Argentina and Japan: A Strategic Partnership. Presentacion AJALAC... · ARGENTINA: GENERAL OUTLOOK...
Transcript of Argentina and Japan: A Strategic Partnership. Presentacion AJALAC... · ARGENTINA: GENERAL OUTLOOK...
A Special Lecture by Argentine Ambassador
Argentina and Japan: A Strategic Partnership
H.E. Mr. Alan Claudio BERAUD
ARGENTINA: GENERAL OUTLOOK
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MAIN FEATURES:
• Population: 43 million
• Area: 2.8 million km2
• GPD: USD 545.9 billion
• GDP per capita: USD 12,449
PROMISING PROSPECTS:
• Large and diversified economy
• Wide availability of natural resources
• High quality of human resources
• Nationwide infrastructure coverage
• Strong R&D, e.g. satellite industry,
biotechnology, nuclear science,
medicine.
• Positive institutional framework
MACROECONOMIC OUTLOOK
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Economic growth (annualized 4%)
Rise of consumption (IQ, IIQ 2017)
Record increase in investments (+13% durable equipment)
Dynamic real-estate sector: US$14.45 M mortgage loans per day in July
Significant growth in 80% of industry sectors
Inflation: working towards monthly 1% by end of the year, to achieve less than
10% annually in 2018
ARGENTINA AND THE WORLD
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Argentina already is:
1°exporter of soybean oil
1°exporter of soymeal and pellets
3°exporter of sorghum
3°exporter of soybeans
3°exporter of corn
3°exporter of sunflower oil
5°exporter of barley
6°exporter of cheese
6°producer of olive oil
6°producer of seamless tubes
One of the main producers of meat
One of the top ten exporters of wine
One of the top ten producers of milk
Latin America’s 3rd main exporter of IT
Transport and logistics services
Agribusiness (including food and beverages) &
agricultural equipment
Biotechnology and biofuels
Chemicals
Mining (copper concentrate and gold)
IT & Software development
Telecommunications
Automotive and transport equipment
Economic sectors with high growth potential:
GENERAL ECONOMIC MEASURES
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LEGACY ACTIONS
FX Different exchange rates Huge overvaluation of the peso Restrictions and controls on capital flow
Official single exchange rateManaged float FX regime Dismantling of capital controls
DEBT 2001 default Closed capital markets
Successful arrangement with holdoutsSuccessful placement of public bondsDeclining debt to GDP ratio
GOVERNABILITY
Active dialogue with opposition Holdouts law passed with strong supportMaintain and increase social plans totackle poverty
REGULATORY FRAMEWORK
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Expansion of access to financing
Simplification of import regimes
Reduction/elimination of exporttaxes
PROMOTION OF COMMERCE AND INVESTMENT
SMEs Law,
Entrepreneurs’ Law
PPP Law
Federal MiningAgreement
Labor Agreements
OPENING UP
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ECONOMIC NEGOTIATIONS
1st Export Destination:
+US$11.100 M
(20% of total)
5th Export Destination:
+US$ 4.100 M
EUROPEAN
UNION
CANADA
JAPAN
SOUTH KOREACHINA
2nd Export Destination:
US$ 8.300 M
3rd Export Destination:
US$ 4.661 M
OPENING UP
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ECONOMIC NEGOTIATIONS
1st Export Destination:
+US$11.100 M
(20% of total)
5th Export Destination:
+US$ 4.100 M
EUROPEAN
UNION
CANADA
JAPAN
SOUTH KOREACHINA
2nd Export Destination:
US$ 8.300 M
December 2017: 11th WTO Ministerial Conference
2018: G20 Buenos Aires Summit
2018: Youth Olympic Games 2018
2023: Expo 2023
AGENDA
3rd Export Destination:
US$ 4.661 M
STRATEGIC PARTNERSHIP WITH JAPAN
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Japan-Argentina Strategic Partnership (Nov 2016 during
PM Abe’s visit to Argentina)
Strengthened mechanism of political dialogue
Dispatch of JETRO’s Japanese residence representative to
Argentina
Resumption of loan operations in Argentina by JBIC
Bilateral Investment Treaty
November 2016 →PM Abe’s Official Visit to Argentina (first in 57 years)
May 2017 → President Macri’s Official Visit to Japan (first in 19 years)
STRATEGIC PARTNERSHIP WITH JAPAN
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Other achievements…Economic Relations
Three multisectorial Economic Forums, two Investment Forums, several investment
missions
Japan-Argentina Joint Committee on Promoting Trade and Investment
Progress on fresh beef, ovine meat, and fruits sanitary requirements authorization
Cooperation programs to improve corporate management and develop regional
economies
74 Japanese companies in Argentina and US$1300 million Japanese investment
in 2016/2017
People-to-people
Working Holiday Program
Academic activities
Cultural exchanges
INVESTMENT OPPORTUNITIES
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Lithium Reserves
Food
Industry
Investment
Opportunities in
the medium and
long term
Communications
Infrastructure
Transport
Infrastructure
Investment
Opportunities in the
short term
Non-Conventional
Energy Sources
(e.g. shale oil and
shale gas)
Automotive
and Auto-parts
Industry
Renewable
Energy
INFRASTRUCTURE
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INFRASTRUCTURE INVESTMENT
Percentage of GDP
TRANSPORT
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RAILWAYS
• ATS system for suburban railway network of Buenos Aires, through loan from JBIC
• Freight rail: US$15,000 million
• Plan to renovate completely 6,600km and heavy maintenance in 10,900km
ROADS
• Aim to duplicate highways in 4 years (+2,800 km)
PORTS
• Reducing operation costs
• Promoting the use of navigable rivers for freight transport
AIR SECTOR
• Growth of Aerolíneas Argentinas
• New airlines
• Transforming aeronautic infrastructure
• Federalizing international air traffic
Urban PublicTransportationInfrastructure
Plan
NationalTransportation
Plan
ENERGY
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Transportation
Hidrocarbons: Shale
Gas (2nd in the world)
and Shale Oil (4th in
the world)
Distributuion
of electricity
and gas
Gas and
Electricity
Transportation
Plan
RenovAr
Development
of Vaca Muerta
Investments in
the Energy
Sector
New power
generation
capacity
(thermal)
Renewable
Energy
ENERGY
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Plan RenovAr
▪Objective: Diversify energy matrix and achieve
20% of electricity consumption covered by RE by
2025.
