European Commission Vice-President Antonio Tajani holds a meeting with the press yesterday at a hotel in downtown Buenos Aires.
Herald Staff
European Commision vice-president praises agreement with the Paris Club
After reaching a compensation agreement with Repsol over the expropriation of a majority stake in YPF and sealing a deal with defaulted Paris Club debt, Argentina “changed” and “opened a door and a window” to investment from European companies in the country, European Commission Vice-President Antonio Tajani said yesterday.
Tajani, who arrived yesterday in Buenos Aires with a delegation of European business people, spoke highly of the country’s investment climate, noting that “Repsol is the past” and “Mercosur the future.”
Although foreign companies have long complained about government policies under President Cristina Fernández de Kirchner, things have changed. The country “is very different from the Argentina of two years ago,” Tajani said.
Sealing the deal with the Paris Club means “European companies will have a wider access to credit,” Tajani said. “They can obtain funds from the European Investment Bank to carry out small or large projects.”
The European Investment Bank makes as much as 2.3 billion euros available for projects by small- and medium-sized companies abroad.”
If there was a message that Tajani pushed once and again during his talk yesterday was that Europe had noticed a clear pro-market shift in the government.
“We came here to do business and create joint ventures between European and Argentine companies. A lot can be done over the next few years,” Tajani told reporters yesterday before meeting with several government officials. “Things have changed and we are here reflecting that change. Argentina is a priority to us.”
Companies have long complained about a lack of judicial protection in Argentina, but Tajani yesterday was confident that was a thing of the past due to “the political change” that had become evident in the administration recently.
After the YPF expropriation, “companies were afraid to invest in Argentina but now everything has changed,” Tajani said, who highlighted the government is currently sending a message to Europe of “legal certainties.”
He described these signs as “a priority for European companies. They were afraid of investing here but now everything is different. It’s a very positive political change.”
In fact, Tajani said, it was business leaders who “asked us to come here because there is interest to invest in the country.”
Despite the general optimism, Tajani highlighted there are some pending aspects to be solved such as the limits imposed by the federal government on the expatriation of profits. The EU official said he “will talk with the government about that problem,” but emphasized he was optimistic the situation would change in the near future, noting that “political will is the most important thing.”
At the same time, Tajani put the ball in Argentina’s court to solve the current trade dispute with Europe over biodiesel. The World Trade Organization recently agreed to Argentina’s request to form a commission that will judge whether the European Union’s anti-dumping tariffs imposed on biodiesel violate global trade rules.
“Argentina was entitled to go to the WTO but we can try to reach an agreement by talking with each other. Nevertheless, it’s Argentina who should offer a solution since it’s the affected party on this issue. A problem can always be solved with dialogue between political leaders,” Tajani said.
Mercosur deal
Tajani also expressed optimism that the European trade bloc would be able to seal a free trade agreement with the Mercosur bloc in the near future as both blocs are likely to exchange their final offers in July.
The EU official said his bloc is “waiting” for Mercosur to finish its offer, noting he was “in favour of the agreement.”
“We want to work with Mercosur and we are waiting for the bloc’s proposal. All the member countries are currently talking with one another. We are in favour of reaching an agreement,” Tajani said.
Ensuring preferential access to the European market could translate into a big boost to Mercosur’s economies, considering the EU is the bloc’s first trading partner, accounting for 20 percent of its total trade. According to an independent study touted by the European Commission, Mercosur would experience an overall GDP growth of up to 3 billion euros and a 40 percent increase in exports.
Tajani brought a delegation of business leaders interested in investment opportunities in the construction, environment, energy, agriculture and several industrial sectors.
The European leader also met yesterday with Cabinet Chief Jorge Capitanich, Economy Minister Axel Kicillof and Industry Minister Débora Giorgi. He also inaugurated the EuroChamber, which will promote investment in Argentina, alongside Foreign Minister Héctor Timerman.
Nevertheless, he explained yesterday’s visit was only “exploratory and political” and will be followed by a more specifically commercial visit in “one or two months” that will be focused on specific sectors.
It marked the second time Tajani has visited to Argentina in recent years, following a trip in December 2011. He also held a meeting with Fernández de Kirchner during Chilean President Michelle Bachelet’s inauguration in March.
