MERCOSUR, a 1991 customs union which integrates Argentina, Brazil, Paraguay, and Uruguay, took effect January 1, 1995. "Four-plus-one" free trade agreements between the MERCOSUR countries and Chile and Bolivia took effect October 1, 1996, and April 1, 1997, respectively. MERCOSUR is currently negotiating association arrangements with other Andean countries and with Mexico, and MERCOSUR members are participating as one body in negotiations over a free trade area of the Americas.

In the WTO Uruguay Round Trade Agreement, Argentina committed to establish a 35-percent import tariff ceiling for agricultural products, with an additional 3 percent "statistical tax." Argentine-applied duties are currently well below these limits. Duties on trade within MERCOSUR are generally zero, and for non-MERCOSUR countries, Argentina generally applies the common external tariffs of MERCOSUR, which for agricultural goods do not exceed 20 percent.

Most Argentine agricultural exports benefit from a system of export rebates. These rebates are an effort to return part of the taxes incurred in the different production and marketing stages. Rebates range from 1.35 to 10 percent, the maximum allowable. There are no rebates on exports to MERCOSUR countries.

Reference
Foreign Agricultural Service, Agricultural Situation Report, Argentina.

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page updated: August 26, 2002