Architecture exportation Case Bórmida y Yanzón, Arquitectos

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October 2011

Fundación ExportAr

Jorge ArgüelloFrancisco Ferro

Gustavo MartinoLuis María Kreckler

Carlos de la VegaModa Argentina en París

Jorge IbáñezAnuga

CPHIEquipauto

Promage

Coface Wine and wineries 2011Las PerdicesDamián BergelMarcos AbihaggleGuillermo GarcíaCross-border TradeMaría Siomara AyeránGustavo LópezFernando MartorellMarcelo R. Guckenheimer

1 News

Industry plays a central part in Argentina’s new exporting profile.

The reality of Argentina’s international trade shows that, with a share of almost 70 % of total shipments to the world, shipments of manufactured products are the main exporting component of our country.

Among which, the export of manufactures of industrial origin (MIO) have showed the best performance for the last eight years.

External sales of this type of products have verified a favorable evolution in almost every one of its sectors, being the most outstanding ones the industries of inland transport material, chemistry, steel, electronics or metalworking, among others.

Between 2003 and 2010, they have increased 194 %, (while total Argentine exports have increased 130% for the same period), from 8,000 billion dollars in 2003 to 23,600 billion in 2010, and also increasing their share in the total of Argentine exports, from 26% in 2003 to 35% in 2010.

This outstanding dynamism can be seen in as much as the evolution of sales volumes and prices, that in the case of industrial manufactures the incorporation of added value to products becomes the determining factor for its increase.

In this framework, as part of trade promotion policies carried out by the national government through its diffe-rent bodies, and in accordance with the strategic guidelines set forth by the Ministry of Foreign Affairs, Interna-tional Trade and Worship, Fundación ExportAr has been working towards the internationalization of more than one thousand Argentine companies in the industrial sector.

There follows some examples:

• Program of Export Groups: 250 companies from sectors such as the toys industry, construction materials, ge-neral hardware and tools, furniture and sports articles, among others, are part of more than sixty export groups that have been created and pull work together to be more competitive in foreign markets.

• Program of International Fairs: companies from sectors such as medical and dentistry equipment, packaging, cosmetics, leather goods, tools, electro/electronics and agricultural machinery, are part of more than a thousand local manufacturers that have participated in more than some thirty international fairs of different markets in America, Africa, Europe or Asia.

• Program of International Business Rounds: more than three hundred Argentine companies, from industries such as security equipment, construction, tools, agricultural machinery, publishing and shoes, have had mee-tings with dozens of foreign buyers in our country.

In this sense, the active participation of thousands of Argentine manufacturing companies, with a significant improvement of their competitive capabilities, through the incorporation of technology in production processes and the quality of their human resources that add value and competitiveness to their export products, are res-ponding to the new economic policy scheme by developing their potential in the international market.

On the other hand, due to an increasing demand of Argentine products, the public sector, through develo-pment, economic growth, trade promotion and diversification of export markets policies carried out by the national government, is providing the necessary tools to benefit from this potential and achieve, as forecasted for 2011, a historic record for the sector, approaching 30,000 billion dollars in shipments to the world of ma-nufactures of industrial origin.

EDITORIAL

Juan Usandivaras

2 News

Equipauto 2011

6 The market

7 The sector

CPhI Worldwide 2011

10 The sector

Opinion | Jorge Argüello

Anuga 2011

Center for Promotion in Shanghai

Opinion | Francisco M. Ferro

Opinion | Gustavo A. Martino

Opinion | Luis María Kreckler

The importance of services in Argentina’s international trade. Carlos de la Vega

Splendor of Argentine design in the capital of fashion

30 Interview | Jorge Ibañez

Interview | Fernando Zambra, Promage

Newsletter de la Fundación ExportAr

October 2011

STAFFAdministrative Board - PresidentLic. Miguel Acevedo

Administrative Board -SecretaryInternational Trade and Economic RelationsAmb. Luis María Kreckler

Undersecretary of International TradeAmb. Ariel Esteban Schale

Executive DirectorLic. Juan Usandivaras

ManagerCdor. Diego Nelli

Editorial and contentsSantiago Mantelli Dr. Héctor LorenzoLic. Nilda Bordón Lic. Verónica Scornik Lic. Javier González OjedaLic. Verónica Biganzoli

DesignDG. Pablo CarusoDG. Sebastián FeinsilberDG. Omar Baldo Julieta Pratesi

English versionGabriela A. BuonomoLaura RajchmanLawrence Wheeler

Typography: Bree, © Type together

Se autoriza la reproducción total o parcial de los artículos y de las fotografías citando como fuente a News, el Newsletter de la Fundación ExportAr.

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SUMMARY

Ministerio de Relaciones Exteriores, Comercio Internacional y Culto

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Success story | Bórmida &Yanzón Studio, Architects, Design of winery cellars

Special Report Wines

45 Business Round Wine and Wineries 2011

47 Interview | Viña Las Perdices

49 Interview | Damián Bergel, Ubifrance

50 Interview | Guillermo Daniel García, Instituto Nacional Vitivinícola

52 Interview | Marcos Abihaggle, ProMendoza

54 The wine sector in numbers

Interview | Germán Fliess,General Manager of COFACE

Dossier | Logistics and cross-border trade

65 Interwiew | María Siomara Ayerán, Directorate General of Customs

69 Interview | Gustavo López, Center for Customs Brokers

71 Interview | Fernando Martorell, IDEP

73 Interview | Marcelo R. Guckenheimer, DHL

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Fairs Agro Show Room 2011Mission and Fair China Education 2011Frankfurt Book Fair 2011“PMA” Fresh Summit 2011110th Canton Fair Phase 1Fieracavalli 2011XXIV Kosherfest edition 2011Andina Pack 2011Americas Food and Beverage 2011XV Food and Hotel China 2011Agritechnica 2011SIAL Middle East 2011Guadalajara Book Fair FIL 2011

Promotion of servicesEducation workshop in Shanghai 2011

Rounds4th Round of buyers of the animation industry

TrainingSeminar: “First steps in exporting”Seminar: “How to export copyright”Seminar: “Export Basic sequence and promotion tools”

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The new edition of Biennale Equip Auto 2011, dedicated to the auto parts and accessories, took place at Parc d’Expositions de Paris Nord Villepinte.

Since 1975, Equip Auto offers its visitors a wide range of equip-ment and components for repair shops and bodywork, informa-tion systems, washing materials, maintenance products, lubri-cants and post-sale services, among others.

Under the guidance of Claude Cham, President of the French Vehicle Equipment Industries (FIEV) and of the Automobile Sec-tor Platform (permanent coordination and communication pro-gram among professionals of the French automobile industry), Equip Auto has been recognized as the international benchmark of reference of the sector due to its extraordinary contribution to the trading exchange, market dynamics, and of course, the dissemination of the latest technology trends.

This fair really allowed the members of the chain (constructors, manufacturers of components, providers, technology groups) to inform the social and economic evolution of the automobile industry, with the purpose of assisting them to anticipate and structure the future post-sale service.

This event is targeted to spare parts and accessories of every ve-hicle (light, small, heavy, industrial, farming, autobuses and auto cars, motorbikes, vehicles for construction and public works, among others). The exhibition had, in this edition, a 25% larger area than in 2009, in which there were over 1,800 exhibitors, 75% of them of international precedence. The organizers re-ported 100,000 as the number of visitors, 35% of them were foreigners.

Among the countries that attended this edition, the National Pavilions of Argentina, Brazil, United Kingdom, Spain, Turkey, Morocco, Tunis, China, Taiwan and Thailand stood out.

During Equip Auto 2011, professionals were able to visit three new spaces, which gave them an unprecedented viewpoint about the following activity sectors:

Equip Auto Green Tech – this section anticipates future post-sale, in-troduces emerging available and future technologies, and the eva-luation of its impact in the supply chain, highlights new potential in sales and industry to win or consolidate market share in after-sales. At the same time, this section showcases the wide offer of clean ve-hicle in the market (economic, hybrid, electric, etc.), their accessories (motorization, starting mechanism equipment, pneumatics, systems of energy recovery, among others) and related services and infras-tructures.

The Electro-Mobility Forum, created in 2009, was a great occasion to gather all the members of the supply chain of the sector and ex-change opinions about the challenges and future of spare parts and accessories market.

Village Bodywork - paint and repairs. Sponsored by the French Bo-dywork Federation and vehicle transformers, this section gathered members of the FFC, manufacturers of materials for bodywork re-pairs, paint and tools, together with editors of software programs for repair shops, networks of sheet-metal workers and crane manufactu-rers. Visitors were also able to participate in conferences and round tables organized in this section.

IT Systems and ICTs, this section was aimed at visitors who are mem-bers of a dealers and/or an independent repair shop network, for the promotion of tools, making contact with customers, and cultivate their loyalty. There, they found a comprehensive offer from IT solu-tions and marketing services, to training sessions and even a forum dedicated to good practices to cultivate loyalty in consumers.

Equip Auto 2011 The hall of a sector undergoing a full transformation had over 1,800 exhibitors and 100,000 professional visitors.

Paris, France October 11-15Auto parts

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Created in 1985, the International Grand Prix for Automotive In-novation awarded the best technologies encompassed in one of the four great redesigned categories:

-OEM (manufacturers of original equipment)/Clean vehicles (Green Tech sector). -Spare parts – aftermarket. -Spare parts and garage accessories.-Services for professionals and for the audience/ Service stations

Argentine participationThis sector, made up almost by small and medium businesses, is re-cognized due to its dynamics, competitiveness, and ability to pro-mote more and more complex cutting-edge systems. It is greatly oriented towards the external market and to the diversification of exports destinations.

The importance of this industry also lies in socioeconomic aspects, since it is a significant source of formal employment that has been increasing over time. In 2002, it grouped around 48,000 workers. In the last year, it exceeded 87,000, which translates in an increase of 81% since then.

The performance of Argentine companies is shown in the great demand increase between 2002 and 2010, which, in some cases, has been doubled. This growing trend revealed in the analysis of the exports sector, allows us to predict that it will be a promising future for this industry.

The report from the Studies Center of the Argentine Industrial Union (UIA) highlighted that the sectors with greatest growth were those of auto parts and metallurgical industry. Industries of trans-mission, engine components, wheels, electric and bodyworks were the most dynamic ones of the exports sector.

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In this context, the Argentine Chancellery, through Fundación Ex-portAr, coordinated the participation of Argentine companies at the National Pavilion of 119 m2 divided in 5 stands. They were thoroughly equipped and they had an institutional area, where companies had the opportunity to have business meetings.

Regarding visits to the Argentine Pavilion, people from North and Center of Africa, India, Israel and United Arab Emirates showed interest, among other countries. According to interviews, the com-panies have expressed that they have made 236 contacts with strong business perspectives for approximately USD 1.000.000.

The Argentine Pavilion received the financial and logistical support of the following entities for the companies located in their respec-tive provinces:

1. Ministry of Production- Department of Foreign Trade of the Province of Santa Fe.2. Pro Córdoba SEM Agency

The industries involved were: auto parts, accessories, original equipment and aftermarket, equipment and services for the au-tomotive industry, dealers, garages, service stations, transportation services, storage and transportation of loads, machines for engine rectification, soldering services, equipment and services for vulca-nization, machines for diagnose and measurement, alignment, automation, IT, oils and lubricants, additives, hubcaps and publi-cations.Since the automobile sector is in constant change, Equip Auto 2011 has been the ideal event for professionals who wanted to anticipate and design the structure of the post-sale market, and get in contact with all the agents of the supply chain.

Participating companies:

• PistonesPersan• Corven• RafaelaMotores• CescaHnos.• JorgeMaciel

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The market With a privileged geographic location, France has the biggest territory area in Europe, of 551,000 Km2, and coasts towards the English Channel and the Mediterranean. Likewise, it ranks second in population with 65 million inhabitants.

In the economic field, France stands, regarding its GDP, as one of the main European markets, fluctuating between the second and third place with Great Britain, and its GDP reached 1.931 trillion Euros in 2010.

In 2010, it became the fifth largest world exporter with international shipments for 517,3 billion dollars. As in all highly developed countries, French exports lead with high added value, among which transport equipment, airplanes, plastics, chemical products, pharmaceuticals, wines, and products derived from iron and steel outstand.

France main destinations are countries that belong to the European Union, such as Germany (with a share of 16.4%), followed by Italy (8.2%), Belgium (7.7%), Spain (7.6%), Great Britain (6.8%) and Netherlands (4.2%).

Regarding imports, France also occupies the fifth place within the world main importers, with purchases for over 590 billion dollars. Among the main products, we find purchases of inputs for the industry, besides oil. In 2010, the main purchases came from Germany (with a share of 19.3%), Belgium (11.4%), Italy (8%), Netherlands (7.5%), Spain (6.8%), China (5.1%), and United Kingdom (5%).

Regarding bilateral trade with our country, it reached 1,527 million dollars in 2010, out of which 526 million belonged to exports. Among the main products, we can mention shipments of: greases and oils, for 152 million dollars and a share of 29% in total exports; fish and seafood (89 million dollars), ready-cook meals and food for animals (77 million dollars); chemical products (41 million dollars); and electrical machines and devices (24 million dollars).

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The sectorThe Argentine automotive-auto parts industry was one of the pioneers in Latin America; it was originated during the 30’s, although the first automobile built dates from 1907. Since then and until 1952, the sector was almost exclusively dedicated to the assembly of parts and bodyworks- introduced, mainly from abroad- and to the manufacture of spare and auto parts. Only since 1952, with the creation of the IAME (State Aeronautical and Mechanical Industries,) did the efforts to create mechanisms of commercialization of mass production vehicles became systematized.

In Argentina, the development of the repeat and replenishment market went hand in hand with that of the automotive factories. During the following years, the auto parts sector evolved and managed to position itself with high quality products that compete at an international level today.

The growth of the automotive and auto-parts industry during the years, allowed the country to have an outstanding share in the Industrial GDP, showing a quota near 10%. According to ADEFA and AFAC, the production of vehicles in Argentina reached its historic record in 2010 with a total of 724,023 units, 41.2% more than in 2009 and greater than the previous record that dated from 2008 when 597,086 units had been produced. In 2011, it is foreseen to exceed 800,000, in a context where there is solid work to reach a growing participation of national components in the final production of vehicles.

The automotive-auto parts industry has become the main industrial exporter sector, with a participation of 33.6%. Out of the total production, in 2010, 447,953 vehicles were exported, which represented an increase of 38.9% compared to 2009.

Argentine products requested from the international markets to auto-part factories involve a wide variety of products, among which the following stand out: bodywork parts (8708.29.99)Intake valves (8409.91.14) Starting engines (8511.40.00) Cylindrical coil springs (7320.20.10).

Equip Auto 2011

8 News

As part of the strategy to strengthen our positioning in the pharmaceutical industry, we’ll be present in CPhI Frankfurt Worldwide in October. This is the biggest Fair of the sector with over 28,500 people attending from 140 countries. This event represents an opportunity to make oneself known in an environment of specialized professionals coming from all over the globe. The 3-day encounter will host all manufacturers, buyers of chemical products, pharmacists and providers of services looking for the latest breakthroughs of the industry.

This is a strategic sector for most countries, due to its participation in the GDP, the amount of jobs it generates, its contribution to research, its relationship to science and technology and the social implications it has over the healthcare and life quality improvements for the population.

The pharmaceutical industry is an important element of the health care systems in the entire world; it comprises many public and private organizations dedicated to discovery, development, manufacture and commercialization of medicine for human and animal health.

Its foundations are research and development (R+D) of medicine to prevent or treat different diseases and alterations. Modern scientific and technological breakthroughs accelerate the discovery and elaboration of innovating pharmaceutical products.

In Argentina this sector has exhibited great dynamism during the last 30 years, as a consequence both of changes in the local scene, as well as trends at global level.

As opposed to other countries of Latin America, the national pharmaceutical industry is deep-rooted in a strong principle of tradition and belonging. In fact, the influence of local companies is significant and they have grown in the last 10 years both in production volume as well as turnover amounts.

They have also incorporated capital, work and technology, boosting the economy as a whole with its growth and development. In our country and in the rest of the world, the manufacture of chemical

CPhI Worldwide 2011

and pharmacological products has a high degree of technology incorporation and occupies a predominant place among industries that have incidence in the exchange values at an international level.

The progress of our pharmaceutical industry is the consequence of planned investments both in technology as well as in research and development, making room for outstanding and well-known progress regarding biotechnology.

The greatest percentage of Argentine exports of medicine has Latin American countries as destination, but in recent periods there has been progress over countries from Southeast Asia and Middle East, even over some less traditional ones in Africa and Eastern Europe, which offer big perspectives for national production.

According to data from the report about the Pharmaceutical Industry in Argentina made by the INDEC during the first semester of 2011, the turnover of the industry was USD 2,181 million. During the year 2010, the total turnover recorded an increase of 21.7% compared to 2009. Sales to the domestic market (local production plus imports) had an increase of 23.1% and exports 6.5%. It is worth pointing out that the total turnover shows sustained growth from the beginning of the series in 2006. On the other hand, during the fourth quarter of 2010, the total turnover increased 23.5% compared to the same period of the year 2009. Sales in the domestic market (local production plus imports) increased 26.8%. Compared to the previous quarter, the total turnover increased 3.1% while sales to the domestic market increased 4.8%.

The participation in CPhl Worldwide therefore receives particular dimension offering laboratories the possibility to reaffirm contacts, consolidate business relationships and get to know consumption levels and demands of new markets.

This is more important if we take into account the complexity of the exporting process of this industry, which lies among other things, on the registry of products and the approval of relevant health authorities pursuant to very strict quality standards.

Frankfurt hosts the world’s biggest pharmaceutical services event

Frankfurt, GermanyOctober 25-27Pharmaceutical

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UBM International Media, the main organizer of events, expresses the clear momentum that the CPhl has generated until today and that continues setting records of attendees, in the same way that it has year by year since the beginning in 1990.

CPhl Worldwide in Frankfurt will introduce the new distribution by sections, which has also been introduced in Paris, designed for visitors to easily find what they are looking for. This division is a highly valued initiative by exhibitors. In the year 2010, the disposition was focused on six sections; CPhl Wolrdwide 2011 will see the addition of two new areas, generic and by dosage API, creating a new even more specific business environment.

Eliane Van Doorn, Director of events of the pharmacy UBM International Media said: “Frankfurt was the venue of the first CPhl Worldwide in 1990 and given the importance of Germany in the industry of international chemistry, this city has constantly proved to be the favorite both by exhibitors as well as by visitors. With a total of sales of 145,200 million Euros in 2009, it is positioned as number one in Europe and number four in the world, with leading companies from chemical by-products such as BASF, Bayer, Evonik Industries which occupy a place among the 20 greatest world providers”.

Likewise, during the Fair, the internationally known awards CPhl Innovation will be awarded, which were created to recognize, celebrate and honor those companies and organizations that open new ways in the pharmaceutical sector, agreement services, packaging and biopharmaceutical. Proposals regarding the following industries were presented: APIs, custom-made manufacture, intermediate products, excipients/formulation, fine chemical products, final dose, hiring of services, systems of medicine supply and biopharmaceutical. Upon choosing finalists, judges looked for those innovations that fostered imagination and that were practical business-wise.

“Once again, the entry level for these categories has been very high and our experienced team of judges had a difficult task to choose only six finalists”, said Annemieke Timmers, Brand Director of CPhl.

Argentine Participation

Every year, CPhl takes place in a different European city. Argentina attended successively to Brussels (2004), Madrid (2005), Paris (2006), Milan (2007), Frankfurt (2008), Madrid (2009) and Paris (2010).

In order to progress in the search of new markets and foster the international introduction of Argentine laboratories, which compete with innovating products of high added value, the Argentine Chancellery, through Fundación ExportAr, will organize the Official Argentine Pavilion, in the Messe Frankfurt area, in which decision makers of the pharmaceutical industry will participate looking for new business opportunities.

In this opportunity, the National Pavilion will have an area of 75 m2. Just like previous editions, they will promote their exportable offer to participating national laboratories.

1- BDO 2- National Institute of Census and Statistics

CPhI Worldwide 2011

10 News

The sectorThe industrial production of medicines of national capital in our country has a considerable tradition, becoming a benchmark in Latin America. In Argentina, the pharmaceutical industry is characterized by a strong presence of companies of national capital, a high participation of SMEs in their total turnover and a strong dynamism in the recent years in the domestic market, with sector annual growth rates exceeding 15%. Its development is the result of the complex interaction among the public sector (as the party that demands and regulates the market), the private sector (drugstores and pharmaceutical companies) and the scientific community (which offer the space to train researchers and for the development and innovation of new products).

The pharmaceutical market encompasses between 250 and 300 companies between laboratories and drugstores. The industry employs directly a little over 30,000 registered employees, and commercialization and supply fields employ 120,000 people.

Regarding the geographical distribution of companies, 80% of them are located in the metropolitan area, out of which 50% are in the City of Buenos Aires and 30% in Great Buenos Aires. Cordoba and Santa Fe participate with 6.5% and 6% of the production, respectively. However, as regards exports, 78% of them are done from laboratories from the Province of Buenos Aires, while 18% of shipments to other countries are sent from the City of Buenos Aires.

The exports of the sector are found on Chapter 30 of the Tariff Nomenclature and some on Chapter 22, which belongs to organic chemical products.

In 2010, exports of pharmaceutical products exceeded 781 million dollars, which set a historical record and meant an increase of 136% compared to year 2002. Among the main destinations of Argentine exports of pharmaceutical products, we can mention shipments to the American continent, to countries such as Brazil (112 million dollars), Venezuela (73 million dollars), Canada (55 million dollars), Chile (40 million dollars) and Uruguay (35 million dollars). In the European continent, the main markets were Germany (51 million dollars), France (51 million dollars) and Spain (10 million dollars). Among the non-traditional markets, some countries appeared as main destinations of Argentine products, such as Lebanon (14 million dollars), Panama (7 million dollars), Pakistan (4 million dollars) and China with shipments for 5.7 million dollars.

