Regional Trade in Argentina

Regional Trade and Government Intervention

Regional trade is sometimes quite complex to study. However, it is entirely essential for a country’s national government to intervene in commercial activities whose influence amalgamates several nations within the same region. Nations get to trade together regionally under various considerations. In the meantime, a country may forfeit trade with some of her neighbors through tariffs. Tariffs refer to the ultimate taxes directed to imports. When the government extends taxes on imports, price appreciation of foreign goods occurs. The non-tariff barrier is a compound of economic restrictions in the form of embargoes, quotas, levies, sanctions as well other types of restrictions other than tariffs which large or even developed economies use frequently. The availability of commodities typically determines the non-tariff barriers imposed.

Argentina as a Commodity Exporter to the US

Currently, Argentina, a regional trade partner to the US, ranks as the twenty-eights largest commodity exporter to America (Froman, 2016). Besides, Argentina’s membership subject to WTO guarantees her the trading benefits of exporting beef which is consumed by American citizens. Meanwhile, through the International Trade Commission, the United States is usually obliged to monitor imports subject to the American economy. Therefore, the adoption of the Harmonized Tariff Schedule in regional trade plays the significant regulatory role bound to watching the imports subjected to the US. Meanwhile, since Argentina exports its beef products straight into America’s open markets, tariffs usually get considered in the process (Harmonized Tariff Schedule, n.d.). The United States regularly extends fifteen percent tariff considerations on the beef that Argentina exports to America. Hence, such tariffs imply that Argentina gets tasked with trading opportunities of providing the US with beef products, which relate to approximately twenty thousand metric tons of what Argentina can trade (Embassy of Argentina, 2015).

Reference

Embassy of Argentina in the United States of America (2015). Argentina will resume beef exports to the United States after a 15-year ban, to the benefit of both US consumers and Argentine producers. Retrieved from http://www.embassyofargentina.us/en/argentina-will-resume-beef-exports-to-the-united-states-after-a-15-year-ban-to-the-benefit-of-both-us-consumers-and-argentine-producers.html

Froman, M.B.G. (2016). 2016 national trade estimate report on foreign trade barriers. Office of the United States Trade Representative.  Retrieved from https://ustr.gov/sites/default/files/2016-NTE-Report-FINAL.pdf

Harmonized Tariff Schedule (n.d.). Basic Staged Rates Addition. Retrieved from https://hts.usitc.gov/current