ARGENTINA
in BRIEF
Australia-Argentina
Relations
Summary
| Outstanding Issues
Brief summary
With
the consolidation of democracy in Argentina bilateral relationships with
Australia have been substantially strengthened.
Significant opportunities were opened to explore for mutual political
cooperation and the promotion of business.
From
the political point of view both countries share a common standing in defending
the United Nations System, promoting human rights, participating in peace
missions under the UN, and pursuing the disarming and non-proliferation of
nuclear weapons. Both countries are active members of the Antarctic Treaty, The
Valdivia Group for preservation of the environment in the Southern Hemisphere,
and the Kyoto Conference on Climate Change.
Both
countries have similarities in their geography and present parallel patterns of
historical evolution.
From the geographical point of view both have huge territories, with
different climates, from subtropical to temperate, with mining resources and
fertile lands appropriate for agriculture and cattle breeding.
Both have developed an important industrial and services infrastructure.
From the social point of view, both have received an important flow of
immigration, particularly from Europe, counting on skilled human resources.
During
the last fifteen years the political and economic relationship between Argentina
and Australia has developed rapidly.
A closer collaboration between both countries has taken place in the
Uruguay Round of Multilateral Trade Negotiations, especially in pursuing
liberalization of agricultural trade.
A substantial flow of Australian investment has gone to Argentina,
covering a wide range of sectors from agriculture to mining, industry, and
services. In
May 1994 the Secretary of Foreign Affairs of Argentina signed with the Minister
of Trade of Australia a Memorandum of Understanding on Cooperation and
Consultation that contemplates the promotion and facilitation of bilateral
cooperation in different fields.
During the last presidential visit to Australia, paid by former President
Carlos S. Menem, this agreement was supplemented with some specific
understandings covering the areas of agriculture, mining, air transport,
protection of investments, tourism, and sports.
Argentina unilaterally decided to eliminate the requisite of visas for
Australian citizens temporarily entering the country for tourist or business
activities. An
agreement to avoid double taxation has been signed on September 1st
1999 by Australia’s Minister of Trade and Argentina’s Minister of Foreign
Affairs. In 2001 the Ministers of Foreign Affairs of both countries
signed agreements regarding cooperation on educational matters and for pacific
uses of nuclear energy. Last March 30, the Minister for Science, The Hon. Peter
McGauran signed at the residence of the Embassy in Canberra a Memorandum of
Understanding on Science with the Secretary of Science, Technology and
Productive Innovation of Argentina.
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Regarding
the possibilities of regional cooperation, a fruitful dialog has been started
among MERCOSUR, a common market between Argentina, Brazil, Paraguay and Uruguay
with 200 million people and a GNP exceeding 1.0 trillion $US dollars, and the
area of cooperation between Australia and New Zealand (CER).
The aim is to further promote trade and investments between the two
regions and strengthen the links among the Southern Cone of America and the
Pacific Basin.
An initiative to negotiate a Free Trade Agreement between the two areas
was recommended by the Subcommittee on Trade and Investment of the Australian
Parliament, and supported by entrepreneurial organisations from Argentina.
Up
to now, the bilateral trade of goods and services between Australia and
Argentina has been rather modest.
It has been on the increase reaching around U$S 250 million dollars in
2003.
Possibilities for further growth are high, as the participation over the
total value of trade continues to be small, smaller than the participation each
country has in the value of world trade.
The main products sold by Argentina to Australia are cars, vegetable
oils, tanned leather,
steel sheets, tubes and steel pipes, fruit juices,
medicines, chemicals and industrial, agriculture and transport equipment.
Exports from Australia to Argentina are mainly coal, aluminium,
herbicides, pesticides, chemicals, galvanised steel, electrical machinery ,
telecomunication and industrial equipment.
Regarding
air transport, during the presidential visit to Australia in April 1998, it was
agreed to increase authorised frequencies to a capacity of 2400 seats weekly;
which roughly represents a daily flight by each of the flag companies.
Qantas started to serve the route to South America in November 1999 with three weekly flights. Aerolineas Argentinas by its
side covers the route between Sydney and Buenos Aires with three flights a week.
The rate of occupancy for the two companies is high with around 70,000
passengers per year traveling back and forth between the two countries.
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During
the last decade, Australian enterprises have invested a total exceeding 2
billion $US in the industrial, agricultural, mining, and services sectors of
Argentina. The
most important project so far is "Bajo de la Alumbrera" in which
Xtrata and Rio Tinto are the biggest
shareholders. The
investment is of more than 1.2 billion $US dollars with an estimated production
of 190,000 tons of copper and 23 tons of gold per year and estimated annual
exports of 600 million dollars.
Other Australian enterprises with investments in Argentina are The Broken
Hill Proprietary Co. (BHP),
Rio Tinto and Climax Mining, in the mining sector;
Ampolex, in the exploration of gas resources;
The Peninsular and Oriental Navigation Co. Ltd (P&O), container terminal in
the Port of Buenos Aires, cold storage’s and catering activities;
Villages Roadshow, which have formed Village Cinemas S.A. in Argentina;
Cash Converters;
Cullen Grummit and Roe Pty Ltd, engineer consulting;
Dragonslayer, film producer;
Lase Shots entertainments;
Packer and Kalvetzer, in the agriculture sector;
and Burns Philp and Goodman Fielder in the food industry.
For
its part, the Bunge Group from Argentina is in Australia with investments in the
foodstuff industry.
For the past three years, INVAP (Investigaciones Aplicadas –Applied Research),
from the Province of Rio Negro in Argentina, has been actively engaged in the construction of the Nuclear
Research Replacement Reactor at Lucas Heights New South Wales, a project which
was awarded to INVAP following an international tender, in mid 2001. INVAP is
working on this project in partnership with the Australian Nuclear Science and
Technology Organisation (ANSTO) and two important Australian Construction and
Engineering Companies.
Outstanding Issues
In
the cultural field there is an increasing exchange of artists, musicians and
cinematographic works—activities that help to build up a better knowledge of
each other’s societies, idiosyncrasies, and achievements.
Of
greatest importance
is the continuing cooperation by the public sector of both countries to
encourage the increasing involvement of political, cultural, social and
business sectors, as was the case during the last decade. Cooperation at
multilateral, regional and bilateral levels offers plenty of opportunities to
consolidate the present links and build up a stronger relationship for the
future.
The
pending negotiation regarding the automatic issuing of electronic visas by
Australia is an issue that has a
significant bearing on the promotion of economic relationships and tourism
activities. As mentioned above,
Argentina decided unilaterally in 1998 to abolish visa requirements for
Australian citizens visiting the country. It
is expected Australia will reciprocate in the near future.
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