Updated April 6, 2023
Argentina: An Overview
Located on the Atlantic coast of South America’s Southern
early December 2022, Vice President Fernández de Kirchner
Cone, Argentina has a vibrant democratic tradition and is
was convicted on corruption charges; while she vowed to
home to Latin America’s third-largest economy. U.S.-
appeal the verdict, she also said that she would not run for
Argentina relations have been strong in recent years, and
any future office.
Congress maintains several areas of interest in bilateral
When President Fernández took office in 2019, he faced an
relations.
economic recession, high poverty, and unsustainable public
Figure 1. Map of Argentina
debt. Fernández rolled out several measures, including a
food program and price controls on basic goods, to assist
low-income Argentines. His government negotiated two
debt-restructuring agreements with private creditors in 2020
for over $100 billion in bonds.
Argentina at a Glance
Population: 46.8 mil ion (2023, IMF est.)
Area: 1.1 mil ion square miles, about the size of the United
States east of the Mississippi
Gross Domestic Product (GDP): $630.7 bil ion (2021,
current prices, IMF est.)
Per Capita GDP: $13,620 (2022, current prices, IMF est.)

Key Export Partners: Brazil (14%), China (9%), United
States (7%) (2022, INDEC)
Key Import Partners: China (21%), Brazil (20%), United
States (13%) (2022, INDEC)
Legislature: Bicameral Congress, with 72-member Senate
and 257-member Chamber of Deputies

