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Embassy of India in Argentina in Argentina / January 2021 Food Processing Industry

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Confidencial Nombre Autor/EmpresaEmbassy of India in Argentina

in Argentina / January 2021

FoodProcessingIndustry

Confidencial Nombre Autor/Empresa

Table of contents

01/ EXECUTIVE SUMMARY - 03 -

02/ MARKET VISION AND STRUCTURE - 05 -

03/ MAIN COMPETITORS - 12 -

04/ PUBLIC POLICIES AND TRADE AGREEMENTS - 19 -

05/ INTERNATIONAL TRADE - 25 -

06/ OPPORTUNITIES FOR INDIAN COMPANIES - 34 -

07/ CONSIDERATIONS FOR FOREIGN INVESTORS - 36 -

08/ CONCLUSION - 54 -

09/ USEFUL INFORMATION - 56 -

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ExecutiveSummary

Embassy of India in Argentina

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• Argentina occupies an important position as a supplier of food and raw materials in respect of agriculture,

livestock and diary products worldwide. Around 37.2% of Argentina's exports correspond to manufactures of

agricultural origin. In 2019, the country’s 31 Agri-Food Chains employed more than 2.1 million people.

• A large proportion of Argentine population is of either Italian, Spanish or French descent. Products

corresponding to European cuisines, especially Italian and Spanish, therefore predominate in the non-

Argentine packaged foods market segment.

• In recent years, Argentine consumers have shown increasing interest in exploring newer cuisines.

• The segments of dietary supplements and organic food ingredients are continuously expanding.

• Argentina has an industrial structure with extensive experience and diversification in the production of high-

quality and value-added food & beverages. Its food processing sector has multiple export opportunities to more

than 50 countries around the world.

Embassy of India in Argentina

Source: FAO.

// SUMMARY

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Embassy of India in Argentina

Market Visionand Structure

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Embassy of India in Argentina

In 2010, the World Health Organization (WHO) defined Nutritional

Profiling Systems (NPS) as “the science of classifying or

categorizing foods according to their nutritional composition for

reasons related to disease prevention or promotion of Health".

These systems are useful, for example, when labeling food or

establishing regulations for its commercialization.

An NPS has not yet been adopted in Argentina.

Source: World Health Organization (WHO).

// CONCEPT

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Embassy of India in Argentina

COMPANY INFRASTRUCTURE

HR MANAGEMENT

TECHNOLOGY DEVELOPMENT

SHOPPING

INTERNAL LOGISTICS OPERATIONSEXTERNAL

LOGISTICS

MARKETING

AND SALES

AFTER-SALE

SERVICE

A

C

T

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V

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RAW MATERIALS PRODUCTION DISTRIBUTION COMMERCIALIZATION CONSUMPTION

// STRUCTURE

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2,100,000

EXPORTS

USD 21,968 million (*)

IMPORTS

USD 753 million (**)

Embassy of India in Argentina

Source: INDEC.

(*): Manufactures of agricultural origin (MOA). (**): Food and beverages.

34%

// SIZE 2019

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employment generated by the 31 Agri-Food Chains

of total employment in the country

of Argentina's exports correspond to manufactures of agricultural origin

net worldfood exporter

37.2%

3rd

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3131

2019201820172016201520142013

Value in USD billion (January to September 2019)

22.48 22.09 19.29 19.61 19.43 19.24 19.40

Source: Ministry of Agriculture, Livestock and Fisheries.

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// VALUE VOLUMEEXPORTS

Value in million of tons

Embassy of India in Argentina

Heading Interannual variation % (January-September 2019 vs 2018)

GENERAL LEVEL -7.8

Food and drinks -0.8

Oilseed milling 12.6

Cookies, bakery products and pasta 6.8

Poultry meat 5.7

Wine 5.3

Preparation of fruits, vegetables and legumes 4.6

Yerba mate, tea and coffee 3.1

Beef 1.7

Cereal grinding -2.8

Dairy products -4.0

Other food products -9.9

Cold cuts and sausages -10.3

Sugar, confectionery and chocolate -10.6

Sodas, waters, sodas, etc. -13.3

Source: Ministry of Agriculture, Livestock and Fisheries.

ACTIVITY LEVEL

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Source: Ministry of Productive Development.

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Distribution of NationalProduction

The agri-food production chain is present in all

24 provinces along the country.

However, 7 provinces account for 83.4% of total

production.

Misiones

3%

Santa Fe

18%

Entre Rios

7,6%

Buenos Aires

32%

Cordoba

17%

Mendoza

3,1%

Tucuman

2,7%

Embassy of India in Argentina

MainCompetitors

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Embassy of India in Argentina

Argentina has an important business structure in the

food and beverage processing industries.