1 6 out of 10 main laboratories, are national capital2 From Chapter 29, the following items were taken: 2932,2933,2934,2935,2936,2937,2938,2939,2940,2941.

CPhI Worldwide 2011

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For further information: www.senasa.gov.ar0800-999-2386

FundaciónExportArAgreement

SENASAatinternationalexhibitionsThe National Service of Agrifood Health and Quality (Senasa) takes part in different national and international exhibitions, in order to give advice to ex-porters and importers of agrifood on phytosanitary requirements that the Ar-gentine Republic and buyer countries of said products demand.

Under the agreement between Fundación ExportAr and Senasa, a decentralized organization of the Ministry of Agriculture, Livestock and Fisheries of the nation, during 2011 Senasa will participate in different fairs and exhibi-tions at national and international levels, to give advice to agrifood exporters and importers about phytosanitary requirements that the Argentine Republic and buyer countries demand of said products.

It is very common for the Senasa to show its activities in different national fairs. With this agreement the authorities of this organization have decided to widen their scope and participate in well-known international exhibitions related to the agrifood industry and contribute to the development of the international trade for these products.

The purpose of this agreement between the two organizations is to implement the necessary means and actions to reach mutual technical complementation and carry out in a coordinated way projects in areas of mutual interest, working in cooperation through different activities.

In this regard, the Senasa and Fundación ExportAr jointly assist small and medium agrifood exporters abroad, as well as boosting imports, in matters related to quality and health in agrifood. This joint work permits collaboration in the design of the necessary conditions for the development of actions towards the fulfilment of the export poli-cies set forth by the national government.

Thus the Senasa widens its regional scope by participating in these international meetings, adapting and accom-panying its main goal that is to strengthen the role of the state on animal and vegetable health, food safety and environment care.

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In other times, an economic and finance crisis of current dimensions in the Northern powers would have created the ghost of a collapse in fallen pieces, almost naturally and from a global perspective, over the defenseless South.

But in the last time, the world has accelerated a key movement, among the countries of the South, changing a lot that possible scenario and that, in turn, shows alternative paths for development without leaving the region so unarmed.

Since its beginning in the sixties, this political, economic, commercial, and technical South-South Cooperation has taken on an encouraging life of its own. Just to mention an example: since 1990, South-South trade has increased its share from 7% to 18% of the total in the world and, according to private estimates; it could reach 40% in 2030.

This Cooperation will increase and become, doubtless, one of the focal points in the international agenda, not only as regards trade, but also in broader terms of development for our countries, something which their forerunners have imagined.

Opinion | Jorge Argüello

Countries such as Thailand, Korea, India, and Singapore have sown the first seeds of help to other developing nations, which germinated in 1994 (Geneva) at the United Nations Conference on Trade and Development (UNCTAD), and also with the formation of the Group of 77 (G77) that currently groups 132 countries and nowadays is chaired by Argentina.

Ten years later, the Special Unit for South-South Cooperation (SUSSC) was born within the United Nations Development Program (UNDP) and, afterwards, the Latin American and Caribbean Economic System (SELA), that last July met in Mexico to debate new regional projects along the same historic line: foster the national and collective ability of our countries to avail ourselves with our own means while appreciating contributions from the North.

Overall, this Cooperation has followed some guidelines such as: collaboration between countries as volunteer partners without any restrictions; reaching agreement when it comes to engaging in actions; and always the equitable distribution of benefits, not only economic but also of knowledge and technological knowhow.

South -South makesus stronger

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The same historic process has opened an alternative to the typical contribution from the richest to the most needy: Triangular Cooperation, in which a donor country, usually from the North, an emerging or cooperating country and, at last, a beneficiary or recipient country, are involved.

These “triangles” may better mobilize resources for Technical Cooperation between Developing Countries (TCDC), reduce costs and diminish cultural barriers and obstacles related to technology transference.

Countries from Latin America and the Caribbean, their intraregional organizations and institutions, have played a fundamental part in strengthening South-South Cooperation through a number of measures in the varied economic, technical and social fields.

So forth, without underestimating Triangular cooperation, most part of Cooperation efforts are carried out within the framework of regional integration.

Regional cooperation and integration is, for our South, an effective way to face the challenges of globalization and take advantage of its opportunities. In fact, it has the aspiration and potential to further South-South Cooperation within and outside regional and sub-regional frontiers.

Likewise, experts highlight that regional cooperation is somewhat forced, taking into account that other developing countries seek new spaces that naturally present certain competition, and the North will want to maintain its living conditions, within a scenario of limited natural and general resources.

In the current world context, this Cooperation is thus the key to reduce the vulnerability our developing countries have before external factors, and maximize the complementarities that exist between them to accelerate their development and growth, with an equitable participation of those countries in the global economy

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The 31st edition of Anuga came to its end after 5 days of intense activity. Besides the business success, it’s worth pointing out that the Fair became the place to reflect about problems, challenges and solutions of the industry that feeds the world.

In Anuga 2011, over 155,000 visitors walked around its different areas. It was the world’s most important food fair, and it took place in 30 hectares sectored in pavilions, where exhibitors were grouped according to their products. In this edition, 6,956 businessmen coming from 100 countries participated, and the percentage of foreigners was 82%.

Germany is a highly competitive market and of great business relevance which generates the interest of exporters in the entire world, both due to its population number (82 million inhabitants), as well as its income level (USD 41,600 GDP per capita).

The peculiarity of this Fair is reflected in its sections division, which clearly benefits the visiting audience. Anuga, as opposed to the rest of the events of the food sector, “leads” exhibitors to participate in a certain hall depending on the type of product they promote.

1) Anuga Fine Food Area2) Anuga Drinks Area3) Anuga Chilled Food Area 4) Anuga Meat Area5) Anuga Frozen Food Area6) Anuga Dairy Area7) Anuga Bread and Bakery, Hot Beverages Area8) Anuga Organic Area9) Anuga Food Service Area10) Anuga RetailTec Area

Once again, the Fine Food sector was the one occupying the biggest area and where most countries were present.

Argentine participation.Argentina attended the Fair with a total of 110 exhibiting companies, which occupied a total area of 2,100 m2.

The National Pavilion, organized by Fundación ExportAr and the Project for Promoting Exports of Argentine Agrifoods (PROARGEX) of the National Ministry of Agriculture, Livestock and Fisheries, was the Institutional Stand with greatest amount of participating sectors and greatest amount of companies. They had their own pavilions in the hall 3.1 (Fine Food), with 41 exporting companies, in 2.1 (also Fine Food) with 15 companies, in 3.2 (Bread & Bakery) with 5 exhibitors and 4.2 (Frozen Food) with 3 companies.

The Institute for Promotion of the Argentine Beef was also present with a stand occupying 705 m2 with over 23 exporting companies, where each one had exclusive spaces to receive their customers.

The “Argentine Beef Pavilion”, especially conceived as a business center, offered a restaurant of 250 m2 where over 350 guests tasted the best cuts of Argentine beef daily.

The CFI (Federal Department of Investments, for its Spanish acronym) exhibited in hall 6 and had the participation of Argentine companies, most of them exporters of non-traditional meats.

The CEPA (Center of Poultry Processing Companies) attended the hall 9, where they exhibited their exportable offer to the most representative companies of the sector. As opposed to other years, national companies marked up the number of audience companies from other continents and regions, such as North Africa, Middle East and they shared a positive opinion regarding their participation in the Fair.

Anuga 2011 In the 31st edition of the event, the Argentine agrifood offer was introduced to over 155,000 buyers from 180 countries.

Cologne, GermanyOctober 8 - 12

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Likewise, companies that export popcorn, the National Pavilion product par excellence, expressed that selling values were recovered compared to the last 2 years and even some of them were able to close sales to importers from the US, the world’s biggest producer of popcorn.

The peanut selling industry was another sector that had a relevant representation with four producing companies and others that commercialize this product. The situation faced by companies of this crop is extremely positive. During this year, Argentina has become the world’s greatest peanut exporter, displacing China and the US, which, even though they produce more than us, their internal market does not leave enough balance for exports.

Final assessmentsThe companies that completed the assessment forms expressed that they had made a total of 5,047 business contacts that allow them to encourage business expectations. Even though not all of them were able to close transactions during the event, 27 of them said to have done it for an approximate value of USD 14,107,000 (year 2009: 6,670,000). At the same time, and thanks to contacts generated during the Fair, they expect to export in the midterm for a value near USD 94,900,000 (year 2009: USD 68,300,000).

ANUGA FINE FOOD HALL 3.1Aceitera General Deheza S.A. Agencia Procordoba SemAgroindustria Madero S.A. Agrouranga S.A.Alberto Marchionni S.A.Aldear Food S.A.Alemar S.R.L.AlicampoAll Food S.A.Andreoli S.A.Argensun S.A.Ceurar SlConagra Foods S.R.L.Curcija S.A.Del Turista SaciEl Ganado S.R.L. & Agrolacau S.A.Farm Products S.R.L.Food Concept ConsortiumGeoallianz S.R.L.Green Trade S.A.

La Leonor S.C.A.Gregorio, Numo Y Noel WertheinInsa Comercio Exterior S.A.Jc Impex S.A.Jose Maria Lazara S.A.Jose Nucete E Hijos S.C.A.Lihue Tue S.A.Molino Cañuelas SacifiaMts ArgentinaNaiman S.A.Nexus Business InternationalNidera S.A.Olega S.A.Oligra S.A.Paramerica S.A.Pop Argentina S.A.Pop Company S.A. /Hathor GroupProdeman S.A.Rocio De Miel S.A.Snack Crops S.A.Vergara Y Cia S.A.

ANUGA FINE FOOD HALL 2.1ArcorAva S.A.Fedenar Industria (Arroz Argentino)Frutagro S.A. Fundacion ProMendozaGobierno de la Provincia de Entre Rios – Ministerio de ProduccionInstituto de Desarrollo Productivo de TucumánDesarrollos Alimenticios S.R.L.La Patria S.R.L. – Sal De Los AndesLa Sibila S.A.Menex S.A.Ministerio de Comercio Exterior, Turismo e Inversiones – Provincia de ChubutPietrelli PrunesSfh Alimentos S.A.Viñas Argentinas S.A. – Industrias Frutícolas De San Rafael S.A.

ANUGA BREAD & BAKERY – HALL 3.2Argentine Yerba Mate Havanna ArgentinaLetis Certificadora De Calidad Internacional Productos Ferraris S.R.L.Aleluya

ANUGA FROZEN FOOD – HALL 4.2Conosud S.A.Duntower CorporationNutrifrost S.A.

Participating Companies and Organizations organized by sectors:

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We support and encourage the interests of Argentina and Argentineans.

Opinion | Minister Francisco M. Ferro, General Consul of the Argentine Republic in Shanghai- People’s Republic of China

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IntroductionThe Argentine Center for promotion in Shanghai constitutes part of a main network to protect and encourage the interests of Argentineans in all countries of the world. Other Argentine Organizations are also members of this Network, such as Centers for Promotion abroad, Argentine Embassies and Argentine Consulates. Officials of the National Foreign Service are in charge of it, whose activity, both in the country as well as abroad, is coordinated by the different areas of Argentine Chancellery, Ministry to which we belong.

Our activity in Shanghai is wide and covers all aspects of assistance to Argentineans, both to those who are located in Argentina and need a reference in this city, as well as those who are abroad, in the geographic area or jurisdiction that this General Consulate covers (city of Shanghai and provinces of Jiangsu, Zhejiang and Anhui, with a joint population of over 220 million inhabitants).

Functions of the Center for PromotionWe daily deal with cases related to Consulate Assistance, Business Promotion, Promotion of Investments, Cultural and Tourist Promotion. Furthermore, in cooperation with the Argentine Embassy in the People’s Republic of China based in Beijing, we represent and defend the interests of the Argentine Republic in our jurisdiction.

ObjectivesDuring 2011, the Argentine Center for Promotion in Shanghai has been in charge of the development and achievement of more than 100 objectives for Argentine Economic Promotion Abroad, under the Plan of Action 2011 of the Integrated Program for Business Promotion, Investments and Foreign Markets coordinated by the Secretariat of Business and International Economic Relations of the Ministry of Foreign Affairs, International Trade and Worship which, for this year, is furthering over 1500 actions in the entire world. 2012 will find us with a Plan of Action with even more projects to develop, both in the area of Promotion of Business, Investments, Tourism, as well as Cultural Industries. We also have the cooperation of all the Bodies of the National Government to better achieve these goals.

ActivitiesThe activity to promote the expansion of Argentine commerce, industry and culture in the Argentine Center for Promotion in Shanghai is permanent and covers multiple aspects where small daily actions are combined with those that represent Argentina in China. Among the small ones, but not less important, we can list the elaboration of many studies and market profiles, lists of importers, statistics and trends towards guiding the actions of our Argentine Businessmen. We also cooperate in the organization of the tours that these businessmen take, organizing their interviews agenda and their transportation, offering them interpreters and translation of documents and everything that might contribute to their business success, in such a different environment and with a clearly different business culture.

Promotion of FoodsOther actions that we coordinate are: the Argentine participation in the main food business fairs in Shanghai, such as SIAL in March and FHC in November. Both fairs gather the main food exporters of the world with their Chinese counterparts. There, contests and competitions take place where our best wines, olive oil, meats, infusions participate, and also, these products compete in culinary tests that facilitate the introduction of the products that we present in China.

Furthermore, in this same industry, during the month of November, we will organize the Week of Argentine Meat in Shanghai. This event will invite main importers, chefs, hotel managers, supermarkets, restaurants, and local gastronomic press to taste the excellence of our meat in view of its dissemination in the local market.

Besides foods, we doubled our assistance to new missions of our businessmen from SMEs who are looking for a new destination for their products of agricultural or industrial origin, in a moment where traditional markets from central countries are undergoing a deep crisis. The Argentine products of high added value are looking for new horizons. That is why the industries such as software, audiovisual, biotechnology, fashion, design and so many others find a new destination in China.

Promotion of Art and Cultural IndustriesThe participation in fairs and exhibitions is not limited to those dedicated to the most traditional products of our exports. The Argentine Center for Promotion in Shanghai also participates in fairs of art (like Art Shanghai in April and Shanghai Art Fair in September) and fosters the presence of our best performers in Shanghai International Arts Festival during the month of November or our best audiovisual producers during the Film Week in Shanghai.

It is worth pointing out that as a result of these participations, the Argentine Sculptor Beatriz Garenstein with one of her bronze works higher than 7 meters named “Armonía de los Pueblos” was commissioned for the permanent exhibition in the city of Shanghai.

We also support and encourage the activity of many “Tango” schools, as well as those from Argentine Restaurants located in Shanghai and surroundings. A lot of Chinese people are fascinated with our Tango and our food; especially with our barbecued meats, and they are an invaluable vehicle for the promotion of values and interests of our country.

Argentine Center for Promotion in Shanghai.

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Promotion of Investments Regarding Chinese investments to Argentina we can mention the strong cooperation with the Undersecretariat for Investment Development in the promotion of direct foreign investment as a complement to domestic investment. In that regard, last June, we organized the First Multisectoral Mission of Investments, with the participation of over 40 local important investors interested in specific projects in Argentina.

This is why, the Argentine Center for Promotion in Shanghai has incorporated two Chinese employees to its staff, specialized in the promotion of investments in order to implement a proactive strategy and focus on specific investment opportunities, identifying tangible projects for whose concretion the following is required: capital contribution, technologies, production know-how or specific managerial skills from China.

Promotion of Education ServicesThis is a new export industry of great added value. Even though it has always been important for Argentina and we have always felt proud of being able to offer university programs for students from bordering countries, today it is a Specialized Service many times custom-designed according to the requirements of foreign students. They are willing to pay what these services cost in any part of the world and they not only constitute a source of income for the country, universities and institutions that offer them, but also they constitute a way of achieving excellence and international recognition that all education institutions seek to have.

Promotion of Receptive TourismIn the Argentine Center for Promotion in Shanghai we pay special attention to the promotion of receptive Tourism of Chinese citizens who want to visit Argentina. For that, we cooperate with INPROTUR in the organization of tourism “road-shows”. Last October we helped with the organization of an event like this, together with Tourism Bodies from Chile, Peru, Ecuador and Colombia, offering a joint presentation to local tourism operators who try to meet the needs of customers and who, at the same time, seek to maximize the investment they make when buying their tickets to South America. Likewise, we have managed to properly fit the offer of our countries to the demand of the tourists.

We also participated in regional tourism fairs that foster the interest that many Chinese have in seeing other realities.

Consular Assistance The promotion of Receptive Tourism takes us to another aspect of the activity of the General Consulate and the Argentine Center for Promotion in Shanghai, which is helping to facilitate the access to Argentina of many tourists who come to our offices to request the entering visa in their passports. In this regard, in compliance with regulations from the Directorate-general for Migration, we make a great effort to grant requested visas as quickly as possible. This industry also includes a higher number of visa requests by Chinese businessmen who go to Argentina to do foreign trade business or investments in our country. All these requests are done as expeditiously as possible so that they can easily carry out their trip plans and business agendas in Argentina.

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The aforementioned aspects are added to the traditional daily work of all consulates, such as assisting our citizens who, being abroad, might need services from the different areas of the national routine. We assist those Argentineans who, upon voting, need a notary public to renew their personal identification documents. We register births, marriages, and nationality options. We help Argentineans with problems, help them with their interests in local courts and make sure that they are properly assisted in hospital and even in jails.

Expo Shanghai 2010As an example of the diversity of actions that we have done these past years we cannot forget to mention the assistance and coordination of activities with the Argentine Pavilion in the Universal Expo of Shanghai, where in a 6 month period (between May and October 2010) Argentina showed to the world the best that our country has to offer. The 1,500 m2 Argentine Pavilion hosted and served as stage to permanent cultural expressions of all kinds: the company of the dancer Iñaki Urlezaga, the folklore of Peteco Carbajal or Chango Spasiuk, the music of Sexteto Mayor, Gustavo Santaolalla and Bajo Fondo, among others. There was also a show of national silverwork by Marcelo Toledo. Also, during the Expo-Shanghai we coordinated the attendance of many Argentine businessmen: two Multisectoral Business Missions each one with the presence of over 80 businessmen who went to China to sell their products. It is worth pointing out that these Multisectoral Missions were presided by the National President Cristina Fernández de Kirchner in her official trip to Shanghai and Beijing, which allowed for a higher local attendance, assuring the success of the business effort.

The General Consulate and the Argentine Center for

Promotion in Shanghai, together with all the network

of Centers for Promotion, Argentine Embassies

and Consulates abroad, jointly with the Argentine

Chancellery and other national bodies, make up a

structure that supports and fosters the interests of our

country and of Argentineans abroad. For that, we have

created a staff of professionals who every year enter

the National Foreign Service Institute and after two

years of postgraduate studies, they become members

of the National Foreign Service.

Summary

Argentine Center for Promotion in Shanghai.i

Pabellón Argentino en Expo Shanghái 2010

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Argentina-China: consolidating a strategic partnership with the XXI century new power

Opinion | Gustavo A. Martino, Argentine Ambassador to the People’s Republic of China

Next year it will be the celebration of the 40th anniversary of the establish-ment of diplomatic relations between Argentina and China, and it will find both countries immersed in a consolidating and strengthening bilateral stra-tegic partnership process. In this regard, political agreements reached over the last years along with a significant registered increase in trade and invest-ments flows, present a big challenge for Argentina to maximize all business and cooperation opportunities that China offers, a country which is expected to become the first economic world power in the midterm.

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Strategic Economic PartnersPresident Néstor Kirchner’s visit to China in 2004, followed by the visit to our country of President Hu Jintao the same year, gave place for the signature of a Memorandum of Understanding to Strengthen and Diversify their Trade and Investment Relations.

Likewise, the recent visit to China of President Cristina Fernández de Kirchner in 2010, laid the foundations for the development of the strategic partnership with China, and as a result of political, economic and trade relations that have been growing in a sustai-ned manner.

Both countries are considered as emerging economies of rapid growth with large possibilities of bilateral cooperation and econo-mic complementation as well. Bilateral trade development, which surpassed 13,000 billion dollars in 2010, has placed China as our second trade partner and, more recently, taking into account all new projects that have been announced, it is also placed as an important foreign investor in Argentina. Source of Global GrowthChina, with a Gross Domestic Product (GDP) of 5.000.000 billion dollars, is the second world economy ahead of Japan. Recent fore-casts from the International Monetary Fund anticipate this country, based on the calculation methodology of the purchasing power parity (PPP) theory, could overcome the United States’ economy earlier than projected, thus becoming the first global economy in 2016.

Throughout this year, China continued growing at high rates, 9.1% the first quarter, although showing a slight slowdown with respect to 9.7% and 9.5% reached during the past first and se-cond quarters, and to 10.4% increase in 2010.

Moderation in the expansion pace of its GDP is due to a com-bination of a weak economic international scenario in addition to macroeconomic policies of the government. In this regard, the Central Bank of China has increased five times the interest rates since October 2010, and is implementing a restrictive monetary policy aimed to avoid overheating the economy, thus controlling inflationary pressures, nowadays more stable at 6.1% annually.In addition, Chinese exports are increasing at a decreasing rate due to a lower external demand as a result of the existing uncer-tainty of international finance markets and a crisis of confiden-ce and lack of recovery of industrialized countries. However, this situation will not endanger neither the strength of the Chinese economy nor the contribution of the country as one of the main sources of global growth, thanks to its huge industrial production capacity and its increasing consumer demand.

