punjab argentina project

8/8/2019 Punjab Argentina Project

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Punjab Board of Investment and Trade | PBIT

PBIT PUNJABARGENTINA PROJECT


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Table of Contents

Argentina Facts .............................................................................................................................................. 3

Argentina Trade Figures ............................................................................................................................. 5

Argentina Demographics ........................................................................................................................ 5

Argentinas Political Depth............................................................................................................................ 6

Argentina and Brazil ................................................................................................................................... 6

Argentina and the US .................................................................................................................................. 7

Relation with MERCOSUR ........................................................................................................................... 8

Natural Relationship with Pakistan............................................................................................................... 9

Pakistan and Argentinean Politics .............................................................................................................. 9

Pakistan- Argentina Joint Committee on Scientific and Technical Cooperation ...................................... 10

Agreements .............................................................................................................................................. 10

Pakistan & Argentinean Economy ............................................................................................................ 11

Relations with MERCOSUR ....................................................................................................................... 12

Pakistan- Argentina Joint Committee on Trade Promotion ..................................................................... 12

Visit of Trade Delegation in April 2005 ..................................................................................................... 13

Visit of Trade Delegation to Pakistan ....................................................................................................... 13

Bago Pharmaceuticals & Ferozsons Case ................................................................................................. 13

Inflex Argentoil & Wah Industries Ltd ...................................................................................................... 14

Hindrances in Trade Development ........................................................................................................... 14

Punjab and Argentinas trade & investment opportunities ..................................................................... 15

List of References ..................................................................................................................................... 19


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ARGENTINA FACTS

Argentina is the second largest countryin the South America and The 8th largest

in the world with almost 2.8 millionsquare kilometers of landmass1 and a

GDP on PPP terms of USD 570,846

million

Borders South American powerhouseBrazil from the northeast along with

Paraguay, Bolivia, Uruguay and Chile

In 1816, the United Provinces of the RioPlata declared their independence from

Spain The country's population and culture

were heavily shaped by immigrants from

throughout Europe, but most

particularly Italy and Spain

Up until about the mid-20th century,much of Argentina's history was

dominated by periods of internal

political conflict between Federalists and

Unitarians and between civilian and military factions

After World War II, an era of Peronist populism and direct and indirect military interference insubsequent governments was followed by a military junta that took power in 19762

Democracy returned in 1983 after a failed bid to seize the Falkland (Malvinas) Islands by force,and has persisted despite numerous challenges, the most formidable of which was a severe

economic crisis in 2001-02 that led to violent public protests and the successive resignations of

several presidents

33rd largest country in the world in terms of population of 34 million and workforce of just over15 million3

Among the most influential countries in the world and a member of the G-20

Possesses high quality human capital with focus on manufacturing, construction and educationsectors

Consistent growth rates of over 8% for the past 6 years and accumulated growth of 80% since2002

1 CIA World Factbook: Argentina2SeeLewis, Daniel K., The History of Argentina, Greenwood Press, Washington DC3 INDEC:Instituto Nacional De Estadistica Y Censos, Republic of Argentina


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Investors are attracted to Argentina due to its fast moving economy and highly developed humancapital

Macroeconomic stability and an aggressive network of investor incentives make it an idealinvestor destination

Argentina has 23 provinces all divided in 376 departments and 134 partidos and an autonomouscity, Buenos Aires

Total Trade between Pakistan and Argentina in 2008 was USD 245 million Argentina celebrates its 200th anniversary of its independence on the 25th of May, 2010 Major Trading Partners include Brazil, China and the US in descending order of importance


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ARGENTINA TRADE FIGURES

Argentina Import from Pak4 (000 USD) Argentine Exports to Pak5 (000 USD)Manmade staple fibers 32,843 Cereals 112062

Toys, games, sports requisites 5,046 Iron/Steel articles 18655Cotton 4,946 Animal/vegetable fats/oils 5382Manmade filaments 1,862 Iron and steel 5122

