PBIT PUNJAB ARGENTINA PROJECT

Punjab Board of Investment and Trade | PBIT

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Table of Contents
Argentina Facts .............................................................................................................................................. 3
Argentina Trade Figures ............................................................................................................................. 5
Argentina Demographics ........................................................................................................................ 5
Argentina’s 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 Argentina’s trade & investment opportunities ..................................................................... 15
List of References ..................................................................................................................................... 19

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ARGENTINA FACTS
• Argentina is the second largest country
in the South America and The 8th largest
in the world with almost 2.8 million
square kilometers of landmass1 and a
GDP on PPP terms of USD 570,846
million
• Borders South American powerhouse
Brazil from the northeast along with
Paraguay, Bolivia, Uruguay and Chile
• In 1816, the United Provinces of the Rio
Plata 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 in
subsequent 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 over
15 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 education
sectors
• Consistent growth rates of over 8% for the past 6 years and accumulated growth of 80% since
2002

1 CIA World Factbook: Argentina

2 See Lewis, Daniel K., The History of Argentina, Greenwood Press, Washington DC
3 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 human
capital
• Macroeconomic stability and an aggressive network of investor incentives make it an ideal
investor destination
• Argentina has 23 provinces all divided in 376 departments and 134 partidos and an autonomous
city, 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 18655
Cotton 4,946 Animal/vegetable fats/oils 5382
Manmade filaments 1,862 Iron and steel 5122
Apparel (knit or crochet) 1,738 Pharmaceutical products 3979
Optical, Medical apparatus 1,284 Raw hides and skins 1785
Textile articles 1,282 Inorganic chemicals 1276
Apparel Accessories 834 Nuclear reactors, boilers 1069
Vehicles 772 Optical, Medical apparatus 952
Furniture, prefab Buildings 672 Tanning, dyeing pigments 634

ARGENTINA DEMOGRAPHICS
Population6 2008 Total
Largest Argentinean Cities7
Total 40,482,000 Population
Urban 36,656,032 Buenos Aires 3,050,728
Rural 3,835,968 Cordoba 1,346,092
Rosario 1,249,594
Urban/Rural Ratio 9.6/1
Mendoza 885,434
Population Growth Rate 13.10%
Tucuman 789,504
GDP Per Capita in PPP (ARS) 55,963
La Plata 732,503
GDP Per Capita in PPP (USD) 14,333
Mar del Plata 604,563
Santa Fe 493,547
Salta 464,678
San Juan 453,229

4 TradeMap.org
5 Ibid
6 INDEC:Instituto Nacional De Estadistica Y Censos, Republic of Argentina
7 Ibid

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 Argentina’s Political Depth

Argentina and Brazil

Argentina and Brazil are neighboring countries of South America, and two of the most important
economies in Latin America. The two countries combined represent 63% of the total area of South
America, 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 military
side there has been greater rapprochement. In accordance with the friendship policy, both armies
dissolved 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 Argentine
peacekeeping 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 the
Brazilian Navy carrier São Paulo.

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

On February 22, 2008, President Luiz Inácio Lula da Silva of Brazil made a state visit to Buenos
Aires. During his visit, the presidents established a binational commission on pursuing joint uranium
enrichment for nuclear energy purposes. They also agreed on energy, transport and space satellite
cooperation, 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 months
to alleviate sporadic power and natural gas shortages. "The strategic alliance between Argentina and
Brazil is of the utmost importance", Lula da Silva told Fernandez after the meeting, reaffirming the
strong ties between Brazil and Argentina.

In August 2008, Argentina and Brazil announced they were dropping the US dollar and using their
own currencies on all bilateral commercial transactions. In 2008, trade between the two countries
reached 23.6 billion dollars a year, with Brazil as Argentina's largest trading partner, and Argentina as
Brazil'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 in
Brasília. The following day, she held discussions with the Brazilian President Luiz Inácio Lula da Silva
on a variety of bilateral issues including energy, defense and nuclear cooperation.

