REPUBLIC ARGENTINE Market Report: featuring ourlocal members May 2020

OceanX - Version 2.0 / May 2020 Market Report March 2020

Country Pro*ile:

Capital: Population: 44,494,502 2018

Area: 2,780,400 km2

Of5icial Language: Spanish Currency Unit: Argantine Peso (ARS) 1 USD = 64.93 ARS (2020) GDP (Current, 2018): $ 519,871,519.81 GDP per capita (2018): $11,683.9 GDP Growth Rate (2018): -2.5 % (Annual) In5lation Rate (2019): 53.8% (Annual) Unemployment Rate(2019): 9.98% Tax Revenue (2017) (% of GDP): 11.0 % Imports of Goods and services (% of GDP): 16.42% Exports of Goods and services (% of GDP): 14.28 %

* Source: World Bank Data

Argentina Economical growth declared to be negative of -2.5% in 2018 and -3.1 in 2019 following a cyclic pattern in the last decade. The economic performance however still at a high trend since 2002. It’s forecasted to slightly recover by end of 2020 with -1.3 then a positive 1.4 and 2.3 by 2022.

Corporate tax: The rate of pro2its tax on net taxable business pro2its has been reduced to 30% (formerly 35%) for 2iscal years beginning on or after 1 January 2018. As a consequence of a recent tax reform, it will be further reduced to 25% for 2iscal years beginning on or after 1 January 2021.

Individual Income Tax: progressive income tax rates ranging from 5% to 35%; however, special tax rates are applicable in case of gains derived from securities (including dividends), interest, and real property.

Value Added Tax: Standard VAT 21%

T +41 62 544 94 10 E [email protected] I oceanx.network OceanX AG, Fluhgasse 135, 5080 Laufenburg, Switzerland General Facts: Argentina is one of the largest economies in with a GDP more than 519 Billion USD. The country is rich in natural resources (Gas and Lithium) and joys from extraordinary fertile lands which favors its Agriculture and Livestock industries.

Argentina has signi2icant opportunities in renewable energy, manufacturing, and innovative services in high tech industries.

However, the historical volatility of economic growth and the accumulation of institutional obstacles have compromised the country’s development. Urban poverty in Argentina remains high and reaches 35,4% of population, and in2lation rate as high as 53%.

The reforms of 2002 when shifted to a 2loating currency from a convertible currency has signi2icantly in2luenced the positive trend. In addition the devaluation of the ARS in recent years is strongly supporting Argentina competitiveness in exports.

EXPORT MARKET

In Argentina exports, have been the source of growth in recent years. Argentina exports mostly agricultural products with cereals, fats and oils, beef and related products and dairy products accounting for 36 % of total shipments. Other exports include: motor vehicles and parts (12 %); chemicals and related products (7%); crude oil and fuels (5%) and base metals and glassware (4%).

Export Trade Volume (2018): 61.6 billion USD

Top Commodities: Soybean grains and meal, corn, wheat, dried legumes, peanuts, barley, apples and citrus fruit, wheat *lours, bovine meat, frozen *ish, industrial fatty acids, frozen poultry .

Top Exported Commodity Exports in B. $ Commodities

1 Soy Beans, Grains, meal, oil 9.8 and derivatives 2 Cereals 7.5

3 Vehicles 7.4

4 Animals/ vegetables fats and Oil 4

5 Mineral Fuels Including Oil 2.9

*source: http://www.worldsrichestcountries.com/

Top Destination Countries:

T +41 62 544 94 10 E [email protected] I oceanx.network OceanX AG, Fluhgasse 135, 5080 Laufenburg, Switzerland Main export partners are: Brazil (21 %), China (7 %), USA (6 %), (5 %) and Spain (4 %). Others include: Algeria, Netherlands, Uruguay, Italy and Venezuela. Top Destination Destination Countries Exports in B. $ Countries

1 Brazil 7.6 2 China 3.2

3 USA 2.4 4 Chile 2.3 5 Spain 1.2 *source: http://www.worldsrichestcountries.com/

IMPORT MARKET

Import Trade Volume (2018): 65.4 billion USD

Argentina recorded a negative Trade balance of around 4 Billion USD in 2018. While imports are declining in the last years, Cars are still topping the list of most imported products with 16.8 % of total imports to the country. There are also many growing opportunities to export to Argentina (Fastest growing imported commodities: Seed Oil, Zinc, Meat, Books, Cereals).

