Doing Business in Argentinia

Building Business Relationshipsstrong traditions inherited from Italy, Germany and
Business meetings in Argentina need to be carefullyEastern Europe. After New York, it is the city with the
scheduled, with agreed agenda points. Be sure thatlargest Jewish presence in the Americas.
meetings lead to action, as Argentineans traditionallyHowever, it is extremely important not to confuse
see them almost as social occasions.Buenos Aires with the whole of Argentina. Although a
Also allow time for meeting Argentine contacts outsidethird of all Argentines live in greater Buenos Aires, the
business hours. A less clear cut distinction is madeArgentine interior is very different with more traditional
between work and leisure and the most profitable timeways and a greater presence of mixed race and
with Argentine business people is often spent outsideindigenous traits.
the office or factory in restaurants and at barbecues.Do remember that Argentina is not to be confused
Care must be taken to distinguish between whatwith the rest of Latin America. The 35 million
Argentine firms offer to supply and what they actuallyArgentines are as different from Mexicans as British
deliver. Argentina shares the Latin American custom ofare from Russians. They share the Spanish language,
not wanting to say no, meaning that it will be up to youbut often even that is spoken quite differently.
to assess whether or not they can deliver on theirThe Business Environment
promises.Argentine industry and business has been going
It is important to ensure you give the impression thatthrough a process of great change in the 1990s. After
you are committed to investing and doing business inbeing protected and inward-looking for many years,
Argentina for the long term, not just on a one-offArgentine companies are only now beginning to learn
occasion. This helps break the vicious circle ofthat they must compete nationally and internationally.
unfulfilled promises on both sides.Many local companies contain a mixture of the
Government and Lawtraditional and the modern - they are often family run
Argentines are very proud of the fact that Argentinaand likely to have many more typewriters than
now has a working democracy. However, particularfunctioning computers!
care needs to be taken in any dealings withMuch of the Argentine industry is still based on
government officials. Argentina still has a huge amountagriculture and agricultural products. Companies
of bureaucracy and dealing with this takes a lot ofinvolved in heavy industry, such as automobile
time. Corruption at all levels of this bureaucracy is stillmanufacturing or construction, are largely foreign
rife.owned.
Remember to enlist local expertise for legal matters.Do take note of the fact that Argentina is now a
Due to the recent changes in business as well as thedynamic part of MERCOSUR regional grouping of
many years of government control of industry andcountries. (The other members are Brazil, Paraguay
commerce, it is often difficult to find the best and mostand Uraguay). Argentina hopes to supply the
appropriate way to conduct business.technologically sophisticated part of this market, as it
It is not advisable to raise the subject of militarycannot generally compete with Brazil in terms of scale.
government and be very careful to avoid the topic ofThe business environment in Argentina was thrown
the Falklands Islands as almost every Argentine isinto turmoil at the end of 2001. After a decade of
convinced that they should have sovereignty over theeconomic stability, with one Argentine peso valued at
islands.one US dollar, this exchange rate was abandoned, and
Argentinian Heritagethe local currency left to float freely. This caused a
Argentina is very proud of its European heritage. Mostmassive withdrawal of capital from Argentina, and this
of the population, especially in the capital city Buenosprovoked a banking and financial crisis. Long-term
Aires, have ancestors who immigrated to Argentinaplanning became extremely difficult, and the outlook for
between the end of the 19th century and the middle offoreign investment is very uncertain. Extreme caution is
this century.advised, as the economic uncertainty is likely to last for
Buenos Aires is not just a Spanish city, but also hasmany months.