Integration into global markets can improve the efficiency of the Argentine economy, providing opportunities for private investment to flourish and for the associated benefits to accrue to consumers. Trade, investment, and competition policies are particularly relevant to this integration, and share a common attribute: they can motivate firms to improve resource allocation and productivity while they integrate into international markets. When combined properly, trade, investment, and competition policies can reinforce each other to generate growth dividends. It is only when implemented in a coherent way that reforms to the three areas can bring positive effects to the economy as a whole, including better jobs and variety of goods and services at lower prices for consumers.
The report Strengthening Argentina’s Integration into the Global Economy follows a three-pronged approach. First, it gives a robust set of empirical results that draw from both general and partial equilibrium exercises to assess the potential impacts from trade, competition, and investment policy reforms. Second, it offers a new comparative review of international experience with structural microeconomic reform programs to bring insights for Argentina’s design and sequencing of such reforms. Finally, it offers individual reform recommendations for each institution in charge of the three respective policy areas. It does this in an integrated step-by-step framework from the perspective of a firm to illustrate the critical challenges Argentine companies face in investment and internationalization. The report was presented in Buenos Aires during the WTO ministerial in December 2017. This upcoming event aims to continue the discussion and will also cover the reform progress made by the government in the last months.