15 and 17 September 2021

Australia Statement

Australia welcomes Argentina’s continued commitment to the multilateral trading system. We enjoy a close and productive relationship on many elements of the WTO’s agenda.

Agricultural trade is of great importance to both of our economies and Australia deeply values Argentina’s positive contribution towards continued global agricultural trade reform, including through its pro-active and constructive efforts in the Cairns Group. Our collective efforts have never been more important as the WTO prepares for MC12. We look forward to continuing to work with Argentina to achieve a meaningful outcome on agriculture, particularly on trade and production distorting domestic support entitlements.

Our cooperation in the WTO is not limited to work on agriculture. Argentina has made a constructive contribution to the elimination of harmful fisheries subsidies and continues to actively support the restoration of the WTO’s dispute settlement system. We also appreciate Argentina’s constructive participation in the E-commerce Joint Statement and Services Domestic Regulation Initiatives. We encourage Argentina to submit its draft indicative schedule for Services Domestic Regulation as soon as possible to support the Initiative’s progress towards a MC12 outcome. Even in areas where our perspectives differ, Australia welcomes the open and forthright nature of our exchanges with Argentina. We have also welcomed Argentina’s collaborative work with Australia on trade-related issues in the G20.

Australia recognises that the Argentine economy has been particularly severely impacted by the pandemic. Following two years of deep recession in 2018-19, there were welcome signs of economic recovery in early 2020. These positive developments were reversed with the onset of the pandemic in March 2020. An extended period of national lockdown, as the Argentine government prioritised public health, resulted in a further economic contraction of 9.9 per cent over the course of 2020, rendering the Argentine economy 15.1 per cent smaller than in 2017.

While contending with the social and economic impacts of the pandemic, the Argentine government has made welcome progress with the Paris Club and IMF in rescheduling the country’s debt owed to both institutions.  Australia supports the Argentine government’s ongoing discussions with the IMF. Once an agreement is concluded, this should return the burden of Argentina’s debt repayment to sustainable levels and provide an opportunity for the government to pursue policies which promote sustainable economic growth.

Australia acknowledges that the difficult economic circumstances and pressures confronting Argentina prompted the government to adopt a range of heterodox policies, including the reimposition of export duties, import licencing and currency controls. As the economy returns to more normal levels of activity, Australia believes the future resilience of the Argentine economy would benefit from the relaxation, and ultimate removal, of these economic measures.

Unlike policy responses to previous economic difficulties, Australia is pleased that the Argentine government has recognised the important contribution of trade to economic recovery. While Argentina’s initial policy focus is on expanding Argentine exports, Australia would welcome measures to facilitate imports and inward investment. Although bilateral merchandise trade has shown little growth in recent years, trade in services was growing substantially prior to the pandemic, and productive Australian investment in Argentina has continued to grow. Greater Argentine openness and transparency would serve to reinforce these positive trends.

Similarly, Australia would welcome Argentine support for a reduction in Mercosur’s Common External Tariff. This would facilitate trade and encourage increased competitiveness in the Argentine economy.

We also remain interested in Argentina’s stance on the WTO Government Procurement Agreement and would welcome any indication on whether consideration is being given to a move in this direction.

In conclusion, Australia recognises that Argentina has faced several economic difficulties carried over from its past and that the COVID pandemic has reversed some of the progress that had been made. Australia wishes Argentina well with its efforts to fight COVID and advance its economy and related policy reform. We also wish Argentina well with its Trade Policy Review.