Argentina is a South American nation with a temperate climate that produces similar crops to the United States and France. The production of food occupies most of the population either as farmers, ranchers or food-processing manufacturers. Argentina's main trading partners are Brazil, the United States and Chile.
Identification
Argentina is a major producer and exporter of wine, beef and cereal grains. This country is located along much of the southeast Atlantic coast of South America. Argentina, whose capitol is Buenos Aires, is bordered in the west by Chile and to the north by Paraquay, Uruquay, Brazil and Bolivia. About ten percent of the country is arable and agriculture accounts for 10% of its GDP. In addition, food processing, milling flour, packing meat and canning fruits and vegetables are the main focus of the nation's manufacturing concerns. Food production drives the Argentinian economy.
Types
The five most significant crops grown in Argentina are soybeans, maize (corn), sugar cane, wheat and sunflowers. Argentina also produces lemons, grapes, tea and peanuts. Both grapes and tea are sources of tannin, and Argentina is the world's largest producer of that commodity. Wine makes up 24% of Argentinian exports to the United States. In the first six months of 2008, the U.S. imported over two million cases of Argentinian wine. Argentina is also the number one producer of linseed oil, a source of Omega-3 fatty acids.
Features
A large part of southwest Argentina consists of dry, grassy plains. The region, called the Pampas, is perfect for cattle ranching. Before 1997, the United States banned the import of Argentinian beef out of a fear that it might be contaminated with hoof-and-mouth disease. Since 1997, when the disease was eradicated from Argentina, the United States has purchased 20,000 metric tons of beef each year.
Considerations
There are some regulations that must be respected when trading with Argentina. The nation charges a duty on the commodities it exports. The rate depends on the product, but it ranges between 5% and 20%. Perishable foods and drinks that must be refrigerated cannot be exported, and peaches cannot be imported to Argentina.
Expert Insight
As a member in good standing of the United Nations, Argentina respects any trade embargos enacted by that body. Argentina is a member of the MERCOSUR trade agreement. This creates a "Common Market of the South" among the nations of Brazil, Uruquay, Paraquay and Argentina. It also belongs to FTAA, the Free Trade Area of the Americas. Per this arrangement, the United States imports about $500 million each month from Argentina.