The portfolio is composed by local and international

companies with significant experience in the sector

as well as in exports of food & beverage products.

// PRODUCERS

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Top ten companies 2018 2017 Variation (%)

ARCOR S.A.I.C. 85,629 48,420 76.8

Bagley Argentina 17,000 11,046 53.9

Mondelez International (ex Kraft) 14,400 12,060 19.5

Ledesma 9,864 10,689 -7.7

Grupo Bimbo 6,815 - -

Ingredion Argentina 5,958 3,016 97.5

Tabacal Agroindustria 5,873 2,930 100.4

La Campagnola 5,759 3,871 48.7

Mc Cain Argentina 5,200 2,020 151.6

Niza 3,459 - -

In 2019, ARCOR became the main food company in Argentina, the world's leading producer of candies and one of the

most important cookie companies in Latin America, reaching more than 120 countries with its products.

Source: Revista Mercado. Ranking. 2019 sales in AR$ million.

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PREPARATION OF OTHER FOOD PRODUCTS(BAKED GOODS, SWEETS, PASTA AND OTHERS)

Embassy of India in Argentina

Companies 2018 2017 Variation (%)

Molinos Cañuelas 44,100 27,784 58.7

Molino Agro 31,126 16,401 89.7

Saf Argentina 1,814 1,022 77.5

MANUFACTURE OF FOOD PRODUCTS FROMTHE MILLING INDUSTRY

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-Source: Revista Mercado. Ranking. 2019 sales in AR$ million.

Embassy of India in Argentina

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Top ten companies 2018 2017 Variation (%)

Cervecería y Maltería Quilmes 57,701 32,796 74.1

Embotelladora del Atlántico 21,844 14,376 51.9

Compañía Industrial Cervecera 20,212 9,852 105.1

Coca Cola Femsa 14,445 10,082 43.2

Salta Refrescos 13,700 9,450 44.9

Serv. y Produc. para Bebidas Refres. (Ex Coca Cola Arg.) 13,200 8,626 53.0

Pepsico de Argentina 8,474 6,250 35.5

Aguas Danone 6,865 5,356 28.1

Fratelli Branca Destilerías 6,024 4,546 32.5

Cepas Argentinas 3,328 2,571 29.4

In the local production of alcoholic beverages (beers), Cervecería y Maltería Quilmes stands

out with 130 years of experience in the local market.

PREPARATION OF OTHERALCOHOLIC AND NON-ALCOHOLIC BEVERAGES

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(INCLUDING BEER)

Source: Revista Mercado. Ranking. 2019 sales in AR$ million.

Embassy of India in Argentina

Top ten companies 2018 2017 Variation (%)

Mastellone Hnos. 31,318 22,160 41.3

Danone Argentina 20,269 14,541 39.3

Nestlé Argentina 17,669 11,900 48.4

Molfino Hermanos 13,418 5,749 133.4

SanCor 7,149 12,274 -41.7

Milkaut 5,046 3,730 35.2

Mastellone San Luis 3,432 3,191 7.5

Manfrey Coop. de Tamberos 3,320 2,052 61.7

Nutricia Bagó 3,070 2,014 52.4

Kasdorf 2,943 2,248 30.9

MANUFACTURE OF DAIRY PRODUCTS

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-Source: Revista Mercado. Ranking. 2019 sales in AR$ million.

Embassy of India in Argentina

Companies 2018 2017 Variation (%)

JBS Argentina 13,086 8,605 52.0

Quickfood 9,759 5,899 65.4

Frigorífico Gorina 4,949 3,773 31.1

Argenova 4,757 2,090 127.6

Marfrig Argentina 4,570 2,330 96.1

Compañía Bernal 3,632 2,280 59.3

Profand 3,126 - -

MEAT PROCESSING(INCLUDING FISH)

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-Source: Revista Mercado. Ranking. 2019 sales in AR$ million.

Embassy of India in Argentina

Public Policiesand Trade Agreements

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Embassy of India in Argentina

Due to the relevance of the agri-food sector in the Argentine economy, the

set of policies, laws and regulations associated to the sector is complex

and broad.

The Ministry of Agriculture, Livestock and Fisheries and the Ministry of

Productive Development are the key institutions for the implementation of

the laws and policies of the sector.

The main laws, programs and public policies of interest to the international

investor are listed in the next pages.

PUBLIC POLICIES

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Embassy of India in Argentina

Regulation Description

Law 26,697. Argentine Food.

A Natural Choice

By Law No. 26,967 of 2014, the Seal “ALIMENTOS ARGENTINOS UNA ELECCIÓN NATURAL”, and its

English version “ARGENTINE FOOD A NATURAL CHOICE” was created within the scope of the

SECRETARIAT OF AGRICULTURE, LIVESTOCK AND FISHERIES under the MINISTRY OF

AGRICULTURE, LIVESTOCK AND FISHERIES.

