Trade relations and statistics
Argentina, Brazil, Paraguay and Uruguay are members of the Southern
Common Market (Mercosur). Chile and Bolivia have recently adhered as
partners, and may become full members, although the timing will depend
on the negotiations for Americas Free Trade Association. Mercosur
represents a potential market of 200 million people and a joint GDP of
more than US$1 trillion, which places it among the four largest
economies of the world after NAFTA, the European Union and Japan.
Members of Mercosur pay no duties on virtually all items with the
exception of specifically negotiated items, such as cars, shoes, sugar
cane, poultry and pig meat.
Bilateral tariff preference agreements exist between the 11
Latin American member countries of the trade group Latin American
Integration Association (LAIA).
The LAIA has a flexible mandate to establish, in a gradual and progressive manner, a Latin American common market.
Argentina is a member of the Cairns Group, which was established
by major agricultural exporting countries (including Australia) that do
not subsidise these exports. The Cairns Group strives to bring about
reforms in international agricultural trade, including reductions in
export subsidies, barriers to access, and internal support measures. It
also represents its members' interests in GATT negotiations.
Although an industrialised country, Argentina's major export
commodities continue to include agricultural products, minerals, and
fats and oils.
Major Australian exports to Argentina (2006-07):
- Coal – A$84 million
- Specialised machinery – A$10 million
- Crude vegetable materials – A$5 million
- Wool – A$4 million
Major Australian imports from Argentina (2006-07):
- 'Soft' fixed vegetable fats and oils – A$36 million
- Leather – A$26 million
- Oil seeds & oleaginous fruits 'soft' – A$25 million
- Animal feed – A$24 million
(Source: Department of Foreign Affairs and Trade - Country economic fact sheet) |