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Argentina and the US

The United States has a positive bilateral relationship with Argentina based on many common
strategic interests, including non-proliferation, counternarcotics, counterterrorism, the fight against
human 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 Container
Security Initiative and the Trade Transparency Unit, both of which are programs administered by the
U.S. Department of Homeland Security/Immigration and Customs Enforcement. The Container
Security Initiative provides for the selective scanning of shipping containers to identify weapons of
mass destruction components, and the Trade Transparency Unit works jointly with Argentine
Customs to identify trade-based money laundering.

In 2004, Argentina signed a Letter of Agreement with the US Department of State opening the way
for enhanced cooperation with the US on counternarcotics issues and enabling the US to begin
providing financial assistance to the Government of Argentina for its counternarcotics efforts. In
recognition of its contributions to international security and peacekeeping, the US Government
designated Argentina as a major non-NATO ally in January 1998. The Office of the Secretary of
Defense and the Argentine Ministry of Defense hold an annual Bilateral Working Group Meeting,
alternating between Argentina and Washington, D.C. Furthermore, both nations exchange
information through alternating annual Joint Staff Talks, military educational exchanges, and
operational 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 Argentina
modernized a bilateral civil aviation agreement to update safety and security safeguards and allow a
significant increase in flight frequencies between the two countries, which hold excellent potential for
increased tourism and business travel. An active media, together with widespread interest in
American culture and society, make Argentina a receptive environment for the information and
cultural exchange work of the US Embassy. The Fulbright scholarship program has more than tripled
the annual number of US and Argentine academic grantees since 1994, and the US Embassy is
actively working to increase other education exchanges.

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Relationship with MERCUSUR

Mercosur (Mercado Común 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 Asunción, 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 Raúl Alfonsín of Argentina and José 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.

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Natural Partnership with Pakistan

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, shared
perceptions and understanding on most major global and regional issues.

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

The relationship between Pakistan and Argentina is one of close cooperation in various fields and
unanimity 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 signed
between Argentina and Pakistan on the 19th of July 2002. The agreement which was signed in
Buenos Aires, envisages Most Favorable Nation (MFN) treatment under WTO regulations and greater
cooperation in the field of the goods and services, banking, investments, transport and
communication sectors. The agreement also provides forming of Argentina-Pakistan Joint
Committee to review, implement and diversify the scope of the trade agreement.

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

Pakistan and Argentina Politics

Former President Musharraf’s three-day official visit in December 2004 was the first head of state or
government level visit between Pakistan and Argentina. During official talks areas of common
interest between the two countries were explored. Both leaders expressed their mutual resolve to
begin a new era of strong political and economic relationship. They agreed to enhance trade and
promote cooperation in various fields including science and technology. They also agreed to spur
interaction in the fields of sports and culture. Pakistan’s 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 May
2006. The two sides reviewed the entire gamut of bilateral relations and expressed satisfaction over
the 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.

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The two countries have had a regular exchange of parliamentary delegations. A two-member
delegation headed by President of the House Foreign Affairs Committee visited Pakistan in March
2007. The two sides discussed ways and means to promote greater cooperation between the two
Parliaments, and the formation of Parliamentary Friendship Groups. As a follow up, a parliamentary
delegation 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 been
appointed as Chairman of the Group. Pakistan – Argentina Parliamentary Friendship Group has
been established in the National Assembly of Pakistan on 31 October 2008 and its induction is under
process.

A cooperation agreement between Institute of Strategic Studies, Islamabad (ISSI) and Argentine
Council for International Relations, Buenos Aires (CARI), was signed in 2003. The agreement
stipulated exchange of scholars, academicians and research material. A similar agreement between
Institute 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 missile
technologies, 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 Cooperation
was held in Islamabad from April 19-21, 2007. Prior to the first meeting of the Joint Committee on
19-21 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, presentations
were 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 between
Pakistan and Argentine scientific institutions. After detailed exchange of views, the two sides adopted
agreed minutes of the first session of Pakistan-Argentina Joint Committee on Scientific and Technical
Cooperation

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

The visit was highly useful and a follow up is required for concrete results so that cooperation
between 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 Commerce
and Industry was signed during the visit of Argentine Secretary for International Trade and
Economic Relations to Islamabad in September 2005.