Apparel (knit or crochet) 1,738 Pharmaceutical products 3979Optical, Medical apparatus 1,284 Raw hides and skins 1785Textile articles 1,282 Inorganic chemicals 1276

Apparel Accessories 834 Nuclear reactors, boilers 1069Vehicles 772 Optical, Medical apparatus 952Furniture, prefab Buildings 672 Tanning, dyeing pigments 634

ARGENTINA DEMOGRAPHICS

4 TradeMap.org5 Ibid6 INDEC:Instituto Nacional De Estadistica Y Censos, Republic of Argentina7 Ibid

Population6

2008Total 40,482,000

Urban 36,656,032Rural 3,835,968

Urban/Rural Ratio 9.6/1Population Growth Rate 13.10%GDP Per Capita in PPP (ARS) 55,963

GDP Per Capita in PPP (USD) 14,333

Largest Argentinean Cities7 TotalPopulation

Buenos Aires 3,050,728Cordoba 1,346,092Rosario 1,249,594Mendoza 885,434Tucuman 789,504La Plata 732,503Mar del Plata 604,563Santa Fe 493,547Salta 464,678San Juan 453,229


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Argentinas Political Depth

Argentina and Brazil are neighboring countries of South America, and two of the most importanteconomies in Latin America. The two countries combined represent 63% of the total area of SouthAmerica, 60% of its population and 61% of its GDP.

After democratization in 1985, a strong integration and partnership began between the two countries.In 1985 they signed the basis for the MERCOSUR, a Regional Trade Agreement. Also on the militaryside there has been greater rapprochement. In accordance with the friendship policy, both armiesdissolved or moved major units previously located at their common border (e.g. Argentine's 7th Jungle and 3rd Motorized Infantry Brigades). Brazilian soldiers are embedded in the Argentinepeacekeeping contingent at UNFICYP in Cyprus and they are working together at MINUSTAH in

Haiti and, as another example of collaboration, Argentine Navy aircraft routinely operates from theBrazilian Navy carrier So Paulo.

In 2007, Brazil and Argentina successfully launched a rocket into space, in the first joint spacemission by the two countries. The VS-30 was launched from the Barreira do Inferno Launch Centerand carried experiments from both countries.[4] The national spaces agencies CONAE and AEBhave been working together since the 1990s.

On February 22, 2008, President Luiz Incio Lula da Silva of Brazil made a state visit to BuenosAires. During his visit, the presidents established a binational commission on pursuing joint uraniumenrichment for nuclear energy purposes. They also agreed on energy, transport and space satellitecooperation, and announced their decision to hold bilateral summit meetings every six months.[5]Brazil also committed to ensure a steady supply of electricity to Argentina during peak winter monthsto alleviate sporadic power and natural gas shortages. "The strategic alliance between Argentina andBrazil is of the utmost importance", Lula da Silva told Fernandez after the meeting, reaffirming thestrong ties between Brazil and Argentina.

In August 2008, Argentina and Brazil announced they were dropping the US dollar and using theirown currencies on all bilateral commercial transactions. In 2008, trade between the two countriesreached 23.6 billion dollars a year, with Brazil as Argentina's largest trading partner, and Argentina asBrazil's second-largest partner

On September 7, 2008, the President of Argentina, Cristina Kirchner, traveled to Brazil where she

was the guest of honor at the Independence Day celebrations and witnessed the military parade inBraslia. The following day, she held discussions with the Brazilian President Luiz Incio Lula da Silvaon a variety of bilateral issues including energy, defense and nuclear cooperation.

Argentina and Brazil


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The United States has a positive bilateral relationship with Argentina based on many commonstrategic interests, including non-proliferation, counternarcotics, counterterrorism, the fight againsthuman trafficking, and issues of regional stability, as well as the strength of commercial ties.Argentina is a participant in the Three-Plus-One regional mechanism (Argentina, Brazil, Paraguay,and the US), which focuses on coordination of counter-terrorism policies in the tri-border region.

