International
Investment and technology, keys to the economic relationship between Argentina and Germany
The relationship between Argentina and Germany – a country to which President Javier Milei will make a working visit this weekend – is based on foreign investment, cooperation in natural resources and trade exchange, supported by bilateral agreements and joint projects to promote economic and technological development in both countries.
Milei is scheduled to travel tomorrow, Saturday, to Germany, where he will be awarded in Hamburg (north) the Hayek medal that the homonymous society awarded him due to his achievements as a “reformer”.
The next day, the Argentine president and the German Chancellor, Olaf Scholz, will hold a meeting in Berlin at the head of their respective delegations.
Germany has shown interest in cooperating with Argentina in the exploration and production of critical minerals such as lithium and copper, essential for the energy transition and the manufacture of batteries. This aligns with Germany’s efforts to diversify its sources of supply and reduce dependence on China.
In 2023, the stock of total Foreign Direct Investment (FDI) in Argentina ammounted to 128,855 million dollars (about 120,382.7 million euros), which represents 10.4% more than the previous year and 26.4% of the Gross Domestic Product (GDP), according to data from the Ministry of Foreign Affairs.
The upward trend of FDI continues in 2024, with various sectors such as lithium extraction, hydrocarbons and financial technology attracting a considerable amount of foreign investment.
Germany – an important investor in the automotive, technology and manufacturing industry – is in eighth place in FDI in Argentina, after the United States, Spain, Brazil, the Netherlands, Chile, China and Italy.
In 2023, German companies in Argentina made a significant investment in various sectors.
A survey by the Argentine-German Chamber of Industry and Commerce (AHK) and the consultancy EY Argentina revealed that 74% of German companies planned to invest more than one hundred million dollars (about 93.42 million euros) in the South American country. These investments were mainly used for fixed assets and the incorporation of technology.
Germany’s FDI stock in Argentina is mainly focused on the manufacturing (35%), mineral and oil extraction (22.3%), and retail and wholesale sectors (10.9%).
German companies such as Siemens, Volkswagen and Bayer have a strong presence in Argentina, promoting innovation and technology transfer in various industries.
Projects and cooperation in critical minerals are another key point of the economic relationship between the two countries, since Argentina is one of the main producers of lithium, essential for the manufacture of batteries, and that in 2022 exports of this element increased by 234%.
In February 2024, representatives of Germany and Argentina discussed cooperation in the supply chain of critical minerals, such as copper and lithium, with the aim of reducing dependence on China.
Regarding Argentine investment in Germany, which is less significant, companies from the South American country are beginning to explore opportunities in high-tech and renewable energy sectors.
In terms of cooperation and strategic alliances, both countries have signed bilateral agreements to encourage investment and facilitate trade. Argentina and Germany collaborate in infrastructure and technological development projects, taking advantage of the German experience in these fields.
Trade between Argentina and Germany includes Argentine exports of agricultural and mineral products, and imports of German machinery and industrial products. This exchange is fundamental for the Argentine economy and benefits both countries by diversifying their markets.
In 2022, total trade between Germany and Argentina exceeded $3.6 billion, with a growth of 8% compared to 2021.
In March 2024, Germany exported products worth 169 million euros (181 million dollars) to Argentina and imported goods for 104 million euros, resulting in a positive trade balance of 65.3 million euros (70 million dollars) for Germany.
Exports from Germany to Argentina include machinery, vehicles, chemicals and pharmaceuticals. The European nation is a key supplier of advanced technologies and industrial equipment necessary for various sectors of the Argentine economy.
Meanwhile, imports from Germany from Argentina focus on agricultural products and food, such as soybeans, wine and meat, as well as minerals.
The commercial relationship benefits from the complementarity between the economies, where Argentina provides raw materials and food, and Germany provides technology and manufactured products.
Both countries are working on closing a free trade agreement between the European Union (EU) and Mercosur, which could further enhance trade exchange and open up new business opportunities.
