200 YEARS

OF BILATERAL
RELATIONS
Edition 2: economics bilateral relations

In colaboration with:
200 YEARS OF BILATERAL RELATIONS
Edition 2: economics bilateral relations

INDEX

I. INTRODUCTION 3

II. TRADE RELATIONS 5

III. FINANCIAL RELATIONS 8

IV. CHALLENGUES AND

OPORTUNITIES 10

V. CONCLUSION 12
200 YEARS OF BILATERAL RELATIONS
REFORMAR

I. INTRODUCTION

The economic relationship between Argentina and the United States has
been a cornerstone in their bilateral ties for over two centuries, shaping
diplomatic, social, and geopolitical interactions. This enduring
partnership, which has evolved through various phases, has been marked
by mutual benefits and adaptability to global economic shifts and
domestic policy changes in both nations (Bouzas et al., 2002; Toledo, Year).
The aim of this paper is to provide a concise yet comprehensive analysis of
the current landscape of trade and financial relations between Argentina
and the United States, focusing on the opportunities that lie ahead.
Drawing from authoritative sources such as scholarly articles, working
papers, and official trade statistics (Ava et al., 2014; OEC World, 2021), the
paper is organized into four main sections: Trade Relations, Financial
Relations, Challenges and Opportunities, and a Conclusion.

Following the return to democracy in Argentina, the bilateral economic

relationship with the United States has seen a resurgence, characterized
by increased trade and investment opportunities. The trade relations have
been particularly noteworthy, with Argentina exporting key commodities
such as crude oil, gold, and aluminum to the United States, and the U.S.
exporting petroleum gas, refined petroleum, and vaccines to Argentina
(OEC World, 2021). These trade activities have not only boosted economic
growth but have also fostered technological exchange and innovation,
contributing to the development of key sectors in both countries (Bouzas
et al., 2002).

Financial relations between the two countries have also been a significant
aspect of their partnership. Investments and financial aid have flowed in
both directions, strengthening economic stability and fostering mutual
growth (Ava et al., 2014). These financial interactions have been
instrumental in supporting various sectors, from agriculture and
manufacturing to technology and healthcare, thereby enhancing the
quality of life for citizens in both Argentina and the United States.

In light of the 200-year commemoration of Argentina-U.S. relations, this

paper aims to celebrate the positive and mutually beneficial economic
ties that have stood the test of time. As we look to the future, the paper
will explore the challenges and opportunities that lie ahead, always with
an eye toward collaboration and mutual benefit. The analysis will be
grounded in empirical data and scholarly research, ensuring a balanced
and informed perspective.
200 YEARS OF BILATERAL RELATIONS
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I. INTRODUCTION

These additional paragraphs aim to introduce the financial relations and

set the stage for the rest of the paper, emphasizing the positive and
mutually beneficial aspects of the Argentina-U.S. relationship.

The historical roots of Argentina-U.S. economic relations provide valuable

context for understanding the current landscape. Between 1973 and 1986,
the bilateral relationship underwent significant changes, influenced by
global economic conditions and domestic policies (Abril, 1988). Despite
the challenges of that era, including economic fluctuations and political
transitions, the two countries managed to maintain a stable economic
relationship. This period serves as a testament to the resilience and
adaptability that have characterized Argentina-U.S. economic ties for over
two centuries.

Understanding this historical backdrop enriches our appreciation of the

current state of economic relations between Argentina and the United
States. It offers lessons on the durability and potential of this partnership,
which has continually adapted to meet new challenges and
opportunities. As we commemorate 200 years of relations, this paper aims
to highlight the enduring positive aspects of this economic partnership,
setting the stage for a future filled with collaborative endeavors.

Since the return to democracy in Argentina, the bilateral economic

relationship with the United States has taken on new dimensions,
reflecting the democratic values and principles that both nations hold
dear (Toledo, Year). This period has seen a strengthening of trade ties,
increased foreign direct investment, and the establishment of various
bilateral agreements aimed at fostering economic cooperation. The
democratic era has thus marked a significant turning point, setting the
stage for a more robust and mutually beneficial economic relationship
between Argentina and the United States.

