Argentina has signed 20 free trade agreements since 1990: are they improving the trade balance?

The Argentina currently has 20 international trade agreements in force from 1990 to 2018: out of a total of 13 were made through participation in Mercosur, six others were signed bilaterally and one on the integration of World Trade Organization (WTO).

This is clear from a survey prepared by the Austral University, in which agreement announced last week between Mercosur and the European Unionand recently ratified the negotiations with the United States, Canada and China.

"Of the 28 years badyzed, 10 agreements were concluded over the period 2002-2010, corresponding to the most positive period of the trade balance between 2002-2012", explains the work underwritten by Eduardo Fracchia, of the Business School of the University.

The report notes, however, that Argentina "has never made any direct agreements with countries outside Latin America", only by Mercosur "Agreements have been reached with countries in Asia and Africa, but never with Europe".

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The Secretary of the Government of Agribusiness defended the agreement reached between Mercosur and the European Union. He also criticized Kirchner for "never having demonstrated his vocation to integrate into the world".

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GUILLERMO & nbspPEREIRA

In this line, he stresses that the Old Continent is a relevant partner: "16% of block exports went there over the last 5 years. A similar percentage is imported. The core of imported products is the metalworking, chemicals, auto parts and pharmaceuticals industries. The grains and oilseeds group is the core of exports and the food products follow. "

"Of the 28 years badyzed, 10 agreements were concluded over the period 2002-2010, corresponding to the most positive period of the trade balance between 2002-2012"

On the agreement reached with the European Union, Fracchia says that "it is not necessary to wait for an immediate opening" since 60% of Mercosur's offer "will be reduced by a 10-year transition period, which is considered a prudential period and longer than that of the European Union with other countries with which they have concluded FTAs ​​".

In this context, "for large companies, the potential improvements could have more effects," but Fracchia warns that "SMEs are at risk if they do not face ongoing reforms: labor, taxation and social security."

With regard to merchandise trade, Fracchia baderted that "by gradually decreasing prices"although he understood that "The elimination of tariffs in the high-tech sector introduces risks for part of the national productive structure."

"The discussion on the rules of origin is the key to prevent products from low – wage countries, for example from Asia, from entering the region as they were produced in Europe. "temporary admission used by the Mercosur countries".

Finally, the report states: "It is very preliminary to make statements based on this subject because they depend on the approval of parliaments and the details of the agreements. given that Brazil and Argentina are the world's most closed economies in a ratio of export plus imports divided by the product, the news of the agreement is more than relevant ".