Likewise, China is expected to continue playing a fundamental role in the international economy, with a dynamic consumer do-mestic market. In addition, it will consolidate as the world largest exporter of goods and as a key foreign investment source for emerging countries. Within this context, it is estimated an increase of the GDP for 2011 around 9.2%, with a lower growth rate for the coming years. Increasing Consumer MarketIt is worth mentioning that China today is undergoing a transition process from a traditional economic development model, based on the boost of exports with high levels of investment and domes-

tic savings, to a more sustainable structure for the mid and long term, prioritizing internal consumption to satisfy the needs of its population.

It is precisely this strategy seeking to foster domestic consumption which has been incorporated to the Five-Year Plan for Economic and Social Development 2011-2015 that will require an important increase in the demand of all sorts of foods. It is important to re-member even though China, with 1,430 million inhabitants, has 20% of total world share in population it only has 8% of arable land in the world. This scenario compels to seek for alternatives towards widening the offer in order to supply bigger consumption consequently with the increase of total imports.

Future Commercial OpportunitiesArgentina is the 3rd food provider in China, therefore possibilities to increase and diversify our export offer to this market are exce-llent taking into account the size and future growth of this market.In addition, while China continues with its sustainable develop-ment process, improving the average income of its people, it will generate a more sophisticated demand of new products and ser-vices.

These commercial perspectives offer Argentina opportunities to export not only products such as commodities, but particularly of processed foods with greater added value. In this regard, reports of commercial intelligence carried out by the Chancellery based on crossing our exports with China’s total imports of all origins, have identified a purchase potential of the Chinese market of more than 319 billion dollars.

Under the Five-Year Plan mentioned above, the Chinese govern-ment projects to expand its global imports, which for the period 2011-2015 are estimated to total an accumulated value of 8 bi-llion dollars.The Chinese government has also announced measures to further and facilitate imports aimed at improving competitiveness in its industry in order to help balance its traditional surplus in the trade balance.

Foreign Direct InvestorAnother characteristic to highlight the Chinese transition process in becoming an economic power is its rising role as a foreign direct investor in the world reaching, according to the Chinese Ministry of Commerce (MOFCON), 68,810 billion dollars in 2010. These investment flow figures rank China in the 5th place as world inves-tor, behind the US, Germany, France, and Hong Kong, and already overtaking Japan and the United Kingdom.

This investment performance led by the behavior of Chinese com-panies, greedy for positioning in the principal emerging markets, has been concentrated traditionally in the Asian region where 72% of the investments were directed to.

However, Latin America today appears as the 2nd destination of Chinese foreign investments representing 14% of the total.This policy of going out to invest in the world is backed by a solid position of international reserves, China has around 3.2 billion do-llars, that guarantee their companies and banks a limitless resource capacity to make investments abroad and financing conditions at-tractive for recipient countries.

Argentine Center for Promotion in Shanghai.

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New Strategic InvestorArgentina has not been blind to this process and China, who did not register background as foreign direct investor, in the last years, has started to send business groups interested in develo-ping investments in our country.

This new Chinese investments trend, robustly growing, is being focused in key areas of our economic development for the mid and long term. Thus, Chinese companies are investing in on-going or future projects in areas such as: Gas and Petroleum; Mining; Banks and Finance Services, Manufactures; Infrastruc-ture and Transport, Energy; Chemicals; Agriculture; and Aircraft industries.

In this context, our country has been witness to Chinese inves-tment announces that include lightweight helicopters, compu-ters, tablets and electronic devices; building wind farms; biofuels plants; liquefied natural gas plants; electric cars production; de-velopment of fertilizing plants; upgrading of ports; acquisition of finance institutions; development of agricultural production projects; petroleum and mineral resources exploration and ex-ploitation.

In addition, China is playing a fundamental part in the develo-pment of the national infrastructure and transportation sectors, especially upgrading and expanding the train and subterranean networks, which include several projects of investing million dollars in capital goods where Chinese companies clearly have competitive advantages offering state of the art technology and long term financing.

Active Promotion PoliciesThe Argentine Chancellery is developing and coordinating jointly with the public and private sectors, with the support of our Embassy in Beijing, the Consulate and Promotion Center in Shanghai, and the Consulates in Hong Kong and Guangzhou, an active policy of economic and commercial promotion aimed at furthering and opening our exports to the Chinese market, attracting greater direct investments towards our country, and developing bilateral cooperation in every area in which we have economic complementarity possibilities.

Particularly, promotion activities carried out by our Embassy in Beijing for the last months have awaken great interest in the Chinese business community that has participated in Seminars, Business Rounds and International Fairs organized under the framework of official visits of high authorities jointly with national delegations of entrepreneurs.

Just to mention an example, the “Seminar on Investment and Business Opportunities” held last July under the framework of the last Joint Commission on Bilateral Economic Cooperation, chaired by the Secretary for Commerce and International Economic Relations, Ambassador Luis María Kreckler, jointly with the Minister of Agriculture, Livestock and Fisheries, Julián Domínguez, was attended by 500 Chinese entrepreneurs interested in meeting with the Argentine delegation to especially further sectoral investment projects.

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Last September, as part of the visit to China of the Minister of Foreign Affairs, International Trade and Worship, Héctor Timmerman, where many agreements have been signed, the “Entrepreneurial Business Encounter” was held between the two countries, being the Minister the principal lecturer before an audience of 350 entrepreneurs who then had interviews with Argentine counterparts, members of the multisectoral commercial mission, to promote business and exports to the Chinese market.

It can also be mentioned the following promotion activities recently held in Beijing: the participation of Argentine universities at the “China Education Expo”, coordinated by Fundación ExportAr; Tourist Promotion Road Show organized by the INPROTUR, with Tourist operators from Argentina and other Latin American countries; “Seminar on Bovine Genetics” coordinated by the Ministry of Agriculture, Livestock and Fisheries, with the participation of authorities and entrepreneurs; participation in the Fair and Congress “China Mining”, with an important delegation from the Secretariat of Mining and entrepreneurs of the industry; participation at the “COIFAIR” of investments; organization of the first “Polo Cup Republic of Argentina”; launching the promotion campaign “Wines of Argentina” at the Chinese market with wine tasting; “Argentine Beef Week” coordinated by the Institute for the Promotion of Beef (PIVCA, in Spanish) within the framework of the recent opening of said market to our country.

Great Growth PotentialGood dialogue between Argentina and China, and the consolidation of the strategic partnership in a context of explicit economic complementarities with the new XXI century power, create an environment for furthering commercial relations and bilateral business. The Argentine entrepreneurial sector has a great possibility to participate in all the activities included within the Integrated Plan for Commercial Promotion and Foreign Markets Development, designed annually by the Chancellery, aimed at exploiting all the opportunities the Chinese consumer market offers to increase and diversify our exports to said market, and to attract greater foreign investments towards our country in order to contribute to our future economic growth

Argentine Center for Promotion in Shanghai

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Argentina: an aggressive exporting policy with efficient instruments

The international insertion of an economy implies a progressively closer relation between the production and social structure of the country and the evolution of the world economy. This challenge determines better opportunities, risks and challenges. Among the former, we have to mention the need to expand the production activity through the access to a broader market, obtaining im-provements in productivity, competitiveness and higher levels of employment. In that regard, an economy more integrated to the world can eventually compensate unbalances in the internal de-mand through external markets.

Through the Integrated Program for Business Promotion, Inves-tments and Development of External Markets, the Ministry of Foreign Affairs, International Trade and Worship implements cer-tain actions aimed at increasing exports, diversifying markets and capturing productive investments, paramount tasks to promo-te our country’s insertion in the world. In the framework of this program, many activities take place such as missions to promote investments, business missions, international fairs and exhibitions, seminars, diffusion events, and business rounds, among others.

In the business sphere, the objective of the Program is to streng-then the national coefficient of sales to other countries, fostering federalization of the exportable offer and the support for interna-tionalization of SMEs.

In this regard, the network that the Argentine Chancellery has, made up by more than 123 Embassies, Consulates and Centers for Business promotion in the world, becomes especially impor-tant, being a true transnational network serving the interests of

our country, that allows to capitalize existing synergies and the complementation of efforts in order to optimize results in busi-nesses, investments and international economic relations. The role of Chancellery in this aspect is enshrined in the framework of a macroeconomic model in which foreign business policy is used as a true instrument of development supporting national producers in a sustained way in their efforts to be inserted in international markets.

The expansion of our exporting capacity is presented as an irre-placeable means to generate employment and incorporate new technologies to our production structure, in which the Govern-ment has chosen to give priority to regional economies, for their contribution to the reduction of existing geographic asymmetries within the Republic.

Therefore, the importance of the Centers for promotion results obvious in the positioning of Argentina as a destination to esta-blish new investments, detect business opportunities and outline the strategy and promotion actions according to the characteris-tics of our productive sector and the peculiarities of foreign mar-kets. The 10 current centers cover all the different regions of the world. Three of them are settled in the US, another three in Europe (Frankfurt, Barcelona and Milan), two in Latin America and two in Asia, Shanghai and Mumbai (India), and another one has recently been created in Istanbul.

Therefore, during the last 5 years, representations abroad have gi-ven room to increase the amount of business promotion activities, going from 412 in 2007 to 1,497 in 2011. Said activities,

Opinion | Ambassador Luis María Kreckler

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which involve the most diverse sectors such as machinery, foods, wines and software, among others, contribute efficiently to obtain a higher insertion of our products abroad. Latin America and the European Union are the regions to which most of these actions where aimed at and we have the intention of being very active in 2012/14 in the markets of Far East, Asia, and Africa (“Argentina: Initiatives 2011-2014”).

Taking into account the international and regional context, in the case of Argentina, we notice the increase of exported volumes, a lot higher than the average of the Latin American region and also higher than the world expansion rate.

It is worth pointing out that in the year 2002 the external sales were for a total of 25,000 million dollars. The last estimations show that the level of exports in 2011 will reach around 79,800 million dollars, 17% increase compared to the year 2010, expec-ting for 2012 the challenge of reaching 85,000 million dollars. At the same time, we register not only a growth in our external positioning, but also an increase both regarding diversity of desti-nations as well as sectors that export. Likewise, we registered an important increase in the share of exports in the GDP: during the three-year period 1998-2000, it did not reach 9%, while in the period 2008-2010 it reached around 20%.

In Argentina, the importance of raw materials in the total of exports of goods and services during the last decade decreased from 42% to 38%. IM (Industrial Manufactures) is the only big sector that had an increase of volumes higher than the average of amounts exported by Argentina: if we compare the three-year period 1998-2000 to the 2008-10, the increase was of 120% in the context of an expansion of 57%. In this way, between the afo-rementioned periods, the participation of manufactured products in the total of exports increased: in the case of AM (Agricultural manufactures) went from 33% to 35%, while in the case of the IM it went from 31% to 33%.

The current international context- where expectations of a slowing down of developed economies prevail- presents a challenge for the country and demands us to multiply actions to guarantee continuity of the expansion of our exporting capacity of the last years. At the same time, taking into account the expectations of growth rates of emerging markets- which are expected to double those of developed countries in the next years- it is necessary to move forward in the design of mid-term strategies that will allow to take advantage of the great potentiality of growing demand in this new world economic scenario. In order to accomplish the above mentioned, it will be necessary the design of a commercial framework, with specific objectives and predefined goals, and it will be an approximation of Argentina to the world in a more ag-gressive and competitive way, in the framework of ambitious plans of action.

In a dynamic world context, during the last decade, Argentina’s economy increased its international insertion as a result of high growth rates of its foreign trade of goods and services. In this way, the growing participation of business flows in the economy activi-ty level opens new risk scenarios and opportunities for companies directly or indirectly linked to the world’s economy.

The author is Secretary of Commerce and International Economic Relations of the Argentine Chancellery and future Argentine Ambassador in the Federative Republic of Brazil.

Argentine Center for Promotion in Shanghai

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By studying the international trade of services in Argentina during the period 1992-2010, it can be observed that it increased 215.5%, at an average annual rate of 6, 6%. This increase was explained in a 55% by the export of services and in a 45% by imports. Taking into account the totality of the period, it can be observed that the minimum of the series was in 2002, when our

The importance of services in Argentina’s international tradeWhen analyzing the international trade of any country, it usually happens that attention is focused only in the exchange of tangible goods, overlooking the important role of Services. However, data show, in the last years, services have represented approximately 20% of total international trade (that is the addition of the trade of services and goods) of Argentina. Therefore, a thorough analysis of our country’s international trade cannot exclude the analysis of this sector.

country was undergoing a severe economic crisis. Since then, it can be verified a sustained recovery, only interrupted in 2009, in the context of a global economic crisis. In 2010, exports of services grew 18.6% inter-annual, and imports 14.3%.As regards the services balance, it can be observed that in every year of said period it has been negative, although is a downward

Opinion | Carlos R. de la Vega

 

The author is the Chairman of the Argentine Chamber of Commerce.

Foreign Exchange of Services

Exports Imports Balance

Source: CAC Economy Division based on INDEC

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trend: the deficit of 2.557 billion dollars in 1992 fell to 744 million dollars in 2010, which shows an average 6.6% annual decline.The share of services in total international trade of Argentina has been relatively stable throughout said period. In 2010, services share was 18%, being 16% exports and 20.4% imports.

By doing an international comparison, it can be observed that in 2009 –the year with available data to carry out this sort of analysis- Argentina occupied number 46 in the ranking of countries with greater export of services. Taking 1992 as the base year, our country has fallen behind compared to the rest of the world as regards the commerce of services; but since 2002, the gap has been reduced gradually since the Argentine trade grows at a greater pace than the world trade. Thus, this shows that Argentina is taking advantage of the world demand of services to increase its exports.

From the analysis of the export of services, it can be inferred they have increased more than 338% during the period studied at an 8.5% average annual rate. The maximum sales volume abroad was registered in 2010, reaching 13.076 billion dollars. By studying its composition, we see that 15.5% belongs to the transport category and 37.7% to travel. Within this last category there are included goods and services nonresidents purchase inside our country during their stay for periods less than a year. Lastly, in the remaining 46.8% other services are grouped.

As regards the imports of services, they have increased almost 150% during the period studied, at an average 5.2% annual rate. The maximum volume was also registered in 2010 reaching 13.819 billion dollars. The composition of this sales flow is divided as follows: 26.6% transport; 35.4% travel; and the remaining 38% correspond to other services.

In conclusion, it is clear that services are becoming a very important product in our country and international trade, generating foreign currency and contributing to the development of regional economies by the creation of job posts, among others. Being aware of this reality, our entity is strongly committed towards the promotion for the export of services. In this sense, the Argentine Chamber of Commerce (CAC, in Spanish) is working in the area of Business Tourism, which has extraordinarily developed in the last years since our country and its main destinations have become an attractive place worldwide for these sorts of events. This is the reason why the CAC is proud to cooperate with other institutions by means of mutual assistance and cooperation in order to establish mechanisms to strengthen the promotion of Argentina abroad as an international events host and provide training for incoming tourism operators, congresses and other professionals of the Business Tourism sector.

Foreign Exchange of Services

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The promotion of Argentine design in Paris took place with great success and notorious impact on the specialized international press. The Secretariat of Business and International Economic Relations of the Argentine Chancellery coordinated this event, jointly with Fundación ExportAr and the Argentine Embassy in France. We should also highlight the cooperation of Argentina Fashion Week in this promotion that expressed once again the quality and talent of our country.

Laurencio Adot, Jorge Ibáñez, Cardón, Iaia Cano, Claudio Cosano, Carlo Di Doménico and Gabriel Lage were the businessmen, designers and Argentine brands that introduced their 2012 spring-summer collections in Paris. The selection process was responsibility of a committee of curators integrated by members of the international press.

The fashion show took place on September 29 in the Hall Gustave of the Eiffel Tower, where models Ingrid Grudke, Carolina “Pampita” Ardohain, Liz Solari and Viviana Battan, among others, introduced the collections of Argentine designers.

Mariana Nannis and her daughter Charlotte Caniggia, Patricia della Giovampaola, Josefina Robirosa, Nequi Galotti, Myriam Bunin and editors of fashion and international press were among the audience. Argentine diplomatic representatives in France took

Splendor of the Argentine design in the capital of fashionThe Argentine fashion show caused impact on the world’s most important specialized press media.

Promotion of Services | Argentine fashion

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care of every detail, so the fashion show resulted in great success.To have an idea of the importance this fashion show had in the world of fashion, we have to point out that press media such as Le Monde and Vogue, among others, covered the event in full.

Argentine press also followed all alternatives of the show: C5N had a special program; Tendencias (Canal9) did a close follow-up and almost all print media highlighted the event with relevant stories and pictures.

“It was very thrilling to participate in this fashion show and we have to thank the support of the Argentine Chancellery and Fundación ExportAr”, said Ingrid Grudke, interviewed by C5N.

After the event, there was a cocktail for the audience, thanks to the participation of Cervecería and Maltería Quilmes and the support of the Institute for Tourist Promotion (INPROTUR) of our country. The cocktail was held in the “Headquarters”, one of the most known places in the French capital, where officials, special guests, journalists and important buyers were present.

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Argentine Fashion | Interview | Jorge Ibáñez

Argentine Designers have an outstanding presence.

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Jorge Ibáñez highlighted the importance that the Argentine fashion show had in the Eiffel Tower and said that these actions will have impact on important business for our national designers. “We showed what we are capable of doing in the capital of fashion and before the eyes of the best. Results are not immediate and depend on the effort and perseverance, but we are on the right path”, he said.

Almost reaching 20 years of experience in fashion, Jorge Ibáñez is currently a trademark in the design world. Always at the forefront with his creations, this creative, uneasy, working and perseverant man is going through a stage of local success and opening to new markets. After his second participation in the Argentine Fashion Show in Paris, organized by Argentine Chancellery, through Fun-dación ExportAr, he received us in his atelier in Recoleta and des-cribed what he felt having taken his collection to the Eiffel Tower, before the eyes of his distinguished colleagues and of the Euro-pean journalists from specialized media.

-How was your experience in the fashion show in France? - Great. We went with a group of colleagues for the second year in a row. It is excellent both as a personal and professional experien-ce, this year was much better compared to the previous one, we have bettered ourselves. The place was amazing: the Eiffel Tower is like making a dream come true. Any designer who can take a fashion show to Paris, capital of fashion, and in the Eiffel Tower, the most emblematic place, feels he has achieved a goal. The show was well organized, with attention to details, Héctor Vidal was in charge of the production, and has a very impeccable style. The models were from different nationalities; even mine, and I also took Ingid Grudke again. She was an inspiring muse once again, she is an admired and flattered woman in the entire world and she was an extraordinary representative.

-What is the balance of the activity?-Very good, I think that little by little we are being recognized in the world. It is not easy and even less easy in Paris, where all the most famous designers of the world are. My personal impression is that the results of all this activity are going to be seen in a couple of years, not immediately. We will have business proposals and we will reach a difficult market, one that not anyone can access, but we must be patient and perseverant in the effort. .

-What impact did your collection have on your European colleagues?- I felt a special look and special attention towards me; the most important fashion magazines interviewed me. And they not only liked my designs, but also designs of my colleagues from Argen-tina, we stepped in: we said here we are: we can do good things, create trends and be internationally recognized.

-Models expressed that it was very special for them to feel that they were representing the country. - That is for sure. It was thrilling to represent our country and make it look good; we played an important role. We exhibited an in-ternational level, and we rose to the occasion, I think that this will bring results with time. I do not believe in magic immediate explosive results; I believe in constant work, with sustained efforts in time to reach success, that is the only way.

-Are you convinced that these actions will result in important businesses for Argentine designers?-Yes, I’m sure it will be that way. It also depends on the designer, right? I’m about to reach 20 years in the fashion industry and this is a moment in which I can aspire to this recognition. When I was only starting it was impossible, but now I’m in a position to reach the most demanding place in fashion. When you cross borders it is like a new beginning, like starting all over again. Showing what we do and that we are very good is a daily job.

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An observatory at the service of the publishing sector

Immerse in the publishing industry for over two decades, Horacio Zambra, President of the consultancy Promage, decided to put an end to the shortage of information that the sector was undergoing. Therefore, after two years of work, appeared the Observatory of the Publishing Industry, a complete report of the area, with figures and statistics developed as a result from data obtained in a confidential way from the subscribed publishers, later consolidated and complemented with external data. Fernando Zambra, Executive Director of Promage, tells us how the project was created and the benefits that it will bring to the sector in the short, medium and long term.

Interview | Fernando Zambra, Promage

“During many years, the publishing industry supported the shorta-ge of figures, a reality that affects all Latin America”, says Fernan-do Zambra, our interviewee. “The industry, being part of a cultural sector, tends to forget that it is also a business”, he adds.

The President of the consultancy Promage, Horacio Zambra, has been a member of this industry for over 25 years, he actively par-ticipated in the management of publishing companies, and he has also been involved in the work of book Chambers. This lack of information that he detected as a member of the sector, led him to develop a project that took him almost 2 years to set up and that then he called Observatory of the Publishing Industry.

The Observatory is an annual report with detailed figures and sta-tistics of the sector- then complemented with two biannual ones- developed as a result from data obtained in a confidential way from the subscribed publishers, later consolidated and comple-mented with external data.

Zambra explains that during 2 years, they were dedicated to spea-king with publishing companies to introduce the new benefits of

this project to them and he believes that it was possible mainly be-cause subscribers trusted Promage as a safe place to deposit infor-mation. “The key to initiate the project was trust in that we would save the confidentiality of the data obtained”, assures Zambra.

The Observatory has more than 15 publishing groups, made up of 30 or 40 labels: Adriana Hidalgo Editores, Aique Grupo Editor, Ediba, Ediciones SM, Ediciones Irano, Editorial Guadal, Editorial Sigmar, Eterna Cadencia, Eudeba, Fondo de Cultura Económica, Grupo Editorial Norma, Grupo Macmillan, Grupo Planeta, Grupo Santillana, Katz Editores, Pearson, Random House Mondadori, Tin-ta Fresca, Tusquets.

