New Secretariats for International Trade, Competitiveness and Industrial Planning

Immediately after taking office for the second period as President, Cristina Kirchner reaffirmed Argentina’s policy on domestic and international trade, competitiveness and industrial development.

By Decree No. 2082/2011 and No. 2085/2011, both published in the Official Gazette on December 12, 2011, the Executive Branch established that the areas of local and international trade are now both under the Ministry of Economy and Finance. To that extent, all domestic and international trade-related powers previously held by the Ministry of Industry and the Ministry of International Relations, International Trade and Cult were transferred to the Ministry of Economy and Finance. The Executive Branch grounded this decision on the need to sustain the dynamics of government’s commercial policy, improve the use of public resources, and increase the quality of state action.

Additionally, the Secretariat and Under-Secretariat of International Trade were created within the structure of such the Ministry of Economy and Finance, to act in connection with imports, exports and foreign investments matters.

Decree No. 2085/2011 also created other Secretariats and Under-Secretariats. Among them, it is worth noting the Under-Secretariat of Economic Coordination and Competitiveness Improvement, and the Secretariat of Strategic Industrial Planning. In essence, the former will address competitiveness issues in the different sectors of Argentina’s economy (including the impact of public expenditures and social plans) while the latter will implement industry policies on the basis of the Strategic Industrial Plan 20-20.

The full list of Secretariats and Under-Secretariats that were created and eliminated by Decree No. 2085/2011 is included in Annex I at the bottom of this article.

1. International Trade

Decree No. 2082/2011 modified the name of the “Ministry of International Relations, International Trade and Cult” to “Ministry of International Relations and Cult”. It also established that, in general:

1. the Ministry of International Relations and Cult is in charge of the Nation’s international relations and its representation before foreign governments and international entities,
2. the Ministry of Economy and Finance is in charge of economic policy and development, administering public finance, local and international trade; and economic, financial and tax relations with the Provinces and the City of Buenos Aires; and
3. the Ministry of Industry is in charge of all industry-related matters.

Decree No. 2085/2011 reorganized Secretariats and Under-Secretariats existing within the structure of the abovementioned ministries. Among those, the most publicized by the Executive Branch was the Secretariats of International Trade which, together with the Secretariats of Interior Commerce, will be within the structure of the Ministry of Economy and Finance.

Both Secretariats share goals, applicable under their respective jurisdictions, such as to:

1. participate in economic integration processes, including bilateral and multilateral negotiations,
2. create criteria and parameters for the evaluation of the economic impact of implemented measures,
3. evaluate, control, propose and adopt measures aimed at improving the organization of the markets for goods and services, both public and private, aiming at improving transparency and harmonic development in light of public policy,
4. evaluate the degree of competitiveness of the different areas of the economy, elaborating cost structures for the goods and services that make markets;
5. participate in antidumping, subsidies and safeguards matters.

The Secretariat of International Trade will also participate in matters such as tariffs, reimbursements to exports, export credit insurance, rules of origin, and international trade policy related to consumer defense and antitrust. Furthermore, it will oversee the actions of the National Commission of International Trade and it will participate in the Board of “Fundación Exportar”.

In sum, the aim is that the Secretariat of International Trade participates in every matter related to imports and exports.

The goals for the Under-Secretariat of International Trade and International Relations are as follows: “ to be the unique link for international investors” advising on the existing incentives to foreign investment, providing direct assistance to investors, and coordinating actions with provinces and municipalities for promoting international investments.

By Decrees No. 51/2011 and No. 54/2011, published in the Official Gazette on December 12, 2011, the Executive Branch maintained Mario Guillermo Moreno as Secretary of Internal Trade and appointed Beatriz Pagliari as Secretary of International Trade.

2. Competitiveness and Industrial Planning

The Under-Secretariat of Economic Coordination and Competitiveness Improvement will aim at assisting in establishing priorities for public investment, coordinating analysis of the effects of public expenditures, evaluating social programs implemented by the federal Government in terms of their impact on the social matters they attempt to address, and consolidating statistical resources at the national, provincial and municipal levels. Furthermore, it will assist in coordinating the activity of the Board Members that represent the Government as a shareholder in companies, and in proposing innovative policies and instruments to improve competitiveness.

The Secretariat and Under-Secretariat of Strategic Industrial Planning is aimed at implementing industrial policies on the basis of the Strategic Industrial Plan 20-20, elaborating bills and programs for achieving a balanced industrial development in the country, controlling the implementation of strategic plans for specific sectors, and define and implement the national policy for industrial parks. It will also analyze the competitiveness of the local industry and propose policies for its promotion and improvement.

3. Conclusion

In principle, the abovementioned measures by the Executive Branch imply neither a formal increase in the capacity to intervene in trade matters nor a change in the officers in charge of such task. However, it is possible that having the Secretariats and Under-Secretariats of internal and international trade now working together within the structure of the Ministry of Economy and Finance –rather than distributed in three ministries as was the case before- results in faster implementation of the Government’s trade policy measures.

The Secretariat of Strategic Industrial Planning and the Under-Secretariat of Economic Coordination and Competitiveness Improvement will complement the Government’s already existing plan for developing national industry.

Finally, it is worth noting that several Secretariats and Under-Secretariats listed by Decree No. 2085/2011 share the same or similar goals. Therefore, it will be necessary that they cooperate and coordinate actions in order to avoid potential overlapping and contradictions in common areas.

ANNEX I

A. Ministry of International Relations and Cult

1. Eliminated:
   1. Secretariat of Trade and International Economic Relations
   2. Under-Secretariat of International Trade
   3. Under-Secretariat of Economic Integration in America and Mercosur
   4. Under-Secretariat of Investment Development
2. Incorporated:
   1. Secretariat of International Economic Relations
   2. Under-Secretariat of Economic Integration in Latin America and Mercosur
   3. Under-Secretariat of Development of Investments and Trade Promotion
   4. Under-Secretariat of International Economic Negotiations

B. Ministry of Economy and Finance

1. Eliminated:
   1. Secretariat of Economic Policy
   2. Under-Secretariat of Economic Planning
   3. Under-Secretariat of Economic Coordination
2. Incorporated:
   1. Secretariat of International Trade
   2. Under-Secretariat of Internal Trade
   3. Under-Secretariat of International Trade and International Relations
   4. Secretariat of Economic Policy and Development Planning
   5. Under-Secretariat of Economic Coordination and Improvement of Competitiveness
   6. Under-Secretariat of Macroeconomic Planning
   7. Under-Secretariat of Economic Planning
3. New goals:
   1. Secretariat of Internal Commerce
   2. Under-Secretariat of Consumer Defense

C. Ministry of Industry

1. Eliminated:
   1. Secretariat of Industry and Commerce
   2. Under-Secretariat of Trade Action and Policy
2. Incorporated:
   1. Secretariat of Industry
   2. Secretariat of Strategic Industrial Planning
   3. Under-Secretariat of Strategic Industrial Planning
3. New goals:
   1. Under-Secretariat of Industry