As we celebrate 200 years of Argentina-U.S. relations, it is crucial to

recognize the positive developments that have occurred since the return
to democracy in Argentina. The economic ties between the two countries
have not only endured but have thrived, serving as a model of successful
bilateral relations in the Western Hemisphere. This paper will delve into
these aspects, providing a well-rounded view based on empirical data and
scholarly research, as we look forward to a future of continued
collaboration and mutual benefit.
200 YEARS OF BILATERAL RELATIONS
REFORMAR

II. TRADE RELATIONS

The first graphic illustrates the

primary components of
Argentina's exports to the
United States. It reveals that
petroleum accounts for 17% of
exports, followed by gold at
14.8%, and crude aluminum at
6%. This distribution
underscores the significance
of natural resources in
Argentina's export portfolio to
the U.S., highlighting sectors
where the country has
competitive advantages.

The second graphic focuses on

the United States' exports to
Argentina. It shows that gas
constitutes 10% of exports,
refined petroleum makes up
7.72%, and vaccines account for
4.22%. This data indicates the
diversified nature of U.S.
exports to Argentina, ranging
from energy resources to
healthcare products, reflecting
the multifaceted economic
relationship between the two
nations.
200 YEARS OF BILATERAL RELATIONS
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II. TRADE RELATIONS

The third graphic presents the
value of trade between
Argentina and the United
States over time. It uses two
colors: purple to represent U.S.
exports and yellow for
Argentine exports. The graph
shows that U.S. exports
reached a peak value of $1.16
billion in 2012, while Argentine
exports hit a maximum of
$553 million in 2011. This
temporal analysis provides
valuable insights into the
trade dynamics and highlights
periods of particularly strong
economic engagement
between the two countries.

The fourth graphic delves into the concept of Comparative Advantage

between Argentina and the United States. This visual representation
offers a nuanced understanding of how each country specializes in
certain sectors, thereby benefiting from trade with each other. It
highlights the areas where Argentina has a comparative advantage, such
as in the export of agricultural products and natural resources, and
where the United States excels, like in technology and services. This
graphic serves as a compelling illustration of how both nations
complement each other in trade, each leveraging its own strengths to
create a mutually beneficial economic relationship.
200 YEARS OF BILATERAL RELATIONS
REFORMAR

II. TRADE RELATIONS

Over the years, trade negotiations and agreements have played a

crucial role in shaping the economic relationship between
Argentina and the United States. According to a study coordinated
by Bouzas et al. (2002), the ALCA negotiations aimed to foster a
more integrated economic environment, targeting specific sectors
for growth and collaboration. These efforts have yielded tangible
results, with trade volumes increasing significantly in the years
following these negotiations. For instance, Argentina's exports to
the U.S. reached a peak value of $553 million in 2011, while U.S.
exports to Argentina peaked at $1.16 billion in 2012.

The most recent data from 2021 further emphasizes the strength
and significance of the trade relationship between Argentina and
the United States. Argentina exported goods worth $4.55 billion to
the U.S., ranking 3rd among its trading partners, with crude
petroleum being the principal product valued at $771 million. On
the other hand, the U.S. exported goods worth $6.41 billion to
Argentina, ranking 39th among its trading partners, with
petroleum gas as the leading product valued at $688 million. In
terms of economic complexity, Argentina has an Economic
Complexity Index (ECI) of 0.074, ranking 60th, while the U.S. has an
ECI of 1.46, ranking 10th. These figures not only highlight the
volume of trade but also the complexity and diversity of goods
exchanged, reinforcing the mutually beneficial nature of this
economic relationship (OEC World, 2021).