Zambra explains that, at the beginning, a model was established in which subscribers delivered information- through two annual sur-veys- then Promage consolidated it and sent it back as a “report of the industry”. That first method of work was soon over and new needs arose in subscribers”, explains Zambra. “However, this first step was helpful to convince them that providing data would not result in any problem”, he concludes.

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Zambra considers that “today we are living a transformation of the Observatory because after the first round we did, very closed, subscribers saw the need to obtain a more and more representa-tive total projection of the market”. He explained that since some months ago, the consultancy extended the request with new ways of participation for all publishing companies to join through a very simple and reduced survey, with only six basic questions. “These surveys will be used to be integrated in a macro report of the in-dustry that will be public”, he explains, “and we want the Cham-bers to use them upon deciding their sectoral strategies.”

The Executive Director of Promage considers that “with the subs-cribers’ help, added to this instance of cooperation from which other publishing companies/bookstores will answer these ques-tions, we will publish a report that will be public and will have the ability to be used as a cover letter of the industry”. Likewise, he explained that then subscribers will have a much more detailed version that will include where the book is sold, what type of book it is, when it is sold, at what price, with what discount, etc. “That is private and confidential for subscribers”, he explains.

As regards the projection of the Observatory in other countries of the world, Zambra confirms that even though they only work in Argentina nowadays, they are talking with publishing companies from Uruguay, Colombia and Mexico with the aim of developing a similar project in those countries. About the progress of this ex-perience, he believes “we have walked a long path because many of our subscribers are foreigners and have strong participation in the Latin American market. While markets such as that of Uru-guay and Chile seem smaller and physically near ours, Mexico and Colombia have a structure that demands for more work to reach consensus.”

Likewise, he talks about the possibility of expanding his job to some other sector of the cultural industry. “We had talks with people from the record sector, which has a reality very similar to ours. They have common problems and have the advantage of being much more concentrated. They also lack information”, he assures. “In other cultural industries it is very hard to obtain data or sources”, he concludes.

As regards the reports of the Observatory, he explains that they cover production, sales and commercialization: how sales are dis-tributed according to channels, discounts granted, news, reprints, new editions in pocket book format and the trade book, it co-vers sales by topics, etc. Therefore, sales are classified by state, foreign trade, by imported books compared to the national ones, everything regarding the market of sales and offers, among other things. It is a very comprehensive report that corresponds to the deepness of the survey.

“One of the main aims of the Observatory is that it has informa-tion from first hand sources and with references”, explains Zam-bra, “this gives us certain soundness as to the numbers we provi-de”. Regarding the tools they offer, the specialists lists the annual report and a biannual preview of each one of them. In order to develop them, Promage is permanently analyzing other variables and looking for other sources that would provide and complement surveys. For instance, Zambra refers to the information that Pro-mage gathers from the reports done by the Ministries about sales of books by the National State. “We analyze the record ISBN of Argentina, where all the production is registered”, he says, “and we study the data we obtain with a lot of interest for publishing companies. We analyze the ISBN from the perspective of the subs-cribers, and the same with customs reports, in relation to the fo-reign trade”. He also mentions other sources such as: Ministry of Education, Ministry of Culture, Chambers, even public balances of companies and information about other markets, reports provided by Chambers of other countries. “Furthermore, we look at other phenomena like the digital book, author’s copyrights and techno-logy topics”, adds Zambra.

On the work of the Observatory with its subscribers, he says “it is a cooperative job that can only take place in the framework of willingness and commitment of publishing companies and Pro-mage”. Zambra highlights the direct contact that they have with subscribers. “The same dynamic of gathering information goes back and forth until reaching and achieving consistency in the data they send”, he explains. Likewise, he says that there are instances for providing individual and group feedback. “In some cases, these meetings demand for deepening of some topic”, he says.

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In this framework, Zambra highlights the importance for subscri-bers to have a report like the one developed by Promage.

“Whether it is for public policy, for sectoral strategy or for internal management and organization of publishing companies, it is pa-ramount to have a diagnosis or objective information of the reality.

We understand that is what is missing today in the industry and what the Observatory adds in the first instance to then contribute with the analysis and strategic thinking.”

Zambra highlights that one of the main objectives of the Ob-servatory is the consolidation of a market of Spanish books that comprises not only the Argentine publishing industry but also that of other Latin American countries that share the language. “You cannot look at Argentina or Uruguay as separated markets, you have to look at the Spanish speaking market”, says Zambra. “Latin America should show itself as a source of Latin American authors in front of foreigners who want to do business with any of these Spanish speaking countries”, he adds. “We need to be seen as a unique single market; it is something for which we need to work and we believe that will strengthen the sector”.

The director of Promage considers that, although the existence of some dialects, our continent has a strong advantage compa-red to the rest, having just one language. “Latin America has 20 countries that share one same language”, he adds, “and in the US Spanish is consolidated as a second language being a mandatory course in some public schools”.

Zambra highlighted that “foreign publishing companies look at Latin America but have a hard time analyzing opportunities due to the lack of information. This constitutes a barrier today for the promotion of the book and Latin American markets”, he assures. “In that regard, I think that any job that can help clarify what we know to do in Argentina or America will facilitate any business.”As regards the future of the publishing sector, Zambra thinks, “we are in a very uncertain scenario due to the digital book”. Although he assures that nowadays those books are almost not bought in Argentina due to the high cost of reading devices, he shows to

be taken aback faced with the penetration that this new reading methodology could have in the next years. “We still do not know if one of the main global players of the book market, like Ama-zon, Barnes & Noble or Apple will establish in our country”, says Zambra. “The transaction of Amazon in Spain has already been announced, but it only really has been very successful in the US, since the country already has a culture of sales by catalogue, so that fits perfectly”.

The director of Promage believes that the sector must keep alert upon the potential arrival of the digital book, since our country is not prepared to overcome the changes that this new methodology might bring. “We observe that in general the publishing sector would have to face the competition of new players coming from other industries, which implies the adaptation to new business ru-les”, he assures.

Regarding the consequences that the arrival of the digital book to the country would bring, Zambra thinks that the piracy phenome-non impact would be expressed in relation to all digital products, regardless of the country in which is developed. In the industry, the biggest challenge lies in the activities based in the physical book like distribution, commercialization and sale. For publishing companies with the focus put on the author, development and financing of the product, the change will not be as important. Regarding objectives for next year, he says that they will look to deepen “the cooperative participation of as many publishing com-panies as possible.” He talks about his idea to broaden the spec-trum with the contribution of smaller publishing companies.

“Our expectation is that later on, within these collaborators, we will be able to make study groups by topics. For instance, if there are many publishing companies dedicated to children’s books, we should create a group for that sector.”

Zambra explains that for some small publishing companies, the participation in the Observatory translates into great effort. “That is why we look for new alternatives of participation that will bring this type of management tools closer to the companies.”

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Argentina s services for export

Ministerio de Relaciones Exteriores, Comercio Internacional y Culto

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Design of winery cellars: : Forefront and exportation

Two architects from Mendoza are building in the world today. With a strong vision of the architectonic plan framed in the context of the natural and cultural landscape of a place, they successfully develop agro industrial projects and are internationally recognized for their establishments considered “icons”.

Success story | Bórmida & Yanzón Studio, Architects

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The Bórmida & Yanzón Studio is from Mendoza and specializes in winery cellars, agro industrial projects, wine spaces, land planning, residences and interior designs. The studio was created 30 years ago and the Architects Eliana Bórmida and Mario Yanzón, their owners, direct it. In the beginning (early 70’s), they started building houses, but due to their training, both of them were interested in locating the architectonic project within contexts. The combination of expertise of Mario Yanzón in landscaping and of Eliana Bórmida in natural, historical and cultural heritage, took them to situate their projects in more transcendental frameworks than what a customer usually demanded, always something more pragmatic.

Their beginning in the wine worldThe actual opportunity for development arrived in the Bórmida & Yanzón Studio in the mid 80’s, when many wine-producers requested their services for the preparation of spaces aimed at receiving journalists, wine critics and socialization, in order to position Mendoza, which was then trying to enter global markets.

“Back then, wine cellars were not interesting as spaces to receive people or to give an image of the quality of wine that wanted to be conveyed, it did not represent the identity of the company, or that of Mendoza”, expressed Eliana Bórmida.

Soon after, B&Y started carrying out projects within natural spaces, in vineyards, parks or dry areas around wine cellars, settings,

facilities, preparing a small space outside to persuade about the good life and communicate the savoir faire. They also started compiling a concept for wine producers so that they would start understanding wine from the culture, not only from the business perspective. “Our horizon began to be situated in the wine sphere, but with a very broad framework. We did many alterations of wine cellars and expansions until we received new topics, where we were able to make customers apply these concepts that we had been developing”, said the architect.

Salentein was the first project, in the mid 80’s. “We started developing the idea and told the owner that his wine cellar should be an icon. Until then, wine was not related to the Andes, nobody talked about it, on the contrary, the promotion posters showed the Humid Pampa, as incredible as it may seem”, said Bórmida. “We thought that it was necessary to locate a wine cellar in front of the Andes so that people would have to walk a kilometer looking and saving the image in their minds of a cellar with the mountains in the background, the location of the cellar is not a coincidence”.

With this project, B&Y was pioneer in introducing the desert in visual communication. That is why Salentein has a reservoir of flora and fauna of 50 hectares of desert and a small ampelographic sector, where the objective was to show how a small oasis results

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from irrigation, of agriculture and viniculture in an Andean environment. When the visitor leaves Killka, the art space of the cellar, he finds a small-irrigated garden, with vine plants and surrounded by desert.

“That is how we started putting in the imagination of those who look at and walk the reality of Mendoza (an Andean province, located in alluvial land, where only one type of vegetation grow, of big roots and few leaves, with many spines), which with irrigation and the knowledge of agriculture and viniculture, 500 years later, is a province that managed to successfully cultivate vine. That was our main message”, expressed proudly Bórmida.

The architects involved in the project learned with the IADIZA (Argentine Institute of Research of Arid Areas), to identify the native flora to start using within their designs of green spaces (which have always been very austere like the Andean nature) and also started working on the Andean characteristics (with the use of materials, especially with boulders which is part of the alluvial stratums of the soil from Mendoza, to be treated with arid ones, cement, rocks), experimenting with the local colors (like mountain’s colors), to do a more landscaping architecture, understanding that wine is a product that results from our land, not an artificial product but a natural one. That is one of the concepts that the studio always wants to highlight in favor of its cellars: “That the wine starts on the land.” All these concepts were present in later projects, combining nature and industry.

The second cellar that B&Y built was Séptima, with a wide series of peculiarities. “Since it is on the way to Chile, this cellar is very close to places where we could easily obtain the blasting rock, at a very low cost.

This allowed us to resolve with thermal lag very powerful rock walls, that were exposed to the North and solve very easily the energy consumption and the spaces of the cellar”, said the architect.

Later on was the turn of O’Fournier, where the owner requested to

build a cellar of XXI Century, completely unknown and that would reflect the wines of the new world. He wanted an establishment that would be managed through gravity, where bombs would not be used and that could be built in stages. “That is when the concept of a decentralized cellar arose, understanding that different buildings would be built during the process to host the wine. The first building was a concrete cube- where the fermentation tanks are located- with ramps that allow the access to the Vendimia terrace elevated on the land. Since those tasks are done during the summer and last at least three months, it was necessary to put a big ceiling, with an umbrella that became the main icon of the cellar, a wide space with shade. From that cube, the wine then comes through gravity and goes under a subterranean building (a great cellar of 2500 m2), under the access of visitors. From that cellar, the wine goes to a third building, the one aimed to deposit and bottling”, explained the architect.

All the projects that the studio does were conceived to receive visitors and this cellar was not the exception. “The owners of O’Fournier understood that the wine must have a direct and persuasive communication towards the consumer. The client has to be taken to the lands where the wine is cultivated, because that is the way to really understand this beverage. In the case of this wine cellar, the visitor comes in through a diagonal to these group of buildings, arrives at the main square, goes up to the Vendimia terrace, then enters the cellars through air walkways that go over the barrels and ends in a restaurant, wine bar, that is located at the ground level, and the visitor feels as if the bar were floating on a reservoir of irrigation water, with the image of the Andes at the background”, described Bórmida.

After these three examples (Salentein, Séptima and O’Fouriner), came many other projects with the same concept, but all different from each other. The studio B&Y tries to analyze in each case what specific opportunity the place where the cellar will be built offers and what specific vision the owner has, so, with the combination of these two inspiring sources (nature and place) and the information (vision of the company with their technical team),

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every project is developed. The Cellars Atamisque, DiamAndes, CAP Vistalba, Dolium and many others continued giving the studio interesting challenges. Furthermore, there are other very big traditional establishments of Mendoza, like Flichman, Norton, Navaro Correas that needed to be altered, enlarged and changed, where B&Y has also intervened.

B&Y’s Philosophy “Due to our experience and career in agricultural architecture, the understanding of nature transformed into field and cultural productive agriculture landscape, makes us feel interested in understanding the essence of both realities: natural landscape and cultural landscape to then do our architectonic intervention.

We understand architecture not as a limited object or performance, but as a bigger means, within an environment”, assured Eliana Bórmida, “we aim at life quality with identity, as a result of the recognition of its historic dynamics, of its nature and society. We believe in the land that develops in a balanced way highlighting its patrimony strengths and that is conveniently inserted in the current global multiple world networks. The philosophy of the studio is to work in a coherent way with the architectural work that we are developing, fitting the final aesthetic that we want to obtain with the architectonic space, always with simplicity and working with local materials”.

The studioThe Bórmida & Yanzón studio is composed of 20 architects, directed by its directors and owners, who formulate the keys of the project and prepare the preliminaries, developing all its components: from the organization of a plant, the structural and functional form, its plastic, aesthetic aspects, relations with the environment to then move forward to precision stages.

All the professionals that integrate this studio have a project leader that carries out the development and technical direction, in order to comply with the works in the scheduled time and manner. Under the supervision of each head of project, different groups

of professionals intervene: senior and junior design architects, sometimes interns, who live their professional experience, organized in precise hierarchies to comply with responsibilities, deadlines and distributed tasks.

InternationalizationSince many years ago, the B&Y studio crossed the borders of Argentina to keep building establishments and homes in different places of the world. Nowadays they have works in Argentina (homes, land planning, hotels and especially wine cellars), in Ecuador (private homes), in Panama (Rum distillery), in Uruguay (wine cellar and oil producers), in Chile (wine cellar), in Portugal (wine cellar), and in France (Wine Shop).

Together with Fundación ExportAr and Fundación ProMendoza, it has participated in Fairs and international events that have allowed the access to specific customers to whom they could show their services. They also participate together with Wines of Argentina in diverse activities to promote Argentine wines and wine culture through seminars, conferences and Fairs. Universities and international bodies often invite both architects to give conferences and they have both been internationally recognized with awards obtained in the international contest of wine tourism “Best of”, of the Great Wine Capitals.

Export of services“What used to pertain to construction now pertains to architecture. We have over 30 wine cellars built, for which we have obtained great recognition. We are highly trained in the area, we know how to work with interdisciplinary teams and we have working methodologies. We have a great database of providers of products and services and we are a very competitive studio when it comes to projects of architecture of cellars”, expressed Bórmida. “Our international customers arrived after seeing our website or visiting Mendoza, where they understood that the cellars of the place can be icons that help the positioning of the company and of the country, in this case, of young countries.”

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The architect explained: “Nowadays we are finishing a very important agro industrial project in Uruguay (oil and wine cellar).

We have developed our most important training in iconic cellars, which means for an establishment of such importance representing the place where the wine is elaborated, having solved the wine aspect with a lot of rationality, functionality and practicality, having a space for socialization and ultimately creating a company image. Wine is a type of beverage whose consumer knows that it is not only smells and flavors, but also history, experiences of art, music, painting, sculpture, sports, conversations with friends, gastronomy.

“We have a lot of experience carrying out these spaces of wine sociability.”

Uruguayan customers were interested in the B&Y studio when we told them about the need to express another terroir, since the land, soil and culture of the area are very peculiar and different to those of Mendoza. It has the most antique rocks of the planet from the Brazilian Plateau. “In this wine cellar we were interested in building tunnels to make people go through rocky soils whose

mineral characteristic will definitely give the wine elaborated a very peculiar aspect. It has a touristic path that ends in parks that have been designed to restore the native and rocky flora and there is a restaurant that offers amazing views of the entire context. That is an experience of an iconic wine cellar outside the country. We also have two more and a hotel in Patagonia, and in Chile we are currently working in the expansion of a wine cellar and improving its traditional image. We have experience in the agro industry, in a Rum distillery in Panama and a big home in Ecuador. We also have a Wine Shop in Cahors, France”, commented the specialist.

Both for the architect, as well as for her partner Mario Yanzón and the rest of the team that integrates the studio, working in agro industrial projects and being able to take their philosophy to the world, have given them great satisfactions”. “As South Americans we hold a concept of the value of nature very different to the one held in Europe, which sees it as something weak, about to disappear. Our idea of nature is not so practical, we are thrilled faced with the spectacle of nature and its power and we think that wine today shall recover this message. Everybody should put emphasis on the wine as a product from nature and show it with

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In that aspect, B&Y is a very avant-garde studio. The experience of working with this type of teams abroad is implemented again in Mendoza, where there are not enough experiences in the area. B&Y helps generate human teams, communicate and spread in the local media methodologies of interdisciplinary work.

“The interdisciplinary team is the true author of the work, with different degrees of importance: the author, the architect, the agronomists, the wine experts, industrial engineers, marketing people, finance people, providers of machinery and equipment, and the ones who intervene in the edification. All those people should be coordinated in order to carry out a project in time and manner, to work efficiently. These practices imply a bigger effort and challenge when we work abroad and teach us how to apply all the knowledge in our own things. We bring corrections to our methodology and we surprise foreigners with our working methods, it is very enriching and flattering for our studio”, explained the architect.

more deepness: as a mother producer, as fertility where the plant is born. We have to experience the whole meaning of a natural framework of a product so noble as this beverage.

In the Bórmida & Yanzón studio we have a lot to say and help companies discover their own potentials in this regard, creating concepts and arguments that will then give room to architectonic projects, celebrations, arguments, scripts, tours, of many diverse aspects. We believe that the wine world internationally should be focused with more attention because it is a very important means of support of the product”.

Finally, going out and building in international markets for the studio means invaluable growth experiences. “Working with many referents, creativity is constantly renewing, maturing, and becoming more dynamic”. There you can better observe the contrast of things and get thrilled with what you see, you enrich yourself. It is also useful to better understand our own land. From the pragmatic point of view, it helps us do better projects. With time, you become more precise and accurate with what you are looking for, and that makes the design easier to be applied, we learn to create and interact with interdisciplinary teams”.

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Before saying goodbye and expressing a desire, the Director of the studio added: “We would be interested in working anywhere in the world where there is agro industry. This activity is the most interesting one of all, it is transcendental, it helps develop virtuous circles of production, life quality, sustainability of lands and communities, it is an economic activity that generates very broad chains of beneficiaries, as opposed to other activities. These are the projects that interest us the most, the wine paths, understood not only as something touristic, but as lands that are developed towards the future with sustainability around the production of wines”.

An analysis of the awarded works The fusion between wine and architecture is not new. But when both concepts are combined with landscaping, ecotourism and sculpture art in a context of monumentality, that bond becomes much more complex and interesting. Its mentors, architects Eliana

Bórmida and Mario Yanzón, have obtained during 5 years in a row, the Gold Medal of the Best of Tourism contest. The award is given by the Great Wine Capitals, the network that groups the eight regions that produce the best world wine.

The effort and commitment of the architects of the studio has been transcendental and has been recognized and valued with mentions and awards in different contests.

Among the last awards obtained, the Bodega DiamAndes was awarded with gold in the category “Architecture and Landscape” in the “Best of” contest of the Great Wine Capitals in 2010.

Furthermore, the Bodega O’Fouriner has recently been awarded with the “Gold” distinction in the national instance of this same contest in the year 2011. Also, in the category “Restaurants Related to Wine Tourism”, Bodegas Killka- Espacio Salentein received Gold, in the category “Art and Culture” Finca La Anita was distinguished with Gold, and in “Relevant Experiences of Wine Tourism”, Bodega Atamisque obtained Silver and Bronze in other categories.

Bórmida & Yanzón have also received recognitions from other companies and entities like Red Edificar, WAF, Venice Biennale, Lugares Magazine, Colegio de Arquitectos de Mendoza and Italy Consulate in Mendoza.

Success story| Bórmida & Yanzón Studio, Architects

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Argentina s design for export

Ministerio de Relaciones Exteriores, Comercio Internacional y Culto

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7th International Buyers’ RoundWines and Wineries 2011

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Wines and Wineries was once again the place to be for wineries looking to do new business and for those offering products and services linked to the wine industry.

The wine producers in the buyers’ round were particularly interested in the chance to diversify export markets and the need to forge new commercial contacts.

Argentina hopes to receive around USD1 billion(EUR 751 million) from its wine exports in 2011, 15% more than last year, and has targeted Latin America as a priority market for expansion, explained Walter Pavón, coordinator for Bodegas de Argentina, an association of the country’s leading wine producers.

The sector recorded average growth of 35% in the value of its ex-ports and 25% in volume between 2003 and 2008. Speaking at the Mediterranean Gastronomy Festival, held in Bejain southern Portu-gal, Pavón remarked that the country’s top market is the United States (which accounts for 50% of its exports), followed by Brazil and Europe. However, he stressed that Latin American consumers were the immediate goal of the Argentine wine sector. “Argentina is targeting the Latin American market due to its great linguistic and cultural affinity,” said Pavón, who pointed to Peru, Colombia and Panama, along with Brazil, as important market niches. He also emphasized the significance of the sector in attracting tourists to the country, and said that Argentina currently has 166 wineries that are open to the public, the majority (75%) in the province of Mendoza.