Argentina has endorsed the Proliferation Security Initiative, and has implemented the ContainerSecurity Initiative and the Trade Transparency Unit, both of which are programs administered by theU.S. Department of Homeland Security/Immigration and Customs Enforcement. The ContainerSecurity Initiative provides for the selective scanning of shipping containers to identify weapons ofmass destruction components, and the Trade Transparency Unit works jointly with ArgentineCustoms to identify trade-based money laundering.

In 2004, Argentina signed a Letter of Agreement with the US Department of State opening the wayfor enhanced cooperation with the US on counternarcotics issues and enabling the US to beginproviding financial assistance to the Government of Argentina for its counternarcotics efforts. Inrecognition of its contributions to international security and peacekeeping, the US Governmentdesignated Argentina as a major non-NATO ally in January 1998. The Office of the Secretary ofDefense and the Argentine Ministry of Defense hold an annual Bilateral Working Group Meeting,alternating between Argentina and Washington, D.C. Furthermore, both nations exchangeinformation through alternating annual Joint Staff Talks, military educational exchanges, andoperational officer exchange billets.

US-Argentine cooperation also includes science and technology initiatives in the fields of space,peaceful uses of nuclear energy, and the environment. In June 2007, the US and Argentinamodernized a bilateral civil aviation agreement to update safety and security safeguards and allow asignificant increase in flight frequencies between the two countries, which hold excellent potential forincreased tourism and business travel. An active media, together with widespread interest in American culture and society, make Argentina a receptive environment for the information andcultural exchange work of the US Embassy. The Fulbright scholarship program has more than tripledthe annual number of US and Argentine academic grantees since 1994, and the US Embassy isactively working to increase other education exchanges.

Argentina and the US


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Mercosur (Mercado Comn del Sur) or the Southern Common Market is a Regional Trade Agreement

between Argentina, Brazil, Paraguay and Uruguay founded in 1991 by the Treaty of Asuncin, which

was later amended and updated by the 1994 Treaty of Ouro Preto. Its purpose is to promote free

trade and the fluid movement of goods, people, and currency.

Mercosur origins trace back to 1985 when Presidents Ral Alfonsn of Argentina and Jos Sarney of

Brazil signed the Argentina-Brazil Integration and Economics Cooperation Program or PICE.

Bolivia, Chile, Colombia, Ecuador and Peru currently have associate member status. Venezuela

signed a membership agreement on 17 June 2006, but before becoming a full member its entry has to

be ratified by the Paraguayan parliament. The founding of the Mercosur Parliament was agreed at the

December 2004 presidential summit. It should have 18 representatives from each country by 2010.They however are not restricted to South America, for Israel is a non-South American free trade

partner.

Relationship with MERCUSUR


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Pakistan and Argentina established their diplomatic relations in 1951. Since then the two countries

have had friendly and cordial relationship characterized by cooperation at international fora, sharedperceptions and understanding on most major global and regional issues.

The relationship between Argentina and Pakistan deepened further only recently, with progress beingfocused predominantly on mutual cooperation in science and technology, with the first significantagreement signed in May 1983. Since then, high level visits have taken place in both countries andrelations seem to have grown gradually into the cordial relationship seen today; with agreements, inprinciple at least, to continue discussions in fields of mutual interest such as their respectiveeconomic and political systems.

The relationship between Pakistan and Argentina is one of close cooperation in various fields andunanimity of view numerous international issues

The relationship has recently seen much growth due to deepening trade relations and inter-government communications. A formal agreement on bilateral trade and cooperation was signedbetween Argentina and Pakistan on the 19th of July 2002. The agreement which was signed inBuenos Aires, envisagesMost Favorable Nation(MFN) treatment under WTO regulations and greatercooperation in the field of the goods and services, banking, investments, transport andcommunication sectors. The agreement also provides forming of Argentina-Pakistan JointCommittee to review, implement and diversify the scope of the trade agreement.

The two countries are currently most concerned with agricultural development schemes, particularlyin the areas of livestock disease control, as well as political and diplomatic issues of mutual interest.