Strategic Plan for the Organic Production

Sector of Argentina 2030

The Ministry of Agriculture, Livestock and Fisheries prepared a Strategic Plan for the Organic Production

Sector of Argentina by 2030.

Law 25,127 on ecological, biological or

organic production of agricultural and agro-

industrial systems

Law 25,127 of 1999 on ecological, biological or organic production of agricultural and agro-industrial systems.

The norm regulates the ecological, biological or organic production of all agricultural and agro-industrial

production systems. Their collection, capture and hunting systems. The Advisory Commission for Organic

Production is also created within the scope of the Ministry of Agriculture, Livestock, Fisheries and Food.

Export Reimbursement System for

differentiated foods

Export Reimbursement System for differentiated foods, granted by the Ministry of Agriculture, Livestock and

Fisheries.

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PUBLIC POLICIES

Embassy of India in Argentina

Regulation Description

National food control system

At the national level there are two organizations that carry out food control: SENASA and INAL. Complementarily, the

Ministries of Health of each province are in charge of food control, by themselves or through a particular entity created

for this purpose. The provinces exercise control within their jurisdiction. INAL's participation is associated with the

control of imported and exported products, as long as they are processed products ready for consumption. Products

that are not processed are regulated by SENASA.

SENASA

The National Service for Agrifood Health and Quality (Senasa) is a state health agency created in 1996 for the

inspection and certification of products and by-products of animal and plant origin, their inputs and agrochemical

residues, as well as prevention, eradication and control of animal diseases, including those transmissible to humans,

and of plant pests that affect the country's agricultural production. More information at:

https://www.argentina.gob.ar/senasa.

INAL

The National Institute of Food (INAL) operates within the scope of the National Administration of Drugs, Food and

Medical Technology (ANMAT), dependent on the Ministry of Health. More information at:

https://www.argentina.gob.ar/anmat.

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PUBLIC POLICIES

Embassy of India in Argentina

Regulation Description

CONALThe National Food Commission (CONAL) is a technical body in charge of advising, supporting and monitoring the

National Food Control System, established by Decree 815 of 1999. More information at: http: //www.conal.gob.ar /.

National Plan for the Reduction of

Food Losses and Waste

Through Decree 246/2019 the National Plan for the Reduction of Food Losses and Waste was regulated, and the

former State Secretariat for Agroindustry, current Ministry of Agriculture, Livestock and Fisheries, was determined as

the authority for the application of the Program and is reinforced the work of the Law for the Donation of Food, known

as the Donal Law, by the Ministry of Health and Social Development.

PUBLIC POLICIES

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Embassy of India in Argentina

Partner Description

MERCOSUR

MERCOSUR Common Market Group Standards. These are the standards issued by the Common Market Group, and once

internalized, it becomes part of the Argentine positive law. They respond internationally to the guidelines set by Codex Alimentarius.

Regional standards are not directly applicable in Argentina, regulatory activity is completed when member states incorporate them into

their food regulations through the competent bodies.

More information at: http://www.alimentosargentinos.gob.ar/HomeAlimentos/Legislacion%20Alimentaria/ MERCOSUR.php.

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// AGREEMENTS

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InternationalTrade

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Exports include manufactures of agricultural origin (MOA) and imports include food and beverages for domestic consumption.

In the last decade, exports reached a record of USD 30 billion in 2013 and dropped by 22.5% until 2015. On the other hand, imports reached its peak of

USD 1.58 billion in 2017. As of 2020, both exports and imports decreased by 50% from their peaks in 2013 and 2017 respectively.

Source: INDEC. (*): Estimated as of August 2020.

Embassy of India in Argentina

22.6

28.2 27.4

30.0

26.4

23.2 23.3 22.5 22.921.9

14.3

0.97 1.20 1.09 1.12 1.07 1.09 1.25 1.58 1.49 0.75 0.75

Year 2010 Year 2011 Year 2012 Year 2013 Year 2014 Year 2015 Year 2016 Year 2017 Year 2018 Year 2019 Year 2020

Exports Imports

(*)

(*)

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ARGENTINE

Value in USD billion

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Out of a total exports of USD 37.23 billion in August 2020, manufactures of agricultural origin (MOA)

continue to represent 38.4% in percentage values that have remained stable since 2014.

Source: INDEC. (*): Estimated as of August 2020.

Embassy of India in Argentina

(*)

33.2% 34.0% 33.9%36.2%

38.7%41.0% 40.3%

38.5% 37.2% 37.2% 38.4%

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(MOA)

EXPORTS

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Imports of food and beverages for home consumption experience growth for the 2014-2017 period,

with a rebound in the first 8 months of 2020, as a result of the general fall in imports (USD 26.24 billion in 2020).Source: INDEC. (*): Estimated as of August 2020.

