Argentina and Uruguay, the South American River Plate Region

Photo: Buenos Aires at night

Table of Contents Why River Plate? River Plate at A Glance Best Prospects for U.S. Exporters Doing Business in River Plate Market Research Upcoming Events Special Features Contact Us

I. Why River Plate

Location and Market Access

The River Plate region, composed of Argentina and Uruguay, offers a strategic location for trade with MERCOSUR (South American Common Market) and the rest of Latin America. With a population of 42 million inhabitants, the River Plate region is larger than the United States east of the Mississippi River.

Argentina and Uruguay are founding members of the ALADI (Association for Latin American Integration), created in 1980 with the long-term goal of establishing a Common Market. Both countries are also members of the MERCOSUR, which includes Brazil and Paraguay. With some exceptions, MERCOSUR goods are traded duty-free among its members , who have also established a common external tariff for products entering the MERCOSUR area .

Photo: View of Montevideo Coast

Argentina and Uruguay are longstanding stable democracies with robust economic growth, and competitive, skilled and highly educated labor forces. U.S. companies will encounter excellent opportunities to do business successfully in both countries.

 II. River Plate at A Glance

Sources: U.S. Department of State (www.state.gov) - Bureau of Western Hemisphere Affairs, and Trade Stats Express (http://tse.export.gov)

 III. Best U.S. Export Prospects

These are the industries that Argentina and Uruguay have identified as best prospects:

Argentina :

Commercial Sectors: Electric Power Systems, Agricultural Machinery, Equipment and Parts, Industrial Chemicals, Food Processing and Packaging Equipment and Parts, Medical Equipment and Supplies, Residential Building Materials and Supplies, Information Technology, Mining Machinery and Equipment, Telecommunication Services, Travel and Tourism Services, Plastic Extrusion Machinery, Security and Safety Equipment, Hotel and Restaurant.
Agricultural Sectors: Animal Genetics (Bovine Semen), Food Ingredients, and Planting Seeds.
Detailed information on these sectors may be obtained here .

Uruguay :

Commercial Sectors: Agricultural Machinery/Forestry, Telecommunications Equipment, Fertilizers, Medical Equipment, Chemicals, and IT-Computer Hardware.
Agricultural Sectors: Food and Beverages, and Food Ingredients.

Detailed information on these sectors may be obtained here .

IV. Doing Business in River Plate

The following are some useful tips for U.S. exporters interested in entering the Argentine or Uruguayan markets:

• Foreign manufacturers with sustained sales in the River Plate countries generally use the services of an agent or distributor. A U.S. firm with a local representative has the advantage of keeping up-to-date with local market conditions as well as changes in policies affecting trade.

• Personal relationships are fundamental when doing business in the River Plate. Success requires taking the time to develop a close personal relationship with the representative, agent, or distributor.

• U.S. manufactured products are regarded as high in quality but occasionally lose price competitiveness vis-à-vis regional products. Also, they are sometimes rated poorly when it comes to financing, which is an important factor in sales in both Argentina and Uruguay. American manufacturers offering flexible, innovative, and competitive credit terms will overcome a difficult hurdle in achieving export sales to the region.

• The following are some practical tips to successfully approach River Plate consumers:

   

  • Locate a representative or distributor
  • Have Spanish language capacity
  • Furnish materials in Spanish
  • Have a long-term outlook
  • Personalize your approach
  • Be consistent in attention to service and delivery
  • Provide fair credit terms
  • Dot your I's and cross your T's (lawyers and accountants)
  • Protect your trademarks and other intellectual property

The U.S. Commercial Service provides a wide range of services to help U.S. companies enter and expand their businesses in the River Plate region. For detailed information on products and services provided by CS Buenos Aires, click here.

For products and services provided by the U.S. Commercial Service in Montevideo, click here .

V. Market Research

The U.S. Commercial Service offices in the River Plate region produce up-to-date market information to help you compete and win in this marketplace.

Market Research Briefs produced by the U.S. Commercial Service in Buenos Aires are currently available on the following sectors:

Market Research Briefs produced by the U.S. Commercial Service in Montevideo are currently available on the following sectors:

To view market research reports produced by the U.S. Commercial Service please go to the following website: http://www.export.gov/market_research/index.html and click on Country and Industry Market Reports.

VI. Upcoming Events

Participating in trade events is an excellent way to explore opportunities in the River Plate region. U.S. companies can get high-profile exposure for their products and services by taking advantage of the many trade event options the U. S. Commercial Service offers in Argentina and Uruguay.

The U.S. Commercial Service in Buenos Aires and Montevideo will be hosting a multi-state trade mission and catalog exhibition in April 2006. To obtain detailed information on this and other trade events, contact CS Buenos Aires and CS Montevideo.

Click here to access to trade events directories online. A full listing of events in Uruguay can be accessed here .

VII. Special Features

OAS Hemispheric Private Sector Forum -
November 2, 2005 – Buenos Aires, Argentina

The OAS Hemispheric Private Sector Forum of the Americas was held on November 2, 2005 in Buenos Aires. The theme of the Forum was “Delivering the Benefits of Democracy through Job Creation: The Role of the Private Sector”. Approximately 500 business leaders from the Western Hemisphere convened to discuss how the private sector could work in partnership with governments to eliminate poverty, enhance competitiveness, and increase prosperity in the region. The Forum was hosted by a coalition of private sector leaders under the auspices of the Organization of American States and the Government of Argentina.

Secretary Gutiérrez in bilateral meeting with the Honorable Jorge Lepra, Uruguayan Minister of Industry, Energy and Mining. The highlight of the meeting was the new Bilateral Investment Treaty that would be signed by Uruguay and the United States during the IV Summit of the Americas.

Secretary Gutiérrez meets with the Board of Directors of the American Chamber of Commerce. In the picture (from left to right): Walter Bastian (Deputy Assistant Secretary of Commerce for the Western Hemisphere), John Murphy (VP Western Hemisphere, U.S. Chamber of Commerce), Amb. Lino Gutiérrez (U.S. Ambassador to Argentina), Secretary Gutiérrez, Juan Bruchou (President of the U.S. Chamber of Commerce in Argentina), and Kathleen Barclay (President of the Association of American Chambers of Commerce in Latin America).

VIII. Contact Us

The U.S. Commercial Service in Buenos Aires provides assistance to U.S. firms interested in doing business in Argentina. Our Commercial Service professionals help U.S. companies export successfully by providing professional trade promotion, consultation, market research, and customized contact services.

U.S. Commercial Service Buenos Aires

U.S. Embassy, Buenos Aires, Argentina
Av. Colombia 4300
C1425GMN - Buenos Aires
Argentina
Phone: (54)11-5777-4346
Fax: (54)-11-5777-4203
Web: www.buyusa.gov/argentina/en (U.S.A.)
www.comerciousa.org (Argentina)
E-mail: Buenos.Aires.Office.Box@mail.doc.gov

U.S. Commercial Service Montevideo

U.S. Embassy Montevideo, Uruguay
Lauro Muller 1776
Montevideo 11200
Uruguay
Phone: 598-2 410-6328
Fax: 598-2 418-8581
Web: www.buyusa.gov/uruguay/en
Email: montevideo.office.box@ mail.doc.gov

We look forward to hearing from you soon… Our aim is to facilitate your company's business ventures in Argentina and Uruguay and to ensure the successful achievement of your goals.
We stand ready to assist you!

* ALADI founding members are Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Mexico, Paraguay, Peru, Uruguay, and Venezuela; Cuba attained full membership in 1999. ( www.aladi.org )