Top Commodities:

Top Imported Commodity Imports in B.$ Commodities

1 Vehicles 11/ 16.8% 2 Machinery 9.5/ 14.5% 3 Electronic Equipment 7.9/ 12% 4 Mineral Fuels Including Oil 6.3/ 9.6% 5 Oil Seeds 2.6/ 4% *source: http://www.worldsrichestcountries.com/

Top Origin Countries:

The main import trade partner of Argentina is Brazil (Vehicules, Machinery, plastics and IronSteel…) Followed by China (Electronic products, Machinery, vehicles…)

Top Origin Countries Origin Countries Imports in B.S

1 Brazil 13.5 2 China 11 3 USA 5.6 4 Germany 2.4

T +41 62 544 94 10 E [email protected] I oceanx.network OceanX AG, Fluhgasse 135, 5080 Laufenburg, Switzerland Top Origin Countries Origin Countries Imports in B.S 5 Paraguay 1.8 *source: http://www.worldsrichestcountries.com/

Road Rail Air Sea

Total: 231374KM Railway Length: 40 245 km 50 Airports Traffic 2019: 1801292 TEUs Highway: 2798 KM 19 International 30% paved Freight Carried 312 M. tons

Argentina Ocean

The is the main container port of the country, handling 85% of the nation’s containers. The port is the main cargo entry point for the province of

T +41 62 544 94 10 E [email protected] I oceanx.network OceanX AG, Fluhgasse 135, 5080 Laufenburg, Switzerland Buenos Aires, where most of Argentina’s population, economic activity and manufacturing activity is concentrated.

Main Ports: Buenos Aires, Zárate, Rosario, Ushuaia, Madryn

Example of Main Routes

Route Estimated Transit Time Rotterdam - Buenos Aires 32.5 days

Shanghai - Buenos Aires 54.5 days

Buenos Aires - Algeciras 28 days

Buenos Aires - Ushuaia 4 days

Buenos Aires - Navegantes 4 days

Here’s an overview on the top 5 ports in Argentina

Market Size in TEUs (2019): 1,801,292 TEUs

Main Ports Volume (TEUs) 2019

Port of Buenos Aires 1,797,955

Port of Zárate 127,140

Rosario Port 71,675

Ushuaia 59,898

Puerto Madryn 35,781

* Source: CEPAL

1. Port of Buenos Aires

This port was divided into three sectors with diverse uses and speciÞcities. New Port is the part destined to the attention of overseas searches and cabotage. The Dársena Norte area is the docking place for military ships, while the sector called Puerto Sur with an extension of 115 hectares and 5 kilometers of wharf, includes companies that carry out activities mainly for the storage of import and export merchandise, repair ship, and telecommunications companies.

TEUs: 1,797,955

2. Port of Zárate

The great advantage of this port is its geographical location on the Argentine map. Since it is located in the heart of the industrial sliding area of the country, and close to a road network that crosses the entire region. It has two specialized terminals: one for the movement of vehicles and the other for handling containers.

T +41 62 544 94 10 E [email protected] I oceanx.network OceanX AG, Fluhgasse 135, 5080 Laufenburg, Switzerland TEUs: 127,140

For more info: www.terminalzarate.com.ar

3. Rosario Port

The ßuvial port of Rosario is located on the right bank of the Paran‡ River, which allows Panamax ships to dock over its more than 3 kilometers in length. It is located 550 kilometers from the mouth to the sea.

TEUs: 71,675

For more info: www.enapro.com.ar

4. Ushuaia

For more info: www.puertoushuaia.com.ar

TEUs: 59,898

5. Puerto Madryn

Located in the province of Chubut, at the Western coast of Golfo Nuevo. 450 Km from Comodoro Rivadavia and 1400 Km from the city of Buenos Aires. Puerto Madryn was designed initially as part of the Industrial Complex of ALUAR. It has two specialized terminals one to cope with Mineral raw material imports, and the second dedicated Terminal for General Finished goods heading to Buenos Aires and Rosario.

TEUs: 35,781

For more info: www.appm.com.ar

T +41 62 544 94 10 E [email protected] I oceanx.network OceanX AG, Fluhgasse 135, 5080 Laufenburg, Switzerland OceanX Member: Mercator Transport Group

Ocean X counts among its network a strong and active member: Mercator Transport Group.

Mercator is fully involved in Export of commodities (grains, foodstuff, Agri commodities, minerals, Proteins , Fruit) and Import of machinery, parts, accessories, textiles, electronics among others). The company offers a wide coverage over all Argentina through out their of2ices in Pilar ( Buenos Aires) , Buenos Aires downtown, Rosario of2ice, and Tucuman Of2ice.

Mercator Buenos Aires Of2ice covers Argentina Central and South Mercator Rosario Branch covers North East part of the country Mercator Tucuman Branch covers North West part of the country.

Key Contact:

Mr. Federico Tomassino Phone:+ 54 11 5634 0375 Email: [email protected]

T +41 62 544 94 10 E [email protected] I oceanx.network OceanX AG, Fluhgasse 135, 5080 Laufenburg, Switzerland References

World Bank http://www.worldsrichestcountries.com/

CEPAL https://www.cepal.org/en

OEC https://oec.world/en/pro5ile/country/arg/

T +41 62 544 94 10 E [email protected] I oceanx.network OceanX AG, Fluhgasse 135, 5080 Laufenburg, Switzerland Market Report: ARGENTINE REPUBLIC Version 2.0 / May 2020 Proprietary and Confidential - OceanX Members Only