Exporting to Argentina
Growing market potential
Despite high inflation and a devalued peso increasing the cost of imports, there are large scale investment plans in place for production and export of natural resources (Argentine Investment Agency, 2019). In the year to March 2020, UK goods exports to Argentina increased by 8.5% (ONS, 2019).
UK government support
Argentina and the UK have a long-standing double taxation agreement. Both countries also have an Investment Promotion and Protection Agreement. A dialogue has been held between the two governments annually since 2017, to promote bilateral trade.
British quality is highly respected
Over 100 UK companies have a permanent presence in Argentina. This includes 20 FTSE 100 companies like BT, GSK, HSBC and Unilever, and a range of small and medium sized UK businesses. They and other companies representing British principals report customers are keen to learn of new products and solutions coming from the UK.
Opportunities for exporters
There are opportunities for UK companies across a broad range of industries and a “British family” of some 130 UK companies with a permanent presence in Argentina, from which you can find support when entering the market. The Department for International Trade team in Buenos Aires has identified opportunities in the following sectors.
Investment in development
Argentina is keen to develop and improve its agricultural output with new tools and farming technology, data collection and analysis, animal health, welfare and genetics. UK businesses specialising in this sector are welcomed.
Demand for niche products
Argentina produces a diverse range of produce including cereals, fruit and vegetables, nuts, herbs and agricultural products. British companies that can complement Argentina’s industry will most likely find interesting niche markets in the country.
Degree of development of local industry
British exporters will find local world-class companies to partner with, in the development, testing and distribution of new products.
Demand for related chemical products
UK businesses that specialise in chemical products to enhance secondary and tertiary recovery from wells under conventional exploitation will find a good market in Argentina.
Products and services for unconventional (fracking) wells
Argentina has the second largest shale gas and 4th largest shale oil resource in the world. It offers opportunities to partner, build infrastructure and offer goods and services to support this industry (Argentine Investment Agency, 2019).
Demand for UK consultancy services
Argentina has made a commitment to attain 20% renewable energy generation by 2025; investments are at 12% as of 2020. There are currently 147 projects for a total 4,966.5 megawatts (MW) of power. Demand exists for British financial and engineering consultancy and for investment in technology (mainly in solar photovoltaics (PV), and more than 1.5 MW wind turbines).
Demand for specialised engineering and consultancy services
Many of the projects in Argentina present geographical and geophysical challenges. UK consultancies with specialist knowledge will be welcome, and partnering with local consultancy firms may be an effective route to market.
Supply of specialised machinery for the mining industry
There is a market for imported machinery. Specialised goods such as crushers, vibrating meshes, and construction machinery as well as chemical products are among the most desired products. Engaging with a local agent who can provide servicing and offer financing will be key to obtaining orders.
Opportunities for local manufacturing
UK exporters might wish to consider taking advantage of Argentina's large industrial base to locally manufacture some elements of their products, to reduce transport and other export costs.
UK track equipment
British suppliers are well respected in the market, and there's a long heritage of British involvement in this area. Specific opportunities are available for signalling equipment, switches and crossings, and third rail improvements and electrification.
UK expertise to revamp existing infrastructure
UK companies who can offer expertise in reducing the time needed for track renewal are valued. Expertise in developing a regional express network project, as well as financial expertise to develop projects through public private partnerships are also welcome.
Large rail network enhancement
During the last 5 years, the government has focused its investment plan on track renewal, electrification, new rolling stock, stations, workshops and technology. They are also transitioning to open access in freight that will be effective in 2023.
Demand for high tech systems
The main opportunities are in high tech systems, sophisticated services, intelligent surveillance systems, access control and niche products that are not available from local manufacturers.
Growing market potential
Due to the high levels of perceived insecurity and the increased priority of improving workplace safety, this is a market with growing potential. There is an increasing demand for high-tech security equipment for private sector, the police and other law enforcement agencies.
Demand for cyber security solutions
Recent cyber attacks, including by ransomware on official government entities, have increased the appetite for deterrents and solutions to cyber threat. UK expertise is highly regarded in this subsector.