@ferminkoop
Herald Staff
European Commision vice-president praises agreement with the Paris Club
After reaching a compensation agreement with Repsol over the expropriation of a majority stake in YPF and sealing a deal with defaulted Paris Club debt, Argentina “changed” and “opened a door and a window” to investment from European companies in the country, European Commission Vice-President Antonio Tajani said yesterday.
Tajani, who arrived yesterday in Buenos Aires with a delegation of European business people, spoke highly of the country’s investment climate, noting that “Repsol is the past” and “Mercosur the future.”
Although foreign companies have long complained about government policies under President Cristina Fernández de Kirchner, things have changed. The country “is very different from the Argentina of two years ago,” Tajani said.
Sealing the deal with the Paris Club means “European companies will have a wider access to credit,” Tajani said. “They can obtain funds from the European Investment Bank to carry out small or large projects.”
The European Investment Bank makes as much as 2.3 billion euros available for projects by small- and medium-sized companies abroad.”
If there was a message that Tajani pushed once and again during his talk yesterday was that Europe had noticed a clear pro-market shift in the government.
“We came here to do business and create joint ventures between European and Argentine companies. A lot can be done over the next few years,” Tajani told reporters yesterday before meeting with several government officials. “Things have changed and we are here reflecting that change. Argentina is a priority to us.”
Companies have long complained about a lack of judicial protection in Argentina, but Tajani yesterday was confident that was a thing of the past due to “the political change” that had become evident in the administration recently.
After the YPF expropriation, “companies were afraid to invest in Argentina but now everything has changed,” Tajani said, who highlighted the government is currently sending a message to Europe of “legal certainties.”
He described these signs as “a priority for European companies. They were afraid of investing here but now everything is different. It’s a very positive political change.”
In fact, Tajani said, it was business leaders who “asked us to come here because there is interest to invest in the country.”
Despite the general optimism, Tajani highlighted there are some pending aspects to be solved such as the limits imposed by the federal government on the expatriation of profits. The EU official said he “will talk with the government about that problem,” but emphasized he was optimistic the situation would change in the near future, noting that “political will is the most important thing.”
At the same time, Tajani put the ball in Argentina’s court to solve the current trade dispute with Europe over biodiesel. The World Trade Organization recently agreed to Argentina’s request to form a commission that will judge whether the European Union’s anti-dumping tariffs imposed on biodiesel violate global trade rules.
“Argentina was entitled to go to the WTO but we can try to reach an agreement by talking with each other. Nevertheless, it’s Argentina who should offer a solution since it’s the affected party on this issue. A problem can always be solved with dialogue between political leaders,” Tajani said.
Mercosur deal
Tajani also expressed optimism that the European trade bloc would be able to seal a free trade agreement with the Mercosur bloc in the near future as both blocs are likely to exchange their final offers in July.
The EU official said his bloc is “waiting” for Mercosur to finish its offer, noting he was “in favour of the agreement.”
“We want to work with Mercosur and we are waiting for the bloc’s proposal. All the member countries are currently talking with one another. We are in favour of reaching an agreement,” Tajani said.
Ensuring preferential access to the European market could translate into a big boost to Mercosur’s economies, considering the EU is the bloc’s first trading partner, accounting for 20 percent of its total trade. According to an independent study touted by the European Commission, Mercosur would experience an overall GDP growth of up to 3 billion euros and a 40 percent increase in exports.
Tajani brought a delegation of business leaders interested in investment opportunities in the construction, environment, energy, agriculture and several industrial sectors.
The European leader also met yesterday with Cabinet Chief Jorge Capitanich, Economy Minister Axel Kicillof and Industry Minister Débora Giorgi. He also inaugurated the EuroChamber, which will promote investment in Argentina, alongside Foreign Minister Héctor Timerman.
Nevertheless, he explained yesterday’s visit was only “exploratory and political” and will be followed by a more specifically commercial visit in “one or two months” that will be focused on specific sectors.
It marked the second time Tajani has visited to Argentina in recent years, following a trip in December 2011. He also held a meeting with Fernández de Kirchner during Chilean President Michelle Bachelet’s inauguration in March.
@ferminkoop
