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Incentives for Business Between Paraguay and Argentina

Incentives for Business Between Paraguay and Argentina

Like many other Latin American countries, business between Paraguay and Argentina is built upon a foundation of trade agreements and treaties to strengthen economies and regional integration, and provide new investment opportunities to those interested in entering these markets. Paraguay and Argentina have a historically fruitful bilateral relationship with a common goal: bilateral cooperation and the exchange of products and human resources. Paraguay with an emerging economy and a stable political environment has been becoming an attractive economy for investors. Argentina, considered as one of the most important economies in Latin America, constitutes an attractive focus to invest for both local and foreign companies. We outline a general summary of some of the most important trade agreements and agreements between Paraguay and Argentina in order to highlight the commercial opportunities offered by the two countries in the region. Agreements promoting business between Paraguay and Argentina The Yacyreta treaty responded to the world oil crisis by encouraging Paraguay and Argentina to seek a solution for energy supply. Yacyreta Treaty The Yacyreta treaty, signed in 1973, responded to the world oil crisis by encouraging Paraguay and Argentina to seek a mutually beneficial solution for energy supply. The objective of the treaty is to manage “The hydroelectric use of the Paraná River, the improvement of navigable conditions and the mitigation of the environmental effects generated by the Project”. As a result of this agreement, the Yacyreta Bilateral Entity was created....

Why Conduct an Entity Health Check for your Company in Argentina?

Why Conduct an Entity Health Check for your Company in Argentina?

Learn about the importance of a entity health check in Argentina in order to keep your company structured and compliant against the requirements of government authorities. Entity health checks in Argentina are increasingly important due to the set of local regulations that describe fiscal responsibilities and corporate compliance in the country, which are constantly changing and updated.When you decide to incorporate a company in Argentina, you should bear in mind that at least once a year you must carry out an entity health check for your company or branch in Argentina. This process is also known as “corporate status verification”. Depending on the activity that the company carries out, it is recommended to carry out these reviews regularly. The hiring of external partners to review the status of your company in terms of corporate compliance in Argentina will protect you from sanctions and allow you to manage the risk of default. What is an entity health check in Argentina? An entity health check is an evaluation of the company where the legal, fiscal and corporate status is evaluated. In general terms, an entity health check is an evaluation of the company where the legal, fiscal and corporate status is evaluated. In order to ensure that the corporate due diligence of your company in Argentina complies with the local laws. Sometimes the directors of a company cannot accurately assess the overall status of compliance or do not have the legal or financial knowledge to understand what the corporate compliance requirements are in Argentina. For this reason, they decide to...

How to Import Goods from Paraguay to Argentina

How to Import Goods from Paraguay to Argentina

Paraguay is an attractive destination for multinationals and foreign executives. For those who already have a business in the country, exporting products to Argentina is a very attractive option to expand in the region. For years, many Argentines, as well as other business owners in the region, decided to create companies in Paraguay thanks to the combination of tax incentives, legal certainty and macroeconomic stability that the country offers. According to the Organization for Economic Cooperation and Development (OECD), Paraguay is the country with the least tax burden in South America (only 15% of GDP), making the country an attractive focus for those interested in importing from Paraguay to Argentina. Background: Imports and Exports of Paraguay Total exports of Paraguayan origin reached a value of US$12,386.1 million in 2019 according to the Foreign Trade report of the Central Bank of Paraguay (BCP) while all Paraguayan imports in 2019 reached US$12,250.9 million.According to the BCP Foreign Trade Bulletin, in 2019 Paraguay has exported in FOB value of US$1.688 million to Argentina. Paraguay has exported in FOB value of USD $ 1.688 million to Argentina. Among the main products that are most imported from Paraguay to Argentina are: Soybeans and corn (Represented with approximately 70%)FuelsElectric powerMineral oilsMachineryRed meatsLeather Despite having a series of trade agreements and having the option of using the Paraguay-Paraná Waterway, the majority of imports from Paraguay to Argentina are made by land and air, due to time and flexibility of processes....