In summary, the trade relationship between Argentina and the

United States is both robust and dynamic, characterized by a
diverse range of exported goods and a history of cooperative
economic policies. The data underscores the mutual benefits of
this trade relationship, with Argentina excelling in the export of
petroleum, gold, and crude aluminum, and the United States
contributing significantly through the export of gas, refined
petroleum, and vaccines (OEC World, 2021; Bouzas et al., 2002). As
both nations look to the future, the trade relationship offers
numerous opportunities for further collaboration and mutual
economic growth.
200 YEARS OF BILATERAL RELATIONS
REFORMAR

III. FINANCIAL RELATIONS

Financial relations between Argentina and the United States have been
another important aspect of their bilateral relation, often serving as a
barometer for the overall health of the relationship. According to a
working paper by Ava et al. (2014), financial interactions between the two
countries have been diverse, encompassing foreign direct investment,
financial aid, and various forms of economic cooperation. These financial
engagements have been instrumental in supporting a wide range of
sectors in both countries, from agriculture and manufacturing to
technology and healthcare.

The paper by Ava et al. (2014) also highlights the role of financial
institutions and regulatory frameworks in shaping these financial
relations. Over the years, both countries have worked to create a
conducive environment for financial interactions, including the
establishment of bilateral agreements and regulatory mechanisms. These
efforts have contributed to the stability and growth of financial relations,
reinforcing the mutual benefits and long-term commitments that
characterize the Argentina-U.S. partnership.

In recent years, up to 2021, the financial relationship between Argentina

and the United States has continued to evolve, adapting to global
economic trends and policy shifts. While the paper by Ava et al. (2014)
provides a foundational understanding of the financial ties, more recent
developments have included increased foreign direct investment in
sectors such as renewable energy and technology. These investments
have not only created jobs but have also facilitated the transfer of
knowledge and expertise between the two countries.

Moreover, the United States has been a significant source of financial aid
and development assistance for Argentina, particularly in areas of
education, public health, and infrastructure. Such aid has been crucial in
enhancing the quality of life for Argentinians and has further solidified the
partnership between the two nations. Financial mechanisms like trade
credits and investment guarantees have also been employed to foster a
more secure and stable financial relationship.

In addition to foreign direct investment and financial aid, various other

financial instruments have been utilized to enhance the bilateral
relationship. Public and private partnerships have gained traction,
especially in sectors like technology, healthcare, and sustainable
development. These collaborations have opened new avenues for
innovation and have had a multiplier effect on economic growth in both
countries.
200 YEARS OF BILATERAL RELATIONS
REFORMAR

III. FINANCIAL RELATIONS

Trade financing has also been a critical aspect of the financial

relationship. Various forms of credit facilities and export-import
financing have been established to facilitate trade between
Argentina and the United States. These financial arrangements
have been particularly beneficial for small and medium-sized
enterprises (SMEs) in both countries, enabling them to participate
in international trade and gain access to broader markets.

In conclusion, the financial relationship between Argentina and

the United States is a multifaceted and dynamic one, marked by
mutual benefits and long-standing commitments. From foreign
direct investment to financial aid, and from trade financing to
public-private partnerships, the financial ties between the two
nations have been instrumental in fostering economic growth,
technological innovation, and social development. As both
countries navigate the complexities of the global financial
landscape, the enduring strength of this financial relationship
serves as a foundation for future collaboration and mutual
prosperity.
200 YEARS OF BILATERAL RELATIONS
REFORMAR

IV. CHALLENGUES AND OPORTUNITIES

As we commemorate 200 years of bilateral relations between

Argentina and the United States, it is both fitting and essential to
look ahead to the future of this enduring partnership. The
economic ties that bind these two nations are strong, built on a
foundation of mutual respect, shared values, and a long history of
cooperation in trade and finance. Yet, like any relationship that has
stood the test of time, there are challenges to be met and
opportunities to be seized.

The longevity of this relationship is a testament to its resilience and

adaptability, qualities that will be crucial in navigating the evolving
global economic landscape. While the past and present offer
much to celebrate, the future holds untapped potential for further
collaboration and mutual growth. Whether it's expanding trade in
emerging sectors like renewable energy and digital technology or
deepening financial ties through innovative investment vehicles,
the opportunities for enhancing this bilateral economic
relationship are both diverse and promising.

One of the challenges that both nations face is the need for
economic diversification. While Argentina has a comparative
advantage in natural resources like petroleum and gold, and the
United States excels in technology and services, there is room for
both countries to explore new sectors. Diversification not only
mitigates risks but also opens doors for innovation and sustainable
development. Joint ventures in areas like clean technology or
biomedicine could offer rewarding opportunities for both nations.

