Global Online Marketing Profile 2010 Forecast - Argentina

Market Opportunitytrade barriers for exporters looking to expand to
Since the economic, political, and social crisis in 2001new markets. For more information on these barriers
Argentina has been growing steadily with an averagevisit the WTO website. A recent study conducted by
GDP growth of 9%. However, the global financialthe Inter-American Development Bank said that there
crisis coped with the decline of commodity prices haswill be a reduction of freight cost of 10% in several
reduced its steady growth. In 2008, the GDP grewLatin American countries including Argentina, this will
only 7%. Inflation, estimated to be around 9%,encourage and increase trade flow between
continuous to rise despite the price controls from thecountries. In addition, the MERCOSUR standards are
government.changing to be identical to the norms of the
European Union, the United States and Codex
Best Industry SegmentsAlimentarius. Finally, Argentina prohibits the import of
In 2008, imports for Argentina were estimated to becertain used products such as spare parts, medical
of 59.9 billions f.o.b. Its main import partners continuesupplies, automobiles, motorcycles and velocipedes,
to be the countries within the Latin American tradeclothing, tires, boats, products containing
block of the MERCOSUR. (Argentina, Brazil, Paraguaypolychlorinated biphenyl's (PCB's), and products
and Uruguay.) Brazil accounts for 34.6 % of the totalcontaining Asbestos fibers (Amphibole and Chrysotile
imports. The US and China are importing at 12,6%variety). Prospective exporters should research if
and 12% respectively. China has in fact, throughouttheir product is viable for import and to what rules it
the past years, been progressively gaining marketis subject to. Moreover, corruption is still present in
presence in Argentina.the country; exporters may be required to pay an
According to the CIA Factbook, in 2008 Americanextra cost.
goods exports to Argentina accounted for 7.5 billion;Online Marketing Profile
they were up 28.7% from 2007. The top exportsThe number of residential Internet lines in Argentina
categories were Machinery ($1.9 billion, Electricalhas increased by an average of 19% this past year.
Machinery ($926 million), Mineral Fuel (oil) ($832 million),In fact, Argentina is one of the countries in Latin
Organic Chemicals ($639 million), and Plastic ($401America with the largest population of Internet users:
million). In addition, US exports of private commercial6.6 per 100 inhabitants, which is equivalent to 20
services were up by 23,6% compared to 2006 andmillion online users. Since Spanish is the third most
represented 2.8 billion.spoken and searched language in the world,
Regulatory and Tariff Landscapeadvertising in this language could be profitable in
All imported goods and services in Argentina areArgentina as well as in other Spanish speaking
subject to an ad valorem duty, which is based on thecountries. Moreover, Argentineans prefer to conduct
cost of the goods, their insurance and their freightresearches in their native language rather than in
(CIF). Other goods such as alcoholic beverages, softEnglish.
drinks, syrups, extracts, concentrates and consumerPopular Argentine Search Websites
electronic products are subjects to additional taxes.According to Searcheninewatch.com, Google
Depending on the imported product, there areArgentina continuous to be the most popular search
additional fees and taxes to be paid such as a 0.5%engine. Yahoo! Argentina is second and MSN is ranked
statistical tax on the CIF value (except capital goods)as third. There are over 19 different search engines
and a 21% or 10.5% value added tax (VAT) on thethat have different regional weight. The most popular
sum of the CIF value, tariff and statistics fee. Therelocal search engines are: terra, brujula, grippo,
is as well an either 10% or 5.5% advanced VAT onbuscador.clarin, and uolsinectis.
the sum of the CIF value for goods imported forSummary
resale and a 3% anticipated profit tax on all retailArgentina's economy is currently experiencing a
goods. Information specifying commodities subject toslower growth. Nevertheless, thanks to a change in
countervailing duties can be found at theregulations and the reduction of transportation cost,
Comisión National de Comercio Exteriorthis market looks profitable for US. Exports. For a
website. Furthermore, the common external tariffglobal online expansion ranks Argentina as a Tier II
ranges from 0%-35% (with a 13% average).market.
According to the WTO there are some non-tariff