Embassy of India in Argentina

(*)

1.7%1.6%

1.5% 1.5%1.6%

1.8%

2.2%2.3%

2.2%2.1%

2.9%

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IMPORTS

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Embassy of India in Argentina

Product 2020 2019 Variation (%)

Basic food and beverages for industry 1,488 1,531 -2.8

Processed food and beverages for industry 134 138 -2,9

Basic household foods and beverages 293 234 25.2

Food and beverages made for the home 461 519 -11.2

Source: INDEC. Estimated as of August 2020. In USD million.

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IMPORTS

Embassy of India in Argentina

Source: INDEC. Estimated as of August 2020. In USD million.

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IMPORTS

Product 2020 Variation 2019 (%)

Products of the plant kingdom 1,863 0.2

Oil seeds and oleaginous fruits; various seeds and fruits; industrial or medicinal plants; straw and fodder 1,469 -2.8

Food products, beverages and tobacco 525 -4.0

Edible fruits and nuts; Citrus, melon, or watermelon peels 215 19.4

Preparations of vegetables, fruits or other fruits or other parts of plants 75 21.0

Meat and edible offal 58 -34.1

Beverages, spirits and vinegars 54 -5.3

Fats and oils 47 -7.8

Residues and waste from the food industries; prepared animal feed 44 -13.7

Fish and crustaceans, molluscs and other aquatic invertebrates 30 -25.0

Cereals 14 -22.2

Milk and dairy products; bird eggs; Natural honey; edible products of animal origin, not elsewhere specified or included 9 -52.6

Embassy of India in Argentina

Source: INDEC. Estimated as of August 2020. In USD million.

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IMPORTS Economic zones. Consumer goods imports 2020 2019 Variation (%)

Mercosur 685 746 -8.2

Chile 116 114 1.8

Rest of ALADI (Bolivia, Colombia, Cuba, Ecuador, Peru and free zones) 229 242 -5.4

SICA 4 3 33.3

NAFTA 461 628 -26.6

European Union 825 970 -14.9

UK 50 - -

Switzerland 69 79 -12.7

CEI 1 0 96.9

ASEAN 323 347 -6.9

China 852 880 -3.2

Republic of Korea 6 7 -14.3

Japan 39 33 18.2

India 47 65 -27.7

Middle East 26 25 4.0

Maghreb and Egypt 5 7 -28.6

SACU 1 2 -50.0

Oceania 5 4 25.0

Rest 76 96 -20.8

Embassy of India in Argentina

Product 2020 2019 Variation (%)

Residues and waste from the food industry 5,698 6,387 -10.8

Fats and oils 3,198 3,28 -2.5

Meats and their preparations 2,226 2,268 -1.9

Dairy products 572 405 41.2

Beverages, spirits and vinegar 555 573 -3.1

Vegetable, legume and fruit preparations 478 715 -33.1

Milling products and their preparations 448 509 -12.0

Rest of MOA 251 266 -5.6

Hides and skins 221 404 -45.3

Processed fish and shellfish 141 197 -28.4

Sugar, cocoa and confectionery 131 163 -19.6

Tanning and dyeing extracts 125 164 -23.8

Coffee, tea, yerba mate and spices 109 122 -10.7

Dried or processed fruits 62 82 -24.4

Elaborate wool 52 124 -58.1

Other products of animal origin 44 49 -10.2

Source: INDEC. Estimated as of August 2020. In USD million.

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EXPORTS

1. In 2018 Argentina exported 166 thousand tons of organic products, mainly to the United States and the European

Union.

2.The most exported organic products are pears, wheat, cane sugar, apples, soybeans, cider, wine, pear puree,

applesauce, rice, wool and honey.

3.Organic production has the highest quality levels, equivalent to those of the European Union, Japan and

Switzerland.

4. With 3.2 million hectares certified, it ranks second in the world ranking, behind Australia.

5. In 2019 the industry has 1,138 producers, 399 processors and 116 certified traders, and 165,867 tons are exported,

of which 1,108 are of animal origin, mainly honey.

6.The "map" of organic production is distributed in different parts of the country. In the Pampean region cereals,

legumes, vegetables and vegetables are produced and in Cuyo, wines and olives. In the south, sheep are

concentrated and in the valleys fruits, juices and jams are produced.

7.The activity is governed by law 25,127 and certification is mandatory to be able to say that a product is "organic".

