After experiencing a severe economic crisis in 2001, Argentina achieved 8.8 percent average growth from 2003-2007 thanks to export revenues. Argentina is the eighth largest country in the world by land area and the second largest country in South America.

Agriculture and animal husbandry play an important role in the expanding Argentinean economy. Turkish trade volume with Argentina, one of the leading suppliers of agricultural products in the world, is approaching 500 million dollars, while the construction industry offers significant opportunities for Turkish companies. Since the signing of a Free Trade Agreement between Turkey and Mercosur, the common market of South America, economic relations with Argentina and other countries in the region are expected to increase rapidly.

Buenos Aires Port

Agriculture and animal husbandry play an important role in the expanding Argentinean economy. Turkish trade volume with Argentina, one of the leading suppliers of agricultural products in the world, is approaching 500 million dollars, while the construction industry offers significant opportunities for Turkish companies. Since the signing of a Free Trade Agreement between Turkey and Mercosur, the common market of South America, economic relations with Argentina and other countries in the region are expected to increase rapidly.

The Argentinean government was forced to take very severe measures to survive financially after the economic crisis that occurred in 2001. Individual bank accounts were frozen, while salaries, retirement pensions and expenses were decreased significantly.
The government declared that it was unable to pay its foreign debt of 132 billion dollars. Its gross national product (GNP) shrank from 268 billion dollars in 2001 to 101 billion dollars in 2002.

However, those dark days are gone for Argentina. The Argentinean economy began recovering in 2003 and grew an average of 8.8 percent from 2003 to 2007. Now that it has been resurrected, Argentina has a GNP that is approaching 220 billion dollars. As these numbers grow, public consumption is also increasing. Although trade relationships between Turkey and Argentina largely consist of agricultural products, there are opportunities in almost every sector from construction to automotive.

The critical role of agriculture The agricultural sector is the lifeblood of the Argentinean economy. Every year, Argentina produces almost 40 million tons of soy beans, 16 million tons of wheat, 20 million tons of corn and 4 million tons of sunflower seeds. Argentina is a major producer of soybeans and a large portion of its land is dedicated to producing this legume. China is one of Argentina’s biggest soybean customers. The impressive growth in the Argentinean economy after the crisis was largely due to exports. Over half of its total		Plaza de Mayo, Argentina
exports consisted of processed and unprocessed animal products and agricultural goods, including soybean products. Argentina is one of the largest meat exporters in the world, but has experienced a prominent drop in this sector in recent years. The primary reason for this is the difficulty in entering the European market.

Turkey’s trade deficit
Turkey is consistently faced with a deficit in foreign trade with Argentina. In 2006, Turkey’s exports were worth 44 million dollars and its imports amounted to 301 million dollars; in 2007, Turkey exported 67 million dollars and imported 418 million dollars worth of goods. Turkey’s consistent deficit continued in the first five months of this year. Turkey achieved 30 million dollars of exports from January to May, 2008, while its imports amounted to 171 million dollars in the same period. Turkish exports to Argentina largely consist of passenger cars and parts, synthetic thread, tobacco, refrigerators, machining equipment and olive oil. Although the amount of goods imported into Turkey from Argentina is quite large, there is very little variety. Over half of the imports consist of soybeans, oil and pulp.

Free Trade Agreement signed with Mercosur Although Turkey does not have close economic ties with South American countries, the government has taken initiatives to change this situation beginning in 2009. Last month at a summit held in Argentina for Mercosur, the common market of South America, a Free Trade Agreement was signed with Turkey. Mercosur was started in 1991 by Brazil, Argentina, Uruguay and Paraguay, making it the third largest economic integration in the world besides the EU and NAFTA. According to the Turkish Secretary of		Puente de la Mujer Bridge-Buenos Aires
Foreign Trade, major products that could be exported to Argentina include chick peas, lentils, tobacco, spices, fresh fruit (particularly grapefruit, oranges and tangerines), seedless raisins, dried figs, hazelnuts, dried apricots, pistachios and peanuts. Other products that have potential for exporting include textiles, clothing, glass and ceramic products, reinforcing steel, metal kitchen articles, vehicles and their parts and accessories, souvenirs, carpets and rugs.

Many opportunities in the construction sector
With above average population increases in large cities, Argentina has a need for housing that is estimated at 2.5 million units. The most prominent categories for construction include high quality ceramics, tile, doors and windows, insulated windows, saunas, hot tubs, shower stalls and, of course, cement and reinforcing steel.

An attractive market for olive oil producers
In the 1990’s, per capita consumption of olive oil in Argentina was 60 grams, while this figure has risen to about 250 grams today. Although imported products make up a relatively small portion of total olive oil consumption, about 15 percent of bottled products sold to consumers consists of foreign brands, primarily Italian and Spanish goods. In other words, there are significant opportunities if an investment is made in brand name recognition. In conclusion, it is expected that efforts to improve economic relations between Turkey and South America will begin to produce fruit next year and that Turkish exports to Argentina will begin to increase noticeably. For companies in the construction and food sectors, in which Turkey is very strong, opportunities for investment in Argentina will only become more prominent.