Pakistan and Argentina Politics

Former President Musharrafs three-day official visit in December 2004 was the first head of state orgovernment level visit between Pakistan and Argentina. During official talks areas of commoninterest between the two countries were explored. Both leaders expressed their mutual resolve tobegin a new era of strong political and economic relationship. They agreed to enhance trade andpromote cooperation in various fields including science and technology. They also agreed to spurinteraction in the fields of sports and culture. Pakistans proposal for a framework agreement with

regional trade bloc MERCOSUR was supported by President Kirchner.

The first round of High Level Bilateral Political Consultations was held in Buenos Aires on 24 May2006. The two sides reviewed the entire gamut of bilateral relations and expressed satisfaction overthe progress achieved. There was a mutual desire to broaden bilateral cooperation and expand ties in various fields. The two sides agreed on a range of measures to increase high-level exchanges,strengthen the political dialogue, and intensify bilateral economic and commercial linkages.

Natural Partnership with Pakistan


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The two countries have had a regular exchange of parliamentary delegations. A two-memberdelegation headed by President of the House Foreign Affairs Committee visited Pakistan in March2007. The two sides discussed ways and means to promote greater cooperation between the twoParliaments, and the formation of Parliamentary Friendship Groups. As a follow up, a parliamentarydelegation from Pakistan also visited Argentina in July 2007. A Parliamentary Group for Friendship

with Pakistan has been formed in the Argentine Chamber of Deputies. Mr. Federici Pinedo has beenappointed as Chairman of the Group. Pakistan Argentina Parliamentary Friendship Group hasbeen established in the National Assembly of Pakistan on 31 October 2008 and its induction is underprocess.

A cooperation agreement between Institute of Strategic Studies, Islamabad (ISSI) and ArgentineCouncil for International Relations, Buenos Aires (CARI), was signed in 2003. The agreementstipulated exchange of scholars, academicians and research material. A similar agreement betweenInstitute of Regional Studies Islamabad and Salvador University Buenos Aires is under process.

In addition to these developments, Argentina and Pakistan have worked closely in developing missiletechnologies, of particular interest to the countries as both have maintained nuclear rivalries with

their respective neighbors- Brazil and India

Pakistan- Argentina Joint Committee on Scientific and Technical Cooperation

The first session of Pakistan- Argentina Joint Committee on Scientific and Technical Cooperationwas held in Islamabad from April 19-21, 2007. Prior to the first meeting of the Joint Committee on19-21 April, 2007, the Argentine delegation visited leading S&T institutes in Islamabad, Karachi,Lahore and Faisalabad from 16-17 April 2007. In the meeting of the Joint Committee, presentationswere made by country`s research institutions in the field of electronics, solar energy, biotechnology,

health sciences, water resources development and agriculture and livestock.

These presentations were focused on identifying potential areas for future cooperation betweenPakistan and Argentine scientific institutions. After detailed exchange of views, the two sides adoptedagreed minutes of the first session of Pakistan-Argentina Joint Committee on Scientific and TechnicalCooperation

Second meeting of Pakistan Argentina joint Committee on Science and Technology Cooperationwas held in Buenos Aires from 3 to 8 March 2008. The delegation had various meetings with theircounterparts and other concerned organizations and attended different presentations.

The visit was highly useful and a follow up is required for concrete results so that cooperationbetween Pakistan and Argentina can be further strengthened in the field of Science and Technology.Mr. Daniel Lupi, expert from National Institute of Industrial Technology Argentina visited Pakistan.


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Agreements

Following bilateral agreements have been concluded between the two countries.

- An Agreement on Scientific and Technical Cooperation was signed in 1983

- Pakistan and Argentina signed an Agreement on Economic and Trade Cooperation in July 2002.

- An agreement between the Argentine Chamber of Commerce and Karachi Chamber of Commerceand Industry was signed during the visit of Argentine Secretary for International Trade andEconomic Relations to Islamabad in September 2005.