Embassy of India in Argentina

ORGANIC FOOD

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Embassy of India in Argentina

Opportunitiesfor Indian Companies

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1. Argentina has an important industrial structure for the production of food and beverages, with extensive

experience and history at the local and regional level. Its food processing sector has multiple export

opportunities to more than 50 countries around the world. These factors could be attractive to Indian

companies interested in exploring joint ventures in Argentina.

2.A large proportion of Argentine population is of either Italian, Spanish or French descent. Products

corresponding to European cuisines, especially Italian and Spanish, therefore predominate in the non-

Argentine packaged foods market segment.

3. In recent years, Argentine consumers—especially the youth—have shown increasing interest in exploring

new tastes. The rising interest in gastronomic options from Asia and Africa offers avenues worth exploring

for increasing exports of Indian packaged foods, including the ready-to-eat varieties, to the country.

4. Joint ventures with Argentine companies offer the possibility of catering to the larger MERCOSUR market.

Embassy of India in Argentina

OPPORTUNITIES

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Embassy of India in Argentina

Considerationsfor Foreign Investors

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Embassy of India in Argentina

// ARGENTINA

• 3rd largest GDP in Latin America (USD 450 billion).

• GDP per capita of USD 10,000.

• 45 million inhabitants (60% under 35 years of age) and access to 295 million people in

MERCOSUR.

• 2nd largest unconventional gas field and 4th largest unconventional oil field in the world.

• 705,000 km2 of high potential mining areas with more than 250 projects in their initial stage.

• 8th largest country in the world, with 53% of its land as arable land.

• Global leading exporter of soybeans, corn, lemon, lithium, among others.

• 6th producer of beef and 5th exporter worldwide, present in the world's most demanding markets

such as the European Union, the United States, China and Israel.

• 1st country in Latin America in command of the English language.

• 110,000 college graduates of STEM careers a year.

Source: Argentine Agency of Investment and International Trade. 2019.

The Argentine Agency of Investment and International

Trade highlights the following aspects to invest in Argentina:

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Embassy of India in Argentina

// OVERVIEW

ARGENTINEPESO

ESTIMATED

INFLATION

36.9%

ESTIMATED GDP

GROWTH

-11.7%

Total population

45,376,763National currency

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-Source: National Institute of Statistics and Census (INDEC). Ministry of Economy.

Embassy of India in Argentina

// ECONOMIC

Inflation

GDP

13.1%Unemployment rate (**)

Source: Compiled based on information provided by INDEC. (*): Central Bank of the Argentine Republic (BCRA). Estimated to October 2020. (**): INDEC. 2nd Trimester of 2020.

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-11.7%

-2.5%-2.6%

2.9%

-2.1%

2.7%

-2.5%

2.4%

-1.0%

6.0%10.1%

-5.9%

4.1%

9.0%8.0%8.9%

2020201920182017201620152014201320122011201020092008200720062005

36.9%

53.8%47.6%

24.6%

40.3%

27.5%

38.5%

28.4%25.6%

22.8%

10.9%7.7%7.2%8.5%9.8%

12.3%

2020201920182017201620152014201320122011201020092008200720062005

(*)

(*)

Embassy of India in Argentina

// TRADING PARTNERS

Appearance Brazil ChinaUnited

StatesViet Nam Chile India Paraguay Germany

Exports 4,715 4,016 2,267 2,124 1,914 1,664 529 501

Variation (%) vs 2019 -31.2% 8.8% -18.6% 6.4% -6.9% 12.0% -19.7% -22.7%

Imports 5,176 5,049 2,861 454 313 512 1,588 1,287

Variation (%) vs 2019 -27.8% -19.5% -36.5% 13.2% -15.6% -4.5% 14.4% -31.7%

Balance -462 -1,033 -594 1,670 1,601 1,152 -1,059 -786

Total (Exports + Imports) 9,891 9,065 5,128 2,578 2,227 2,176 2,117 1,788

Source: INDEC. Estimated as of August 2020. In USD million.

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Embassy of India in Argentina

TAXATION

• In Argentina, tax collection efforts are carried out at national, provincial, and

municipal level by levying taxes on income, assets, and consumption.

• The agency in charge of collecting taxes, monitoring, and controlling taxation at

national level is the Federal Administration of Public Revenue (AFIP, by its

acronym in Spanish).

• Consequently, taxes are classified into three tiers: national, provincial, and municipal.

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Embassy of India in Argentina

NATIONAL TAXES

INCOME TAX

All income is subject to tax. Local subsidiaries of foreign legal entities are regarded as resident businesses and are, therefore,

subject to tax. The applicable tax rate is 35% and applies to total income. Non-resident businesses with no branches or permanent

offices in Argentina are only subject to local income tax.

