Exporting to Argentina
Growing market potential
Despite high inflation and a devalued peso raising 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 2019, UK goods exports to Argentina increased by 3.3% (ONS, 2019).
UK government support
UK Export Finance (UKEF) has a £1 billion export credit facility to help UK businesses trade with Argentina (IMF, 2018). A dialogue forum has been held between the two governments annually since 2017, with the aim to promote bilateral trade.
Sophisticated urban culture
Argentina has a population of 45 million, of which 92% is urban (World Bank, 2019). It‘s a sophisticated market with European tastes and business culture. It’s people have a high level of professional skill and the highest English proficiency index score in Latin America (English Proficiency Index, 2019).
Opportunities for exporters
There are opportunities for UK companies across a broad range of industries. Our trade advisers in Argentina have identified particular opportunities for UK businesses in the following sectors.
Investment in development
Argentina is keen to develop and improve with new tools and farming technology, data collection and analysis, animal health, welfare and genetics. There may be opportunities for UK businesses specialising in this sector.
Demand for diverse products
Argentina supplies a diverse range of produce including cereals, fruit and vegetables, nuts, herbs and agricultural products. British companies offering products, even if for a very specific use will most likely find interesting niche markets in the country.
Degree of development of the local industry
British exporters will find local world class companies to partner with, in the development, testing and distribution of new products.
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 welcomed. It’s important to forge a relationship early on with these companies to secure trust and demonstrate local knowledge. 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 companies might wish to consider taking advantage of Argentina's large industrial base to locally manufacture some elements to reduce transport and other costs.
Oil and gas
Chemicals for secondary and tertiary recovery from wells under conventional exploitation
UK businesses that specialise in chemical products to enhance recovery from these wells 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. They are offering opportunities to partner, build infrastructure and offer goods and services to support this industry (Argentine Investment Agency, 2019).
Demand for UK products
British supplies are well respected in the market amongst many reasons due to the British heritage of the sector in Argentina. Specific opportunities are available for signalling equipment, switches and crossings, and third rail improvements and electrification.
Demand for UK services
UK companies who can offer expertise in reducing the time needed for track renewal are desired. Expertise in developing a regional express network project, as well as financial expertise to develop projects through public private partnerships are also welcome.