▪Investments in RE: US$ 15.000 M.
SOCIAL INFRASTRUCTURE
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WATER AND SEWAGE EDUCATION
WATER AND SEWAGE
Provide drinkable water to100% of urban households
(8.2 million people)
Provide sewage to 75 % of urban households (8.9
million people)
HOUSING
Plan Nacional de Vivienda
Plan Procrear (relaunch of mortgage market)
Plan Hábitat (to improve publicspaces and basic infrastructure
in 100 vulnerable localities)
Social housing for emergencies
PLAN BELGRANO
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Social, production and infrastructure plan to reduce inequality and
promote economic growth in Northern Argentina
Strategic Guidelines:
Zero Poverty – Equality of Opportunities
Investment in Infrastructure
Fight drug trafficking
Three main areas:
Productive Development and
Regional Economies
Human and Social Development
Infrastructure
AGRO-INDUSTRY
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Argentina, The World’s BarnArgentina, The World’s
Supermarket
ARGENTINIAN STRENGTHS:
• Leading-edge technology
• Highly-qualified human resources
• Wide availability of natural resources
• Wide availability of agriculture land and water
MANUFACTURING
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• In 1925 Ford began the production of the model T in Argentina
More Than 90Years of History
• Kaizen Tango Program: for theimprovement of industrial competitiveness of SMEs
11 AutomotiveTerminals
Japan: TechnicalCooperation
Program
Automotive Industry in Argentina
MINING
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World Ranking
TOURISM
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Tourism industry in
expansion
New routes and
international connections
from provinces
Increase of domestic
flights
Investments on airports
and infrastrcuture
1.6 million non-resident
tourist arrivals in 2017
COMMERCIAL OPPORTUNITIES
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Increase and
Diversify Exports
Internationalize
SMEs
Intelligent insertion
in the world
World population
expected to rise to
8.1 billion in 2025
Urban middle class
expected to rise to
4.9b billion in 2030
COMMECIAL EXCHANGE WITH JAPAN
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10 main exports from Argentina to Japan (2016)
NO. DESCRIPTION % OF TOTAL
1 Shrimps and prawns 18,08%
2 Copper ores and concentrates 18,03%
3 Grain sorghum for feeding purposes, under the supervision of Customs 10,10%
4 Aluminium, not alloyed 9,59%
5 Oil-cake and other solid residues, whether or not ground or in the form
of pellets, resulting from the extraction of soyabean oil
4,61%
6 Grain sorghum for feeding purposes 3,51%
7 Silver ores and concentrates 3,43%
8 Grape juice, not containing added sugar, not more than 10% by weight
of sucrose
2,83%
9 Other fish 2,69%
10 Lithium carbonates 2,44%
Others 24,70%
TOTAL 2016 100%
COMMECIAL EXCHANGE WITH JAPAN
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10 main imports from Japan to Argentina (2016)
NO. DESCRIPTION % OF TOTAL
1 Gear boxes 14,53%
2 Gas turbine parts 4,15%
3 Drive-axles with differential 3,97%
4 Nucleic acids and their salts; other heterocyclic compounds 3,69%
5 Automatic regulating or controlling instruments and apparatus 3,50%
6 Acrylic polymers in primary forms 2,54%
7 Pick-up cartridges 2,44%
8 Replacement of quality control merchandise 2,29%
9 Parts suitable for use with spark-ignition internal combustion piston
engines
1,75%
10 Marine propulsion engines, outboard motors 1,73%
Others 59,41%
TOTAL 2016 100%
SOME JAPANESE COMPANIES IN ARGENTINA
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A SPECIAL MOMENT
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ARGENTINA - JAPAN
THE TIME IS NOW
1898-2018
120th Anniversary
INFORMATION TOOLS ON EXPORTS AND INVESTMENTS
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The following tools have been developed by the Argentina Investment and Trade Promotion Agency:
Investment mapwww.investandtrade.org.ar/mapadelainversion.php
Exports map www.investandtrade.org.ar/mapadelasexportaciones.php
Investment monitoringwww.investandtrade.org.ar/exportar_biblioteca_de_recursos.php
Exports monitoring www.investandtrade.org.ar/exportar_biblioteca_de_recursos.php
Selected Business Opportunities www.investandtrade.org.ar/docs/pdf/Selected_Investement_Opportunities_in_Argentina_-_March_2017.pdf
* Japanese version available in the Embassy’s website: http://www.ejapo.mrecic.gov.ar/
Doing Business www.investandtrade.org.ar/docs/pdf/Doing_Business_in_Argentina-2017.pdf
From Argentina to the World – Provincial exports 2016 www.investandtrade.org.ar/docs/pdf/cebd274bfc74bc4d70e81a12e0d6e848.pdf
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Thank You!