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T H E P R I M E R U S P A R A D I G M
Looking for Agribusiness Opportunities?
Try Argentina
mariano e. carricart is a partner with Fornieles Abogados and
focuses his legal practice on cross-border transaction, mergers
and acquisitions, real estate and agribusiness. He also has vast
experience in dealing with complex legal structures and foreign
investments in Argentina.
Fornieles Abogados SRL
Leandro N. Alem 712, 10th Floor
Buenos Aires C1001AAP
Argentina
+541143137000 Phone
+541143137001 Fax
mec@fornielesabogados.com.ar
www.fornielesabogados.com.ar
Mariano E. Carricart
As you may already know, Argentina
is well known as a massive country
with a considerable amount of natural
resources. Therefore, this country offers
great opportunities for local and foreign
investments, particularly in the agribusi-
ness sector.
In Argentina, agricultural concerns
represent the main economic activity
with international recognition. In addi-
tion, historically Argentina has been an
important player in the world market,
being one of the principal producers and
exporters of grains, commodities and
food. We strongly believe that the results
of an agricultural concern performed
under correctly and professionally
organized structures can be outstanding
and will continue to be attractive to any
investor.
Due to the continued high growth
rates of the world population, the food in-
dustry promises more sustained growth.
According to the Food and Agriculture
Organization of the United Nations, the
price of food has been increasing in
recent years and will continue this trend,
having reached on December 2010 its
historical peak.
Considering the expanse and quality
of the Argentine soil, it could be asserted
that Argentina has the natural resources
to become, together with Brazil, the
United States and China, the principal
suppliers of food in the world.
It is important to point out that thanks
to the modern technologies applied to
agriculture exploitation, traditional risks
have been considerably reduced and
production has increased correspond-
ingly. In the last 15 years, productivity
has increased threefold. Furthermore,
in recent years agricultural production
in Argentina highlights the growth of
oilseed. Such circumstances have gener-
ated a friendly environment to investors.
Finally, we understand that invest-
ments under a proper structure to-
gether with: (i) advanced technology,
(ii) adequate geographical and climate
conditions, and (iii) an efficient manage-
ment, constitute the factors which enable
investors to obtain high rates of return
from their investments.
International Financial Situation
After the 2008 international crisis,
investors ceased to trust in international
markets and particularly in certain finan-
cial products. Therefore, there is a trend
to invest in the productive sector linked
with the real economy.
In addition, after the crisis, the big
deficits recorded by the United States
and Europe have resulted in a reduction
in financial aid from the governments to
the producers of such economies. As a
result, the prices of commodities have
had a sustained growth as previously
stated.
Vehicles of Investment
If an investor is interested in doing busi-
ness in the agriculture sector, Argentina
could be the right place. In general,
investments are organized through a
company or trusts. It will depend very
much on how the vehicle obtains the
funds to run the business. If the investor
chooses to set up a company, there are
basically two alternatives: an S.A. or an
SRL. In either case, the taxes applicable
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