The coordinator of Bodegas de Argentina, said these installations receive around one million visitors every year, 30% of them from abroad, mostly from America, followed by Brazilians and Chileans.Argentine wines “have an excellent price-quality ratio,” said Pavón, who referred to the great variety resulting from the geographical diversity of the country. However, the “jewel in the crown” is still “Malbec”, he explained, a grape originally from France which gives “great quality, smooth, elegant” wines.

According to Bodegas de Argentina data, the wine sector employs 200,000 people directly in the country, and another 100,000 indi-rectly.

Given the results of previous editions, the Argentine Foreign Minis-try, through Fundación ExportAr, decided to organize the 7th In-ternational Wine Buyers’ Round for national wineries and foreign companies to broaden and diversify export destinations and for a myriad of buyers to generate greater business volumes.

Six foreign entrepreneurs from United States, Japan, Peru and Mexi-co were invited by ExportAr to take part in the event, where they held discussions with 23 national wineries at approximately 150 bu-siness meetings.

All the foreign entrepreneurs highlighted the excellent quality of our wines and stressed the significant price-quality ratio of the products, which indicates that there are great possibilities for medium-term business.

There follows a selection of comments made by some of the foreign companies present:

Tsuboi Hideyuki - Vintners Inc. Tokyo, JapanAn importer who was visiting Argentina for the first time. He showed great interest in most of the wineries he met, and said: “I’ve approached several wineries with very interesting products and I’ll be following up these business contacts back in Japan.” In our country wine consumption is around 5% of the total for alcoholic beverages, but the trend is to increased consumption.”

Joanna Bugel - Lion Distributors. Chicago, USAThis is the second time she has taken part in this event in Buenos Aires. When talking to the Fundación, she said: “We’re interested in good quality varietals like Bonarda or Cabernet-Malbec that will help us expand the basic perception of Argentine wines.

Export Promotion | Wines and wineries

Special Report Wines

At the business meeting held during this important fair, the wines enjoyed by the world’s most discerning palates were on display.

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“There’s a large market for Argentine wine in Chicago, which is why I think other varieties besides Malbec should be able to win over our consumers.“I’m very satisfied with the quality of the wines and also with the presentations made. The wineries were very well prepared, they an-swered all our questions and made some excellent presentations. So I requested that they send me samples.“We currently distribute several Argentine wines from Mendoza but we’re also interested in importing. The different varieties from this country are so interesting and have great potential in the US mar-ket. When Argentine wine first entered the United States, the most common variety was Malbec. Now there are others, like Syrah or Bonarda, which our clients find very attractive.”

She claimed that about 50% of the contacts made in 21 meetings offered clear hope for future business, and so she has already re-quested samples from different wineries. She also made a series of purchases during the round.

Gloria Vidal Benítez - Wine Art Representaciones S.A.C. Lima, PeruThis was her first experience of a business round in Buenos Aires. She held meetings with 26 companies, requested samples from 50% of them and quotes from 20%.

“The wineries I met have variety, quality and competitive prices. Un-til 5 years ago, Chilean wine enjoyed the greatest sales in Peru, but since 2006-07 Argentine wine has seen very great growth, displa-cing certain Chilean brands with a strong presence in the Peruvian market. The supply of Argentine wines in our country has grown

considerably, with the entry of many wineries both large and small

with excellent wines and affordable prices”.

LC Group. PeruMet with 26 companies, requests for samples from 50% and quo-tes for future imports from 20%.

Miguel Ángel Trejo Peralta - Licoteca S.A. de C.V. Mexico D.F, MexicoThe company’s first experience in Argentina. It will make purchases of Bonarda and Merlot wines from three of the wineries present.He said: “I thought all the wineries were very attractive for a market with growing demand for Argentine wine.”

AC. Miami, United StatesOf a total of20 meetings, the company holds out firm expectations for future business with at least 5 national companies.

Argentine ParticipationOn this occasion there was a greater number of mostly new, small wineries, which are taking their first steps in foreign trade. Their presence in the round was essential for the development of new markets.The event was an example of the variety of stocks we have in our country, and the excellence of our wines. For the wine sector it was a unique experience with new features such as the art exhibition and talks on tourism, and other activities.

Argentine wineries taking part:

TEMPUS - ALDO LUIS BIONDOLILLO S.A.BODEGA DEL RÍO ELORZABODEGA SAN HUBERTOBODEGAS STAPHYLEBODEGAS Y VIÑEDOS CARMINE GRANATA S.A.I.C.A.BODEGAS Y VIÑEDOS MAZABODEGAS Y VIÑEDOS SANTA CELIA S.A.CONQUEST WINERYDUNTOWER CORPORATION SAGABRIEL BLANCO - FAMILIA BLANCO WINESFINCA SOPHENIA SAFINCAS DEL ROSARIO

FINCAS DON NICASIOGOYENECHEA S.A.LARIVIERE YTURBE - LA PAMPA CHABAS S.A.LOS DOMADOS S.A.MONDOVINO ARGENTINASECRETO PATAGÓNICOTIERRAS DE PONTE S.A.VALENTIN CHIAPPA SRLVINECOL S.A.VIÑA LAS PERDICES S.A.VIÑAS DEL SOL

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Hopes of increasing export volumes

Viña Las Perdices is a family enterprise built up by Don Juan Muñoz López, his wife Rosario and their children Nicolás, Estela and Juan Carlos. Founded in 2004, by 2006 it was already selling wines at home and abroad, and today exports 55% of its production to over 20 countries. Its wide range, together with the high quality and innovation of its wines, set it apart from other family wineries. The company’s president Juan Carlos Muñoz tells us the history and future projects of Viña Las Perdices.

Inteview | Viña Las Perdices

- When did you start out in the wine business? Is it a family firm?Mis padres, Juan Muñoz López y Rosario, ambos de Andalucía, tra-bajaban en España en la agricultura. Llegaron a la Argentina en 1952 y a partir de 1958 comenzaron con el cultivo de vides por primera vez. Durante los primeros 20 años se dedicaron a comercializar uvas. En 1977 se construyó la primera bodega y desde entonces - y hasta 2003 - se elaboró ininterrumpidamente vino de los viñedos propios en Agrelo que se comercializaban a granel, sin una marca propia. Se trata de un emprendimiento familiar desarrollado por mis padres junto con sus tres hijos: Nicolás, Estela y yo. Fue fundada en 2004, año en que se construyó la bodega en la finca de Agrelo, y los prime-ros vinos comenzaron a comercializarse a mediados de 2006.

- What are the pillars on which the enterprise is based?In the segment in which our wines compete “differentiation” is vital. Our goal is always to offer products that are innovative, but we face the difficult challenge of maintaining the same style for all our port-folio, which is fairly complete considering our size and experience. So we need quality wine stocks in quantity, but also technology and know-how, which is not easy to find. This makes us a different, crea-tive winery, and reflects the personal style we look for when making wines.-

- You now have two vineyards. How has the winery developed over the years?We’ve grown a great deal. We now have over 100 ha. of vineyards in 2 properties: one in Agrelo, with 74 ha., and another in Barran-cas, Maipú, with the other 30 ha. The winery has installed capacity of 1,200,000 litres in stainless steel tanks and over 300 barrels of French and American oak. Our annual production is now of 400,000 bottles of our own brand, of which 45% is for the domestic market and 55% for export. The growth of the winery is also reflected in the lines produced. This year we launched Malbec Reserva and we’ll soon be offering on the market a Sparkling Rosé, presented at trade fairs, and a new Sparkling Extra Brut. So, the portfolio of Las Perdi-ces will include 20 products: “Gran Reserva” / Cortes wines: Tinamú and Don Juan. Reserve: Pinot Noir, Bonarda, Malbec and Sauvignon Fume. Varietals: Malbec (750 & 375 cc), Cabernet Sauvignon, Syrah / Viognier, Sauvignon Blanc (750 & 375 cc), Viognier, Pinot Grigio and Torrontés. Sweet Wines / Late Harvests: Viognier Late Harvest and Malbec Ice. Sparkling wines:Extra Brut (M. Champenoise), Extra Brut Rosé (M. Champenoise) and Extra Brut (M. Charmat).

Special Report Wines

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- What differentiates the wines of Las Perdices from those of other local wineries?At Viña Las Perdices we make wines that are high-quality innova-tive products. We grow a total of 14 different varieties of grapes between white and red stocks, which means we can offer a broad range of products, a fact that sets us apart from the classic family wineries. We have developed original varieties that are produced very little in the country, among which we can name Pinot Grigio, Viognier, Torrontés and Albariño in whites, and Petit Verdot, Tannat, Cabernet Franc, Pinot Noir and Ancelota in reds. What’s more, we’re known for the diversity of our white wines.

-How long have you been exporting, and to which countries?We began exporting in 2006 and today, of all the wines we produ-ce, 55% is exported. We are present in the United States, Canada, Mexico, Costa Rica, Puerto Rico, Colombia, El Salvador, Guatemala, Venezuela, Peru, Brazil, Uruguay, Chile, Belgium, Holland, Switzer-land, Denmark, Poland, China and Israel, etc.

- Since 2007 you’ve been taking part in our International Business Rounds for the wine sector. What business con-tacts or opportunities have they provided?We’ve taken part whenever we’ve had the chance. For us, as a young project, it’s a great help that you provide access to a diverse group of importers. Doing business is never easy but on more than one occasion we’ve been successful. Take for instance the 2010 edi-tion of Wines and Wineries when we made contact with a company from California (Rio Joes Brand) and are now working with them.

- How were the meetings you had during the September Round in La Rural?Generally speaking, the organization was very good, we had suffi-cient time and we were able to see all the countries we were inter-ested in. There were well-established importers in the round, which was very positive because it means we can think about greater vo-lumes if we strike a deal.

- What are the company’s objectives for 2012? What long-term projects do you have?The big challenge is to continue positioning the brand in both the local and the international market. It’s not easy since the competi-tion is getting stronger and stronger, and we’re all working to im-prove by the day.

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The wine sector presents some differences between Argentina and France. France has a millenary tradition of wine production and it is part of its culture. Argentina, on the other hand, has been developing its own wine culture for some years now. The sector has developed a lot during the last 10 or 15 years, taking a very important qualitative leap. This let Argentina conquer many new markets at an international level.

While Argentina puts emphasis on the grape, France puts it on the “terroir” (region) since a wine is totally different from another because of different factors such as weather, soil, the way it receives the sun, all that is part of its personality. If you travel 5 km to another vineyard, the wine is completely diffe-rent because conditions are different. The thermal range and the environment are integrated into the beverage; in the same way that culture and the way it is produced are also integrated. This concept is the one that justifies D.O.C. (Denomination of Origin Controlled). France is one of the leading countries, to-gether with Spain and Italy, in protecting their productions. On the other hand, Argentina has two D.O.C in the wine production sphere: that of Luján de Cuyo and that of San Rafael, both in the province of Mendoza. Despite these differences, there is an interaction between the two countries within the sector and the relationship can be appreciated, for instance, in the signing of cooperation agreements, like the existing ones between Luján de Cuyo and the French city of Cahors, birthplace of Malbec wine. We also have to mention the cooperation between the region of Champagne-Ardennes and the province of Salta, creator and promoter of Torrontés wine.

From this Embassy, we offer all our support to French wine ce-llars (currently over 20) that produce in Argentina, considered that they have invested a lot in the country. An example of this support is the organization, in May of 2010, of a French pavi-lion during the Salón Sitevi in Mendoza, with French companies manufacturers of wine equipments. In said occasion, we also or-ganized meetings with local importers of equipment and wine products, as well as a meeting in the Wine Cellar Bodegas Terra-zas de los Andes with all the important cellars that produce their wines in Argentina. The French companies that exhibited in Sitevi Mercosur 2010 and in a “tour de table”, introduced their main problems, concerns as well as opportunities and future inves-tment projects. The last example of support to the sector was on September 22, when our Embassy helped promote all products from these cellars of French capital, organizing a wine tasting in its headquarters to help them make their wines known among Argentine consumers. From Ubifrance, we will once again sup-port companies from the sector, organizing a French pavilion in the next Salón Sitevinitech in Mendoza, next year.

Argentina is the world’s 5th producer and 10th exporter of wine and is gaining fame and markets, together with its big variety of Malbec for red wines and Torrontés for white wines. France keeps an important participation in the Argentine wine value chain, through investments, provision of equipment, know-how and elaboration techniques. It is worth mentioning the famous wine expert Michel Rolland who contributes so much to the sector.

Argentina is gaining fame and markets

Opinion | Damián Bergel

The author is a Business Attaché Agrotech, Ubifrance- Business Unit, Embassy of France in Argentina.

Special Report Wines

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Guillermo Daniel García, Public Accountant, Real Estate Appraiser, and President of the National Wine Institute, gives us his vision about the evolution of Argentine wine and how the sector has developed after the technology changes that it underwent.

Past, present and future of the Argentine wine

Interview | Guillermo Daniel García Instituto Nacional Vitivinícola

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What is the task of the Institute (INV) within the wine sector? How do you contribute to promote it? In the first place, the Institute controls authenticity and fitness for human consumption of wines and also of the industry, commer-ce and manipulation of alcohols. It does not develop promotion actions in an independent way, but through the Corporation of Argentine Wines (COVIAR) that is in charge of the Wine Strategic Plan, and develops the internal and external promotion of the sector from there. The INV participates together with the INTA, representing the National Government, where decisions regar-ding promotion are taken.

How did Argentine wines get better in quality and variety? The current situation of the sector is the positive result of a cri-sis that took place in the decade of the 80’s, when there was super production faced with a stagnant consumption; therefore viniculture had the need to adapt to this situation. At the begin-ning, over 100 thousand hectares were lost, but then came the reconversion phenomenon, by which high quality grapes went from encompassing 40% to 60% of the total. Furthermore, the production increased 8% in the last decade, going from 200 to 217 thousand hectares and this growth took place mainly due to high quality grapes. It is worth mentioning that this process goes hand in hand with the internationalization of Argentine vinicul-ture, which in this period presented an increase of over 300% in exports.

There was a reconversion towards known wine quality varieties, and the work was focused on the quality of products. The main varieties, from the color perspective, would be Malbec, Cabernet and Bonarda, and in white wines Chardonnay, Torrontés, Sau-vignon Blanc and Viognier. They had preeminence compared to national grapes or cherries that were the basic ones, and they ended up facing stagnant growth.

What contributions or technological innovations have the sector received and what changes did they bring about?The technological breakthrough has occurred in the last 20 years in the Argentine agriculture and is due to do the elaboration of wines in accordance with good manufacturing practices de-mands. Wine cellars started having quality certifications at the same time that they had to comply with health standards; a Mer-cosur standard that led investments in all types of equipment. For instance, the presence of technology in stainless steel tanks, in processing lines, in equipment for elaboration, inputs for wine preservation, and acquisition of screw tops. We talk about a se-ries of diverse elements that have more presence in the entire winemaking process: mechanic harvester, harvest bins, among others.

Which traditional practices were kept (in the produc-tion)? Undoubtedly, the primary activity keeps using mainly all the tra-ditional aspects of the viniculture related to cultural activities; technologies progress in aspects that have to do with genetic material or with strong investment in equipment, refrigeration equipment. But primary production is still based on the tradition of manpower. Despite the fact that there is a slow reconversion

towards drip irrigation, the main irrigation method is still flood irrigation, a procedure done by hand.

Besides the provinces that traditionally produce wines, which new provinces have started producing?There are not many provinces that have been significantly incor-porated in the market, except for Neuquén that has reached, in the last decade, plantations of 1700 hectares approximately. In the rest of the country, productions in Buenos Aires, Entre Ríos, San Luis, Chubut, La Pampa or Jujuy are very small compared to the volumes that traditional wine producing provinces have.

-Does the demand for vines vary depending if it comes from the foreign or domestic market?There is no marked distinction between the demands coming from said markets. Generally speaking, the leadership is given by the varieties Malbec, Torrontés, Cabernet and Chardonnay, the traditional ones in the world; there is a strong trend of cuts, both at an international and national level as well (we talk about combining two or more vines).

What percentage of the total wine production is ex-ported? There is a share rate in exports that varies from 20% to 30% depending on competitiveness variables, not only domestic ones but also of our competitors. It all depends on the period that we consider; there is a great influence of sales of wines in bulk. The-se, at the same time, are associated to the domestic value of raw material (because they are often commodity products).

What are the characteristics that make the Argentine wine unique and make it desirable in other markets?There are definitely agro-climatic factors that allow the Argenti-ne wine to have a completion as a final product that has been properly kept in less time. There are features that can only been obtained by the climate and that have allowed the concept of Malbec and Torrontés to triumph in the world. We talk about characteristics like the level of precipitation or soils. Argentina has certain diversity that allows the production of the same varie-tals in Salta and also in the other end of the country, in Neuquén. This makes Argentina to have reached a positioning in the world, mainly in the US, associated to the price-quality relation. I believe that is the secret of Argentina: a product that offers satisfaction to the consumer, which is greater in relation to the price he pays for that wine.

Special Report Wines

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Mendoza is the main wine exporting province, what percentage of total Argentine exports does it account for?It accounts for 85% of bottled wine.

What are the qualities of wine from Mendoza? What are the typical stocks in the area?The emblematic stock of Mendoza is Malbec, which has seen greatest growth in the world. Although it’s the most well-known, we’re also seeking to give identity to Argentine Torrontés wine, although we don’t produce much in our province. With this varie-ty, a unique stock in Argentina, we’re venturing into white wines. We also have very good Bonarda wines, which have historically been relegated and whose characteristics are very similar to those of Malbec. This stock is experiencing a revival today, so oenolo-gists are now showing greater interest in it and they’ve realised that it is a very noble grape giving very good yields. Wine from Mendoza is generally young, easy to drink, and what’s more Ar-gentine wine is in itself a novelty in the world.

In 2010, the historical record of wine exports in dollars was beaten but volumes fell. Why do you think that was?When it’s a quality wine and is increasingly well known better prices can be had. Although it’s a product with a certain diffe-rentiation, it’s almost considered a commodity in the world. The quality improves, but just because it’s an Argentine wine doesn’t mean you can request a higher price. It’s not soya bean, for exam-ple, which when the cost of production rises in Argentina, prices for the crop go up. In wine, the cost of production rises but the Argentine exporter can’t put up his price just because of that. Actually, it’s a prize for the quality and for the increased demand.

Fundación ProMendoza is a public-private body that promotes the entry of products and services from Mendoza into international markets. Marcos Abihaggle, General Manager, assesses the current situation of the wine market and gives us his opinion on the future of the sector.

“Argentine wine is held in ever greater esteem”

Interview | Marcos Abihaggle, ProMendoza

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Prices rose because Argentine wine is held in ever greater esteem, it’s in greater demand. Less wine was exported but it was more expensive, because the quality of the wine increased and we’ve been able to enter other categories.

Which market that does not yet consume Argentine wine do you think it important to enter?Yes, quite a bit. Mainly US and Chilean capital, but also some from France.

Did foreign investment in the sector increase in 2010?Sí, se incrementó bastante. Principalmente hay capitales nor-teamericanos y chilenos pero también hay franceses.

What recommendations would you give the wineries that have just started exporting?They should seek out good market information and assistance. There is a full calendar of fairs and events related to wine organi-zed by ourselves or by other bodies such as Fundación ExportAr. They should also be aware that exporting needs a plan and hu-rried decisions should be avoided. There must be mutual support with the sharing of information. The work of the wineries is a very cooperative one, and a great deal of communication passes between them.

With which bodies or organizations do you interact to promote the sector?At ProMendoza we work in coordination with other bodies such as COVIAR, (Corporación Vitivinícola Argentina), who manage the strategic national grape growing and wine production plan.

We also work with Wines of Argentina, and very closely with other provinces, mainly with San Juan. The world of wine is a very coo-perative one.

What are the prospects for the wine market in 2012? What’s the strategy to follow?As always we’re looking forward to a year of hard work in the wi-neries. For the regional economies, we’d like to see a dollar which is a little more competitive. The strategy is the one that’s been used for some time now in the wine trade: to associate it with the good things of Argentina and Mendoza, like tango, the sun, the mountains, the lifestyle in Mendoza, so when the consumer opens the bottle he’s not simply buying wine but also everything connected with it. That’s why much hope is being placed on wine tourism. More and more wineries are doing this kind of activity in which one can visit the wineries by bicycle and taste the wines or fly in a hot air balloon. Over the last 5 years wine tourism has grown very strongly.

“Argentine wine is held in ever greater esteem”

Special Report Wines

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The winesector innumbers 1

Argentine exports 2

Argentine wine exports reached a total of USD 744,826,520 in 2010, 16.8% up on 2009 figures.

In 2010, the greatest share (89.9%) corresponded to the subhea-ding 2204.21 (other wines, in recipients with a capacity of below or equal to 2 litres). The remaining subheadings accounted for considerably less, just 10.1% of total exports.

In the first 8 months of 2011, wine exports reached over USD 516 million, an increase of 8.3% compared to the same period of 2010.

Among the leading destinations for Argentine wines in the first 8 months of 2011 were: United States (USD 194 million; 37.6% of the total), Canada (USD 54 million; 10.5% of the total) and Brazil (over USD 44m, or 6.9%).

From a disaggregated analysis of Argentine exports by origin, it can be inferred that for the first 8 months of the year Mendoza was the leading wine exporting province, with amounts over USD 440 million, or 85.4% of the total. Following in importance was the province of San Juan, with sales abroad of over USD 44 million for the same period. Salta is in third place, with sales ap-proaching USD 10 million for the period.

World Imports 3

In 2010, world wine imports exceeded USD 27.569 billion, equi-valent to a year-on-year increase of 7.3%, with five-year growth of 20.9%. The United Kingdom, United States, Germany, Canada and Japan were the leading buyers last year.

