The diplomatic relationship between Argentina and Spain came into tension this Sunday after the president Javier Milei He called his European counterpart “sleazy”, Pedro Sanchez, and “corrupt” his wife. In monetary terms, the conflict could escalate in relevance since The Iberian country is one of the main investors in national territory and one of the most important trading partners within the European Union.
The researcher and master in International Business Relations, Federico Vaccarezza, detailed in dialogue with Ambit that Spain is the most important European investor in Argentina, with a stock greater than €15 billion. The specialist explained that most of the investments come from the financial sector, with the participation of firms such as Banco Santander or BBVAbut that agreements are also verified in energy, tourism and telecommunications.
“It is neither more nor less than the country’s business bridge in Europe. Despite the tensions over YPF/Repsol or Aerolíneas Argentinas, the situation was rebuilt because dialogue, diplomacy and shared history have always weighed much more “, he noted.
In commercial terms, the weight of the bilateral relationship is somewhat less. Both exports to Spain and imports from that country explain close to 2% of the national total. However, Within trade with the European Union it is a relevant player since it is the second most important destination for Argentine products and is positioned fourth in the table of suppliers of imported items.
The results of the scale between both nations show a constant surplus for Argentina throughout the last decadealthough in 2023 the positive balance was reduced to US$180 million, According to INDEC data, the lowest figure since 2018. This was due to the fact that exports fell by 16% and imports remained almost constant in annual terms.
In 2023, sales to the European country totaled about US$1,441 million. Around 80% of the total exported is usually distributed between soy derivatives (mainly waste and oil) and fish products (prawns, hake fillets and boats, mainly). Within the remaining 20%, shipments of sunflower and foods such as rice, legumes and peanuts stand out.
Meanwhile, imports accumulated about US$1,261 million. In this case the product basket is quite diversified, particularly highlighting chemicals and petrochemicals (mainly fertilizers), auto parts and others Petroleum derivatives (such as tar, gasoline and fuel oil), which account for close to 40% of purchases. Imports from the pharmaceutical industry (medicines and vaccines) and the steel industry can also be highlighted, which explain more than 10% of the total.
Regarding the companies that participate in bilateral trade, most of the exporters belong to the sector agro-industrial and fishing. On the importing side, companies in the automotive, energy and steel sectors lead.
“Today the Argentine government is looking for more investments than commercial opening. Commercial operations are not so linked to these political events. But it would be necessary to see if the conflict cannot affect investments since today Spain is the second main foreign investor in Argentina, behind the United States.“, expressed to this medium the President of ICC Argentina and Director of the International Economy Committee of CARI, Marcelo Elizondo.
Elizondo added that Spain always shows a propensity to invest in both Argentina and Latin America, fundamentally within the sector of services such as banks, insurance and telecommunications. However, he clarified that “Investors look more at the medium and long term” when it comes to placing bets in the country, which is why “policies like the Bases Law are more important than these sparks between presidents.”
In the last hours, the relationship with Spain added another negative chapter since the Sánchez government decided to withdraw its ambassador in Argentina. On behalf of the Argentine government, spokesperson Manuel Adorni, maintained that It is a personal matter between leaders but “there is no diplomatic conflict.”
Source: Ambito