- During the former President’s visit, a Memorandum of Understanding on bilateral consultations

between the Ministries of Foreign Affairs of both countries on political matters and other matters of
common interest was signed between the two countries. The first meeting was held in Buenos Aires
in 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 Argentina

was 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 Exporter
Foundation of Argentina signed on 7 May 2007 has been submitted to Cabinet Division seeking
approval for signing of the Agreement.

- A Memorandum of Understanding on Cooperation in the field of Sports between the Sport

Secretariat 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 leather
products to Argentina while soybean oil/ seed has been major exports by Argentina to Pakistan.
Besides, Argentina’s exports to Pakistan include compressed natural gas equipment, pharmaceuticals
and raw cotton.

Pakistan’s 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 our
bilateral trade in 2006-07 crossed USD100 million mark; our exports had exceeded USD 42 million
and imports USD64 million. The current year has seen an unprecedented surge in Argentina’s exports
to Pakistan, due mainly to massive import of wheat and corn by us. According to provisional
statistics, volume of trade has exceeded USD 240 million; while our exports have increased to about
USD52, 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 in
September 2006, 2007 and 2008. Embassy has been organizing and attending trade promotion
events.

The Embassy organized an "EXPO-PAKISTAN, Buenos Aires 2008" on the eve of the
Independence 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 2004
held 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 for
the business communities to interact with each other and explore avenues of cooperation in diverse
fields 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 South
America has emerged as an important trading bloc. Its burgeoning economy, political stability and
immense potential, offer Pakistani entrepreneurs unprecedented opportunities.

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

The signing of the Agreement has initiated the process of negotiations between Pakistan and
MERCOSUR 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 of
MERCOSUR 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 will
also 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 two
countries was envisaged under the Agreement on Economic and Trade Cooperation, signed in July
2002.

During the inaugural meeting held in Islamabad in September 2005, both sides expressed their desire
to 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. The
Argentine delegation expressed interest to collaborate in programmes of technical cooperation for
the development of agricultural sector in Pakistan, including agricultural implements. To improve
export of Argentine meat and horses to Pakistan, both sides agreed to hold negotiations for sanitary
certification 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 been
proposed in Buenos Aires from 4-6 August 2009. Federal Minister of Commerce from Pakistan is
expected 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 of
the region from 21-24 April 2005. The trade delegation visit assumed a special significance as it
followed the visit of the President to the Latin American countries (including Argentina) in
November – December 2004 which had set the ball rolling for the development of broader economic
and 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 Ministry
of Economy, also held a meeting with the President of Argentine Chamber of Commerce to discuss
ways and means to improving bilateral economic and trade relations. Pakistani businessmen availed
the opportunity to identify possible partners for building business relationship with the local
counterparts.

Minister of Agriculture visited Argentina in December 2006. Two MoU were signed for cooperation
in Agriculture. The MoU will facilitate joint research in agro-technology including oilseed and hybrid
seed production in Pakistan. It also covers import and export of agri-products. Special measures are
being taken for the exporting Basmati Rice and quality Mangoes from Pakistan to Argentina. A group
of 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 of
Argentine 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 a
large trade delegation which visited Pakistan from 29th April to 2nd May 2007. He could not visit due
to incompatibility of mutually convenient dates. However, the trade delegation including exporters of
sunflower oil and seed, citrus fruit, sports goods, pharmaceutical products, CNG Companies and
bovine meat, visited Pakistan.

