Argentina with the largest number of protectionist measures worldwide
Argentina has implemented the largest number of protectionist measures worldwide, according to a Latin Business Chronicle analysis of Global Trade Alert data from the UK-based Centre for Economic Policy Research.
Argentina has implemented a whopping 191 protectionist measures. Russia, the runner-up worldwide, has implemented 172 measures.
In Latin America, Argentina has implemented more protectionist measures than the rest of the region combined (191 versus 170).
Brazil, Latin America’s largest economy, has implemented 86 protectionist measures, four times more than Mexico, the region’s second-largest economy.
Peru and Venezuela have implemented 18 and 11 protectionist measures, respectively.
Costa Rica is the country with the fewest protectionist measures, only one, followed by Chile with two, the data from Global Trade Alert shows.
According to the lastest ranking of the world’s worst by protectionist measures: Argentina leads with 191; Russia, 172; US, 106; India, 101; and China, 100.
Regarding Latin America the ranking is as follows: Argentina, 191; Brazil, 86; Mexico, 23; Peru, 18; Venezuela, 11; Colombia, 7; Ecuador and Paraguay, 6 each; Uruguay, 4; Bolivia, 3; Dominican Republic, 3; Chile, 2 and Costa Riva, 1.
However the Argentine Foreign Ministry argues that Argentine imports rose 30.8% last year (including 27.4% with G20 colleagues), the highest increase among G20 countries after India.
Foreign Minister Héctor Timerman said that the complaints about import restrictions originated from those who wanted “an easy life buying from abroad with just three or four employees”, instead of the challenge of producing and exporting, thus creating jobs and contributing to the real economy of the country.
Argentina has made presentations to that effect before the World Trade Organization and other multilateral bodies.
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The solution is to make Argentina a competitive economic environment - not slap on another tarriff to compensate for the latest economic shambles. Retaliatory sanctions make it pointless.
However I am happy to watch Argentina slap tariffs on anything and everything it likes. The more it isolates itself from the world the easier it is to deflect the Falklands ravings.
As you were - carry on...........
Chile=2
Question which country is more succesful, stable and employs superior diplomatic skills????
It's kind of weird to watch them doing this, especially about North-Korean style protectionism.
www.youtube.com/watch?v=UyPC0SD0PGw
I will give you an example in which the Argentina olympic cyclcing team are being prevented from importing olympic standard bikes from the USA because they have been told they must export goods up to the same value. Does this sound like a sensibile well thougth out economic model to you?
Would you lend to somebody that has consistently refused to repay debts in the past?
You are trying to liken Argentina to Gaza? Really?
References:
en.wikipedia.org/wiki/Import_substitution_industrialization#Latin_America
en.wikipedia.org/wiki/Economic_history_of_Argentina#Kirchner_administration
What happens when they run of out U$? They're pretty close as it is now....
Remember that announcement regarding the 400,000 homes to be built where you had a pop at the UK about not building enough and were wrong. Apparently only 100,000 are going to be built (a government leak has confirmed). Also confirmed that there was no intention to tell the people that the would be a decrease of 300,000 in the number of homes.
I would bet CFK will be in jail or exile before the end of her term.
Jun 19th, 2012 - 01:04 pm
I think that ISI was never born in Argentina. Most Argentine entrepreneurs concentrated on HEAVY industrialisation rather than the more difficult and higher cost of high tech industries.
This is why the present import restrictions are harming the smaller industries at the moment.
The problem of ISI here is that it requires highly skilled labour to be able to substitute parts etc. This conflicts with the peronist need for a mass of uneducated people to maintain the voting base for the demagogue of the moment. There is no way that ISI can work with a peronist government.
I'm thinking the winter fuel problems might be the straw that breaks the camels back - or maybe CFKs latest Louis Vuitton.
a 3-4 week cold snap
Holding WB and IDB loans
SCOTUS declaring BCRA reserves are attachable
Collapse (thy're already bankrupt) of every electricity company in the country
Wage Strikes
Provinces not meeting payroll
Really hard to predict which one will happen first..
BK thinks that the end of the world will happen first...
Imagine that - CFK with her hands on a $ printing press and a nuclear arsenal.
“The hills” would become a very crowded place.