VALUE ADDED TAX (VAT)

VAT applies to the values of goods and services at every stage of production. General VAT rate is 21%; nevertheless, the rate for

certain goods and services is set at 10.5% or 27%. Imports are subject to the same VAT rate as local goods and services. Exports

are exempt from VAT.

MINIMUM PRESUMED

INCOME TAX

Minimum Presumed Income Tax is payable by legal entities, which are imposed a 1% rate on the value of all their assets

located either in Argentina or abroad. It is also applicable to assets located in Argentine and owned by foreign individuals or

legal entities with a permanent establishment in the country.

PERSONAL PROPERTY TAXThis tax is imposed on individuals and undivided estates with respect to assets valued at over AR$ 2,000,000. As of the year 2020,

residents are taxed 0.25% on personal property.

EXCISE TAXESExcise taxes are levied on the consumption of specific goods, such as tobacco, alcoholic drinks, and luxury items; they are

payable by manufactures or importers.

FINANCIAL TRANSACTION

TAXES - CREDITS AND

DEBITS ON BANK

ACCOUNTS AND OTHERS.

A 0.6% general tax is levied on withdrawals and credits on bank accounts transacted by entities governed by the Financial

Institutions Act. Furthermore, transactions in cash are subject to a 1.2% rate if conducted through payment systems in lieu of

current accounts.

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Embassy of India in Argentina

Argentina has entered into double taxation agreements with the following countries to provide relief from double

taxation on businesses, personal income, capital, and assets:

• Bolivia

• Brazil

• Finland

• Norway

• Spain

• Switzerland

• The Netherlands

• Russia

• Mexico

• Australia

• United Kingdom

• Chile

• Denmark

• Germany

• Belgium

• France

• Italy

• Sweden

• Canada

DOUBLE TAXATION AGREEMENTS

NATIONAL TAXES

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Embassy of India in Argentina

PROVINCIAL TAXES

GROSS INCOME TAXGross Income tax is applicable to the revenue generated by businesses engaged in trade, industrial activities, agriculture,

finance, or professional services. It is levied on each commercial transaction at a rate that ranges from 1.5% to 5%,

according to the industry and area. Nevertheless, certain primary and industrial activities are exempted from this tax.

STAMP DUTYThis is a provincial tax placed on the execution of notarial and private documents, including agreements and other

large-amount transactions.

REAL ESTATE

TRANSFER TAX

Real estate owners are subject to an annual tax on their real property based on the fiscal value of the land free of any

improvements and on the improvements of land, if any. The payable amount is estimated pursuant to the laws in force

each fiscal year, which set forth the applicable values and rate scales according to the type of property.

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Embassy of India in Argentina

MUNICIPAL TAXES

Municipalities collect taxes imposed

on industrial safety services, lighting

and cleaning services, etc. These

taxes are calculated based on public

revenue or other criteria, such as the

number of employees.

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Embassy of India in Argentina

TAX INCENTIVES

Tax regulations provide for incentives for certain activities such as mining, forestation, software

development, renewable energies, research, biotechnology, and biofuel production.

Generally, such incentives consist of:

• Tax stability for a specified period

• Tax credits

• Preferred tax rates

• VAT Exemption

A tax-free area has been established in southern Province of Tierra del Fuego where all the activities

and transactions conducted are exempted from all national taxes, except for specific activities and

transactions, which are levied a lower rate.

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Embassy of India in Argentina

LABOR LAW

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Employment contracts in Argentina generally fall within this

category, which means the labor relationship may extend

permanently unless a cause of termination arises. The law

provides for a three-month probation period. The employer

must register the relationship with the relevant authority

before the lapse of this period. Moreover, the parties are

subject to the rights and obligations arising out the

employment contract during this period, but either party may

terminate the employment without cause. In such case, the

employee is not entitled to severance payment.

In order to provide an adequate framework,

the law sets forth special forms of employment:

1. Fixed-term contracts

2. Seasonal employment contracts

3. Contingency employment agreement

4. Team employment contracts

Permanentemployment contract

Specialemployment contracts

Source: Labor Law no. 20,744.

Embassy of India in Argentina

LABOR REGULATIONS

COMPENSATION (SALARIES AND WAGES)

Employees' compensation may be fully paid in cash or it may be

paid both in cash and in kind, i.e. food or accommodation. In such

case, payments in kind cannot exceed 20% of the total

compensation amount.

The employer has the obligation to:

• Wire-transfer the employee´s salaries to a bank account on their

names.

• Provide a pay slip.

• Comply with the statutory term of payment: paid employees must

be paid at the end of the month, whereas wage earners must

receive their compensation on a weekly or monthly basis.

STATUTORY ANNUAL EXTRA PAY

All workers are entitled to a thirteenth salary, which is officially

referred to as Statutory Annual Extra Payment. Such payment is

made in two installments: 50% of the total amount is granted by

June 31 and the remaining 50% by December 31.

