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Argentina Among Top 10 Florida Export Markets, but Growth Stalls in 2000 Foreign debt was about 51% of GDP, or about $150 billion, in 1998 and short-term debt was $31 billion. Debt service equals about 85% of exports; as the World Bank states, "the country's export base is small so that total external debt represents more than four times the annual base of exports of goods and services." Argentina has begun to correct this imbalance in recent years, with export growth in the double digits due to the opening of the Brazilian and other MERCOSUR markets. Despite these gains, the World Bank estimates that the poverty rate is still about 29% in urban areas and even higher in rural areas of the country. The bank is a major lender to Argentina, with 43 active projects as of mid 2000 for a total of $7.2 billion in commitments and $3.2 billion undisbursed. It plans to increase its average annual lending to $3 billion for the 2001-2004 period. Prolonged and sputtering recovery from the 1999 recession has caused Argentina's lower income classes and some politicians to pressure President de la Rua to change his economic policies. Searching for a solution, on March 25 he appointed Domingo Cavallo (who served under President Menem) as economics minister. On March 29, the Senate granted the government special powers to restructure the economy. Florida Exports to
Argentina The export item with the largest increase in value in 1999 was electrical apparatus for line telephony (which grew by $50.5 million, or 64.4%), followed by transmission apparatus for radiotelephony (up $48 million, or 22.5%) and oscilloscopes, spectrum analyzers etc. (an increase of $6.9 million, or 55.3%). A new export took its place among the top 10 in change in value: semichemical wood pulp, at $3.2 million. The bottom 10 exports in change in value were led by ADP machines, which decreased by $123.6 million (-35.7%); followed by parts and accessories for tractors, at -$99 million (-67.6%); aircraft, -$44.2 million (-74%); and insecticides, rodenticides, etc., -$21.6 million (-81.2%). The largest percentage drop was by parts and accessories for machines and appliances, at -91.7% (-$9.5 million). In first semester 2000, Florida exports had a total value of $992.2 million, or 49.7% of 1999 full year exports, indicating that no significant increase could be expected for 2000. The top 20 exports represented 71% ($704.9 million) of the total. The leading exports were parts and accessories for typewriters, at $157.5 million; electrical apparatus for line telephony, at $111.8 million (20% of Florida exports of this item; while Florida exports grew by 6.9%, exports to Argentina grew 100%); ADP machines, at $106.8 million, and transmission apparatus for radiotelephony, at $93 million. Parts and accessories for tractors grew by 141%, to $48.2 million. The export with the largest increase in value in first semester 2000 was electrical apparatus for line telephony, which increased by $56 million (100%). It was followed by parts and accessories for tractors ($28.2 million); parts and accessories for typewriters ($23.3 million, or 17.4%); and aircraft ($9.2 million, or 149%). The biggest percentage increase was achieved by electrical integrated circuits (160.9%, or $9.8 million). The 10 exports that decreased the most in value were: parts of balloons, dirigibles etc. (-$22.9 million, or -67.1%); oscilloscopes, spectrum analyzers, etc. (-$7.9 million, or -54.8%); ADP machines (-$5.8 million, or -5.2%); and machines and mechanical appliances (-$4.6 million, or -66.4%). The biggest percentage drop was by polycarboxylic acids (-99.8%, or -$4 million). Florida Imports from
Argentina The Florida imports from Argentina showing the largest change in value in 1999 were seats, followed by the two new imports-petroleum oils and flat-rolled iron-and meat from bovine animals. In fifth and sixth place were two imports with large percentage increases: hormones, 248.9% (a $3.8 million increase to $5.2 million) and parts and accessories for tractors, 356.7% (a $2.9 million increase to $3.7 million). The ten imports showing the largest decrease in value in 1999 were: bovine or equine leather, -$14.4 million (-8.9%, but still a leading import [see above]); corn, -$7.8 million (-46.7%); exports of articles imported for repairs, -$6.2 million (-14.1%); heterocyclic compounds, -$5.5 million (-42.9%); and fish fillets, -$4 million (-41.2%). The largest percentage decrease was by tobacco, -99.3% (-$3.4 million). Florida imports from Argentina in first semester 2000 totaled $300 million, or 62.9% of total 1999 imports, indicating a probable increase for the year. The top 20 imports accounted for 89.6% of the total. The top four imports, which accounted for 76% of the top 20 imports, were: bovine or equine leather, at $82.90 million; seats, at $57.6 million; petroleum oils, at $42.6 million; and export of articles imported for repairs, at $21.1 million. These were followed by fruit juices, at $14.1 million, and corn, at $9.5 million. A new import, yachts and other vessels, appeared in eighth place at $6.2 million. The Florida imports with the biggest change in value in first semester 2000 were the same as those listed above: petroleum oils (+$36.5 million), seats (+$18 million), bovine and equine leather (+$16.4 million), and yachts (+$6.2 million). Another new import in the top 10 in change in value was enzymes, at $1.3 million. Meat of bovine animals (fresh) showed a large percentage increase: 460.5% (to $3.6 million). The Florida imports from Argentina showing the biggest decrease in value were: pneumatic tires, -$7.3 million (-91%); hormones, -$3 million (-76.4%); onions, shallots, garlic, etc., -$3 million (-63.5%); and fruit juices, -$1.9 million (-12%). The largest percentage decrease was 92.1%, for records, tapes and other recorded media (-$1.2 million). FIU Center for Banking and Financial Institutions www.worldbank.org - www.imf.org - www.floridabusiness.com - www.latintrade.com
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