Bago Pharmaceuticals & Ferozsons Case

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

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This plant will manufacture medicines for cancer and hepatitis C in accordance with European Union
standard. This Biotech Plant is being designed by one of Europe's leading Pharmaceutical design and
engineering 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 advance
technology in this field. Pakistan is already importing CNG equipment, mostly gas cylinders from
Argentina. Inflex Argentoil, Argentina’s largest manufacturer (an exporter to Pakistan) of CNG
cylinders has entered into a joint venture with Wah Industries Ltd (a subsidiary of Pakistan
Ordinance Factories). The two sides have signed a formal letter of understanding for a USD 4
million project for producing CNG cylinders in Pakistan. The project is likely to be increased to USD
8.5 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 remain
well below the potential. At the moment, Argentinean exports to Pakistan outpace Pakistan’s Exports
to Argentina by 5 to 1. A major reason for this is the extensive tariff and trade restriction that
Argentina has compared to the far more liberal policies of Pakistan. Textiles, Pakistan main source of
export earnings experience duty at the rate of 75%. Sports goods are subjected to 35% duty and
surgical equipment to 20% duty. On the other hand, Argentinean CNG equipment, grain, soya arrive
at Pakistani shores without any imposed duty or restriction.

The visa policies of Argentina are equally troublesome with extremely long processing times. Pakistan
on 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 Pakistan’s key exports
including soybean oil/seeds and raw cotton among others in order to fully capitalize on the potential
of these sectors.

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PUNJAB AND ARGENTINA’S TRADE & INVESTMENT OPPORTUNITIES

SECTORS AREA OF COLLBORATION FOR SECTOR STRENGTHS IN

PUNJAB ARGENTINA
Agriculture Pakistan has the highest production number Argentine agriculture is
Export in no less than 20 different agriculture relatively capital intensive,
Diversification products. However, the yields are low due to providing about 7% of all
rudimentary farming techniques and the employment. It adds less than
export base is very narrow, restricted to only 10% to the GDP directly;
a few items like cotton and oilseeds. It is also however, agricultural goods
important to note that Punjab (the granary still earn over half of
of Pakistan) with 59% of the national Argentina's foreign exchange.
agricultural production feeds the entire Argentina’s agricultural exports
national population and does not leave much comprise many different and
room for exports. Joint Ventures with varied items.
Argentinean businesses aid in introducing
new technologies into the Pakistani
agriculture industry thereby increasing the
yields in certain major crops in which
Argentina is utilizing better farming
techniques thus, diversifying Pakistan’s
agricultural exports

Eliminating The similarity in major vegetables, fruits and Argentina produces 6 million
Wastage in pulses suggests that technology transfer tons of fruits and 4.5 million
agriculture though joint ventures is effective and makes tons of vegetables
products business sense specifically with regard to Ecological diversity enables
citrus juice extraction. (*Feasibilities available) Argentina to grow all
Over 40% is lost/wasted in the citrus temperate, subtropical and
industry, similar is the case in tomatos, tropical products.
potatoes, onions, pulses, wheat and rice. Also, investment in storage and
This waste can be saved and through carrying facilities helps
investments in downstream production maintain what is produced.
techniques can be converted to dried fruit
products; packaged, sorted and dehydrated
for export, made more important for world
trade.
For example, world trade for citruses is
decreasing however the trade of citrus juice
has jumped manifold thus highlighting the
importance of value addition.
Cold Storages, For the export and movement of Ministry of Agriculture has
Pack Houses horticultural produce, investments in shown interest in inviting
and technologies have to be made in Pakistan. Argentinean companies (due to
Processing Punjab is strong in most cereals, cotton as their experience with such
Units well as an array of fruits and vegetables. technologies) to come set-up in
Punjab and certification of