This agreement has been the subject of long negotiations and currently faces significant opposition from several EU member countries, especially France and Austria.
In contrast, countries such as Germany, Spain and Portugal are in favor of moving forward with the agreement, highlighting the economic benefits and the need to strengthen trade relations with Latin America.
International
The AP agency sues the Trump Government after being banned for writing Gulf of Mexico
The American press agency Associated Press (AP) announced this Friday that it has sued three members of the Donald Trump Administration after being banned from the Oval Office and the presidential plane Air Force One for not complying with the directive of calling the Gulf of Mexico the Gulf of America.
“The press and all people in the United States have the right to choose their own words and not to be retaliated for it by the Government. The Constitution does not allow the Government to control freedom of expression,” the media maintains.
In its style guide, AP decided to continue calling the Gulf of Mexico “by its original name”, still mentioning the new name chosen by Trump, since it is a body of water that shares a border with Mexico and Cuba.
The White House formally blocked AP’s access to the Oval Office and Air Force One on February 14. “We are very proud of this country and we want it to be the Gulf of America,” Trump said on Tuesday.
The agency’s lawsuit, of 18 pages and filed before a federal court in Washington DC, alleges that they have decided to take this step to claim their right to editorial independence and prevent the Executive from coercing journalists to use only a language approved by it.
Trump signed the executive order to change the name to Gulf of America on January 20, the first day of his return to power. He later named February 9 as ‘ Gulf of America Day’.
The AP complaint is specifically directed against the president’s chief of staff, Susie Wiles, his number two, Taylor Budowich, and the White House spokeswoman, Karoline Leavitt.
This Thursday, more than thirty US media asked the Government to restore AP’s participation in presidential events and not to take into account “the editorial point of view” when limiting access to the White House.
Among the signatories are the television networks Fox News and Newsmax, with a conservative tinge, in addition to other large newspapers such as The New York Times, The Washington Post, CNN, The Wall Street Journal or The Atlantic.
AP highlighted when reporting on his complaint that this Friday Trump referred to that agency as “radical left-wing lunatics”: It is “a third-rate company with a first name,” he said about it, the main one in the country and founded in 1846.
International
Buenos Aires advances legislative elections to May 18 and suspends the primaries
The Legislature of the city of Buenos Aires approved this Friday the suspension of the open, simultaneous and mandatory primary elections (PASO), a measure that, according to the deputy head of government, Clara Muzzio, “allows to save 20 billion pesos (about 18,894 million dollars)”, and advanced the legislative elections for May 18.
“The City Legislature suspended the PASO, a measure that saves $20 billion for neighbors,” Muzzio announced on Friday.
For his part, the mayor of the City, Jorge Macri, maintained that the PASO “were an expensive mechanism that only solved the problems of politicians, not of the people.”
The May 18 elections, which were originally scheduled for July, will be held through the Single Electronic Ballot system.
In that instance, the inhabitants of the city of Buenos Aires will elect their local legislators and, in October, they will have to return to the polls to define, together with the rest of the country, the composition of the chambers of Deputies and Senators.
“The fact that the elections are in May allows each Buenos Aires to decide on their own city, without being tied to national discussions,” said the mayor.
The project was approved in the Buenos Aires legislature with 55 votes in favor, 3 against and one abstention, after an agreement between the main political forces.
The suspension of the primaries in the City of Buenos Aires occurs one day after the Argentine Parliament approved the same measure at the national level.
The original project sent by the national government sought the elimination of the primary system but finally, given the lack of support for that objective, the government chose to promote an initiative that suspends them for this year.
The primary election system was first implemented in Argentina to define the candidates for the 2011 general elections, based on a political reform approved by Parliament at the end of 2009, with the aim of democratizing political representation, transparency and electoral equity.
According to the PASO system, to be qualified to compete in the general elections, candidates or lists of candidates must achieve at least 1.5% of the total votes in the primaries.