Export Promotion | Wines

1 For details on world imports and exports of these products, it was necessary to study tariff heading 2204 of the Harmonized System.

2 Source: Argexim (CEI)3 Source: WITS (COMTRADE)4 Source: WITS (COMTRADE)

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The United Kingdom imported over USD 4.5 billion, a rise of 6.01% compared to 2009, when the international financial crisis led to a strong fall in the country’s wine imports of approximately 18.1%.

In the same period the United States imported wines to a value of more than USD 4.4 billion, with a slight five-year rise of 2.1%. Meanwhile, Germany imported to a value of around USD 2.7 billion, its lowest since 2006.

Thus, the United Kingdom and the United States accounted for 16.4% and 16.2%, respectively, of the wine imports made in 2010; followed by Germany (9.8%), Canada (6.1%) and Japan (4.2%).

Subheading 2204.21 (other wines, in recipients with a capacity of below or equal to 2 litres) accounted for the greatest value of imports. Purchases amounted to USD 20.214 billion, equivalent to a 7.2% increase over 2009. The other notable subheading is that of sparkling wine (2204.10) with imports in 2010 of more than USD 4.434 billion.

Likewise, there were important year-on-year increases in the levels of purchases by China (with a rise of nearly USD 340 mi-llion (+74.3%) and of Hong Kong (378 million; +72.83%). Other countries with positive year-on-year increases were Ukraine, Lithuania, Paraguay, Singapore and Rumania.

However, among the countries with decreases in their purchases from abroad were Belgium, with a fall in imports of over USD 100 million (-8.6%), Germany (USD -77,661,802) and Slovakia with a fall of over USD 34 million.

World exports 4

Although it also suffered a large decline during the financial crisis of 2009, France was still the leading world exporter of wines with

sales of USD 8.34 billion, thus reversing the trend to record a year-on-year increase of 8.4%.

Another two European countries, Italy and Spain, are among the main sellers of wines. With sales of USD 5.183 and 2.488 billion, respectively, both saw rises in their sales in 2010.

France’s share of world wine exports reached 30.2% of the total, followed in importance by Italy, Spain, Australia and Chile. Argentina was the 11th world exporter.

Of the countries with positive export performance compared with the previous year are China, with a difference of 258.3%, i.e., a growth in sales of USD 17.6 million; Switzerland (USD +75.1 million; +83.8%); Peru with growth of over USD 370,000 (80.8%); Armenia (USD +1.3 million; 92.9%), and the Dominican Republic (+72.9%; USD +1.7 million).

Of the nations that recorded a fall in sales, Spain saw a drop of above USD 150m last year compared to 2009. Other countries experiencing large declines in sales values were Belgium (USD -56 million; -30.9%), Bulgaria and Ukraine (USD -7.2million and USD -4m, respectively

Special Report Wines

Argentine wine exportsIn USD millions

Source: Own data based on Argexim figures

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“We protect the credit sales of Argentine manufacturers”Fundación ExportAr has an agreement with Coface Argentina, a leader in export credit insurance, which provides our enterprises with commercial information about their potential buyers and protects them against possible non-compliance.

With the enormous development of foreign trade in recent years, in which any company, however geographically distant from our country, could become a buyer of Argentine goods, the commercial information services provided by ExportAr are in ever greater demand. In order to provide an effective service, the foundation has entered an agreement with Coface Argentina, a French group which is a world leader in credit insurance and number one in the sector in Latin America.

“With over 65 years of experience, it offers its 135,000 clients solutions in questions of local credit insurance and exports, allowing them to manage and protect their accounts owing effectively. It is present in 66 countries covering 224 cities. Its database includes information on 56 million enterprises worldwide. Thanks to the local quality service Coface provides through its 6400 employees, over 45% of the 500 largest business groups in the world are its clients,” explained Germán Fliess, General Manager of the company, in an interview with “News”.

How long have you been present in Argentina?Coface has been present in Argentina since 1998, providing local companies with the same protection and service as their competitors around the world. It has been undisputed leader for 13 years with a market share of 70%.

What services does COFACE offer its clients?As leader in the country in export credit and domestic insurance, Coface Argentina, basically offers protection for credit sales against any risk of non-payment by the buyer/debtor.This asset protection is at the heart of the system that allows the insurer either to extend his credit periods or increase his sales volume without running the risk of interrupting the payments chain.The raw material of our system is obviously credit information and analysis of the policyholder’s buyers, establishing in the (global) policy a cover limit for each one of them.

Thus the client also gains direct or indirect access (by means of a score) to Coface’s assessment of its buyers.

Contrary to what one may think, commercial credit between companies is considerably higher in volume than financial-bank credit, so the potential for our services is clearly very high.

As regards the agreement signed with Fundación ExportAr, how does COFACE assist companies starting out on a process of selling abroad?The most important thing is to know your exporter (or future exporter) and their sector of activity so as to assess their potential buyers abroad. The client is given a rating of possible buyers, and those which according to the Coface score are worthy of credit are covered.

Interview | Germán Fliess, General Manager of COFACE

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Besides the specific analysis of each client, Coface also has on its database the payment history of that buyer with regard to other suppliers (if both local and international operations are recorded) and that information together with the advice (via the analysis of their current or potential portfolio) is offered as a service even prior to an eventual purchase of cover.

These services are available for ExportAr, which then passes them on to small producers or future exporters under its support programs.

Ina context of international crisis, the services offered by COFACE become more important for SMEs. How would you measure that impact?The international crisis evidently makes it more important to have updated information about enterprises. The Coface Group’s integrated database of 56 million companies around the world is therefore a fundamental tool.

The impact can be measured on at least two levels:1) The information on the client, his area of activity and the situation of the country in which he is based.2) The experience of Coface as regards the payment history of operators in that same country and sector, or rather of the buyer in question.

The SME thus finds in the cover and services provided by Coface, which also covers international payment management, tools which are today used by their competitors around the world and

without which they would be at a clear disadvantage.

Normally, exporting SMEs face tough competition in the international market and have to offer the same conditions as their competitors in terms of payment periods (besides quality and price), so any bottleneck they encounter may be found in operating capital.

Protecting credit sales means they normally have access to a better export finance scheme, so Coface’s cover and services are complemented with a real possibility of access to credit so as to be able to grow or to defend markets at times of falling global demand, like the present.

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DossierLogistics and cross-border trade

Subject indexA. Article

B. Interviews

1. María Siomara Ayerán, Directorate General of Customs

2. Gustavo López, Centre for Customs Brokers

3. Fernando Martorell, IDEP (Institute for the Productive Development of Tucumán)

4. Marcelo R. Guckenheimer, DHL and Argentine-German Chamber of Industry and Trade

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Logistics in cross-border transport and trade

The development of technology and transport have led to an increasingly interconnected and globalized world that can be characterized by two outstanding facts: firstly, the incorporation of more and more regions into international trade, which has generated growing competition between exporting countries and, secondly, by greater transnationalization in production processes that require the delivery of supplies and manufactured goods in the times stipulated. These are just two examples of the need for countries to work on transport logistics, the trade in goods and their movement across borders, especially with their trade partners in order to prevent producers facing additional costs.

In this context, logistics and border crossings are not merely disciplines involving producers and traders, but they also involve various intergovernmental bodies to control and facilitate their passage through cus-toms: this is a crucial element in international trade that depends on interaction and dialogue between the public and private sectors.

Customs play a fundamental role in that their function is to control the entry and exit of goods and verify the legality and suitability of the operations, the payment of the corresponding duties and compliance with export norms and requirements 1.

Transport logisticsA successful foreign trade operation requires suitable planning logistics, i.e., managing operations related to the purchase and distribution of goods required or produced by an enterprise so as to supply goods/services in quantity, quality, at the right time and place, in order to satisfy target market needs 2.

Logistics involves integrating a series of components/activities, such as: purchase of inputs, inventory management, marking and packaging, handling and storage, transport and distribution; all within a dynamic framework of information management and integral planning of the process 3. Under this item, transport represents over 60% of total costs, depending on distance and type of operation.

Transport can be provided by the company itself or can be subcontracted. In general, SMEs lack the or-ganization required to set up their own export logistics for structure, so on practically all occasions, they resort to subcontracting. However, the producer needs to know the best options available for internatio-nal transport because they will impinge directly on the international price of the product.

n our country, the means of transport used are: maritime, land and air. Although Argentina has an exten-sive rail network for domestic transport to ports (multimodal), it is insignificant in any analysis of means of export.

Deciding the means of transport to use will depend on the type of cargo, whether bulk or general, and on its specific nature, i.e., fragile, hazardous, perishable, or of special size and weight 4.

1. Inter-American Program for Trade Promotion (IICA), “Logística para la exportación de productos agrí-colas, frescos y procesados” Serie Agronegocios, Cuadernos para la exportación Nº 10, p. 44

2. Rodolfo Irureta, Informe ExportAr Nº 10, Informe comercio exterior: Logística, 2003.

3. José Gustavo Roger; Diagnóstico sobre la logística del comercio internacional y su incidencia en la competividad de las exportaciones de los países miembros.

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4. PIAPYME, Centro Empresarial México-Unión Europea, La logística de exportación

Maritime transport

This is the most economical and efficient means of transport in terms of energy for transporting large volumes and structures, and in transoceanic dispatches it faces no competition due to the possibility of transporting large quantities, which cannot be done by plane.

Bulk loading is used preferably for the export of large quantities of grain and seeds, solids or liquids, which require little handling. For loading onto the vessels and transferring to the grain holds conveyor belts or ducts are employed with the use of a pumping or suction action.

Along with bulk loading, the most commonly used element for export by sea, particularly by SMEs, is the 20 or 40 foot container. When the cargo of a single shipper or shipping agent fills one container, we speak of “full container load” (FCL). If the cargo is less than the capacity of the container (“less than a container load” or LCL), it is grouped or consolidated (consolidation or groupage) with other compatible loads of various shippers or shipping agents with the same destination.

Maritime transport freight is made up of the basic tariff plus a series of surcharges which are the extraordinary costs incurred during the provision of the service and are beyond the shipper’s control 5:

Bunker adjustment factor (BAF): surcharge for fuel price increases.Currency adjustment factor (CAF): surcharge for currency fluctuations.Equipment imbalance surcharge (EIS): surcharge for replacement of equipment.Congestion surcharge (CS): surcharge for congestion in port of call.Heavy lift (HL): surcharge for extra weight.Out of gauge (OOG): surcharge for loads exceeding breadth/height.

Crossing borders in port

One of the most important documents in the maritime transport of goods is the Bill of Lading, a do-cument issued by the shipping company or captain that is used as a contract to transport merchandise on a scheduled shipping service, and proves reception or loading on board of the goods to be trans-ported, in the stated conditions. Three originals and several non-negotiable copies are usually issued. An original must be produced in order to collect the goods. The purpose of this contract is to protect the shipper and the shipping agent against the shipping company.

It must contain:

Details of the shipper.

Details of the exporter.

Details of the shipping agent.

Details of the importer.

Name of the ship.

Port of loading and unloading.

An indication as to whether the freight is payable at destination or at the port of origin.

Cost of the freight.

Markings and numbers of the container and the packages.

Number of the seal.

Description of the goods, gross and net weights, volume and measurements.

Shipping date.

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Land transport

The truck is the most commonly used form of land transport in the region for communication and trade with the neighbouring countries. Its greatest virtue is the ease of movement by road, it can be used as the sole means of transport for the operation, without the need for transfers. It is the most suitable for a door-to-door service without handling or transfers. Likewise, it is the mul-timodal means6 par excellence, is very versatile, allows immediate access to the installations of the shippers-marshallers-consignees, facilitating collection and delivery of the goods. It is adaptable to self-transshipment vessels and railway platform trucks. One truck can transport between 2 and 10 tonnes depending on its size.

There are two main kinds of service:

Full loads: Door-to-door full load transport services. Its main advantage in exporting is that the departure and arrival of the goods can be predicted with great accuracy.

Consolidated loads: Generally daily, weekly or fortnightly pro-grammed departures. The loads are received in private warehou-ses and once consolidated the truck departs for the border. This is the means most commonly used by SMEs because it means regional transport costs can be reduced.

The border crossing by road

For cross-border goods transport it is important to bear in mind that the ICM-CTD (International Cargo Manifest–Customs Tran-sit Document) has recently been implemented. This document is used only for land transport by road, especially with the countries bordering Argentina, in export and transit cargo. It is a single do-cument of international customs transit, which means that the original and complementary permits and the insurance document are not required at customs, since verification is made by the cus-toms office of departure 7.

6. According to the Argentine Customs web site, international multimodal transport means the carriage of goods by two or more different forms of transport (truck, rail, ship, air), by virtue of a multimodal, plurimodal or combined transfer contract, from a site in the country in which the operator collects the goods, under his responsibility and custody, to deliver them to a site in a different country.

The essential characteristics of this system that sets it apart from traditional segmented transport are, firstly, that it is a system ba-sed on a “single contract” and, secondly, that the operator who assumes responsibility for compliance with the contract, acts as “principal”, and not as agent for the user or consignor, or for the carriers providing the various means of transport. This principle is

based on the “door-to-door” transfer of the goods, significantly reducing the documentation and the compliance with other for-malities, as in traditional transport.

At http://www.aduanaargentina.com/gl.php

7. La clave del comercio – transporte y seguros. At http://hcdsc.gov.ar/biblioteca/ISES/trade/Libro/Indice.html.

To register the ICM-CTD, the route must be specified with details of the relevant consignment notes and associate the loading per-mits involved. Then, at the customs office of departure, the ICM-CTD is presented or annulled, and the process can be reversed (if the Customs Transit Agent (CTA) 8 needs to make a rectification prior to the exit check). If the goods are in a tax warehouse, the computerized exit registration will be the responsibility of the de-positary. The system also allows the customs office at the frontier to consult the ICM-CTD for goods to arrive, to confirm the arrival, perform the export transit and other formalities9.

Also important is the consignment note, which is generally issued by the land transport company and includes the following details:

 

Exporter.

Shipping agent.

Importer.

Place and date of issue.

Details of the load: weight, quantity, volume, pieces, description.

Freight, whether paid or payable at destination and amount.

Route and period of the transport.

Markings and numbers.

Customs office of departure of the exporting country and cus-toms office of destination of the importing country.

Formalities for the dispatch of the goods.

Declaration of the value of the goods.

Documents attached (copies of invoice, certificates, etc.)

Finally, there is the Waybill, the document used for overland cargo and which accompanies the export loading permit. It gives details of the main cities and highways over which the transport will travel to the reach the customs office of departure, as well as the num-ber of the corresponding customs destination and the scheduled journey time. Generally, this documentation is prepared by the transport company and must be signed by a Customs Transport Agent.

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8. The person of visible or ideal existence who, on behalf of the hauliers, is responsible for presenting the means of transport and its loads to the Customs. There is no distinction as regards the type of transport used, whether land, sea or air. At http://www.aduanaargentina.com/gl.php

9. AFIP, “ICM-CTD usuarios externos”, Version 6, María web-DICAPA

Air transport

Airplanes are the quickest form of transport, meaning that goods can arrive anywhere in the world in 24 hrs. Nevertheless, planes are unable to transport such heavy loads as the other means and are the most costly, so they tend to be used when delivery time is an important factor for highly perishable products of great value or when freshness is vital.

Among the technical limitations to air transport are: the maximum permitted weight, the weight resistance of the floor of the hold and the size of the doors10.

When using this means of transport, the exporter may face certain surcharges, including:Fuel Surcharge (FSC): surcharge for fuel price increasesGround terminal charge (GTC): surcharge for operating costs on the groundSecurity surcharge (SCC): surcharge to cover security checksSurcharges are in dollars and according to gross or volumetric weight. Just as with maritime tariffs, discounts can be negotiated depending on volumes, the frequency of dispatches and loyalty towards the company11.

Crossing borders by air

Air transport in cross-border trade requires the Air Consignment Note, commonly known in English as “Air Waybill”, which is a contract to transport goods by air and is proof of reception by the transpor-ter. The document is issued as “non-negotiable” and does not prove ownership of the goods, unlike the Shipping Bill. Only the person who appears as the consignor on the Air Waybill will have the right to the goods12. It is issued by the air company or, otherwise, by its representative or freight forwarder.

The document contains:

a) Consignor or exporter.

b) Name of the consignee.

c) Flight number and destination.

d) Departure and arrival airport.

e) Details of the load: weight, volume, quantity, tariff and description.

f) Indication whether the freight is payable at the port of origin or at destination.

g) Amount of the freight.

h) Air waybill number.

i) Issue date.

Generally speaking, cargo sent by air with the corresponding waybill is accompanied by the loading documents, for instance: commercial invoice, certificate of origin, packing list, etc. These are delive-red to the importer in the destination country together with the original air waybill.

10 . Inter-American Program for Trade Promotion, Agricultural Business and the Harmlessness of Foods (IICA) Serie Agronegocios Cuadernos para la exportación Nº 10, Logística para la exportación de productos agrícolas, frescos y procesados, Serie agronegocios p. 20.

11. Inter-American Program for Trade Promotion, Agricultural Business and the Harmlessness of

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Foods (IICA) Serie Agronegocios Cuadernos para la exportación Nº 10, Logística para la exportación de productos agrícolas, fres-cos y procesados, Serie agronegocios p. 26.

12. La clave del comercio –transporte y seguros, at http://hcdsc.gov.ar/biblioteca/ISES/trade/Libro/Indice.htm

Other documents that may be required regardless of the means of transport

The Customs Declaration is a printed form, duly completed by the importer/exporter whose main purpose is to: allow the calculation of amounts owing and the collection of duties or taxes payable for the goods, and oversee the import/export of goods subject to limitations and/or protection (flora, fauna) and/or prohibitions and/or exemptions (duties).

Documents that must accompany the consignment and that are checked at customs (and not mentioned above):

Commercial invoice: issued by the exporter and containing his name and that of the importer, with their respective addres-ses and details. For the export invoice, the AFIP requests that the identification letter «E» be used for the collection of reba-tes. The commercial invoice includes the technical details of the goods, date and place of issue, the unit of measurement, num-ber of units invoiced, unit prices and sales totals, the currency used for the operation and the selling conditions, form of pay-ment and periods, gross and net weights, marks, number of pie-ces containing the goods and means of transport, and is signed by an authority from the company or the foreign trade sector13

Packing list: contains information about the contents, gross and net weight of the goods to be exported, in accordance with how they are packed. It is issued by the exporter on company headed paper, and the most important details contained in it are::

Details of the exporter.Details of the importer.Markings and numbers of the pieces.Place and date of issue.Form of shipment.Number of pieces and description of the goods.Total gross and net weights.Type of packing.Signature and stamp of the exporter.

This document is not much requested in international trade ope-rations, although this depends on the nature of the goods. Gene-rally, it is requested for large consignments or for those in which there is a variety of goods. If the consignment contains a single type of merchandise, this document may be overlooked.

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Certificate of origin: this document certifies the origin of the goods in the exporting country. It should be presented by the importer, since there are tariff preferences between countries. Each country deter-mines the body authorized to issue it. In our country, for example, it is the Argentine Chamber of Trade and the Chamber of Exporters of the Argentine Republic. An original and 2 copies are issued and there can be no amendments or erasures. It is valid for 180 days from the date of issue and cannot bear a date prior to the origin of the commercial invoice for the consignment.Tariff classification: places a certain good in the corresponding fraction within the Tariff Schedule of General Import and Export Taxes.

Quality certificate (if applicable): the result of a process in which the evaluators or auditors of the cer-tification body examine the conformity of the product or management system in accordance with the requirements of the norm. If it is fully compliant, they will issue a public document, called certificate, which attests to the outcome of the control14.

Sanitary register for the export of specific products (if applicable): processed foods or additives, medi-cines in general, processed natural products, drugs, inputs or medical devices, cosmetics, toiletries or perfumes and pesticides for domestic, industrial or agricultural use, manufactured abroad, must have a Sanitary Register for their production, storage, transport, sale and consumption.

Phytosanitary certificate (if applicable): issued to indicate that plants, vegetable products or other articles comply with the phytosanitary import requirements specified, and are compliant with the declaration of certification of the appropriate model. These certificates must be issued exclusively for that purpose15.

Bibliography

• AFIP, “ICM-CTD usuarios externos”, Version 6, María web-DICAPA

• Bureau veritas, “El certificado de calidad” at http://arr.carm.es/Agencia/doc/CertificadoDe-Calidad.pdf

• FAO, “Requisitos para certificados sanitarios”, at http://www.fao.org/DOCREP/004/Y3241S/y3241s06.htm

• Programa Interamericano para la Promoción del Comercio (IICA), “Logística para la exportación de productos agrícolas, frescos y procesados” Serie Agronegocios, Cuadernos para la exportación Nº 10.

• La clave del comercio –transporte y seguros en http://hcdsc.gov.ar/biblioteca/ISES/comercio/Libro/Indice.html

• Roger, José Gustavo; Diagnóstico sobre la logística del comercio internacional y su incidencia en la competividad de las exportaciones de los países miembros.

• PIAPYME, Centro Empresarial México-Unión Europea, La logística de exportación.

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Interview | María Siomara Ayerán, Directorate General of Customs

“Control mechanisms to guarantee the fluid and safe movement of goods”In this interview, the Director General of Customs reveals some of the problems and the important role of Customs in international trade. She also discusses the most important changes implemen-ted in facilitating trade for exporting SMEs and producers in ge-neral.

What role do Customs play in international trade?International trade is a fundamental engine for the socio-economic prosperity of any country, and in that context Customs is respon-sible for controlling and applying economic policies to the international movement of goods, duty collection and the implementation of control measures against forgeries and piracy, as well as enforcing non-economic prohibitions with a view to preserving health and public safety.