How many people in Argentina or Uruguay can speak Swedish, English, Spanish...maybe some Swedish Embassy folks but that is about it. It would be extremely unlikely we would have 2 posting on this obscure board.
What they need to do is to cut spending... but the they alienate the 40% that is their constituency, and which as I predicted, are the ones that are most vulnerable to any disruption in their economic model.
Now, if you ask me to choose between this model and a model of foreign debt and borrowing from the EU/US/etc, I much prefer this system.
Poor, but free.
Guzz seems to have died a horrid death already, but he did claim to be Uruguayan, so maybe he's holed up inPE begging on a street corner!!
Think must be riding the endless Chubut plains on his faithfull criollo and thinking about turnips and wurzels.
Tobias and his alter ego TTT are probably diving deep into different thesaura with an aim to blind us with erudition.
The problem is that none of those things pays the bills, and La Cámpora is probably out of cash with Máximo laid up.
Pretty poor prospect for the malvinistas!!!!
The World Bank and IMF, who first pushed unworkable neoliberal policies and then punish the default which was their inevitable result
#12 “You are trying to liken Argentina to Gaza? Really?”
Both are victimised and then further punished for their democratic choices by the so called international community. Although of course Gaza is even poorer as it is smaller, weaker and constantly bombed (including today, in case anyone else noticed)
#16 I'm sure if thats right it will appear in full on mercopress, they won't miss an opportunity to print a negative story about Argentina...
#22 I never said that. But I do think the Latin American left will head off their immediate difficulties to continue their project of making an imminent end of the world less likely =)
#24 If Cristina does lose power I will not repudiate her, I will continue to defend her in exile or against any persecution she may face in a neoliberal restoration, I am loyal and true and do not simply run after power, my politics are the same in every coutry and in most are in opposition. I just don't think its likely I'll get to prove my loyalty to a weakened Cristina, as she goes from strength to strength =)
@27 I agree that what Argentina needs is a massive cut in public spending and that because they are unwilling to do this (as you say for purely political reasons) that the current economic model is not stable (i.e. spending more than you a) have and b) can borrow and afford to pay back).
Yes the european model was highly flawed and was caused by greedy banks over exposing themseleves to risky venture and not retaining high enougth levels of resveres. However, the difference between the EU and Mercsour is that the EU has systems and the desire to help members out when in trouble, i.e. the strong nations less effected support the not so well. This does not exisit in mercsour. In addition all the european countries most affected have been those with a history of large public sector spending and or low tax yields.
You are not good at physiognomy. Don't quite your daily.
@30
Argentina is not paying the defaulted money. That's why is called default. What is the point of a default if you must pay everything back?
Would you as an individual go to bankrupcy over 100.000 dollars if you still had to pay it all back after the procedure??
@31
The olympics are not a requirement for freedom. I mean freedom from countries like yours. The best thing is not to owe anyone anything, if it means not going to the olympics fine. No one in Argentina will be watching anyways.
“You are not good at physiognomy. Don't quite your daily.”
Translation please.
You judge me for certain analect passages (selectively chosen by you), which I indite here; that is a very shallow and illusory analysis of any person.
I'm afraid you're mistaken, I merely commented that you, in your two personas, were probably consulting thesaura to blind the rest of us with your erudition.
Not slectively chosen analect passage in the case!!
I haven't used “tobias” in 2 weeks, ever since I promised to Xect I would stop using both names. You see, he is at least somewhat objective and I appreciate that. So I keep my promises to such people.
I see you also as Xect, somewhat objective, thus I treat you with much more respect than most other people here.
The easiest way I show respect? I'm very unique: the more respect I have for someone, the simpler my vernacular becomes. The less respect, the more you will see 15th century language in my writings.
Argentina at the moment is still borrowing money from the world bank, My money may I add as a British tax payer.
The Argentine Gov is a bit cheeky isn't it by borrowing money it probably won't pay back.
Yes be debt free, but why expect us to pick up the tab.
It would help if you cite the latest borrowings by Argentina from the World Bank.
I'm not expecting anyone to pick up the tab, that is why I celebrate the fact Argentina cannot borrow to this day, it has not borrowed in many years, so that is good for us and for the lender (since they are dummer than house dust).
data.worldbank.org/country/argentina
(near the bottom for finance info)
$9,376,674,673 loaned as of 4/30/2012 - only $2,500,000
Paid in as of 3/31/2012
In the last few years, there has been no major borrowings from that institution.
