Argentine Trade under Wartime Conditions

Abstract

HE political situation in the Argentine Republic has obscured an interesting economic one: for the last two or three years the country has been enjoying unprecedented prosperity. A moderate though generally steady upward trend that began in I932' has increased at a noticeably greater rate since I940. In particular, the foreign trade balance has built up rapidly in Argentina's favor since the war began. Official figures for the first io months of 1943 give a total value of exports of 1,756,389,ooo Argentine pesos (the present exchange value of the peso is about $0.25 United States currency), as against a total value of imports of 780,iI6,ooo pesos, a balance in favor of Argentina of 976,273,ooo pesos. This is in marked contrast with a favorable balance of some 392,000,000 pesos during the first io months of 1942.2 The influences of the war on Argentine economy may be considered under two headings:3 (i) transformations in the structure of national production and (2) transformations in the structure of foreign trade. The first of these involves the production of an immense amount of food to satisfy the needs of distant populations and combatants-for the United Nations are fighting their European battle partly on Argentine meats and other foodstuffs. It involves also the expansion of industrial activities and the increase of domestic consumption. The second influence involves complete reorganization of the foreign commerce, because of the disappearance of traditional providers and consumers. Argentina can no longer obtain certain imports, nor can it ship the same goods to the same customers by the same means. The country has therefore found it necessary to build up its own merchant marine. Further, Argentina has paid off a part of its external debt and has amassed immense credit balances.