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1 - Political status
2 - Geographical situation
3 - Economy
4 - Agriculture
5 - Industry
6 - Other sectors
7 - Population
8 - Language
9 - Religion
10 - Weights, measures & voltage
11 - Money
12 - Main towns
13 - Climate
14 - Insects
15 - Working
16 - Formalities
17 - Health
18 - Transport
19 - Time differences
20 - Telephone
21 - Airport
22 - Car rental
23 - Hotels and restaurants
24 - Your suitcase
25 - Banks
26 - Schools
27 - Guides
28 - Observations

1 - Political Status
Argentina, which is a Latin American country, is a federal state made up of 23 provinces and a federal district. The capital is Buenos Aires. The regime is that of a pluralistic democratic republic.

The constitution dates from 1853 and was modified in 1994.

The President of the Republic is elected by general election for a four year term of office, which can be renewed once.
The present President is Mr Fernando de la Rua, since the 10th December 1999.

There are 257 members in the Chamber of Deputies, elected for a four year period, half at a time every two years.
There are 72 members in the Senate (3 per province), who are elected for a 6 year term of office by general election.

Historical outline
1816 : independence after a long struggle
1853 : after several conflicts with Brazil, Bolivia and Uruguay, Argentina creates its own federal Consititution
1943 : the outcome of the 1929 crisis was the coming to power of military regimes which were both conservative and corrupt. The last of these presidents, Ramon Castillo, was deposed in 1943 by a group of nationalist officers, amongst whom was the future general Peron
1946 : Juan Domingo Peron came to power. He developed and implemented a doctrine called "justicialism", which was a mixture of nationalism and social reform. His wife Eva Duarte, "Evita", became the high priestess of this doctrine and was adored by the people.
1955 : Peron was pushed out of power by other military regimes. He took up exile in Spain, while Argentina went through a series of crises.
1973 : In spite of being old and in bad health, Peron was called back to power and re-lauched his doctrine 1974 : death of Peron. His second wife Maria Estela "Isabel" replaced him, but the army, led by General Videla rapidly removed her from office and took over the country with such ferocity that they set the country against them
1982 : in a search for popular approval, General Galtieri invaded the Malouine islands, a British possession in the south Atlantic, also known as the Falkland islands
1983 : this military failure brought about the fall of the regime and the return to power of a civilian president, Raul Alfonsin
1989 : the country is faced with both political problems and serious economic problems. The Peronist opposition won the elections with their presidential candidate Carlos Menem, who was re-elected in 1995. 1991 : the law is passed on the parity of the peso and the dollar : 1 peso = 1 dollar
In the same year the free trade zone called MERCOSUR was created between Argentina, Brazil, Paraguay and Uruguay (*details at the end of the chapter 'Economy' )
10th December 1999 : Fernando de la Rua (a radical) is elected president and creates a coalition government with the central-left wing.
Both the election campaign and the handing over of power on 10th December 1999 took place in perfect conditions of democratic good citizenship, proving that democracy and political stability are now well established in Argentina.

2 - Geographical situation

Argentina is the eighth biggest country in the world with a total surface of 2,766,889 square kilometers.
It is situated in the southern hemisphere near the Tropic of Capricorn on the 50th parallel. The coast line stretches over nearly 5000 kms along the Atlantic Ocean. Argentina has 832 kms of borders with Bolivia, 1224 kms with Brazil, 5,150 kms with Chile, 1,880 kms with Paraguay and 579 kms with Uruguay.

It is made up of the regions of the Andes, the pre-Andine Sierras and the Pampa, which is a flat stretch of land covering a million square kilometers, starting 600 kms out of Buenos Aires.

The Cordillera of the Andes rise up in the north west.
The main towns are all in the north east.
The plains of the pampa are in the centre and the east
And in the south there are the forests and the glaciers of Patagonia and the Tierra del Fuego.

3 - Economy
Argentina is the richest country on the South American continent, in 1999 the per capita income was estimated at about 8000 dollars, which is by far the highest in Latin America.
The economy works on a convertibility base with the US dollar, in April 1991 the Minister of Finance Mr Domingo Cavallo set up the system of parity, 1 peso = 1 dollar.
Mercosur, which was created in 1991, is a free trade zone between Argentina, Brazil, Uruguay and Paraguay (*details at the end of the chapter 'Economy')

In 1995 a restrictive policy was put into operation to allow major reforms to be carried out : reduction of taxes on exporting companies, the restructuration of the banking system, the abolition of public sector related organizations which regulate private activity, factors disturbing external and internal trade.

Following the devaluation of the Brazilian currency in February 1999, Argentina, which is following a strict parity with the dollar so as not to disrupt the reorganization of its banking sector, suffered a shock. It found itself closely bound, within a free trade zone, to a partner who was taking advantage of a competitive devaluation. The shock was violent enough for the Argentinian authorities to discuss the dollarization of Mercosur. In any case it disturbed the export figures which had already gone down following the drop in prices of raw materials.