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Yield Increase Rice, Cotton and Wheat flour are high
through exports for both Punjab and Argentina.
technology Currently, the average yields in Punjab lag by
over 73%, 55% and 70% respectively from
the world’s best.
Farmers can be provided training on high-
yield farming methods in both as well as
high-tech machinery for cultivation of both.
With investments in research and better
farming techniques, this gap can be
shortened by as much as 48%, 31% and 50%
for the three crops respectively according to
the Punjab Economic Report 2007
Organic The possibility of utilizing the expertise of
Farming + Argentinean farmers of both organic
Genetically farming and genetically modified crops can
Modified be easily transferred to Pakistan. Whereby
Crops diversifying the production techniques and
reducing the risks of nationwide crop
failures.
Meat Owing to Pakistan enormous livestock
Processing sector, Pakistan represents a potential giant
and Trade in the world meat trade. Halal meat alone
being a USD 300 billion industry.
Although Pakistan has the second largest
population of buffalo and similarly
impressive numbers in other ruminants, the
presence of Pakistan in global meat market is
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agriculture produce to make
our products more
competitive.
Argentina’s corn yields rose
nearly 50 percent between
1990/91 and 2000/01.
Gradually increasing fertilizer
use helps explain much of
Argentina’s recent corn yield
increases, and the strong
presence of multinational
corporations is promoting new
agricultural technology there.
An estimated 20 percent of
Argentina’s 2001 corn crop
and 90 percent of its soybean
crop were planted to biotech
varieties, as producers have
sought to capture the
significant cost savings
associated with biotech crops.
The world organic food market
was USD 46 billion in 2007
with Argentina having the
second highest amount of land
under organic production in
the world.
The Argentinean organic
movement has developed
strong formal certification
processes, good export links
and has received valuable
government support. In a
show of diversity, Argentina
has also eagerly adopted
genetically modified crops,
having the world’s second
largest area of such crops with
14.2 million hectares in 2003
Argentina has the fifth largest
cattle population in the world
and is far ahead in production
and export of processed meat.
Not only that but Argentina is
also the largest beef consumer
in the world with over
68kg/capita/annum. And
 negligible due to the lack of relevant represents a huge market for
packaging and transportation networks. meat aswell as a gateway to
other South American
countries that have similarly
high consumption rates of
meat.
Veterinary The prevention and vaccination against food Argentina has made immense
Medicines and mouth disease was essential in the strides in the veterinary
production of mean that would meet world medicine sector. As of the 28th
standards of quality, essential for export, of February in a meeting
especially to the EU. between Representatives from
Argentina and Punjab, it was
decided that a nationwide
awareness campaign would be
launch along with collaboration
on biotechnology.
Twinning of Argentina has proposed twinning Salta Salta is, located in the
Salta Province province with Punjab in a bid to strengthen northwest of the country. To
of Argentina friendly ties, besides showing interest to the north it borders Bolivia and
with Punjab have bilateral cooperation in the fields of Paraguay and to the west lays
agriculture and trade. Chile.
Salta Governor has assured cooperation and Salta's economy is relatively
help in the fields of agriculture and trade. underdeveloped, yet diverse.
Its economy in 2006 was
estimated at USD5.1 billion,
or, USD4,760 per capita
Agriculture and its derived
industries are an important
activity in the province, adding
over 10% to output. Tobacco,
sugar cane and viticulture are
the most important and
produce most of the exports
from the area. Other crops
mostly for local consumption
are maize, beans, citrus,
bananas, and tomatoes.
American breeds of cattle are
raised only on the humid sub-
tropical east, along with some
sheep and goats.

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Textile Pakistan is a world leader in textiles with
Industry over 32% of the world export of cotton yarn
and over 8% of the world export of cotton
cloth. Pakistan is a net exporter of the
cotton and Punjab represents a main
producer of the crop.
ALADI Associação Latino-Americana de Integração
observership (ALADI) is an organization comprising 12
Latin American countries comprising of
Mexico, Cuba, Venezuela, Colombia,
Ecuador, Peru, Bolivia, Brazil, Paraguay,
Chile, Argentina and Uruguay on the pattern
of South Asian Association for Regional
Cooperation (SAARC).
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Argentina does not possess a
very strong textile sector, last
year importing over half a
billion dollars worth of cotton
and textiles and thus represents
a very lucrative market for
Pakistan to trade with.
The Argentinean government
is providing assistance to the
Pakistani government to attain
observer status at ALADI,
whereby opening the doors to
trade between Pakistan and
South America.
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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