Another area ripe for exploration is the development of human

capital. Both countries have strong educational systems and a
wealth of talent in various fields. Collaborative educational
programs, research initiatives, and skill-sharing platforms could
serve to enrich the workforce and contribute to economic growth.
Such collaborations could also foster cultural exchange and
deepen the understanding and friendship between the people of
Argentina and the United States.
200 YEARS OF BILATERAL RELATIONS
REFORMAR

IV. CHALLENGUES AND OPORTUNITIES

Lastly, the regulatory environment poses both a challenge and an

opportunity. Streamlining trade policies, harmonizing standards,
and simplifying customs procedures could significantly enhance
the ease of doing business between the two countries. While
regulatory frameworks have historically been well-managed, there
is always room for improvement and modernization, especially in
the face of rapidly evolving technologies and market dynamics.

In summary, the challenges and opportunities that lie ahead for

Argentina-U.S. economic relations are numerous and multifaceted,
but they also offer a roadmap for future collaboration. To capitalize
on this potential, three key policies could be considered. First, the
establishment of a bilateral innovation fund could stimulate joint
ventures in emerging sectors like renewable energy, artificial
intelligence, and biotechnology. This fund would serve as a
financial catalyst, encouraging both public and private sector
participation in collaborative projects. Second, the creation of an
educational and vocational exchange program could facilitate the
sharing of knowledge and skills, thereby enriching the human
capital of both nations. Such a program could focus on areas
where each country has demonstrated expertise, offering a
platform for mutual learning and growth. Third, a joint regulatory
review board could be instituted to continually assess and update
trade and investment policies, ensuring they remain conducive to
mutual economic benefit. This board would be tasked with
identifying bottlenecks, proposing solutions, and harmonizing
standards, thereby making it easier for businesses in both
countries to collaborate and thrive. By implementing these
policies, Argentina and the United States can not only address
existing challenges but also unlock new opportunities, fortifying an
economic relationship that has already stood the test of 200 years.
200 YEARS OF BILATERAL RELATIONS
REFORMAR

V. CONCLUSION

As we reflect on the 200-year journey of economic relations

between Argentina and the United States, it becomes evident that
this partnership is not just a function of trade and finance, but also
a manifestation of shared values, mutual respect, and a collective
vision for a better future. The resilience and adaptability that have
characterized this relationship offer a blueprint for how nations
can navigate the complexities of the global economic landscape.
In a world that is increasingly interconnected yet fraught with
challenges, the Argentina-U.S. partnership serves as a beacon,
illuminating the path of what is possible when two nations commit
to mutual growth and understanding.

Looking ahead, the potential for deepening this economic

relationship is not merely an opportunity but a responsibility. As
we stand on the cusp of a new era marked by rapid technological
advancements, environmental challenges, and social shifts, the
decisions we make today will shape the economic landscape for
generations to come. It is incumbent upon policymakers, business
leaders, and citizens of both nations to seize the moment, to
innovate, and to collaborate in ways that not only enhance
economic prosperity but also contribute to a more equitable and
sustainable world. In doing so, we honor the legacy of 200 years of
partnership and set the stage for a future that holds untold
possibilities.

BIBLIOGRAFY:

Bouzas, R. (Coordinator), Gosis, P., Soltz, H., & Pagnotta, E. (2002). Las relaciones
comerciales Argentina-Estados Unidos en el marco de las negociaciones del
ALCA. Oficina de la CEPAL en Buenos Aires.

Toledo, V. F. (Year). Las relaciones bilaterales entre Argentina y Estados Unidos

desde el retorno a la democracia. Universidad Católica de Salta, Salta,
Argentina.

Ava, P., Chico, S., Martínez, G., & Zaccato, C. (2014). No15 DOCUMENTOS DE
TRABAJO 10-2014 - Relaciones bilaterales entre la Argentina y los Estados
Unidos.

OEC World. (2021). Argentina-U.S. Bilateral Trade Profile. Retrieved from OEC
World