A complete pay-off like we did to the IMF would be best, and then withdraw from the body just as we did the IMF.
The problem is Argentina is struggling to meet the payments, hence why it was brought in new laws to allow them to use Banco Nacional funds as well as the restrictions on doller purchases which the government needs to make these repayments. Like you said what is needed is a cut in spending.
To correct a misconception, British tax payers money does not go to Argentina in world bank loans, it is used like many othr countries to underwrite the loans.
finances.worldbank.org/Loan-and-Credit-Administration/IBRD-Statement-of-Loans-Latest-Available-Snapshot/sfv5-tf7p
(Use the filter so you can remove all the other countries except Argentina)
Ministerio de Economia y Finanzas Public has been receiving funds(or will be) and some are DISBURSING or APPROVED with repayment dates that won't even start until some years into the future.
I agree, an IMF style payoff is the way to go!
At the moment the the Argentine gov is being propped up by some of the countries that are effectively keeping it in power!
Kind of like that saying - biting the hand that feeds you!
The link above (althought a second hand source) gives some idea of recent and upcoming loans.
Argentina's budget is a few dozen billion dollars... If you want to believe you are feeding me and my government, be my guest.
Just because Arg thinks they defaulted doesn't mean that the bonds that weren't reissued don't have to be paid back....does the term holdouts mean anything to you?
Arg will also have to pay the ISCID judgments and the IDB and WB loans as they come due. I don't see them being rolled over while CFK is the still the dictator.
I don't see how it will be possible without U$ though...I 'm not sure where the U$14B for this yrs nat gas is going to come from...
The holdouts are not getting a cent bank, they never even wanted to sit down and discuss in good faith.
Their choice.
At the moment the the Argentine gov is being propped up by some of the countries (enemies) it is in dispute with that are effectively keeping it in power!
Arg owes more than the BCRA reserves in judgments, holdouts, Int'l loan commitments. Arg is already already bankrupt you just don't know it yet.
When is SCOTUS going to rule on that?? Soon I think...
'Poor but free' , only someone that knows Mama will put the next meal on the table would say that. The poor are never free.
This ruling has the potential of destroying the economy of Argentina.
The US State and Prez don't want the reserves to be attached but their opinion is only taken lightly. Very interesting indeed!
Even if it is was what you said, a couple of hundred million a year should be repaid in full!
As EnginnerAbroad links show the Americans believe that Argentina CAN pay
”We consider the stance of Argentina particularly concerning since the country’s per capita income belongs to the group of mid-income countries”, said before the US Congress Marisa Lago Assistant Deputy Treasury Secretary for international markets.
Only any elitist snob like you would state the poor can't be free. However, in reality you are correct, in YOUR countries the poor are not free, they are slaves of the system. In Argentina, they are slaves of the politicians.
But countries are not people. If Argentina cut expenses it would never need to tap markets again.
@55
Yes, American court decisions are so obeyed in Argentina. HAHAHAHA.
So let's see how that goes after July 5th.
Why is it suddenly the issue of the lending party when the country is so corrupt that it's unable to pay anything back. Suddenly it becomes not the borrowers fault.
Amazes me.
Why do you think it costs 5-6X more to build a road or dam in Argentina as compared to the USA..BAKEESH MAAANNN
@59. Indeed. And the feckless attitude to paying their debts by the Argentine government seems to filter down to their supporters. One of my first-hand knowledge stories follows......
An Argentine friend of mine took out credit cards and maxed them out on what I consider frivolous items like perfume, eating out, foreign trips etc. She complains repeatedly that she has to pay the money back. I pointed out to her that she borrowed and spent the money so she has to pay it back. Still she complained and whined about it and the fact that the credit card company called her every day about the debt. Again I pointed out that she owed them money and they would call her until she repaid it. On about my third or fourth visit and her still complaining I talked her into getting a full-time job and meeting with the bank to arrange a repayment schedule she could afford. She kept to it for just three months before stopping. I asked her why and she said she had reduced her hours to part-time because 'working 7 hours a day was too tiring'. At her age I was regularly working 60 and 70 hour weeks.
Shoudn't have bought so many perfumes Elaine. Just a shower or two a day does wonders, maybe one day you Europeans will find out for yourselves.