- During the former Presidents visit, a Memorandum of Understanding on bilateral consultationsbetween the Ministries of Foreign Affairs of both countries on political matters and other matters ofcommon interest was signed between the two countries. The first meeting was held in Buenos Airesin May 2006. The two countries also concluded an agreement on abolition of visa for the holders of

diplomatic and officials passports of each country.

- A Memorandum of Understanding for Cooperation in Agriculture between Pakistan and Argentinawas signed during the visit of Minister for Food, Agriculture and Livestock in December 2006.

- An agreement between Trade Development Authority of Pakistan (TDAP) and the ExporterFoundation of Argentina signed on 7 May 2007 has been submitted to Cabinet Division seekingapproval for signing of the Agreement.

- A Memorandum of Understanding on Cooperation in the field of Sports between the SportSecretariat of Argentina and Ministry of Sports of Pakistan was signed in October 2007.

Pakistan and Argentina Economy

Pakistan has traditionally exported textile products, surgical instruments, sports goods and leatherproducts to Argentina while soybean oil/ seed has been major exports by Argentina to Pakistan.Besides, Argentinas exports to Pakistan include compressed natural gas equipment, pharmaceuticalsand raw cotton.

Pakistans exports to Argentina suffered a significant decline in the wake of the economic crisis in

Argentina, dropping to USD 7 million in 2002-2003. The subsequent years saw a recovery and ourbilateral trade in 2006-07 crossed USD100 million mark; our exports had exceeded USD 42 millionand imports USD64 million. The current year has seen an unprecedented surge in Argentinas exportsto Pakistan, due mainly to massive import of wheat and corn by us. According to provisionalstatistics, volume of trade has exceeded USD 240 million; while our exports have increased to aboutUSD52, for the first time ever, our imports have shot to USD 188 million.


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The two countries have well established trade links, they maintain a "Joint Economic Committee"and the Pak-Argentina Business Council, in order to expedite further growth in their relationship.

The two governments are involved in exploring new areas in which they can increase cooperation,including strengthening trade ties through importing wheat, in which Argentina is self sufficient and

in sending further trade delegations between the two nations.Economic Relations

Pakistani companies have been participating in Beauty World Trade Exhibition Buenos Aires inSeptember 2006, 2007 and 2008. Embassy has been organizing and attending trade promotionevents.

The Embassy organized an "EXPO-PAKISTAN, Buenos Aires 2008" on the eve of theIndependence Day of Pakistan from 13 to 15 August 2008 that included a seminar.

A nine-member business delegation that had accompanied the then President during his visit in 2004held exploratory meetings with the Argentine businessmen. A cooperation agreement between the

Chambers of Commerce and Industries of the two countries aimed at providing institutional basis forthe business communities to interact with each other and explore avenues of cooperation in diversefields was also signed. Since year 2005, no trade delegation from Pakistan has visited Argentina.

Relations with MERCOSUR

MERCOSUR with its enhanced membership and associate membership of ten countries of SouthAmerica has emerged as an important trading bloc. Its burgeoning economy, political stability andimmense potential, offer Pakistani entrepreneurs unprecedented opportunities.

Pakistan MERCOSUR Framework Agreement on Trade was signed on 21 July 2006 on the fringeof the bi-annual MERCOSUR Summit held in Cordoba, Argentina.

The signing of the Agreement has initiated the process of negotiations between Pakistan andMERCOSUR to conclude a Preferential Trade Agreement, which will ultimately lead to Free trade Agreement. The volume of trade between Pakistan and members and associate members ofMERCOSUR which is currently hovering around USD 250 million per annum is bound to increase.The Preferential Trade Agreement will provide a framework which besides its other advantages willalso cover problematic areas like avoidance of double taxation and customs facilities.

Pakistan- Argentina Joint Committee on Trade Promotion

Setting up of a Joint Committee to boost economic and trade relationships between the twocountries was envisaged under the Agreement on Economic and Trade Cooperation, signed in July2002.