MINIMUM SALARY AND WAGE

The law establishes the minimum salary and wage amount.

Considering the relatively high inflation rate in Argentina, the

salaries may need to be revised multiple times a year.

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ANNUAL VACATION

Annual vacation is paid time off employers grant to their

employees.

The length of vacations varies according to the

employee´s seniority:

1. From 6 months to 5 years of service: 14 calendar days

2. From 5 to 10 years of service: 21 calendar days

3. From 10 to 20 years of service: 28 calendar days

4. Over 20 years of service: 35 calendar days

New employees who have rendered services for less than half the

business day of the year are entitled to one vacation day for every

20 days of service.

PAID MATERNITY LEAVE

The law provides for paid maternity leave which extends

from 45 days before childbirth to 45 days after delivery.

Once this period elapses, women workers

can choose to:

1. Resume working under the working conditions before the

leave.

2. Terminate the employment contract unilaterally.

3. Request an unpaid extension of the maternity leave for an

additional period ranging from three to six months.

Women workers are entitled to a daily thirty-minute break to

breastfeed her child. This entitlement lasts for one year after

childbirth.

LABOR REGULATIONS

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LABOR SAFETY

Employers have the obligation to provide insurance to

employees to cover labor risks. To such end, they must

either self-insure or hire a labor risk insurance company

(in Spanish Aseguradoras de Riesgos del Trabajo or

ART), in order to compensate in the event of work

accidents and diseases.

SOCIAL SECURITY

Businesses undertake to make the relevant contributions

in connection with social security services for their

employees. Such contributions include family

allowances, union health insurance, pensions, and

contributions to unemployment funds. Contributions

represent 27% of the gross salary of employees that

render services and 23% of the gross salary of the rest of

the employees.

COMPULSORY LIFE INSURANCE

The employer must obtain an insurance policy within

thirty days of the commencement of the employment

relationship.

MINIMUM WORKING AGE

The minimum working age is 16 years old.

LABOR REGULATIONS

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Embassy of India in Argentina

DISMISSAL

None of the parties can terminate the employment contract without

giving prior notice.

The minimum notice period is set by the law as

follows:

1. For the employee: 15 days

2. For the employer: 15 days for employees under probation

period, one month when the worker's length of service is less

than five years, and two months, when the length of service

exceeds five years.

Due to the impact of COVID-19, the National Government, through

Decree 891/2020 of March 31, later extended in May, July,

September and November, dismissals without just cause and due to

lack or reduction of work and force are prohibited until the end of

January 2021.

EMPLOYMENT RELATIONSHIP RECORDS

The employer has the obligation to register the employment

relationship with the relevant authorities. In the event of

termination of contract, the employer must give relevant notice to

the Social Security Registry.

The duly registration of the employment relationship allows

workers to enjoy the social security benefits granted by the law.

LABOR REGULATIONS

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OVERTIME

In Argentina, working time is 48 hours per week with a

limit of nine hours a day (six hours a day for work

performed under hazardous conditions). Night working

time is limited to seven- hour shifts. Overtime is

permitted with certain restrictions. Overtime rate is 50 per

cent, for work performed on weekdays and Saturday

mornings, and 100 per cent for work performed

thereafter and on public holidays. The law establishes

the maximum overtime limit which shall not exceed 200

hours per year or 30 hours per month.

LABOR UNIONS

The workers may opt to join a labor union. Most workers

are unionized in Argentina. There are collective

bargaining agreements to protect the workers, which

shows the degree of influence these unions have.

LABOR REGULATIONS

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Embassy of India in Argentina

// LEGISLATION

LEGAL FRAMEWORK

The Argentine Law provides for the protection of foreign investors and their projects. Argentina has

entered into several bilateral investment treaties with other countries. It is a member country of the

Multilateral Investment Guarantee Agency (MIGA), which provides guarantees to protect investments

against non-commercial risks.

INVESTMENT MODELForeign investors can start their businesses in three ways: setting up a foreign branch, acquiring ownership

in an existing company or creating a new company.

CORPORATE AND BUSINESS ACT

Law No. 19,550 (amended and renamed as General Corporate and Business Law No. 26,994). Sets forth

the different business forms available. The most popular business forms among foreign investors are

Sociedades Anónimas (S.A.)— Corporations— and Sociedades de Responsabilidad Limitada (S.R.L.) —

Limited Liability Companies or LLCs.

FOREIGN INVESTMENT LAWLaw No. 21,382 Sets forth the conditions for foreign investors to invest and transact business in the

country. It further provides for the expansion of existing investment undertakings.

