The transition from a developing nation to a developed nation requires the suitable political atmosphere that can sustain such growth. Case in point the Argentinian government. Before 2015 the business climate in Argentina was hostile to investors. This was due to significant barriers that affected imports, exports and capital flows. However since 2015 President Mauricio Macri took over he has been quick to implement policies aimed at remedying the situation. His reforms are heavily focused on trade and development (Post, n.d.). This has created a better business and political climate within the country attracting investors. Development is also evidenced by the fact that they successfully bid to host the G20 summit.
Argentina has various trade relations. It has improved its relations with the European Union so much so that it is now their second largest trade partner with Brazil being the largest. Australia particularly has a strong bilateral relationship with her from matters ranging trade, international peacekeeping to wildlife conservation efforts (Post, n.d.). Argentina is also a member of MERCOSUR through which it enjoys favorable trade agreements with fellow member states but also countries such as Israel, Morocco, and Mexico (Post, n.d.).
The main exports of Argentina are namely: soybean meal, corn, and soybean oil and delivery trucks. The key imports from its major trading partners are: cars, vehicle parts, telephones refined petroleum products and petroleum gas (Wood, 2015).
There are various trends in the current international trade market. First is the impact of Brexit on global trade (Wood, 2015). Negotiations are ongoing but it is apparent that the move will have a huge impact once completed since the EU and UK are both integral trade partners of many countries. Second is the rise of India, Brazil and New Zealand in the international market.
The 3 nations have high economic growth potentials and are therefore attracting many investors (Wood, 2015). Third is the trend by many countries to reduce their oil dependency. Countries such as Russia, Saudi Arabia, Nigeria and Angola are all diversifying their economies so as to avert a crisis should the oil market fluctuate (Wood, 2015). Another trend is the introduction of clean tech exports (Wood, 2015).
In summary these trends show where global trade is headed in the future. They also show us the expectations and predictions that can occur in the global market in the future.
- Wood, A. (2015). World Trade Report 2014 – Trade and Development: Recent Trends and the Role of the WTO World Trade Organization, 2014. World Trade Review, 14(03), 546-548. http://dx.doi.org/10.1017/s1474745615000269
- Bustos, P. (2011). Trade liberalization, exports, and technology upgrading: Evidence on the impact of MERCOSUR on Argentinian firms. American Economic Review, 101(1), 304-40.
- Post, A. Foreign and domestic investment in Argentina.
- Mera, L. G. (2005). Explaining MERCOSUR’s survival: Strategic sources of Argentine–Brazilian convergence. Journal of Latin American Studies, 37(1), 109-140.