Overview: Argentina, Uruguay and Paraguay Trade Relations

Overview: Argentina, Uruguay and Paraguay Trade Relations

Companies seeking to expand to Latin America should consider the commercial opportunities generated by trade agreements between Argentina, Uruguay and Paraguay. As Latin American countries promote regional relationships to support each other, growth and free trade agreements offer new opportunities for business owners seeking to access important benefits and new markets abroad. As one of the largest economies in Latin America, Argentina draws focus for foreign expanding companies. Expanding multinationals should pay attention to the close relationship Argentina maintains with neighboring countries, especially as these countries work to reduce bureaucratic barriers to doing business – such as the introduction of a new legal entity structure in Uruguay. We provide a comprehensive overview of the trade agreements between Argentina, Paraguay and Uruguay. We also share some of the opportunities available to executives considering entering these markets. Argentina-Uruguay-Paraguay trade relations and agreements The economic relations between Argentina, Uruguay and Paraguay are comprehensive. Several different trade agreements in force between these nations reflect the efforts of their governments to maintain and strengthen trade ties. Several different trade agreements in force between these nations reflect the efforts of their governments to maintain and strengthen trade ties. However, in addition to strengthening relations with neighboring countries, each country has worked to diversify its trade profile not only within the region, but outside it with important trade partners...

New Road Map Aims to Support Argentine Economy

New Road Map Aims to Support Argentine Economy

A new economic ‘road map’ aims to support Argentina’s economic situation. On 22 February 2020, the director of the International Monetary Fund (IMF), Kristalina Georgieva, and Argentina's Minister of Economic Affairs Martín Guzmán agreed to renegotiate the South American country's debt agreement during the G20 summit in Saudi Arabia.This article outlines Argentina’s perspective on escaping its financial challenges with the establishment of a new economic road map. Argentina and IMF agree on new economic road map Both Argentina and the IMF are willing to cooperate in order to find a solution to the Argentine debt crisis, which the IMF considers to be "unsustainable" at current credit conditions. The debt is to be reduced to a level that is compatible with "manageable" financing and a "satisfactory" level of growth.  Private creditors were asked for "significant" debt cuts - a great relief for the current government of Alberto Fernández. The IMF didn't request budget cuts, which, according to Guzman, were not anticipated from the government until the elections in year 2023.The renegotiation includes a re-examination of the balance sheets of the Argentine economy, as provided for in Article IV of the IMF's founding agreement. This includes an analysis of the exchange rate policy against which the former presidents Néstor and Cristina Kirchner (2007-2015) resisted, and which was only carried out again under the mandate of the neoliberal government under Mauricio Macri.  Argentina’s economic challenges Argentina's debt to the IMF is currently around US$44 billion, of...

Opportunities for Businesses: Fintech in Argentina

Opportunities for Businesses: Fintech in Argentina

When expanding your fintech company abroad, foreign executives should consider the developing ecosystem for fintech in Argentina.  Financial technology, better known as fintech, competes with traditional financial methods by using technology and innovation to change the way financial services are delivered. Swelling middle classes are demanding more from producers and exporters. Buying and using phones to engage with the commercial landscape. As a result, technological innovation is sweeping through previously neglected industries in Latin America. In particular, fintech is developing rapidly to keep up with a momentous shift in the region towards online financial interaction. Fintech startup activity in Argentina rises as the country adopts new financial services innovations. Argentina has over 110 new fintech startups that position the country as a hub for financial technology creativity. This results in valuable opportunities for entrepreneurship in this fast-growing sector. Learn how this vibrant startup culture in Argentina generates opportunities in the fintech market for your business. Fintech in Argentina: breakdown of the sector 'Payments and remittances' is the biggest fintech segment in Argentina, accounting for 28% of the total startup activity. The characteristics of the digitization process of financial service digitization are mainly:  that financial services can best contain simplified and accessed for users via the internet,an increase in the processing speed of automated procedures, cost reduction, a stronger focus on customer...

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