The country remains interesting to investment capital, due to the Asuncion Treaty, to exports within the Mercosur countries and to the agreement signed between the European Union and the Mercosur countries. The legal framework for investing is very liberal. Foreign investors can invest in any activity of an economic nature, without previously getting permission and within the same conditions as local investors, except in the audio-visual sector. As a result of privatizations which have taken place over the last ten years, foreign groups now control all the public services, 40% of industry and 90% of the banks.

Argentina is strongly backed up by the international financial community. In mid-December 2000 the IMF proposed a rescue plan for the Argentinian economy which will involve over 40 billion dollars.

The external debt ratio is extremely high : the external debt represents 400% of the export revenues and its service charges absorb two-thirds of them. Exports represent less than 10% of the GDP.

The social situation has got worse, household consumption has gone down and unemployment has gone up. The official unemployment rate is 15.4%, and on top of that there is an under-employment which concerns 14.5% of the working population, which gives a total of at least four million Argentinians with employment problems. Labour charges are much higher in Argentina than in neighbouring countries, the gross average monthly salary is a little above 600 dollars, social charges are very high (the employers contribution is 33%), they are the highest in Latin America. Black market jobs have increased, which deprive the workers of any health, welfare or retirement benefits. The gap between rich and poor gets bigger all the time. Over two million Argentinians live with less than a dollar a day.

The budgetary deficit and unemployment are governmental priorities, measures are in the pipeline to reduce the deficit and the number of unemployed. De la Rua's government has made an effort to improve the fiscal balance as required by the IMF by hiking up taxes. However, a report recently made by the University of Columbia (USA), which studied all the policies implemented to reduce the fiscal deficit in Latin America, concludes that the countries which have reduced their expenditures have had long term positive results, whereas those who use the policy of raising taxes have failed, for you have to take into account the very strong resistance to paying taxes that exists in South America. Tax evasion is one of the favourite sports in Argentina and can be estimated at 20 billion dollars a year.

The market value of agricultural and mining raw materials has increased and this is a positive element.

Economic statistics

	1997	1998	1999	2000
economic growth (%)	8.1	3.9	-3.2	2.0
inflation (%)	0.3	0.7	-1.6	0.0
public balance/GDP (%)	-1.6	-1.4	-2.0	-1.6
rate of unemployment (%)	13.7	12.4	15.4	nd
exports (billions $)	26.4	26.4	23.8	26.3

importats (billions $)	28.6	29.4	24.4	27.7
balance of trade (billions $)	-2.1	-3.0	-0.6	-1.4
current balance/GDP (%)	-12.0	-14.7	-13.1	-12.8
external debt (billions $)	124.1	140.4	150.2	160.7
debt charges/exports (%)	43.4	52.9	66.0	67.8

General information

GNP 1999	278.88 billions $
GNP per inhabitant	8,260 dollars
Purchasing power parity (PPP)	9,140 dollars
GNP growth 1990-1997	+4,2% per capita per annum
Households with PPP +$30000pa	2,150,000 = 22%
Households with PPP +$15000pa	5,070,000 = 52%
Households with PPP -$5000 pa	880,000 = 9%
Aid 1998	12.723 billion $
Foreign investment 1999	23.152 billion $
Tourism revenues 1998	5.363 billion $

Division of the GDP by sector of activity :

agriculture : 5.7%
industry : 19.1%
mining : 9.6%
services : 65.6%

Argentina's main export partners:

Brazil	23.2 %
USA	11.1 %
the Netherlands	7.5 %
Chile	6.3 %
Italy	4.2 %

And its main import partners :

USA	19.4%
Latin America	31.3%
of which Brazil	22.6 %
Japan	4.6 %
European Union	27.6%

Imports to Argentina are subjected to two different regimes depending on where they come from. Products from outside Mercosur are subjected to an external rate which goes from 0% to 20%, the most frequent tax being 14%. The Mercosur agreement established the principle of free movement of goods within the zone. However, the four countries have maintained customs barriers on certain products which will progressively disappear.

Cars and spare parts are not subjected to the external Mercosur importation rates. Customs duties are fixed for each country. The trade of automobiles and spare parts between Argentina and Brazil is done in conformity with a bilateral agreement of zero duties, subject to compensation.

Other importations pay a tax of 0.5% + VAT on entry into Argentina. There are special procedures concerning the importation of pharmaceuticals or foodstuffs which have to go via the appropriate ministry.

Franco-Argentinian economic relations :
To encourage and help enterprises to set up several measures have been taken by the Franco-Argentinian Chamber of Commerce and Industry (CCIFA).

The CCIFA works with several other organizations eg the Assembly of French Chambers of Commerce and Industry, is a member of the Union of French Chambers of Commerce and Industry overseas, and constantly deals with other countries like those of South America.

You can get aid directly from this Chamber, its activities are directed to and available to companies : trade fairs, exhibitions, a rapid courrier service between Argentina and the rest of the world, job centre, French language courses, etc.

French technology is more and more present in Argentina (EDF, Télécom, Bouygues, Groupe Accor, Peugeot, Renault, la Lyonnaise des Eaux-Dumez in Aguas Argentinas etc.) Over 200 subsidiary companies are implanted as well as several French sub-contractors.

