The U.S. Department of State’s Investment Climate Statements provide information on the business climates of more than 170 economies and are prepared by economic officers stationed in embassies and posts around the world. They analyze a variety of economies that are or could be markets for U.S. businesses. The Investment Climate Statements are also references for working with partner governments to create enabling business environments that are not only economically sound, but address issues of labor, human rights, responsible business conduct, and steps taken to combat corruption. The reports cover topics including Openness to Investment, Legal and Regulatory Systems, Protection of Real and Intellectual Property Rights, Financial Sector, State-Owned Enterprises, Responsible Business Conduct, and Corruption.
These statements highlight persistent barriers to further U.S. investment. Addressing these barriers would expand high-quality, private sector-led investment in infrastructure, further women’s economic empowerment, and facilitate a healthy business environment for the digital economy.
Executive Summary
Argentina presents investment and trade opportunities, particularly in agriculture, mining and critical minerals, energy, health, infrastructure, information technology, tourism, the knowledge-economy, and administrative services. Economic uncertainty, some interventionist policies, high inflation, and persistent economic stagnation have prevented the country from maximizing its potential. However, since President Javier Milei took office in December 2023, the government has started removing some interventionist polices and is determined to make structural changes to mold Argentina into a market friendly economy. High inflation, recession, and temporary capital controls are the country’s biggest challenges for stabilizing the economy and improving its investment climate.
President Javier Milei’s administration has set forth a robust economic agenda centered on a series of key priorities to reshape Argentina’s financial landscape. One of his foremost goals is reducing the country’s rampant inflation, which has severely impacted the cost of living and economic stability. Complementing this, Milei has committed to balancing the national budget to prevent further debt accumulation. In a push towards a leaner government, he has proposed privatizations of state-owned enterprises and reduced the number of government ministries, intending to streamline operations and reduce public spending. Furthermore, the administration plans to introduce legislation which will encompass various economic reforms and has used executive action through Decrees of Necessity and Urgency (DNUs) to expedite changes where possible. Lastly, Milei supports enhancing intellectual property (IP) laws to foster innovation and attract investment, seeing this as critical to modernizing Argentina’s economy and promoting growth. However, capital controls remain in place and companies face challenges to repay external debt, access the foreign exchange market, and repatriate funds. The Milei Administration committed to lifting capital controls, but only once Argentina has reached macroeconomic stability.
Both domestic and foreign companies frequently point to a high tax burden and rigid labor laws as obstacles to further investment in Argentina. In 2023, Argentina ranked 73 out of 132 countries evaluated in the World Intellectual Property Organization’s Global Innovation Index (GII), falling four places in the ranking compared to 2022. The GII is an indicator of a country’s ability to innovate, based on the premise that innovation is a driver of a nation’s economic growth and prosperity. In the latest Transparency International Corruption Perceptions Index (CPI), Argentina ranked 98 out of 180 countries in 2023, dropping four places compared to 2022.
As a Southern Common Market (MERCOSUR) member, Argentina signed a free trade and investment agreement with the European Union (EU) and the European Free Trade Association (EFTA). Both the MERCOSUR and the EU economic blocs have reached a new political agreement in December 2024, but Argentina has not yet ratified these agreements. In 2022, Argentina and MERCOSUR concluded negotiations with Singapore. During 2023, there was little progress with ongoing trade negotiations with South Korea, Canada, and Indonesia. Argentina ratified the WTO Trade Facilitation Agreement on January 22, 2018. More than 330 U.S. companies operate in Argentina, and the United States continues to be the top investor in Argentina with USD $14.5 billion (stock) of foreign direct investment as of 2023.
To access the ICS, visit the U.S. Department of State Investment Climate Statement website or view the ICS for Argentina directly.