Sources: International Monetary Fund (IMF) and National
Source: CRS.
Directorate of External Sector Statistics and International
Accounts.
Political and Economic Environment
Current President Alberto Fernández of the center-left
Peronist-led Frente de Todos (FdT, Front for All) coalition
The Fernández government also sought a new International
won the October 2019 presidential election and was
Monetary Fund (IMF) agreement to replace the $57 billion
inaugurated to a four-year term in December 2019. He
program entered into by the previous Macri government in
defeated incumbent President Mauricio Macri of the center-
2018. In March 2022, the IMF approved a new $44 billion,
right Juntos por el Cambio (JC, Together for Change)
30-month arrangement that, according to the IMF, sets
coalition by a margin of 48.1% to 40.4%. The election also
pragmatic objectives along with policies to improve public
returned to government former President Cristina Fernández
finances and reduce inflation.
de Kirchner (2007-2015), from the leftist wing of the
In March 2023, after the IMF’s fourth review of the
Peronist party, who ran on the FdT ticket as vice president.
arrangement, the IMF assessed that “prudent macroeconomic
A unified Peronist ticket and Argentina’s economic
management in the second half of 2022 supported stability
deterioration, marked by high inflation and increasing
and helped secure program targets through end-2022 with
poverty, were major factors in Macri’s defeat.
some margin.” As of March 2023, total disbursements under
the March 2022 arrangement are $28.8 billion. Despite the
In November 2021 midterm legislative elections (for a third
improvements cited by the IMF, in February 2023,
of the seats in the Senate and half of the seats in the
Argentina’s annual inflation rate reached 102.5%, the highest
Chamber of Deputies), the FdT lost its Senate majority but
rate in the last 30 years.
remained the largest bloc in the Chamber of Deputies, albeit
without a majority. The economic impact of the Coronavirus Argentina’s economy contracted by 9.9% in 2020 due to a
Disease 2019 (COVID-19) pandemic and rising inflation
pandemic-driven downturn and began a strong recovery in
were key factors in the legislative race.
2021 with 10.4% growth, followed by 4% growth in 2022.
Argentina’s next presidential and legislative elections are
The IMF projects that growth will slow to 2% in 2023.
Argentina’s urban poverty rate was increasing before the
scheduled for October 2023. Difficult economic conditions
pandemic, reaching 35.5% at the end of 2019. It grew to
in Argentina will likely be a major factor in the elections. In
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Argentina: An Overview
42% by the end of 2020 and declined to 39.2% in 2022,
Investment Corporation. Since July 2021, the United States
according to Argentina’s National Institute of Statistics and
has donated 3.5 million doses of the Moderna COVID-19
Census.
vaccine to Argentina.
Relations with China and Russia
Argentina’s status as a major non-NATO ally since 1998
Over the past decade, Argentina and the People’s Republic
makes it eligible for preferential treatment for U.S. transfers
of excess defense articles and other defense cooperation. In
of China (PRC) have significantly increased their economic
FY2022, the United States provided Argentina with
and political engagement. In 2014, then-President Cristina
$632,000 in international military education and training
Fernández de Kirchner and PRC President Xi Jinping
upgraded the bilateral relationship from a “strategic
(IMET) assistance. For FY2024, the Biden Administration is
partnership” to a “comprehensive strategic partnership”—
requesting $800,000 in IMET funding for Argentina.
one of the highest classifications the PRC designates for its
Trade and Investment Snapshot. The United States ran a
diplomatic partners. In February 2022, Argentina joined
$5.9 billion goods trade surplus with Argentina in 2022,
China’s Belt and Road Initiative, and President Fernández
exporting $12.8 billion in goods to the country (led by
conducted a state visit to China. China also operates a space
mineral fuels, machinery, and electrical equipment) and
research facility in western Argentina; the U.S. Southern
importing $6.9 billion (led by oil, precious metals,
Command has expressed concern that the facility could track aluminum, and fish and crustaceans.) The stock of U.S. FDI
and target U.S. satellites.
in Argentina was $12.5 billion in 2021, led by information
services, manufacturing, finance, and holding companies.
With respect to Russia, Argentina voted at the U.N. General
Assembly to condemn Russia’s 2022 invasion of Ukraine
Argentina has been on the U.S. Trade Representative’s
Special 301 Priority Watch List since 1996 due to U.S.
and to suspend Russia from the U.N. Human Rights
concerns about Argentina’s protection and enforcement of
Council. Three weeks prior to the February 2022 invasion,
intellectual property rights. In 2016, the United States and
however, President Fernández traveled to Russia to meet
Argentina signed a Trade and Investment Framework
with President Vladimir Putin and strengthen bilateral ties.
Agreement that has been the two countries’ primary
U.S.-Argentina Relations
mechanism for discussing bilateral trade and investment
issues.
Relations between the United States and Argentina are
characterized by robust commercial linkages and by shared
Terrorism Issues. Congress has maintained a long-standing
interest and collaboration on such issues as democracy and
concern with regard to Argentina’s progress in bringing to
human rights, civil nuclear cooperation and nonproliferation, justice those responsible for two terrorist bombings against
counterterrorism, climate change, science and technology,
Jewish targets in Buenos Aires during the 1990s, namely,
and education. Recent U.S. Administrations have engaged
the July 18, 1994, bombing of the Argentine-Israelite
Argentina on various bilateral, regional, and global issues,
Mutual Association (AMIA), which killed 85 people, and
with Congress expressing support for such engagement and
the March 17, 1992, bombing of the Israeli Embassy, which
closer relations.
killed 22 people. Argentina has linked both Iran and
The Biden Administration has continued this engagement,
Hezbollah (the radical Lebanon-based Islamic group) to the
including through a bilateral working group on defense
attacks; in 2019, Argentina designated Hezbollah a terrorist
issues and a joint committee on nuclear energy cooperation.
organization.
In June 2022, President Fernández attended the Ninth
Summit of the Americas, where he signed the Los Angeles
In August 2022, an Argentine judge, responding to a U.S.
Declaration on Migration and Protection—a regional
Department of Justice request, ordered the seizure of a
agreement intended to reduce and manage irregular
Boeing 747 cargo plane operated by a Venezuelan airline; a
migration in the hemisphere. In December 2022, the United
U.S. warrant maintained that the plane was subject to
States and Argentina signed an intergovernmental agreement forfeiture because it had been transferred from an Iranian
to share financial information in order to improve
airline subject to U.S. sanctions due to its affiliation with a
international tax compliance. In March 2023, President
designated terrorist organization in Iran. In October 2022,
Biden and President Fernández met in Washington, DC, and however, an Argentine court released the Iranian and
discussed deepening U.S.-Argentina relations through
Venezuelan crew due to lack of evidence linking them to
strengthening democratic institutions and good governance,
terrorist activities.
tackling climate change, and cooperating in the critical
Sanctions. In March 2023, Senator Ted Cruz introduced the
minerals and energy sectors.
Corruption in Argentina Stymied by Enforcing Sanctions
U.S. Foreign Aid and Other Support. The United States
Act of 2023 (CASES Act; S. 1019). The bill would require
provided $4.5 million in assistance to Argentina in FY2021
the President to investigate five Argentine officials for
(latest comprehensive data available). U.S. assistance has
corruption, including Vice President Fernández de Kirchner,
supported Argentina’s counternarcotics efforts,
and impose corruption-related sanctions on any of the
environmental conservation, energy and mining activities,
officials who meet the criteria for such sanctions.
and programs for vulnerable youth and historically
This In Focus updates an earlier version written by former
marginalized communities. The U.S. International
CRS Specialist Mark Sullivan.
Development Finance Corporation (DFC) currently has one
active investment project in Argentina, a $45 million loan to
Karla I. Rios, Analyst in Latin American Affairs
support the expansion of a warehousing facility, inherited
from the DFC’s predecessor agency, the Overseas Private
IF10932
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Argentina: An Overview


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https://crsreports.congress.gov | IF10932 · VERSION 23 · UPDATED

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