to the crisis in that
Mark P. Sullivan, Specialist in Latin American Affairs
country, training and equipment support to Argentina’s
military, assistance to support the elimination of child labor,
IF10932
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Argentina: An Overview


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https://crsreports.congress.gov | IF10932 · VERSION 18 · UPDATED

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