The biggest thing that is hindering trade is the regulations that are affecting property rights, the competition domestically, and the fact that the financial markets have low efficiency. All of these make it hard to do business in Argentina and hold back the trade performance of this country.
Today, Argentina is looking for solutions so that they are able to get just what they need and so that they are able to keep their country moving forward on the right track and reduce the dependency on oil that they have.
At the border, the procedures that are currently in place are a burden to businesses, which makes more work for people administratively and hinders the process of imports and exports. Because of this fact, there is a very high cost for importing goods. For example, a 20 foot container will cost you $1800 in fees to bring across the border, not to mention all of the documents that you have to fill out to export. On top of that, there is a huge lack of transparency at the border and that is caused by the irregular payments of the imports and exports. The tariff rates are high internationally and this really hinders trade. In order to improve trade, there are drastic things that must be done at the border in terms of tariffs and taxes and also in terms of the paperwork and bureaucratically issues.
There are changes that are occurring and are important to note. The President of Argentina did seize control of the YPF in April because she felt that the Spanish oil majors were investing too little and were creating a reliance on these pricey imports. It isn’t going to be a quick change that happens in Argentina, however, Chief Executive Miguel Galuccio, who is a former oilfield executive, states that in order to reduce the energy deficiency in Argentina, it will require a huge annual investment of 7 billion dollars. It would also require the country to start tapping some oil fields that they may not be willing to do.
Since the creation of hydrocarbons is reducing, the government is working hard with the private sector so that they can create wind energy projects. This is a sector that could create 10,000 jobs and help get 1,000 MW of electricity in the next 8 years. Wind farmers and the developers, along with the other parties involved are working hard to create this plan so that they can help to end the problems that Argentina is having and put them on a fast track to where they need to go. There are many steps that can be taken so that Argentina is able to reduce the energy issues that they are having and get just what they need so that they are getting to work on their wind power projects.
No comments on this article.