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Argentina and the UK strengthen their trade relations

The British Government through the UK Export Finance will offer a credit for bilateral trade for the first time in 20 years.

March 20, 2017

The Minister of Finance, Luis Caputo, announced this Monday, together with the British Minister of Trade, the approval of a credit for 1 billion pounds (1.25 billion dollars) offered by the UK Export Finance for projects of exports to Argentina. This way, any enterprise of the UK that wishes to invest in Argentina will be able to access this flexible credit, one of the biggest four for Latin America (together with Mexico, Peru and Chile) and it has very attractive requirements.

Within this context, Caputo highlighted the importance of the announcement: “This agreement with the UK strengthens our position as a productive investment destination, which will bring us more development opportunities”, and he added: “In addition, with this type of financial agreement, Argentina’s foreign trade is favored and thus more and better jobs can be created”. In addition, Hands highlighted in an official release: “Argentina has huge potential to be a modern vibrant economy, and the United Kingdom has committed itself to support the country by means of a constructive relation in areas such as energy, agriculture and infrastructure”.

Both officials held a meeting this morning at the Ministry of Finance, where they talked about the most relevant issues on the bilateral agenda for 2017. The British Ambassador, Mark Kent, and the Chief of Cabinet of the Ministry, Pablo Quirno, also participated in the meeting.

Greg Hands developed a tough working agenda in his visit to Argentina that included meetings with the Ministers of Production, Transport and Tourism, legislators and businessmen. The principal objective of his visit is to announce measures to promote trade and bilateral investment, finance exports and make progress in air services agreements.

UK Export Finance is the UK’s export credit agency that approves loans, insurance policies or bank guarantees with public resources of the UK to help UK companies access export finance.

British authorities highlighted that bilateral trade relations between Argentina and the UK have growing potential. Only in the third quarter 2016 British exports to Argentina increased an 8% compared to the third quarter 2015. Within the main export products we find: pharmaceutical supplies, precious metals, power generation equipment, precision tools, alcoholic and non-alcoholic beverages and electrical equipment and machinery.

The United Kingdom is one of the main investors in Argentina, with a contribution of more than 2 billion dollars in a direct foreign investment and more than 100 British businesses with representation in Argentina.

The British delegation was also comprised by the British Ambassador, Mark Kent; the Director of Trade and Investment in Argentina, Tim Hanson; the Trade Assistant of the British Embassy, Sonia Aponte Tinao; and the regional representative for Latin America of UK Export Finance (UKEF), Sam Hoexter.