During the first seven months of 2023, Argentine exports totaled 39,534 million, which meant a drop of 24.2% compared to the same period of the previous year, while imports totaled 44,676 million with a decrease of 10.1%. The commercial balance showed a negative balance of 5,142 million. This was mainly due to the fall in the amounts of external sales of primary products – soybeans, corn, wheat and sunflower – as a result of the drought, where the estimated loss is USD 20,000 million. The loss of collection as export rights directly affected the reserves, conditioning the functioning of the macroeconomy, with great difficulties in being able to sustain the imports of inputs that are necessary for the industry, among them an important range of intermediate goods and capital. Let us remember that the National Constitution assigns the power to the National Congress to legislate on customs matters. At the same time, the magna carta indicates that it is the power of the upper and lower chamber to establish import and export rights. (Article 75 Paragraph 1).
Due to the agricultural crisis, from the Secretary of Agriculture, Livestock and Fisheries of the NationSome measures were promoted, such as the reduction of withholdings for regional economies and the creation of a common fund to assist producers of some primary products, directly affected by drought. It is still evident the dependence of the national external sector on soybeans and their derivatives, their quantities and international prices. This is a difficulty that must begin to be reversed in the medium and long term, encouraging investment in some strategic sectors such as energy and mining.
Despite the fall in the primary goods and manufacturing sector, there was growth in the “Fuels and Energy” conglomerate. Among them, the sales of oils crude oil (1.887 million), gold (1,281 million), natural gas (577 million) and lithium carbonate (421 million). Lithium exports grew 40% year-on-year, the fastest growing for the sector.
A report from the Rosario Stock Exchange, indicates that the lithium complex could be the fifth Argentine export complex before the end of the decade. The work carried out by Guido D`Angelo and Emilce Terrè indicates that the formidable volume of investments could multiply lithium exports tenfold in the coming years. The Lithium Complex went from being 6% of mining exports in 2021 to 18% in 2022, with projections to continue growing in 2023.
By 2025, it could export more than USD 7 billion. It is worth noting that this value is estimated by taking the average FOB export prices of lithium carbonate for the first half of 2023 and using the tentative production start dates of the projects, both factors subject to change. Of the 49 lithium projects in portfolio in Argentina, three are already producing and exporting. This year two more projects should be added to production. Two more projects are under construction and between pre-feasibility and advanced explorations, 8 more projects are added to expand Argentine litiferous development. It is important to highlight that all the projects, before their production, already generate foreign investment and employment in our country, as the prospecting and exploration of brines advances. And so far only talking about direct employment.
For two decades, mining has been an uninterrupted contributor to production, net exports and employment for the national economy. Historically, gold and silver have been the protagonists of Argentine mining exports. However, the Lithium Complex went from being 6% of mining exports in 2021 to 18% in 2022. The global demand for lithium It is a key opportunity for the country, and it should be an incentive to allow the sector to continue producing and exporting added value. As long as the investment path continues to progress and the conditions for deepening market development continue to exist, Argentine lithium hopes to advance even further and consolidate its enormous contribution to the Argentine economy.
BRICS+ Honorary Ambassador in Argentina
Source: Ambito
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