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Conclusion

Embassy of India in Argentina

•Argentina occupies an important position as a supplier of food and raw materials in respect of

agriculture, livestock and diary products worldwide. It has an industrial structure with extensive

experience and diversification in the production of high-quality and value-added food & beverages.

Its food processing sector has multiple export opportunities to more than 50 countries around the

world. These factors could be attractive to Indian companies interested in exploring joint ventures

in Argentina.

•The continuously expanding segments of non-European packaged foods (including ready-to-eat

varieties), dietary supplements (including Ayurvedic supplements) and organic food ingredients

offer important avenues worth exploring for Indian exporters.

•Significant opportunities exist in potential tie-ups in the production of natural and frozen foods,

derived from meat and natural beverages.

Embassy of India in Argentina

CONCLUSION

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UsefulInformation

Embassy of India in Argentina

Embassy of India in Argentina

CHAMBER OF FOOD PRODUCTS INDUSTRIALS (CIPA)

Address: Av. Córdoba 1345 – 9 A- City of Buenos Aires

Postal Code: 1055

Phone: (+54 11) 4814-4020 - Website: http://www.cipa.org.ar/

COORDINATOR OF THE FOOD PRODUCTS INDUSTRIES (COPAL)

Address: 25 de Mayo 516 – 5 y 6 Floor - City of Buenos Aires

Postal Code: C1002ABL

Phone: (+54 11) 4311-3006 - Website: https://copal.org.ar/

ARGENTINE CHAMBER OF COMMERCE AND SERVICES (CAC)

Address: Av. L. N. Alem 36 - City of Buenos Aires

Postal Code: C1003AAN

Phone: (+54 11) 5300-9000 - Website: https://www.cac.com.ar/

USEFUL INFORMATION

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Embassy of India in Argentina

NATIONAL INSTITUTE OF STATISTICS

AND CENSUS (INDEC)

Address: Av. Pres. Julio A. Roca 609 - City of Buenos Aires

Postal Code: C1067

Phone: (+54 11) 4349-9200 - Website: https://www.indec.gob.ar/

MINISTRY OF FOREIGN AFFAIRS,

INTERNATIONAL TRADE AND WORKSHIP

Address: Esmeralda 1216 - City of Buenos Aires

Postal Code: C1007 ABR

Phone: (+54 11) 4819-7000 - Website: https://www.cancilleria.gob.ar/

MINISTRY OF PRODUCTIVE DEVELOPMENT

Address: Av. Hipólito Yrigoyen 250 - City of Buenos Aires

Postal Code: C1086

Phone: (+54 11) 0800-333-7963 - Website:

https://www.argentina.gob.ar/produccion

USEFUL INFORMATION

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Embassy of India in Argentina

MINISTRY OF AGRICULTURE,

LIVESTOCK AND FISHERIES

Address: Av. Paseo Colón 982 - City of Buenos Aires

Postal Code: C1063ACW

Phone: (+54 11) 4349-2000

Website: https://www.argentina.gob.ar/agricultura

MINISTRY OF ECONOMY

Address: Av. Hipólito Yrigoyen 250 - City of Buenos Aires

Postal Code: C1085 AAB

Phone: (+54 11) 4349-5000

Website: https://www.argentina.gob.ar/economia

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USEFUL INFORMATION

Embassy of India in Argentina

NEW GARDEN

Address: Ballivián 2284 - City of Buenos Aires

Postal Code: C1431CTD

Phone: (+54 11) 3327-443499 - Website: [email protected]

DIETETICS VILLARES

Address: Talcahuano 155 - City of Buenos Aires

Postal Code: C1013 AAC

Phone: (+54 11) 4382-6351 / 382-3129 - Website: [email protected]

GRANDIET

Address: Pasaje Ballerini 1159 – City of Cordoba capital

Postal Code: X5003HOA

Phone: (+54 351) 489-4190 - Website: https://www.grandiet.com/

DIETARY TOMY

Address: Rivadavia 333 – San Isidro, Buenos Aires

Postal Code: B1642CEG - Phone: (+54 11) 4719-7600

Website: www.dieteticastomy.com.ar - E-mail: [email protected]

VITALCER

Address: Roca 4250 – Florida, Buenos Aires

Postal Code: B1604

Website: www.vitalcer.com - E-mail: [email protected]

USEFUL INFORMATION

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LIST OF DIETETICS IN ARGENTINA

Products: natural cosmetics, species. dry fruits, condiments, jams, nutraceutics, products for gluten intolerants and diabetics

Embassy of India in Argentina

© 2020 Embassy of India in

Buenos Aires, Argentina.

All rights reserved.

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Embassy of India

Buenos Aires, Argentina

Commercial Wing

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Tel.

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I n d i a I n A r g e n t i n a

This study has been conducted by PME Consultores & OH! PANEL.