In that regard, we could say that the main strategies of Argentine Customs are geared especially to making progress in implementi control mechanisms through technological innovations that guarantee the smooth, safe flow of goods in the global trade system, the creation of norms to guarantee the security and facilitation of the logistics chain worldwide, the implementation of integrated controls of the logistics chain in all means of transport, cooperation between the various Customs Administrations to detect high-risk consignments, and also, cooperation between Customs and the private sector.

What recommendations would you give an SME for passing through customs? What should they bear in mind?First of all, I should emphasise that these recommendations are valid not only for SMEs operating internationally, but for all foreign traders wishing to operate in a safe, reliable legal framework.

Companies must only adhere to the legal and documentary requirements demanded, and especially formalize their registration with Customs as an importer/exporter. They must be authorized to exercise trade at the time of applying, prove their financial solvency, and in particular, operate under the precepts stipulated in our Customs Code, Law 22,415.

In addition, it should also be mentioned that for Argentine Customs it is particularly important that small and medium-sized enter-prises should receive advice from qualified foreign trade professionals, since it is the intervention of the customs broker that will help avoid unjustified delays, unnecessary paperwork, and other similar issues. It’s vital that when the transporter arrives at the border with the goods, he should have all the required documentation for the operation. The same applies to the formalities that have to be carried out for the other bodies involved so as to obtain the relevant authorizations; all this will result in smoother, faster customs procedures at the border.

Argentina has a vast network of border crossings with different problems and with different trade agreements. How do the different customs authorities cooperate to make crossing smoother? What are the latest cooperation measures in the MERCOSUR, and with other customs?

Argentine Customs maintains an excellent dialogue and relationship with the customs authorities of neighbouring countries, with over one hundred and forty border crossings authorized for the various customs operations. Most of them are naturally on our long border with Chile, but actually the number of crossing points operating with effective loads is much shorter, since most are Tourist Crossing points, while local border traffic is concentrated in the far south of both countries.

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Argentine Customs are closely linked with Chilean Customs by the Integrated Controls Treaty, and the MERCOSUR/Chile Agree-ment, generally known as Economic Complementation Agreement No. 35; plus a series of specific treaties governing different areas of customs operations.

Both have established an area for the development of a bilateral agenda, named Binational Technical Meeting on Customs Mat-ters, under which in particular specialized technical experts meet in order to make progress in coordinating and implementing the procedures being agreed upon.

In recent times, successful work has been done along the frontier with the single system of entry and exit of private vehicles, and currently work is also going ahead on the computerisation of the MIC/DTA, which was implemented in 2009 and has benefited frontier traffic. There has been great progress in exchanging, and it should between both customs systems, and it should be pointed out that the Customs Regions maintain permanent contact with their peers in the Chilean Regions, which contributes favourably in strengthening cooperation between both Customs.

In the case of Bolivia, there is the Integrated Controls Treaty, and the MERCOSUR/Bolivia Agreement; in fact, customs at the three main border crossings with this country are integrated in Argentine territory, which has boosted the operating relationship bet-ween both customs authorities.

Likewise, in this case, there has been positive progress in implementing the system of entry and exit of vehicles, in the computerisa-tion of the MIC/DTA and in the integration system of customs records. Both Customs Directorates have seen the need for periodic Regional Meetings to address relevant and operational issues of each border crossing, regardless of the central Technical Meetings.

As regards the MERCOSUR, the work of the Customs is described in Technical Committee N° 2 “Customs Matters” of the MERCO-SUR Trade Commission (CCM), regardless of the personal and permanent link existing between counterparts in each State Party.

Similarly, there is the Agreement on Cooperation and Mutual Assistance of MERCOSUR Customs enshrined in Decision CMC N° 26/06, and it is on the basis of this legal framework that the INDIRA system was implemented, geared particularly to the Exchange of Customs Records, which has meant that since August 2004, the Customs of the MERCOSUR are interconnected via this system.

Another extremely important topic to mention is the SINTIA System, in other words the International Customs Transit Information System. SINTIA basically allows information to be exchanged between the various States Party thanks to the electronic document (MIC/DTA) for the goods in transit.

This is supported by Resolution GMC 17/2004 “Regulation governing the Computerisation of the International Cargo Manifest / Customs Transit Declaration and the Tracking of the Operation between the States Party of MERCOSUR” of 2005.

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The Customs of Paraguay has been working since June 2009 on the implementation of the SINTIA system. The Customs of Uru-guay is currently starting implementation, while the Customs of Brazil is making good progress and has confirmed that it will be ready to join in the first half of 2012.

Basically, the implementation of this system in the region will grant greater operational fluidity to transit procedures, markedly reducing times and costs at the border, along with traceability of the operation throughout the region.

It is worth mentioning that on the basis of Decision N° 17/10 CMC of 2 August 2010, work is currently going ahead on defining the future Single MERCOSUR Document, which will be a shared data model to integrate the destinations and customs operations declarations in MERCOSUR. As a tool to facilitate information exchange and calculations for the distribution of customs revenue, it will help provide uniformity of information.

As one of the latest cooperation measures, the Federal Administration of Public Revenues has signed technical assistance agree-ments with the customs authorities of Paraguay and Uruguay to implement the Customs Transit Security Initiative (ISTA), which aims to speed up loading procedures and to optimize security of the goods.

What are the principal measures taken in the last few years with regard to trade facilitation by customs?

In recent years Argentine Customs have worked very hard in implementing measures linked to facilitating international trade. We can mention among the most important:

Alert Registration System: a free voluntary system created and developed to allow the owner of a brand to register it and associate the tariff positions of the products he imports and/or exports for the purpose of preserving the brand against possible forgeries or undue use. it is a very effective tool in combating piracy and brand fraud.

Customs Transit Security Initiative: known in foreign trade circles as the ISTA system, and based on a technological platform of satellite tracking of transport units, which ensures the integrity of the load, transparency and security in the operation, lower operating costs, and especially greater competitiveness in a simplified system, but one which is safer thanks to the traceability of the operation.

Safe Logistics Operator: especially created to allow cargo transport operations between two depots in different customs jurisdic-tions, guaranteeing traceability and security throughout the logistics chain. This system is designed for warehouse owners, customs transport agents and hauliers, who sign up simultaneously, individually and voluntarily to the OLS (Safe Logistics Operator) System. All transport of goods under the OLS System will be made on predetermined routes and with electronic monitoring seals, guaran-teeing the tracking and inviolability of the load.

Interview | María Siomara Ayerán, Directorate General of Customs

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Reliable Operators Customs System: a system implemented on the basis of the guidelines laid down by the World Customs Orga-nization within the Normative Framework to Ensure and Facilitate Global Trade. It is a free and voluntary enforcement regime for final export destinations for consumption, and offers operators a degree of self-management and greatly simplified operations. To be included in the system, the operator must prioritise customs reliability, with a permanently transparent, open attitude to the ex-change of data in foreign trade operations, and in consequence comply with customs, tax and social security obligations. In return, he will obtain operational simplification, priority in paperwork at the border, and fundamentally mutual recognition from other customs authorities with whom an agreement to operate as a “Reliable Operator” has been signed.

Faithful Depositary: with the slogan of “Paperless Customs”, mention should be made of the qualitative progress brought about by the implementation of this system, since it is the declarant who becomes the faithful depositary, and who is obliged to file and protect the documentation in his power, to be produced only upon a formal request by the Administration.

What stage has the implementation of the new regime of in-plant exporter reached, and how far have compa-nies accepted it? How will it benefit exporting SMEs?

Although the regime has been in force since 1999, General Resolution 2977 AFIP is seeking the modernisation of the technolo-gical requirements designed to secure better connectivity with our own information systems, and offer security to foreign trade operations.

It is currently at the stage of analyzing the documentation concerning the physical aspects of the plants and the technological solutions offered by enterprises to ensure an improved availability of information.It has met with a very high degree of acceptance, and today 60% of exporters have already completed the documentary and technological requirements to enjoy the benefits of the regime of in-plant export loads.

Bear in mind that this new operations modality was designed specifically to simplify and lend security to the international logistics chain, geared not only to the universe of foreign trade operators in general, but also to the SMEs entering the field under this new regime.

It is also worth stressing that although the regime of in-plant export loads implies a certain cost for the private sector, the investment is written off with the reduced cost of handling whenever, upon arrival of the container or truck at an authorized plant, the load and the seal are checked immediately to allow immediate loading or journey to the final destination.

Interview | María Siomara Ayerán, Directorate General of Customs

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With many years of experience in the field, the current President of the Centre for Customs Brokers explains the function of the customs broker in foreign trade, and in particular at the border crossing. Gustavo López explains very clearly what points an SME wanting to export should consider when choosing a customs broker.

“For SMEs the customs broker is often equivalent to a foreign trade department”

Interview | Gustavo López: Centre for Customs brokers

How important is the customs broker in international trade?

The customs broker is a very important cog in the foreign trade machine, and according to the Customs Code is an auxiliary agent of trade and of the customs service.

He is responsible for organizing, coordinating and presenting all the required documentation to customs for foreign trade operations. He has gone from being a trade auxiliary to become a true import/export advisor.In such a situation, and with the significant increase in imports and exports in the current volume of movement of goods, it is necessary for the importer/exporter to be very careful with the intervention of the customs broker so as to minimize the inherent risks.

It is important to note that the customs broker is a strategic instrument for the AFIP and the banks when it comes to checking the goods and protecting tax revenue.

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In the complexity of today’s foreign trade, the customs broker is a vital link in any commercialisation and logistics chain. He is an essential piece in any commercial import or export operation. He doesn’t just give advice on classic customs matters, such as clas-sification, valuation, the legal regime for import/export, but he also advises on costs, logistics and transport, tax aspects, markings, and even presentation and/or product packaging. He carries out the required procedures with third-party bodies in foreign trade operations, and advises and instructs on all regulations in force for each of the goods involved.

For SMEs and/or Mini-SMEs the customs broker is today the equivalent to a foreign trade department.

What services does a customs broker provide at a border crossing?

As we’ve said, the customs broker is a true foreign trade advisor. Not only the classification of goods as regards their tariff heading for payment of duties (according to a recent modification of the customs code Law 25,986, the classification of goods is now the responsibility of the customs broker, a function that was previously performed by the customs service) but also the great number of existing norms for import/export with the various interventions in the goods.

At the border, the customs broker brings a certain formality and certainty to the operations documented there. He ensures the co-rrect classification and valuation of the goods, thus ensuring a correct collection of taxes, and also he often provides the operating logistics needed to make the consignment.

What recommendations would you give a company when contacting a customs broker?

Firstly, to check on his performance record in the activity.

Then, request a series of meetings at his office so as to check on his know-how, and also to evaluate in those talks his professio-nalism in handling the relevant matter.

Look at his experience in the area, as well as his professionalism and theoretical/practical knowledge; whether he is a member of the professional body for the profession, and the type and quality of the clients he has.

What recommendations would you give a company when deciding to export for the first time?

Before making any decision, it should meet the customs broker to evaluate the goods to export, looking at the possible pros and cons when it comes to passing through Customs, emphasizing all the advantages and difficulties they may face (interventions, payment of duties, rebates, etc.). A customs broker is essential to ensure a successful operation

What difficulties may an SME come up against when exporting?

Without adequate advice, supervision and knowledge, the simplest operation can become very complicated, so we advise consulting professionals with experience and capacity before deciding upon any operation.

Entrevista | Gustavo López: Centre for Customs brokers

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How did the producers come to you?

In fact, it was a problem of the Association of Blueberry Producers, who came to us with the desire to export this fresh product to the United States. Blueberry exports were the result of a long process, not without difficulties, that began in 2007 with three trial flights. That led the following year to 15 flights, then 22, the following 31, and this year we plan to make 50 export flights, with an approximate average of 65 tonnes each. The clear politi-cal decision of the Provincial Government to accompany their producers was key for the success of the initiative.

Interview | Fernando Martorell, IDEP

“Tucumán is a regional centre for export via air”

Fernando Martorell of the Institute for the Produc-tive Development of Tucumán (IDEP) speaks of the work of the province to allow fresh blueberry ex-ports by air. He tells how the synergy between the public and the private sectors allows imaginative responses to solve complex problems in exporting.

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What groups took part in the operation? How did the parties coordinate to be successful?

Since we began to work on the project for export by air, in combination with the Association of Blueberry Producers of Tucu-mán (APRATUC), we faced two big problems: the first, coordination between the parties, and the second, creating a suitable infrastructure to allow the export of blueberries by air, a totally new situation for the province. In short, the Provincial Public Sector took into its own hands, by delegation from the private sector, all the construction of export logistics on the basis of mutual trust and the clarity of shared objectives.

Coordinating the operation is not simple. Besides the producers and their association, the air cargo service companies, Aero-puertos Argentina 2000, the ANAC (National Civil Aviation Administration), the SENASA, Argentine Customs, the PSA and the USDA also take part. The USDA, the SENASA and the Customs participate in the control and verification of the goods too.

Working with three different transport companies can lead to problems that are typical of any such operation. In the first three years we worked with LAN, and recently Cielos del Perú, the carrier of DHL, has been incorporated and this year a third company is being brought in. This has made it necessary to coordinate schedules and departure dates with the airlines.

We should also bear in mind that the timetables for the loading of goods are limited since the airport is mostly used for pas-senger transport, which makes the logistics operation more complex.

As for infrastructure, the airport lacked a suitable structure for the handling and export of this kind of loads. So work was done on building a cold prechamber in which verifications are made by the SENASA, USDA and Customs, and also a cold chamber was built in which the already verified products await loading.

Similarly, this year, given the volume of goods handled and the expectations generated by this new operation, the govern-ment of Tucumán, with funds from the Ministry of Agriculture, the Nation and the Under-secretariat for the Development of Regional Economies, has begun building a new cold chamber, with greater capacity and better installations, to ensure a very high quality service, which can be transformed into a tax warehouse in the seasons when foods that require refrigeration are not exported.

The main blueberry harvest takes place in October and November, reaching a peak in the last week of October. We hope to reach two or even three flights a day. In fact, we’ve already operated two flights a day, but in the morning and at night. Nowadays we have the capacity to store fruit for two flights simultaneously; the idea is to operate at night which would be possible with the infrastructure we have today, and much more convenient with the future cold chamber.

What are the future prospects?The immediate possibility is to continue boosting our production capacities. The experience we have and the infrastructure incorporated for export make us a regional hub for export by air from the north-west of Argentina. So we’ve exported blue-berries from Salta, and even Entre Ríos, due to congestion in Ezeiza at this time of year.

Importantly, by working together with Argentine Customs we’ve been able to reach the status of “specialized customs” and

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are one of those authorized to nationalize imported goods16. This will mean greater export volumes, allowing planes to arrive with imports for the region and depart with our products. Actually, the Airport of Tucumán is today the second in the country after Ezeiza in volume of air dispatches.

Besides seeking to provide air export services to other regions, we’re currently trying to extend into other products. This year we’ve been evaluating the possibility of exporting avocados, which we hope to do in the future.

What experience have you gained?

The export of blueberries means support to the intensive labour sector that employs 40,000 workers, and this is a priority for the province. Likewise, it was the first time that Tucumán had exported fresh fruit with a high price on the internatio-nal market, fruit which is in great demand by the United States and other countries with sophisticated tastes and strict demands in quality standards.

Besides this, the aim of maintaining and assuring the competitiveness of our producers has been reached satisfactorily, a perception that is shared by all the actors in the process, creating expectations for other products that see the State as a reliable and executive partner.

Thinking ahead, the creation of suitable infrastructure and coordination with different bodies to implement the project, has taught the province a great deal and the prospects of us becoming the regional centre for exports by air are very good.

The export of perishable products, especially fresh fruit, means that logistics are an element of great significance for the success of the consignments. Everything must run smoothly, from fuel, planes at the gate, airport staff, the verification bodies, etc. This is a product that is picked in the morning, packed during the day and that night is loaded onto a plane, and 36 hours later appears on supermarket shelves in the United States, thanks to successful and effective public/private coordination.

16. The Directorate General for Customs (DGA) named Tucumán as the seventh specialised customs in the country. It thus forms part of the group which comprises Bahía Blanca, Buenos Aires, Córdoba, La Plata, Paso de los Libres, Mendoza, Salta and Rosario authorized to nationalize imported products.

Entrevista | Fernando Martorell, IDEP

Dossier Logistics and cross-border trade

Interview | Fernando Martorell, IDEP

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“An exportable product compensates for the lack of export experience”

Marcelo R. Guckenheimer, President of DHL, has long experience in the field of logistics. After over 40 years in the firm he has become a reference in logistics and foreign trade, occupying the position of Vice-president in the Argentine-German Chamber of Trade and Industry. With this in mind, the Chamber organized the seminar “Logistics made in Germany”on15 September 2011.

Interview | Marcelo R. Guckenheimer, DHL, German Chamber of Trade

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What services can a logistics company provide?The service a logistics company can provide today is integrated international transport. In the past, the exporter/importer needed, among other things, a customs broker, a transport company and an insurance company that could be local or international; today all these services are centred on the logistics operator, preferably an international one. In this regard, from the moment that someo-ne decides to export or import the logistics company takes care of all the chain. In brief, the principal service of a logistics company is to ensure that the product arrives safely.

What is the role of the logistics company in international trade?We cannot improve the quality of the products, but our function is to facilitate the work of the intervening parties, both in exporting and importing, speeding up the dispatch and delivery of the goods by seeking not to complicate or worry unduly those who wish their products to reach their destination.

Due to the boom in domestic consumption many enterprises often prefer to cater for the domestic market, and the idea of starting out on an export process seems to be a complicated one, although their products are competitive internationally. However, one task of the logistics companies is also to raise awareness in the produ-cer and possible exporter that it is good to be present in other mar-kets and diversify risks, and that it is not so complicated to export.

So, we’re here to make sure that logistics doesn’t become a hea-dache for the exporter. There are SMEs in Argentina that have a competitive product but believe that exporting is a very awkward process, but if the product is good any difficulties that may arise can always be overcome.

What recommendations would you give a firm that is just starting to export and is seeking a logistics company?

Have all your documentation up to date. We only work with duly registered companies; we don’t intervene in operations that could be classed as offshore. We never work as exporters or importers, so it’s vital that the company be registered as an exporter or im-porter.

All a company has to do is to contact us, present the documenta-tion required for exporting, or importing, which is simply adapting the consignment to the provisions in force locally and abroad. On this point, producers shouldn’t worry because that’s what logistics companies are for: to advise and orientate. Provided he has an ex-portable product, the producer who is just starting out need make no greater effort than any other company with export experience.

So, the most useful recommendation is to ensure that the pro-duct is reliable and that in the event of a problem the company is ready to assume responsibility in solving any possible problems or drawbacks that may arise, because it is difficult to substitute inputs or to go out in search of a new supplier when exporting.

You are also Vicepresident of the Argentine-German Chamber, and the Chamber recently held a seminar entit-led “Logistics made in Germany” What did it consist of?The seminar was held during the visit of the Secretary of Transport, Rainer Bomba, together with a very large party. Thanks to the Ar-gentine-German Chamber we decided to hold this small seminar for specialists in logistics and foreign trade.

The reason for the visit is the interest in seeking cooperation bet-ween Argentina and Germany, because there is still much to do. The bilateral relationship is not simply a question of imports and exports and holding fairs, it is also important to help create sy-nergies between the parties, and that is a role the Chamber is in a position to perform, especially if we consider that at times the German market can be a difficult one in certain areas because of the demands made, logically.

In short, the aim of the seminar was to show the producer how to export and how to ensure that the maximum authorities in the field within the German government are listening.

In particular as regards this Mission, the Chamber was informed of the visit and as they were high authorities they organised pro-motion meetings and seminars, and what we do is to collaborate with the Mission.

Dossier Logistics and cross-border trade

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Activities FairsRoundsPromotion of ServicesTraining

In this section you will find all the activities of Fundación ExportAr that were carried out and scheduled for the period of October, No-vember, and December

Fairs

The 6th Agro Show Room edition was held between the towns of Marcos Juárez, in the province of Córdoba, and Armstrong and Las Parejas, both in the province of Santa Fe, and was orga-nized by CECMA, that belong to CIDETER a group of companies of agricultural machinery.

This is an annual meeting aimed at showing the national offer in agricultural machinery, equipment and parts, coordinated jointly between Fundación CIDETER, ProArgentina Program of the Mi-nistry of Industry, the General Directorate of International Trade of the Ministry of Production of the province of Santa Fe, ProCór-doba Agency, and the Ministry of Foreign Affairs, International Trade and Worship through Fundación ExportAr.

This event included the visit of foreign companies from New Zea-land, Australia, South Africa, Zimbabwe, Angola, Russia, Ukrai-ne, The Netherlands, the US, Mexico, Guatemala, Panama, Ecua-dor, Venezuela, Colombia, Peru, Chile, Bolivia, and Paraguay, who were invited to learn about our national offer in agricultural machinery, technology and development.Visits and different activities were arranged for all 28 foreign entrepreneurs and they ended with the Business Round in Las Parejas, where 58 national companies of the sector participated in more than 750 work meetings.

The foreign delegation visited the Experimental Station of INTA in Marcos Juárez where visitors received some training on “direct sowing” techniques, agronomical factors that explain its bene-fits, efficient use of water, and agricultural mechanization in the system.

National attendants appreciated the level of foreign visitors. The number of interviews was subject to the profile of the interested entrepreneurs, and most of them, informed they have been as-ked for quotations and samples.

Agro Show Room 2011Marcos Juárez (Córdoba) and Arm-strong, Las Parejas (Santa Fe)October 4 -1 7 Agricultural Machinery

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Fairs

On October 16 ended the 63rd edition of Frankfurt Book Fair, the most important world event for the sector, as regards copyrights buying and selling.

In this edition 7.384 exhibitors were present, from 106 countries, and 280.194 visitors attended the fair. In addition to presentations, conferences, dialogues in the different spaces of the fair, this year the Guest of Honor Country was Iceland, under the motto “Fabulous Iceland”.

