Trading Analysis

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Submitted by to the category Business and Industry on 02/07/2011 02:02 PM

Trading Analysis

Introduction

In this discussion paper we take a look at the trading patterns, trade policies and trade reforms undertaken by Argentina. We analyze more the country’s major trading partners, the most traded export and import commodities. We also focus on some of its key trade agreements and trade unions that the country is involved in.

A country’s economy is usually a determinant as to how it is going to trade its goods and services and sometimes creates a conflict with the international community as it tries to balance and protect its own industry(WTO, 2010). We trace at how effective Argentina’s trading policies have been over the years with regards to its trade with other countries and its economy.

We will also look at Argentina’s future prospects as a trading partner with other countries and how effective her trade policies is affecting its economy and trade relations with other trading partners.

Argentina, a South American country has an edge in trade as it enjoys a healthy trade and economic relations with its South American counterparts. Much of its exports and imports are traded amongst neighboring countries like Brazil and Chile. Strong trade relationship ties drove these countries to form a regional trade group MERCOSUR comprising of Brazil, Uruguay, Paraguay, Chile and Argentina one and a half decades ago.

A significant period for the Argentinian economy was during the 1990s where various reforms in the economy and the restructuring of programmes were undertaken which notably doubled its per capita income. The resulting domestic growth witnessed a sharp increase in import demand consequently shifting the balance of its trade to a deficit position.

Key trade reforms undertaken in this period included trade liberalization, removal of all non-tariff trade barriers, reduction of tariff rates, reduction of import tariffs, de-regulation plus the regional integration through the formation of MERCOSUR (European Commission, 2010). It...

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