As for “freedom”, do a quickie survey in your country. I bet a majority feel trapped by the system and not free. Sorry, that is a well known perception universally.
You're right that a lot of people in Europe feel under pressure but most of us do understand that we can't just sidestep our responsibilities in paying something back. painful now, but we didn't need to borrow when we did.
Argentina is capable of paying it's debts - why shouldn't it TTT?
Could be devastating right?
Brr it is cold in July when there is no gas....
Poor and free...or lazy and ignorant?
Not just Europe, everywhere.
“Poverty” is relative. You could enjoy weekend vacations in London, Paris, and Milan like yankeeboy and still feel a miserable, downcast individual, merely because your more affluent neighbors also include Dubai on their patrician escapades :)
As long as one can have food security, a secure roof, and personal health, one should strive to achieve social independence. The way not to do so is to take on debt, personal or private. Or also, to sire progeny you cannot afford (right, Elaine?)
@65
I don't really have time to educate myself on the matter, but I can tell you that usually in the cases of sovereigns judicial adjudications are rarely applied in pure form, geopolitical concerns nearly always trump the letter of the law.
Deaf dumb and blind,
And going downwards, fast .
.
My friend in Argentina is not unique is rushing to join the credit card bonanza but not having the long-term view of actually having to repay it or the work ethic to even try.
What credit bonanza?
Just a suggestion: ask them why they sired so many infants. Cruel put pertinent question. I doubt you would have the temerity to pose the query.
I just wonder why you always have some “argie friend” in financial difficulties are you living in “Villa 31” perhaps?
@
What Argentina is doing is pretty clear.
As her, by own decision, is out of private financial market to borrow money to not create more debt.
And having still a remaining debt left by Menen & co from the ’90 to 2003, which Argentina is currently re paying.
The only dollars Arg. needs now are to server not replaceable imports and external remaining debt.
So Argentina by turning pressure over multinationals and companies that can manufacture same products in Argentina. The job is quite well done. After all who cares about multinationals only idiots and lobbyist.
The difference is that countries like UK and Spain to pay its “external interest debt service”, they need to continue borrowing. And to do that Politicians need to show “the Market” they are willing to pay even with flesh.
Not theirs or fellow coffers or happy bankers of course No, no sir otherwise with flesh but from the stupid taxpayer that ironically also have voted for them to do the nasty job.
So they are cutting on education, health service, basic service, etc, etc. contracting even more the dying economy and causing more unemployment and recession.
What for? to collapse in the near future of course. Why? Because is logic and natural.
Does ISI policy works? Of course it works here an example.
In the latest 90 toothpaste and shaving gel made by Gillette were imported from UK.
Since 2004 they are made in Argentina and exported.
Thousand of examples like this can be cited.
Once the remaining debt is paid and oil imports will be cut down due to more exploring and oil refining in Argentina, import restriction will be lax.
Next step? I will recommend to provide credits in pesos to small little countries and no so little to by Arg. stuff like software, sats, communication devices, engineering plastics, etc, etc.
Can I include weapons too?
“What credit bonanza?”
Take a walk down Av. Las Heras or San Martín and count how many signs with “quotas” and “préstamos” you see; walk through many other streets in Mendoza microcentro - or any other town in Argentina - and see the same. Even supermarkets like Átomo or Carrefour let people buy food in 6 or more quotas.
You know it and I know it (I was in Argentina, including Mendoza, 4 months ago), so don't pretend.
“So they are cutting on education, health service, basic service, etc, etc. contracting even more the dying economy and causing more unemployment and recession.”
Point taken, but your government is increasing public spending at rapid levels (was 30% of GDP, is now 45%) but to do this they are just printing more pesos (an Argentinean friend who works on social community projects in Argentina said funding for the projects in US$ had been cancelled and replaced with Pesos. She said there seemed to be an unending supply but, for some reason, the money didn't go that far even when increased by 10% each year). This just fuels inflation which always hits the poorest and middle classes the hardest. I understand the clash of ideologies between left and right with regards to social/public spending but this route is only going to harm the poorest in the long run as the rich will be able to hedge against it.