During the inaugural meeting held in Islamabad in September 2005, both sides expressed their desireto increase bilateral economic and commercial cooperation to a higher level and emphasized more


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cooperation in particular in sectors of CNG, Oil and transportation, and Pharmaceuticals. TheArgentine delegation expressed interest to collaborate in programmes of technical cooperation forthe development of agricultural sector in Pakistan, including agricultural implements. To improveexport of Argentine meat and horses to Pakistan, both sides agreed to hold negotiations for sanitarycertification procedures. The two sides also stressed the importance of concluding a preferential trade

agreement between Pakistan and MERCOSUR. Second meeting of the Joint Committee has beenproposed in Buenos Aires from 4-6 August 2009. Federal Minister of Commerce from Pakistan isexpected to attend the meeting.

Visit of Trade Delegation in April 2005

A trade delegation led by Chairman Export Promotion Bureau visited Argentina as part of the tour ofthe region from 21-24 April 2005. The trade delegation visit assumed a special significance as itfollowed the visit of the President to the Latin American countries (including Argentina) inNovember December 2004 which had set the ball rolling for the development of broader economicand trade ties of Pakistan with the regional countries. Chairman EPB, apart from meeting the top

government officials from the Ministry of Foreign Affairs and International Trade and the Ministryof Economy, also held a meeting with the President of Argentine Chamber of Commerce to discussways and means to improving bilateral economic and trade relations. Pakistani businessmen availedthe opportunity to identify possible partners for building business relationship with the localcounterparts.

Minister of Agriculture visited Argentina in December 2006. Two MoU were signed for cooperationin Agriculture. The MoU will facilitate joint research in agro-technology including oilseed and hybridseed production in Pakistan. It also covers import and export of agri-products. Special measures arebeing taken for the exporting Basmati Rice and quality Mangoes from Pakistan to Argentina. A groupof six buyers and a journalist from Argentina participated in the Expo Pakistan 2007. They included

importers of sports goods, surgical instruments and textiles. This was the first time that a group ofArgentine businessmen has attended such an event in Pakistan.

Visit of Trade Delegation to Pakistan

Argentina`s Ministry for Foreign Affairs and International Trade, Mr. Jorge Taiana accompanied alarge trade delegation which visited Pakistan from 29th April to 2nd May 2007. He could not visit dueto incompatibility of mutually convenient dates. However, the trade delegation including exporters ofsunflower oil and seed, citrus fruit, sports goods, pharmaceutical products, CNG Companies andbovine meat, visited Pakistan.

Bago Pharmaceuticals & Ferozsons Case

M/S Bago Pharmaceutical, a leading Argentine company entered into a joint venture with Ferozsonsto set up Pakistan's First Biotech Pharmaceutical Company and produce cancer and Hepititus Cmedicine in Pakistan. With Argentine investment of USD10 million, the facility is about to startproduction soon. The formal inauguration has been postponed from December 23 to sometime inFebruary 2009.


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This plant will manufacture medicines for cancer and hepatitis C in accordance with European Unionstandard. This Biotech Plant is being designed by one of Europe's leading Pharmaceutical design andengineering companies, which has a global client list that includes such companies as Aventis,Novartis and Roche.

Inflex Argentoil & Wah Industries Ltd

Argentina is a leading country in the use of compressed natural gas (CNG) and possesses advancetechnology in this field. Pakistan is already importing CNG equipment, mostly gas cylinders from Argentina. Inflex Argentoil, Argentinas largest manufacturer (an exporter to Pakistan) of CNGcylinders has entered into a joint venture with Wah Industries Ltd (a subsidiary of PakistanOrdinance Factories). The two sides have signed a formal letter of understanding for a USD 4million project for producing CNG cylinders in Pakistan. The project is l ikely to be increased to USD8.5 million. The plant will provide employment to 300 people.

