Argentina Economy and Foreign Trade Deregulation

The new Argentine president issued Executive Decree (DNU, using the Spanish acronym) 70/2023, “Foundation for the Reconstruction of the Argentine Economy,” on December 21, 2023.  It declares a two-year public emergency in economic, financial, fiscal, administrative, pension, tariff, health, and social matters.  Subsequently, on December 27, the president sent legislation to Congress (the “omnibus bill”) modifying over 300 current laws and articles on economic, tax, energy, criminal, and electoral matters, with the objective of restoring economic order.  Further new measures are expected to be issued, as well.

While some aspects of the DNU are already being enforced, there is likely to be a long transition period until it is finally approved (or rejected) as a whole by the Argentine Congress and followed by implementing regulations.  Therefore, this is a developing, fluid situation.  As more details are announced, we will provide further information on them and their potential impacts.

The DNU deregulates trade, services, and industry by repealing or amending multiple laws and regulations.  It seeks to reform the public sector, including the eventual privatization of state-owned companies.  The proposed changes affect the financial sector, to include credit card payments; the labor system; international trade; the agricultural sector; mining; energy; commercial air travel; health; communication services; sports organizations; corporate law; tourism; and the automotive registry.

The president’s goal is to better align Argentina with international standards, particularly regarding the World Trade Organization (WTO) and the Organization for Economic Cooperation and Development (OECD) and to promote changes facilitating foreign trade transactions, opening imports, and reforming Customs procedures.  

The DNU follows a decision to eliminate the import licensing regime (SIRA, using the Spanish acronym), as well as capital controls and limitations to access to the foreign exchange market to pay for imports which led to an accumulation of nearly $50 billion in commercial debt.  Imports can now enter more freely without the need to request an import license.  However, importers must now file a statement (SEDI) which will be analyzed by the tax/Customs authority (AFIP).  As of December 13, importers’ ability to access the foreign exchange market to pay for new imports will depend on the type of good.  The schedule ranges from immediate payment (for energy), 30 days (for pharmaceutical, health-related goods, fertilizers), to a maximum term of 180 days (cars and other final goods).  For other goods, the payment is in four equal installments, paid at 30, 60, 90, and 120 days.

With the aim of reducing existing commercial debt with international suppliers, the Argentine government launched a special dollar-linked bond called the BOPREAL, or Reconstruction Bond, purchasable in pesos and paid out in dollars, with maturities from three months to four years at up to a five percent interest rate.   CS Argentina will release a more detailed report on SEDI and BOPREAL shortly.  

We will relay further details as they are confirmed within this transition period.  For additional information please contact us:  Office.BuenosAires@trade.gov.