The National Pavilion located at International Publishers, had a surface of 120 m2 and 32 publishers, among which 8 universities attended for the first time, supported by the Ministry of Education.

The participation of publishers was jointly coordinated by Fundacion ExportAr, Argentine Book Chamber (CAL), and the Directorate for Cultural Affairs of the Ministry of Foreign Affairs, and supported also by the Argentine Chamber of Publications (CAP) and Fundación El Libro.Within the Pavilion, in addition to the books exhibition space there was also an exclusive display for the Programa SUR-Translations Fostering program- driven by the Argentine Foreign Affairs Ministry that involved the translation of more than 300 Argentine Works into different languages since its beginning.

One of the focal points, during the presence of the Pavilion, was to pay tribute to three writers who died in 2011, María Elena Walsh, Ernesto Sábato and David Viñas, in addition to the permanent presence of Jorge Luis Borges, so many round tables have them as central topics for debates.

During the Fair 250 contacts were made and that allow to forecast sales for around U$S 750.000 for next year. Likewise, three publishers have performed sales.

Frankfurt Book Fair 2011Frankfurt, GermanyOctober 12- 16Publisher sector

Fundacion ExportAr and PPUA (Program for the Promotion of Argentine Universities), jointly organized the participation of Universities in the Mission to Shanghai and the China Education Showroom held in Beijing.

In this occasion, representatives from national universities of Bue-nos Aires (UBA), Quilmes, Río Cuarto, Chilecito and the ELSE-CELU consortium, the Universidad Abierta Interamericana and University of El Salvador attended the event.

The program included bilateral meetings at the Westin Hotel whe-re Argentine and nine Chinese Universities participated.Likewise, the delegation visited different education institutions such as Tongji, Fudanand Jiaotong. The Consulate in Shanghai provided assistance for all the activities.

The promotion action continued at the China Education Expo 2011, held in the China World Trade Center. This Fair, officially approved by the Chinese Ministry of Education, and sponsored by the Chinese Education Association for International Exchange (CEAIE) provides universities with an effective platform to know potential clients of the sector in a more efficient manner.

The National Pavilion, of 45 m2, was coordinated for the fifth year in a row by the Fundación, and there universities displayed Spanish programs, degree and postgraduate courses, summer programs, professors’ exchange, among other education and academic offers.It is worth mentioning that for China it is important to have a relatively continuous presence of representatives in order to ge-nerate long term relations and cooperation agreements. National Institutions expressed that their presence for the second or third time in this event has allowed them to know better the market, strengthen bonds and achieve predefined goals.At the end of the Fair, universities did an excellent review of con-tacts made and the professional level of visitors.

Education Mission and Fair to Chi-na 2011Shanghai, Beijing, ChinaOctober 11- 16Education

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Fairs

It has ended the 1 phase of Canton Fair, event that is held twice a year in the city of Guangzhou, at the “China Import & Export Fair Complex”.

It is a multisectoral fair developed in three phases: 1) category of electronic products and home appliances, products of the five metals and tools, machinery, vehicles and accessories, construction materials, lightning, chemical products. 2) Category of daily consumer goods, ornaments. 3) Category of textiles and clothing, shoes, suitcases and bags, stationary and leisure articles, medicines, sanitary assistance products, foodstuffs. The International Pavilion is only available at the first and third phase.

Canton Fair was founded during the spring of 1957, and it is held every year in spring and fall. There participate the most diverse exhibitors from all regions of the country and more than 50 trade delegations from all around the world.

During the two editions in 2010 it was estimated a total volume of business for 56,700 billion dollars. This figure increases year after year along with the number of exhibitors, the institutional presence of different countries and a larger number of visitors.

The National Pavilion had a surface of 36 m2 and attracted around 300 visitors that showed interest in importing from our country to their companies, as well as exporting certain products of them to us. From these contacts, 180 were referred to the Argentine Consulate in Guangzhou, and the rest were referred to the Fundación.

Representatives from the Fair and Fundación agreed on the importance of keeping the Argentine institutional presence in such an important event to foster Chinese investments in our country, disseminating national tourism and provide a meeting point for national entrepreneurs that attend the fair in each one of its editions.

110th Canton Fair Phase 1Guangzhou, ChinaOctober 15 - 19Multisectoral

Fresh Summit Fair one of the most important international events exclusively dedicated to fruits, vegetables and flowers organized by the PMA (Produce Marketing Association) ended successfully.PMA, founded in 1949, is the leading trade association that repre-sents almost 3,000 companies from each segment of the global supply chain of this sector. At the Convention, held at the Geor-gia World Convention Center, participants from all sections of the supply chain gathered there.

This year had a record number of 18,000 visitors, 58 countries and 800 exhibitors.

Attendants were mainly from the following sectors: farmers, brokers, retailers and wholesalers, manufacturers of added value products, equipment suppliers, packaging, technology, transport, food security programs, importers and exporters, foodservice ope-rators and distributors, consultants and commercial press.The National Pavilion had a surface of 108 m2 and 24 companies and national entities such as the Production development Institu-te of Tucumán and ProMendoza participated there. Likewise, the Argentine Consulate in Atlanta coordinated a reception for Argen-tine entrepreneurs, authorities and officials attending this event.

All of them highlighted the positive aspect of having concentrated the Argentine presence in only one pavilion, in which companies from Fundación ExportAr and PROARGEX shared the same space.

The Argentine presence at PMA was extremely positive given the professional level of this Fair, which allowed to carry out meetings with a big number of operators and institutional rounds for the Fundación. Due to participation in this fair some companies infor-med potential sales for U$S 5.000.000.

PMA “Fresh Summit” 2011Atlanta, Georgia, USAOctober 15 - 17 Fruits and vegetables

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Fairs

Argentina conquers territory at Fieracavalli. For the second year in a row, it will have a national area at the Latin Room where Fundación ExportAr will coordinate the National Pavilion over a surface of 72 m2 jointly with the Italian Chamber of Commerce in the Argentine Republic.

This event is a must for all sectors related to the horse world, from horse-breeders to equipment, clothing and accessories manufactu-rers for the horse and rider, sportspeople of different horse discipli-nes, equestrian artists, tourism promoters and crafts, among others.This Fair is a platform for countless activities, from the morning to late evening hours many events are presented such as the Horse Jumping World Cup, western exhibitions, Night Gala show, and all contests of different horse breeds.

Fieracavalli2011 edition registered more than 150 thousand visitors and 2,500 horse breeds. In addition, it was held for the first time the Latin Room devoted to the Argentine and Uruguayan Spanish horse, and the First European Contest of Criollo Horses.

This is the 113th edition of the Fair that has been making history since 1898 and is held annually. History, culture, nature, environment are essential elements in this event which has shown an important growth and will display a unique window shell of selected exhibitors.

The following sectors will exhibit their products at the fair: specialized clothing; equipment, inputs and accessories; agritourism or rural tou-rism with horseback riding; breeders; related bodies and federations.

Countries will also have the opportunity to display their tourist offer to a discerning and knowledgeable audience. Participating in this Fair is the best way to reach a market of great economic power, where the Argentine offer is vast and diverse.

Fieracavalli 2011Verona, ItalyNovember 3 - 6 Horses and related industries

Kosherfest is the most important event of its kind in the US, re-presenting a market of U$S 5.500 a year with an increase of 15%. Americans from all religions consume kosher food due to a prevailing trend for quality, security and health.

More than 500.000 people have visited fairs of this kind in New York, New Jersey, Miami, Chicago, and Los Angeles, since its first edition in 1987 at the Jacob K. Javits Center. In the last editions, it attracted visitors from 45 states and 29 countries, representing an important sector of the food industry.

In its previous edition a total of 300 exhibitors from 11 countries participated and 8,500 visitors attended it.

Kosher consumption is not exclusive of this community: Muslims, vegetarians, persons with lactose allergies, celiac or consumers who consider kosher food satisfy higher hygiene and quality standards than equivalent regular products, make up –among others- an eager market of these products because through the compliance with this standards they satisfy their food needs.Argentina is one of the world poles of food supplies and a poten-tial kosher raw material supplier in addition to being recognized is also demanded in the United States and Europe.

This production at the same time ignites a new industry with a significant creation of jobs; kosher food producers are mainly small and medium size enterprises with a high demand of labor force.

In this context, Fundacion ExportAr, PROARGEX, and DIPEX (of the Argentine Ministry of Foreign Affairs) will be present at the Meadowlands Exposition Center with a National Pavilion of 100 m2 where Argentine companies will exhibit their offer to the pu-blic.

XXIV Kosherfest 2011New Jersey, USANovember 8 - 9 Kosher food

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Fairs

Americas Food and Beverage 2011Miami, USANovember 14 - 15Food and beverages

Fundacion ExportAr coordinates the participation of Argentine companies at the 15th edition of the Americas Food and Beve-rages.

Americas Food and Beverage is the largest food fair of the conti-nent, and is an ideal platform to do business in the United States and the Caribbean. This fair provides companies with great op-portunities to promote their products and services for the main buyers of the Americas.

This event is mainly directed towards the Latin community in the US and the trade Exchange with Central and South America, re-presenting an excellent opportunity to access the most important distribution channels of the continent.

The profile of buyers is: 80% has authority and final decision, and 50% buys products directly. In 2010, the fair hosted food companies of different areas from South America, Central Ame-rica, Canada, Mexico, the Caribbean, and the United States. Among the exhibited products outstand processed products, dairy products, bread and pastry, sweets, juices and beverages, cereals, exotic fruits and vegetables, fresh, processed or dried, coffee and tea, meat, sauces, spices, poultry, shellfish, diet food, frozen and organic food, among others.Geographic, professional, and logistics advantages have turn Miami into the principal sales and distribution center of food and beverages of the Western hemisphere. More than 1,200 impor-ters, exporters, and distributors have their headquarters in this city.From all the exports of Florida, 87% are destined to Latin Ameri-ca and the Caribbean, and 33% of exports towards the Americas flow from the Southern ports of Florida. Buyers of cruises lines in Miami perform purchases for more than 4.2 million passengers a year. Miami’s infrastructure, the food and beverages demand this fair produces, and the great deal of important buyers turn this fair into a must event for the sector.

Andina Pack 2011Bogotá, ColombiaNovember8 - 11 Packaging

Fundacion ExportAr coordinates the Argentine Pavilion at the “11thEdition of Andina Pack 2011”, which offers a unique access to the processing, packaging and packing industry of Colombia and Central America.

This Fair is the meeting point and business center that convenes exhibitors from different latitudes, showing the latest technologi-cal innovations of the sector.

The dynamic growth of the industry in Latin America, fostered by the demands of consumers, globalization, development of pro-ducts, and access to new markets will be the rule for the next years.

Andina Pack will provide an offer that gives solutions for the con-version, process, packaging and distribution of products. The exhi-bition is part of the technological development that permanently evolves to face challenges imposed by globalization.In this occasion, it has been estimated a 20% growth, with the participation of more than 700 exhibitors and the attendance of 20,000 visitors.

Likewise, it will host buyers’ missions with the support of Proexport Colombia and the Chamber of Commerce of Bogotá.

Within specialized pavilions, visitors will find solutions from the raw material, through transformation, processing, packaging, pac-king, distribution and trade of products in every industrial sector.Specialized pavilions are distributed as follows: conversion in prin-ting; medicines and cosmetics; food and beverages; distribution; materials, design, and points of sale.

The region advances rapidly in environmental awareness and in-dustries transform themselves to comply with a more discerning demand in terms of environment and coexistence, the entering into force of legislations in Central and South American countries furthers industrial innovation and transformation of this sector.

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Fairs

In November, it will be held the 15th edition of this food, bevera-ges and hotel fair, which is especially devoted towards an exclusi-vely professional audience.

The rapid expansion of the food and beverages sector in China is, to some extent, due to the considerable and sustained growth combined with a new consumption culture at urban centers and a marked welcome towards foreign products that open real com-mercialization opportunities.

The increase of income power in Asia means a wide scope of po-tential clients whose new reality enables them to consume gour-met products of superior quality. This represents an effective situa-tion to send products with added value.

This Fair is a window for the most important foreign offer towards this new scenario. It seems an opportunity to exhibit those pro-ducts which are not yet present in China, and from there, through importers and distributors, start to be introduced in such a high potential market.

For the third year in a row, PROARGEX jointly with Fundacion Ex-portAr coordinate at the New International Expo Centre the Natio-nal Pavilion over a surface of 60 m2 where Argentine companies will display their offer. Participation in this event is aimed at the internationalization of SMEs by successfully introducing their pro-ducts and services at this destination within the food and bevera-ges sector.Food & Hotel 2011 is organized jointly by China International Ex hibitions y Allworld Exhibitions, specialists in food fairs in the Far East.In this event 98% of exhibitors are foreign that is why buyers from the entire region and abroad attend this fair. This fair gathers in-dustry professionals, in as much as retailers, wholesalers, farmers, distributors, supermarket executives, hotel industry managers, res-taurants, bars and importers from all around the world.

XV Food & Hotel China 2011Shanghai, ChinaNovember 16 - 18 Food and beverages

The Argentine Republic will be present at the Agritechnica Inter-national Fairs of the agricultural machinery and parts sector that takes place every two years in the city of Hannover.

The National Pavilion, over an isle of 392 m2, will be jointly coor-dinated by Fundación ExportAr and PROARGEX, and also the Mi-nistry of Foreign Affairs, International Trade and Worship, through the Program for International Trade Support (PDCEX in Spanish), INTA and the Argentine Chamber of Agricultural Machinery Ma-nufacturers (CAFMA in Spanish).

Likewise, the governments of the provinces of Buenos Aires and Santa Fe will also further the participation of their companies in the Pavilion at this important business meeting.In addition, this promotion action will have the participation of Fundación Cideter, MAGRIBA and AFAMAC, supported by Expoa-gro, Ternium, and Al-Invest Program of the Argentine Industrial Union.

The National Institute of Agricultural Technology (INTA in Spanish) will give lectures within the framework of Experts Forum to pro-mote the benefits of “no till”” technique widely spread throug-hout our country. At the same time the technology applied in said production process will be displayed during the exhibition.Attendants will have the opportunity to arrange high level mee-tings with countries from Europe, Asia and America. More than 2,000 exhibitors will show the latest trends in the sector.

It is worth mentioning the great position reached by Agritechnica as the main world meeting point for the agricultural technical sec-tor that attracts European professionals of this field. Specialized high level programs together with many congresses and conferen-ces turns this activity into the most important forum on the future for the agricultural sector.

Agritechnica 2011Hannover, GermanyNovember 13 - 19 Agricultural machinery

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Fairs

Just as other segments within the food industry, the retail foods-tuffs circuit in the United Arab Emirates has its own showcase at SIAL Middle East 2011.

The 2nd edition will take place in Abu Dhabi. SIAL group decided to land in the Middle East considering growth reached by the re-gion in recent years, which would increase the number of visitors and exhibitors compared to the previous edition.

The Fair in 2010 hosted around eight thousand professionals from more than 77 countries providing this event with a defined international profile.

In 2011 the same scheme will be repeated and it will guarantee that making contacts are really significant and further companies entering such an important market in the Middle East.

This region has an economy of rapid growth where tourism has increased at considerable rates even higher than those of any other area. United Arab Emirates has a great wealth of hydrocar-bons and one of the highest per capita GDP of the world. Abu Dhabi owns most of the oil and gas resources.

More than 12,000 professional visitors from 80 countries are ex-pected to attend the Fair this year and it will host more than 500 exhibitors along 16 national pavilions from Turkey; Argentina, Korea, China, Taiwan, Iran, France, Italy, Poland, Vietnam, Thai-land, Tunisia, the United Kingdom, Egypt and the United Arab Emirates. In those pavilions, companies will exhibit a wide variety of products and services, some of them even for the first time in the region.

The Argentine Pavilion, coordinated by Fundación ExportAr and PROARGEX, will have a surface of 92 m2 and will provide profes-sional support permanently.

SIAL Middle East 2011Abu Dhabi, United Arab EmiratesNovember 21 - 23 Food and beverages

Authors, literary agents, librarians, booksellers and more than 925 publishing houses from 40 countries will attend Guadalajara Inter-national Book Fair, and more than a million visitors will be immer-sed in the books world.

Literary creators have consolidated this event as one of the major and diverse event of the Ibero-American community. Not only re-nowned writers but also new ones find at the FIL fertile ground for the dissemination of their work, and make direct contact with colleagues and readers.

This Fair is also one of the most fruitful places for growing, espe-cially into other languages. Each year the number of writers from other linguistic spheres other than Spanish increases in order to build bridges towards Hispanic readers in on of the most attractive forums of books.

Every edition is an opportunity to witness the unavoidable need and total desirability of intercontinental dialogues between the letters, ideas and all cultures. This is an essential exchange for the understanding of a more complex world and a space chosen by authors and readers.

The Fair offers a Wide range of options to discuss and find solu-tions on subjects related to the sector.Bringing books closer to the general public is the fundamental goal of FIL, and it is accomplished through programs towards the general public such as: workshops FIL children and youth; plea-sure in reading; dialogues between authors and readers; books launching, some of them read out by readers under the program: Readers introduce books; and other forums and literary meetings.Guadalajara will become the Heart of the world of books, where Fundación ExportAr jointly with the Ministry of Education and the Argentine Chamber of the Book coordinate the Argentine Pavilion over a surface of 240 m2.

Guadalajara International Book Fair (FIL in Spanish) 2011Guadalajara, MexicoNovember 26 – December 4 Publishing sector

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Promotion of Services Rounds

Due to Latin America’s importance within the current world context, and the increasing development of the animation industry, EXPO-TOONS has become a meeting point for professionals of the sector. In this framework, Fundación ExportAr invites producers, distribu-tors, and buyers to promote, trade, and distribute their products, foster strategic alliances for the supply, co-production, and finan-cing of animation projects.

This fair is aimed at disseminating Animation as the engine for the Audiovisuals and Cultural industry, giving room for the exchange of trends, technologies, knowledge, artistic proposals, and experiences between different countries.

The program of Expotoons Conferences annually includes relevant international professionals of the industry, and deal with topics such as creativity aspects, production, dissemination, distribution, and financing.

Some outstanding international professionals for this year are: Ceci-lia Mendonça, General Manager of Disney Channels Latin America of The Walt Disney Company Latin America; Nelson Shin of Akom Productions/ASIFA INTL, who will speak about animation in Korea: Industry and Policies; Andrés Lieban, Creative Director, partner of the animation studio and production company 2DLab; Mario Al-berto Muñoz Huerta – Contents Coordinator for the Innovation Directorate and Televisa Kids- works for Televisa México since 2000.In the previous edition, Fundación ExportAr successfully carried out the “International Business Round of Animation Buyers” with more than 150 meetings held between producers, buyers, and distribu-tors from the US, Europe, and Asia.For the 4th year in a row, Fundación jointly with Encuadre coordina-tes interviews between national and foreign companies.

4th Round of Buyers of the animation industry 2011Cinemark Puerto Madero,Buenos AiresNovember 29 - December 1 Animation

A delegation of Argentine universities, including the following institutions: Universidad de Buenos Aires, Universidad Nacional de Chilecito (La Rioja), Universidad del Salvador, Universidad Nacional de Quilmes, Universidad Nacional de Río Cuarto, Universidad Abierta Interamericana, and Consorcio de universidades ELSE, visited the city of Shanghai.

The main goal of this delegation was to meet local counterparts in order to achieve a better knowledge of each other, since this constitutes a fundamental step for strengthening bonds in the Chinese society to reach any sort of agreement.

Beforehand, a list with all the universities in Shanghai, including relevant aspects of each one and cooperation background, had been handed out to Argentine universities so they could choose which local universities were interested in making contact with during their visit in Shanghai. After doing the selection of universities, the Argentine institutions invited their counterparts, and made contact by carrying out three different types of activities, such as a round of bilateral talks, three visits to the most relevant universities of Shanghai, and attended a reception at the Consulate.

During the bilateral round, the Argentine delegates from the seven universities had conversations with the following local counterparts: University of Shanghai for Science and Technology, Shanghai University of Finance and Economics, Shanghai University of Political Science and Law, Shanghai, Shanghai Jiaotong University, Shanghai University, Donghua University, East China University of Political Science and Law, Shanghai Ocena University, and Shanghai Dianji University.

The Argentine delegation visited the following universities: Fudan University, Tonji University, and Shanghái Jiaotong University; all of them are among the most relevant ones at national level.

Education Workshop in Shanghai 2011Shanghai, ChinaOctober 10 - 14Education

84 News

Training

“First steps in exporting”Catamarca provinceNovember 15

Fundación ExportAr jointly with UIA coordinates the above mentioned seminar in the province of Catamarca, under the program of training federalization for the promotion of exports.

During the seminar it will be discussed services provided by Fundación ExportAr, product internationalization, first steps in exporting, foreign markets, and development of the export activity.

Likewise, the program includes: “Risk of exporting; international trade barriers; logistics and methods of payment”. In addition, there will be held the following workshops: “theory and practice on marketing and international negotiation; FOB price formation; Seller’s obligations; International Sale Agreement; Export circuit.

“How to export copyright”CABANovember 17

Fundación Standard Bank jointly with Fundación ExportAr will held the seminar “How to export copyrights” at the Fundación Standard Bank’s auditorium.

The program includes an introduction to the export of services, and “Copyrights and aspects to be considered in the international sale of rights”.

“Export Basic Sequence and Promotion Tools”Rawson, ChubutNovember 22

Upon request from ProChubut, Fundación ExportAr jointly coordinates the Seminar on export Basic sequence and promotion tools for the exports provided by ProChubut.At the end of the seminar, there was some time for the Exchange of questions and experiences among attendants and exhibitors.

www.exportar.org.ar