LATAM: Foreign Investors Survey 2017 ttitude Consulting
ARGENTINA
Greater Attractions
Very beneficial radical changes. The government encourages investment and pro-market rules. Freed exchange market, sovereign default fixed. Reduced inflation and fiscal deficit, utility rates corrected.
Political Risks?
The government does not possess the majority of both legislative chambers, but so far it has been able to pass major laws that it has proposed to Congress.
Adequate Labor Laws?
The regulated and highly unionized European model should be modernized. But they have negotiated reasonable working conditions for large industrial projects in recent years.
Adequate Transparency and Corruption Framework?
Reasonable legal framework and they are working on its enforcement, at both judicial and administrative levels.
Suitable Fiscal Framework for Foreign Investment?
Same rules for many years( easier foreign investment). Almost all export taxes have been repealed. But some distortionary taxes( eg. gross income and provincial seals), and others such as the tax on banking transactions should be modified. There are also some issues in relation to income tax, although they have not prevented investment.
Proper Framework for Promotion and Mutual Investment Protection?
Suitable. 56 Bilateral Investment Treaties in force, and practically regularized the implementation of pending reports.
Advantages of Your country over Others in the Zone
“ Catch-up” with an inferior stock investment in recent years compared to other countries in the region. The government plans to invest in infrastructure and energy( tenders of non-conventional energy, power plants, special conditions for oil & gas). Interesting agricultural sector( removal of restrictions and export taxes).
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Positive Medium Risk Negative