Policy Memo for Argentina G20

Running head: POLICY MEMO FOR ARGENTINA G20
Policy Memo for Argentina G20
Name of the Student
Name of the University
Author’s Note

1POLICY MEMO FOR ARGENTINA G20
To,
The G20 Board of Directors,
From,
Advisor of Argentina
3rd December 2018
Subject- Discussion on Argentina Trade and Finance Position
Respected Sir,
The attached Memo summarizes about the trade and finance position of Argentina and
the policies this country might be seeking in G20 dialog. The memo mainly focuses on the
finance and trade policies adopted by the government of Argentina. This nation has displayed
high growth level while maintaining positive trade balance (Atlas.media.mit.edu. 2018). This
country has always been dependent on the foreign trade for achieving solid social as well as
economic growth. This nation has developed an agro- export framework where they were
dependent on external sector. Growth in international mainly trade with MERCOSUR partners
has been the major factors that drive this economy MERCOSUR is the political as well as
economic agreement between Argentina, Uruguay, Paraguay, Venezuela. The purpose of
Mercosur is to engage in FTA negotiations with other partners and thus serves as major outlet for
the Argentine exports. As of 2017, Argentina world ranking in respect of import is 44 and export
is 47. The rank of Argentina’s trade balance is 99 in the world. In the year 2016, this nation has

2POLICY MEMO FOR ARGENTINA G20
exported near around $59B and imported around $55.8 B, thereby resulting in positive trade
balance of $3.21B. During the past five years, the total exports of Argentina declined at yearly
rate of around -7% that is from $83.9B in the year 2011 to $59B in the year 2016. Moreover, the
total imports of this country have declined at yearly rate of around -4.7% during the past five
years that is from $72.4B in 2011 to $55.8B in the year 2016. Overall, this country has been
experiencing positive trade balance of around $3.21 B in the net exports (Atlas.media.mit.edu
2018). The government of Argentina has adopted several instruments in trade regime for
controlling exports or imports of goods. Over the years, this nation designed tariff schedule
based on three characteristics that involve- kinds of products, level of fabrication and domestic
supply.
Figure 1: Trade balance of Argentina
Source: (Atlas.media.mit.edu. 2018)
Over the last few years, the financial position of Argentina has declined. A run on peso currency
has mainly shown investors that this nation’s financial volatility is far from over. The
depreciation has made this nation’s dollar debts highly expensive for government, thereby
turning to IMF for $50 billion loan. High inflation rate of Argentina is one of the determinants