Argentina: The Time for Business Opportunities is Here
Once again, Argentina has become an appealing arena for foreign investors, and Marval, O’Farrell & Mairal is ready to help its clients turn opportunities into real business. An ambitious plan to strengthen the domestic sources of growth was launched in 2016, and a series of measures have been implemented to create an appropriate environment for future investments.
World population is expected to grow from 6.8 billion in 2009 to 8.2 billion by 2025. The agribusiness sector must adapt to satisfy the nutritional requirements of a growing global population.
Argentina is recognized as one of the world’s leading food producers and exporters. Competitive advantages regarding soil properties, rainfall and climate contribute to place Argentina as one of the lowest cost producers of agricultural commodities worldwide. Also, as an off-season producer, this country reaches the Northern hemisphere with fresh products when they are not produced in such lands.
Information and Communications Technology
Technology is advancing at breakneck speed. The analysis of all the aspects involved in new forms of information exchange and development of new products is a goal that no country has yet fully achieved, at least from a legal and regulatory standpoint.
In Argentina, the regulatory framework is favorable in some aspects, though still uncertain in others. Hence strategic approaches and innovative solutions are required when planning business in this sector, which has already produced four “unicorns”: Mercado Libre, Despegar, OLX and Globant.
The wealth of Argentina’s natural resources, together with its potential for power generation from renewable sources, puts the country in a privileged position in both domestic and international energy markets.
Argentina has a long history of hydrocarbon exploration and production. Natural resources, including hydrocarbon reserves, belong to the provinces in whose territories they are located. Offshore resources (those beyond the 12th marine mile from the base line) are in federal domain and are subject to exclusive federal jurisdiction.
After months of discussion, the Argentine Congress finally passed the bill that will put in place a new scheme of Public-Private Partnership (PPP) contracts. This new regime, submitted by the National Executive Branch, seeks to allow a balanced and predictable cooperation between the public and private sectors.
In Argentina, the lack of investment in infrastructure is undeniable. The need for capital, technology, management and resources to address this deficit is so massive that neither the public nor the private sector alone can provide an adequate response to this challenging issue. And there is a great need for an attractive legal framework that is conductive to the long-awaited investment for both sectors.
Av. Leando N. Alem 882 (C1001AAQ)
Buenos Aires, Argentina
T. (54.11) 4310-0100
F. (54.11) 4310-0200
120 East 56th Street, Suite 240
NY 10022, U.S.A.
T. (1212) 838-4641
F. (1212) 751-3854