Furthermore, providing peso credits won't work where there is a huge inflationary problem and, if you can't pay in US$, then you won't be able to make “software, sats, communication devices” and there are special components that need to be imported to produce these. They are expensive and you need to pay in a proper reserve currency.
The fundamental issue with this is thinking that everything you need can be made in Argentina. In theory it might be possible but you would need currency reserves 5x the size of China just to get these industries off the ground, let alone maintaining them.
“... a remaining debt left by Menen & co from the ’90 to 2003, which Argentina is currently re paying.”
Wasn't Carlos Menem an Argentine president, elected by the Argentine people?
Wasn't Carlos Menem an Argentine president, reelected by the Argentine people in 1995?
The debt “which Argentina is currently repaying” is the debt incurred by the elected government's erratic economical policy, not the usual “somebody else”s fault.
a puppy in the making
Argentinian hospitals are on the verge of collapse because they can't get medical supplies out of customs! Diabetics don't have syringes or insulin, there is little to no Cancer or HIV medicine IN THE COUNTRY!
These ridiculous import restrictions are literally KILLING PEOPLE!
It is hard to imagine that the people of Argentina are as stupid as their rulers but everyday I am convinced a little more.
1- Spending is a luxury vacation.
Using taxpayer money to save banks is silly spending.
You don’t spend on education otherwise you invest.
Do don’t spend on infrastructure otherwise you invest.
So I would like to know what you have included into your % calculation.
2- We are talking about macroeconomic and not personal or friend experiences.
3- “inflation which always hits the poorest and middle classes the hardest”
A guy without job in UK (with 4% real inflation) or in Spain (with 6% real inflation) is infinitely more harmed that a one in Argentina working and with 50% inflation. The last one loses 50% of what he earns and remain with 50% the other first ones get –4% and –6% and if in the future are lucky to get a job he ended up with a huge external debt. How much that will take from his future earnings?
4- Nope why inflation if you are lending to foreigners to buy your products? US having doing this since the WWII do you need any other proof?
5- Fist at all who said that Arg cannot pays in U$s? And second who say that you need much U$s to produce this?
Here and example How much do you think Ebay e-commerce platform software cost? Lets say a couple of millions perhaps?
With a cheap U$s500 I can produce something similar and if you have U$s 250.000 to invest I will sell it to you. Add value it is call produced from knowledge. And with the same cheap PC, I can make more money if I fund the rights clients of course. Ha ha
On the electronic stuff is the some a cheap Chinese laser beam (U$s7 cost) plus some other stuff total electronic cost U$s700 + some software can turns in a U$s 14000 commercial application sale.
On sats and other stuff same equation.
6- Last you don’t need any reserves the example is US they thrown U$s everywhere since WWII.
Why do you think the Euro in under attack at the moment?
EU is having WWIII but instead to use weapons someone is using $$$.
Think about it.
@St.John
You are absolutely right mate.
Raise capital to pay off the debts he inherited from the military dictatorship , which in turn deposed Isabelita because she was running up too many debts trying to pay off the debts left by the Ongania government, who was trying to pay off Frondizi's debts , who was paying off Peron's .....
Peron assumed the presidency in 1948 with so much gold in reserve that it didn't fit in the strongrooms and had to be piled in corridors of the Treasury .
When he was kicked out in 1955 there was nothing left , but a lot of debt , yet the Argentine people idolise him and his wife for trying to create a protectionist self sufficient workers paradise , which was never going to be achievable , least of all in Argentina.
Menem on the other hand tried to make Argentina a progressive , neo liberal economy based on free enterprise , hard work , exports and international trade .
The Argentines don't like the idea of hard work , preferring to live off the efforts of others , which is why ANY economic model is bound to fail in a country that by rights should be the 10th strongest economy in the world .
“Raise capital to pay off the debts he inherited from the military dictatorship , which in turn deposed Isabelita because she was running up too many debts”
The debt hold under “Isabelita” terms as you say (till 1976) was 5bn really a bargain compared with the 80bn left by the militaries.
I reality the privates big groups in Arg. used the military dictatorship to borrow money from abroad and never pay back.
Cavallo the former Economy minister turns private debt from multinationals and private Arg. big groups into a public debt. Like Cameron have done in UK with the banks.
Menem was a monkey ignorant that cause to Argentina more damage than a Tomahawk to a wood house.
Usurping Pirate come on where do you get all this crap?
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