MercoPress. South Atlantic News Agency

New US tariff scheme expands Argentine zero-duty lines to 2,212

Argentina was also placed in the lowest band of the new regime, with an additional 10% tariff, the same rate that previously applied

The new US tariff scheme that took effect on Friday raised to 2,212 the number of Argentine tariff lines that can enter the US market at a 0% rate. To the 1,675 lines already covered by the Reciprocal Trade and Investment Agreement (ARTI), signed on February 5 in Washington, another 537 were added following a review by the Office of the US Trade Representative (USTR).

Argentina was also placed in the lowest band of the new regime, with an additional 10% tariff, the same rate that previously applied. Under the criteria published by the USTR, that rate applies to economies that already ban the import of goods produced with forced labor, committed to doing so through a reciprocal trade agreement, or apply a partial regime with that effect. That group also includes Canada, Mexico, India, Indonesia, the United Kingdom, Guatemala, and Honduras, among others. The remaining partners covered received a 12.5% rate.

In Argentina's case, its placement in the lower band rests on the commitments made in the February agreement to ban such imports, even though the domestic regime is not yet in force. The original 1,675 lines, which official estimates suggest would enable exports worth some $1.013 billion, were not affected by the new mechanism. A further 93 country-specific exemptions were added, including jojoba and argan oils, live animals, flowers, cork, timber, and precious stones.

The US Chamber of Commerce in Argentina (AmCham) said the ARTI will begin to be fully implemented and that the measure broadens opportunities for local exports. The Argentine government, for its part, played down the impact of the new regime and prefers to await definitions from Washington before sending the bilateral agreement to Congress for consideration.

Analysts quoted by the Argentine press nonetheless pointed to elements of uncertainty. International relations scholar Julieta Zelicovich said the tariffs work as “a pressure mechanism” that creates a “state of permanent negotiation” with trading partners, and anticipated that the new rules will be challenged in court, as happened with the tariffs issued under the emergency powers law and Section 122. Economist Federico Vaccarezza warned that the agreement lacks a dispute settlement mechanism.

The round covers 60 trading partners accounting for about 99% of US imports and replaces the universal 10% tariff that expired on Friday. Brazil, by contrast, has since Wednesday faced 25% duties issued under the same legal instrument, following a separate investigation.