Hindrances in Trade Development

Although the volume of trade between Argentina has seen improvement over the years, they remainwell below the potential. At the moment, Argentinean exports to Pakistan outpace Pakistans Exportsto Argentina by 5 to 1. A major reason for this is the extensive tariff and trade restriction thatArgentina has compared to the far more liberal policies of Pakistan. Textiles, Pakistan main source ofexport earnings experience duty at the rate of 75%. Sports goods are subjected to 35% duty andsurgical equipment to 20% duty. On the other hand, Argentinean CNG equipment, grain, soya arriveat Pakistani shores without any imposed duty or restriction.

The visa policies of Argentina are equally troublesome with extremely long processing times. Pakistanon the other hand through its liberalized visa policies processes for example a 5 year multiple entry

visa with 3 month stay within 24 hours of application.

There is also a further need to investigate the Argentinean market for most of Pakistans key exportsincluding soybean oil/seeds and raw cotton among others in order to fully capitalize on the potentialof these sectors.


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PUNJAB AND ARGENTINAS TRADE & INVESTMENT OPPORTUNITIES

SECTORS AREA OF COLLBORATION FORPUNJAB

SECTOR STRENGTHS INARGENTINA

Agriculture

ExportDiversification

Pakistan has the highest production number

in no less than 20 different agricultureproducts. However, the yields are low due torudimentary farming techniques and theexport base is very narrow, restricted to onlya few items like cotton and oilseeds. It is alsoimportant to note that Punjab (the granaryof Pakistan) with 59% of the nationalagricultural production feeds the entirenational population and does not leave muchroom for exports. Joint Ventures with Argentinean businesses aid in introducingnew technologies into the Pakistaniagriculture industry thereby increasing theyields in certain major crops in which Argentina is utilizing better farmingtechniques thus, diversifying Pakistansagricultural exports

Argentine agriculture is

relatively capital intensive,providing about 7% of allemployment. It adds less than10% to the GDP directly;however, agricultural goodsstill earn over half of Argentina's foreign exchange.Argentinas agricultural exportscomprise many different andvaried items.

EliminatingWastage inagricultureproducts

The similarity in major vegetables, fruits andpulses suggests that technology transferthough joint ventures is effective and makesbusiness sense specifically with regard tocitrus juice extraction. (*Feasibilities available)

Over 40% is lost/wasted in the citrusindustry, similar is the case in tomatos,potatoes, onions, pulses, wheat and rice.This waste can be saved and throughinvestments in downstream productiontechniques can be converted to dried fruitproducts; packaged, sorted and dehydratedfor export, made more important for worldtrade.For example, world trade for citruses isdecreasing however the trade of citrus juice

has jumped manifold thus highlighting theimportance of value addition.

Argentina produces 6 milliontons of fruits and 4.5 milliontons of vegetablesEcological diversity enables Argentina to grow all

temperate, subtropical andtropical products.Also, investment in storage andcarrying facilities helpsmaintain what is produced.

Cold Storages,Pack HousesandProcessingUnits

For the export and movement ofhorticultural produce, investments intechnologies have to be made in Pakistan.Punjab is strong in most cereals, cotton aswell as an array of fruits and vegetables.

Ministry of Agriculture hasshown interest in invitingArgentinean companies (due totheir experience with suchtechnologies) to come set-up inPunjab and certification of


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agriculture produce to makeour products morecompetitive.

Yield Increasethrough

technology

Rice, Cotton and Wheat flour are highexports for both Punjab and Argentina.

Currently, the average yields in Punjab lag byover 73%, 55% and 70% respectively fromthe worlds best.Farmers can be provided training on high-yield farming methods in both as well ashigh-tech machinery for cultivation of both. With investments in research and betterfarming techniques, this gap can beshortened by as much as 48%, 31% and 50%for the three crops respectively according tothe Punjab Economic Report 2007

Argentinas corn yields rosenearly 50 percent between

1990/91 and 2000/01.Gradually increasing fertilizeruse helps explain much of Argentinas recent corn yieldincreases, and the strongpresence of multinationalcorporations is promoting newagricultural technology there. An estimated 20 percent of Argentinas 2001 corn cropand 90 percent of its soybeancrop were planted to biotech varieties, as producers havesought to capture thesignificant cost savingsassociated with biotech crops.

