Argentina Trade Operations Analysis Unit and Automotive Sector Incentives

Dear Member,

In the letter sent to our Chamber by TOBB, with reference to the Ministry of Trade's letter dated 22.06.2023 and numbered E-57637780-724.01.01-00086686952, and with reference to the letter received from the Commercial Counsellor's Office in Buenos Aires, it is announced that the Argentine Minister of Economy Sergio Massa declared on 15 May 2023 that a Trade Operations Analysis Unit would be established in order to accelerate foreign trade, that priority would be given to capital goods imports to be paid in 360 days, that tariffs would be removed to reduce input prices in imports and the value chain, and that anti-dumping measures would be relaxed.

The letter further notes that, in this context, a new unit has been established for the monitoring and promotion of trade operations within the framework of Joint Decision No. 1 dated 24 May 2023, adopted by the Ministry of Economy, the Federal Administration of Public Revenues, the Financial Information Unit, the National Valuation Commission, the National Insurance Supervision and the Central Bank of the Argentine Republic and published in the Official Gazette dated 29 May 2023 and numbered 35178.

The letter states that the said Unit consists of the Ministry of Economy (Secretariat of Trade, Secretariat of Industry and Development, and Secretariat of Agriculture, Livestock and Fisheries), the Federal Administration of Public Revenues (AFIP), the General Directorate of Customs, the General Directorate of Taxation and the General Directorate of Social Security Resources, the Central Bank of Argentina (BCRA), the National Insurance Supervision, the National Securities Commission and the Financial Information Unit (UIF), and that the purpose of the Unit is to monitor purchase and sale transactions subject to domestic and foreign trade in products and services, to promote fair commercial operations by avoiding dominant positions, to monitor traded goods and ensure their correct taxation at every stage, and to guide consumers. The Decision can be accessed at: https://servicios.infoleg.gob.ar/infolegInternet/anexos/380000-384999/384332/norma.htm.

The letter, which states that a slowdown in economic activity has been observed due to the restrictive trade measures recently taken in Argentina, states that the said decision was taken in order to facilitate and control trade, that the impact of the mechanism on our bilateral trade will be closely monitored, and that, on the other hand, it should be borne in mind that the mechanism will create additional bureaucracy.

It is stated that Decision No. 281/2023 of the Argentine Ministry of Economy dated 29 May 2023 was published in the Official Gazette dated 31 May 2023 and numbered 27686, and that within this scope the incentive regime on the Promotion of Investments in the Automotive Industry and Value Chain was announced; it is noted that domestic and foreign-capital companies resident in Argentina can benefit from these incentives and that the incentives cover investments made after the publication of this decision. The letter, which states that according to the Decision it includes early VAT refunds and the reduction of export duties to zero until 31 December 2031 for new projects for the production of automobiles and automotive parts, announces that goods produced within the framework of these investment projects require minimum national content of 15% in the first three years of production and 20% in the following two years. Companies will be able to apply for inclusion in this regime until 31 December 2027. The Decision can be accessed at this link. https://www.boletinoficial.gob.ar/detalleAviso/primera/287205/20230529

The letter, which states that it is noteworthy that the said decision was taken following the Automotive Sector Delegation organized by our Uludağ Exporters' Associations on 21-23 May 2023, states, on the other hand, that the decision taken by the Argentine authorities to increase production in the automotive sector may reduce the competitiveness of our exports to Argentina in this sector.

Finally, it is noted that, although an incentive system as strong as the one in our country has not been put forward, it is considered that our companies interested in investing in Argentina could benefit from the incentives.

Kind regards,

Elazığ Chamber of Commerce and Industry