All parties are obliged to participate in the primaries, although they do not necessarily have to present more than one list of candidates to decide which one will lead to the general elections, an option for which the majority of the forces have opted in the last elections.
That is one of the reasons why the system has been questioned, among which are also its costs and the cumbersomeness of the organization.
International
Trump threatens to impose tariffs on governments that apply digital fees to US companies
The President of the United States, Donald Trump, signed an executive order on Friday that threatens to impose tariffs on foreign governments that apply digital fees to US companies, including Spain, the United Kingdom and France.
The order states that “foreign governments have exercised a growing extraterritorial authority over US companies, particularly in the technology sector,” and directly cites the taxes on digital services that “several business partners” apply since 2019.
According to the text, the Trump Administration will impose tariffs on those governments that use taxes or regulations that are “discriminatory, disproportionate or designed to transfer significant funds or intellectual property from US companies to that government or its chosen domestic entities.”
Trump delegates to the US Trade Representative the possibility of “renewing investigations” on the so-called technology fees of Spain, the United Kingdom, France, Italy, Austria and Turkey, imposed in the first term of the Republican, and if so, “take all appropriate actions”, which would include the imposition of tariffs.
“US companies will no longer sustain failed foreign economies through fines and extortionational taxes,” says the White House document, which provides for a “process” for them to “report” these “disproportionate” measures to the Commercial Representative.
He also instructs him to investigate together with the Secretaries of the Treasury and Commerce whether in the European Union or the United Kingdom the use of products or services of US companies is “required or encouraged” to “undermine freedom of expression”, political activity or, “otherwise, moderate content”.
It also suggests to the Representative, among other things, to hold “a panel” with its partners of the T-MEC (Canada and Mexico) on the tax on digital services in Canada, and identify ways to achieve a “permanent moratorium on customs duties on electronic transmissions”.
The order does not mention any specific company, but mainly affects large technology companies such as Apple, Google (subsidiary of Alphabet), Meta and Amazon, which have precisely starred in a resounded approach to President Trump since he won the elections in November.
In his first term (2017-2021), Trump ordered to investigate the digital fees to his companies abroad and threatened to apply tariffs to the six countries indicated today; taxes were imposed in the government of his successor, the Democrat Joe Biden, and subsequently suspended.
Trump signed another executive order aimed at restricting access to US technology, especially in the field of artificial intelligence, what he calls “foreign adversaries”, including Cuba, Venezuela, Iran, Russia and China.
The executive order does not specify in detail what measures will be taken to restrict the access of these “foreign adversaries” to US technology.
Under the label of “foreign adversaries”, the order identifies China, Hong Kong, Macau, Cuba, Iran, North Korea, Russia and the “regime of Venezuelan politician Nicolás Maduro”, according to the text.
Trump justifies his decision with the argument that “economic security is national security” and maintains that the country must protect its sensitive infrastructures and technologies, from artificial intelligence to semiconductors and advances in biotechnology.
The executive order focuses especially on China, pointing out that companies linked to Beijing have used investments in the US to access key technologies and that the Chinese government is taking advantage of US technology to modernize its military apparatus.
Since his return to the White House on January 20, Trump has announced several restrictions on trade with the aim of balancing the trade balance and pressuring countries such as Mexico and Canada to make concessions on immigration and efforts against drug trafficking.
It has imposed a 10% tariff on China, which is in addition to the rates already applied during its first term (2017-2021).
Trump’s new restrictions come after his predecessor, Joe Biden, took steps to limit exports of semiconductors and artificial intelligence technology to China, which led Beijing to respond with export controls on graphite, a key material for electric vehicle batteries.
The AP agency sues the Trump Government after being banned for writing Gulf of Mexico
Buenos Aires advances legislative elections to May 18 and suspends the primaries
Trump threatens to impose tariffs on governments that apply digital fees to US companies
Tec de Monterrey honors one of its students for his contribution to nanotechnology in medicine
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