OrganicFarming +GeneticallyModifiedCrops

The possibility of utilizing the expertise of Argentinean farmers of both organicfarming and genetically modified crops canbe easily transferred to Pakistan. Wherebydiversifying the production techniques andreducing the risks of nationwide cropfailures.

The world organic food market was USD 46 billion in 2007 with Argentina having thesecond highest amount of landunder organic production inthe world.The Argentinean organic

movement has developedstrong formal certificationprocesses, good export linksand has received valuablegovernment support. In ashow of diversity, Argentinahas also eagerly adoptedgenetically modified crops,having the worlds secondlargest area of such crops with14.2 million hectares in 2003

MeatProcessingand Trade

Owing to Pakistan enormous livestocksector, Pakistan represents a potential giantin the world meat trade. Halal meat alonebeing a USD 300 billion industry. Although Pakistan has the second largestpopulation of buffalo and similarlyimpressive numbers in other ruminants, thepresence of Pakistan in global meat market is

Argentina has the fifth largestcattle population in the worldand is far ahead in productionand export of processed meat.Not only that but Argentina isalso the largest beef consumerin the world with over68kg/capita/annum. And


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negligible due to the lack of relevantpackaging and transportation networks.

represents a huge market formeat aswell as a gateway toother South Americancountries that have similarlyhigh consumption rates of

meat.VeterinaryMedicines

The prevention and vaccination against foodand mouth disease was essential in theproduction of mean that would meet worldstandards of quality, essential for export,especially to the EU.

Argentina has made immensestrides in the veterinarymedicine sector. As of the 28thof February in a meetingbetween Representatives from Argentina and Punjab, it wasdecided that a nationwideawareness campaign would belaunch along with collaborationon biotechnology.

Twinning ofSalta Provinceof Argentinawith Punjab

Argentina has proposed twinning Saltaprovince with Punjab in a bid to strengthenfriendly ties, besides showing interest tohave bilateral cooperation in the fields ofagriculture and trade.Salta Governor has assured cooperation andhelp in the fields of agriculture and trade.

Salta is, located in thenorthwest of the country. Tothe north it borders Bolivia andParaguay and to the west laysChile.Salta's economy is relativelyunderdeveloped, yet diverse.Its economy in 2006 wasestimated at USD5.1 billion,or, USD4,760 per capita Agriculture and its derivedindustries are an important

activity in the province, addingover 10% to output. Tobacco,sugar cane and viticulture arethe most important andproduce most of the exportsfrom the area. Other cropsmostly for local consumptionare maize, beans, citrus,bananas, and tomatoes. American breeds of cattle areraised only on the humid sub-

tropical east, along with somesheep and goats.


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TextileIndustry

Pakistan is a world leader in textiles withover 32% of the world export of cotton yarnand over 8% of the world export of cottoncloth. Pakistan is a net exporter of thecotton and Punjab represents a main

producer of the crop.

Argentina does not possess a very strong textile sector, lastyear importing over half abillion dollars worth of cottonand textiles and thus represents

a very lucrative market forPakistan to trade with.

ALADIobservership

Associao Latino-Americana de Integrao(ALADI) is an organization comprising 12Latin American countries comprising ofMexico, Cuba, Venezuela, Colombia,Ecuador, Peru, Bolivia, Brazil, Paraguay,Chile, Argentina and Uruguay on the patternof South Asian Association for RegionalCooperation (SAARC).

The Argentinean governmentis providing assistance to thePakistani government to attainobserver status at ALADI, whereby opening the doors totrade between Pakistan andSouth America.


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References

National Institute of Statistics and Censuses

http://www.indec.mecon.ar/indec/ingles.asp

Euromonitor: Factfile on Argentina

http://www.euromonitor.com/factfile.aspx?country=AR

Annual Report of Commercial Section, Pakista Embassy, Buenos Aires, 2009

Meeting Correspondence between Foreign Secretary of Argentine Republic and Chief Minster, Punjab

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