The Mercosur
The Mercosur (the Southern Common Market), a fundamental step in the economic integration of Latin America, started with the Asuncion Treaty which was signed on the 26th March 1991 by the Presidents of the four founder-countries Argentina, Brazil, Uruguay and Paraguay.
The basic texts of this 'common market' laid down four main principles :
- the free circulation of goods, services and elements of production between the member states (interzone trade), basically via the abolition of customs duties, non-fiscal restrictions and other equivalent measures. - the establishment of a common customs rate for countries outside Mercosur (extrazone trade) with a communal trade policy
- the same macro-economic and sector related policies between the member states
- an arrangement to harmonize the different national legislations in order to consolidate the process of integration.
The model that the agreement is based on is that of the European Economic Community and the 1957 Treaty of Rome, which appoints an autonomous organization, doted with its own competence and a partial surrender of sovereignty on behalf of the Community.

(sources MOCI, Le Monde, le nouvel Observateur)

4-Agriculture
Agriculture
(in millions of tons, head, m³ for timber)

Production	1996	1997	1998	1999	Rang
Millet	0.047	0.044	0.046	0.057	27
wood	11.428	11.428	11.428	-	-
wheat	15.914	15.000	11.500	14.200	12
sugar cane	17.600	19.450	19.400	19.400	14
cotton	0.432	0.300	0.316	-	10
maize	10.518	15.536	19.360	13.183	6
oranges	0.504	0.919	0.984	0.780	15
barley	0.537	0.926	0.540	0.500
potatoes	2.275	3.080	3.412	3.450	14
rice	0.986	1.025	1.036	1.576	26
tea	0.047	0.054	0.057	0.049	13
wine	1.268	1.350	1.255	1.255	5
cattle	54.000	54.500	54.600	55.000	5
sheep	17.956	17.295	15.232	14.000	21
pigs	3.100	3.200	3.200	3.200
fishing	1.250	1.352	-	-	15

About 73% of the land is farmed.
The main crops are wheat, which cover 17% of the farmed land and maize which covers 9%.

Argentina has the fifth biggest vineyard in the world with 209,000 hectares. It is also the fifth biggest wine producer in the world, producting 17 million hectoliters of wine a year.

The growth of the agricultural production partly compensated for the industrial recession in 1999.
Argentina is one of the top agricultural exporting nations, it sells over 10 billion dollars worth of agricultural production abroad every year.

The foodstuff industry is expanding rapidly in spite of the fact that the equipment and the labour force are not good enough. New technologies and a qualified labour force are more and more in demand.

 5 - Industry
The privatized electrical companies and the petrol and gas companies are still planning to build power stations, high tension lines and gas pipe lines to transport the energy which is plentiful in the Tierra del Fuego and Patagonia to the high consumption areas in the north and the west of the country.

Other sectors which are developing are : environment, mining and transport.

The environment is an economic sector which should not be overlooked, there are several problems, in particular due to the considerable increase in the population together with a large industrial developement. To this can be added a lack of investment in companies dealing with improving sanitization, treating waste and refuse and decisions which should be taken and are not. There is an enormous amount which needs to be done in Argentina to protect the environment. Drinking water is insufficient and badly installed, hospital refuse is not treated due to a lack of specialized companies, and proper rubbish dumps are nearly inexistent, it is necessary to find the means to fight the industrial pollution.

Mining

(in millions of tons, uranium, gold and silver in tons)

Production	1999	World Rating
silver	36 (1998)	26
natural gas	33.6	16
gold	11	23
petrol	42.8	21
uranium	35 (1998)	19
zinc	0.024	19

The automobile sector was particularly disturbed by the devaluation of the Brazilian real. A certain number of foreign companies which had chosen Argentina as a base within Mercosur, moved to Brazil, which could offer much lower production costs. Big companies like Fiat, Ford and General Motors transferred a part or all of their production and took with them some spare part manufacturers like Goodyear tires. In the long term the automobile sector is still one of the best growing. The authorities have noticed the start of a reversal tendency, Volkswagen announced in March 2000 that they were going to open a new factory in Argentina.

Another growth sector is in the petrol and petro-chemical industries. In 2000 the Spanish group Repsol managed to take over the old national company YPF and joined Shell and Exxon in the exploitation of the country's petrol reserves.

The railway network has been totally privatized.

Cycling has become a real economic resource for the country. This passion which is enjoyed by a large part of the country has encouraged the specialized factories, Marilo SA and the Casa del Bicicletero to turn out a massive production of bicycles and accessories, nearly 50,000 models each.
Other companies, working under licence, are installed in Argentina, eg Puma which produces its own models or assembles bikes from parts imported from Europe or Asia. China accounts for 30% of the imports, other Asian exporters are Hong-Kong and Taiwan, from Europe Italy and France export 6,000 models to Argentina and there are also other suppliers from Chile, Brazil and the USA.
The best known brands are Olmo and Puma, Spalding, Bianchi, Raleigh and Monark.
Other local companies make bikes for children : Mastiff, Fiorenza, Cosmos, Hernan and Junior. The production is distributed through specialized outlets or via big stores like Carrefour.