Seadrill is expected to begin work for Petrobras’ in December 2022 and the contract is expected to be for a period of 1040 days.

Seadrill’s chief executive officer, Stuart Jackson told the media, “Petrobras is a long-standing and valued customer of Seadrill and signing a third contract with them this quarter is testament to our strong partnership and commitment to the Brazilian market. Seadrill is focused on growing our fleet in strategic basins where we see high growth potential, such as Brazil, where we are now the largest international drilling contractor.”

Petrobras is mulling selling its 100 percent stake in the Catua Field, in the Campos Basin, media reports said. The field is located in the waters of Espirito Santo State, around 128 kilometres offshore.

The field was discovered by Petrobras in 2003 and according to the company, the estimated stock tank original oil-in-place (STOOIP) is up to 993.82 MM oil boe.

Earlier this year, it was reported that Brazilian President Jair Bolsonaro is considering the privatisation of Petrobras. A decision, however, is yet to be taken.

Bolsonaro told a local radio station, “I want to privatise Petrobras, yes, I do. I shall see together with the economic team what we can do.”

Recently, Brazil’s Minister of the Economy Paulo Guedes also revealed that the Jair Bolsonaro led administration will privatise Petrobras within a decade.

The post Petrobras hands contract to Offshore driller Seadrill for work in the Búzios field appeared first on International Finance.

The company focuses on solving complex port operation problems, supporting navigation, optimisation, and streamlining processes. Navalport has already developed a large number of products related to waterway and pipeline transport. With a team of professionals with over 20 years of experience the company also provides innovative technological solutions in port automation, monitoring, and telemetry of maritime and river vessels.

Marcos Santiago, CEO of MRN, told the media, “We grew the team of developers and our focus right now is on these two contracts. We’ve been contacted by major players, we talked to [terminal operator] Wilson Sons, for example, and different companies and investors contacted us. But we’re taking it easy. We were going to get ready to raise new funds only in the next four months. And we want an investor who doesn’t just come in with money, but with networking.”

Navalport was founded in 2015 and is headquartered in tech hub Porto Digital, in Pernambuco. The company was selected in 2018 for Conecta, a company that focuses on the acceleration programme of the national transport confederation (CNT) in the logistics sector. Navalport also received investments from BMG UpTech along with Bossa Nova Investimentos, a micro venture capital firm.

The company also received invitations to present from port operators in other countries like Europe, and gradually started thinking about going international. Brazil has 235 ports, which is more than half of South America’s total 405 ports. According to experts, Navalport port operation problems, supporting navigation, has a very lucrative market with a potential of around $35 million in terms of revenue.

The post Navalport eyes business expansion after landing Petrobras contract appeared first on International Finance.

The pandemic has jeopardised the segment causing an unexpected surge and downfall in tonne-miles per day in 2020. Furthermore, the tonne-mile per day in the Scandinavia/Baltic to China Sea route surged 362m tonne-mile per day (tmpd) in 2019 to 843m tmpd.

Routes from South America to Asia also witnessed a surge last year to 757m tmpd and another route from west Africa to Asia witnessed a 441m tmpd surge. 

Poten & Partners told the media, “The collapse in European oil demand as a result of Covid-19 pushed record volumes of North Sea crude and fuel oil to Asia and the long distance of this voyage amplified the impact on tonne-mile demand. The increases from South America primarily originated in Brazil and Venezuela and were destined for Malaysia, Singapore and South Korea among others. Another growth area was Southeast Asia to the China Sea, which, combined with the earlier point seems to indicate that a significant portion of the crude moved from Brazil and Venezuela was transhipped to Southeast Asia and ultimately ended up in China.”

The reports indicated that the tonne-mile demand record only 11 percent slump in direct route from South America to the China Sea.

The post Tanker shipping tonne-mile demand record 5% slump in 2020 appeared first on International Finance.

Furthermore, Juan Pablo Bragadin will serve as the manager of the new office. Earlier Mr Juan Pablo Bragadin was a pro representative in Brazil. He will report to Mr Martin Smith, the company’s Head of Latam.

Mr Martin Smith, told the media, “ I’m delighted to be announcing the further expansion of our Latin American capabilities into Brazil, where we have had a representative office since 2015 and have now formalised our presence with our own office. “Juan and his team will continue to grow Pro’s capabilities in the largest re/insurance market in the region, supporting our clients with expert local insight as they adapt to remote working conditions and navigate wider economic challenges and a rapidly developing regulatory environment. There is no one size fits all approach to the re/insurance markets in Latin America – each country has different regulations and cultural approaches to conducting insurance business, as well as their own macroeconomic challenges, that make having local expertise critical to supporting clients on the ground.”

The Brazil team has secured its first project for international legacy specialist Quest through a third-party authority (TPA) run-off project. The company has been outstanding in terms of substantivity and performance over the years.

The post Pro Global eyes Latam market, opens office in Brazil appeared first on International Finance.

Finnovista predicted that Mexican fintech startups have the potential of taking over 30 percent of Mexico’s banking market in the next 10 years and this is where fintech startups in Mexico can make a difference to the common man’s life considering the archaic laws under which the banking system in the country operates.  Yet another survey revealed that the business models of a majority of the fintech startups in Mexico’s are designed to tap into the need for financial services of those sections of the society that are not part of Mexico’s formal financial system.

In short, these Mexican fintechs seek to provide affordable financial services to the unbanked or underbanked Mexicans. 20 percent of the Mexican fintechs are focused on payments and remittances while 14 percent are focused on consumer lending.  A minority of the Mexican fintech startups are focused on providing services such as credit scoring and other payments solutions including cross-border trade.

In spite of the potential it possesses, the Mexican fintech system still remains relatively small. According to a report published by Ernst Young, 36 percent of Mexicans have adopted the services provided by fintechs.  The percentage is higher when compared to a global average of 33 percent.

In Mexico, the birth of fintech startups over the past few years. has prompted many traditional financial services providers to actively become interested in getting a foothold in fintech innovation through mergers and acquisitions. BBVA Mexico – Mexico’s largest financial institution with a financial services market share of 20 percent – acquired fintech startup OpenPay in 2016. Similarly, fintech startups also rely on traditional financial institutions or banks for funds or to boost their customer base. The Mexican government has brought about a number of regulatory changes to help fintechs flourish in the country. In fact, Mexico became one of the first countries to bring in a comprehensive fintech law in 2018 to regulate the sector.

Recently, the Comisión Nacional Bancaria y de Valores – the Mexican banking regulator, revealed that 85 new fintech startups have applied for licences under its new fintech law. While over the years, traditional banks have failed to accelerate financial inclusion in Mexico, fintech startups have the potential to help achieve the government’s aim to make Mexico a cashless economy while driving higher financial inclusion.

Mexican fintech startups are on investors’ radars

A research report published by Finnovista revealed that around 63 percent of the fintech startups in Mexico have received external funding. Out of those who have agreed to take part in the research, around 62 percent of them revealed that they were in the market in search of funding. These figures highlight the role of fundraising and venture capital firms when it comes to the Mexican fintech sector.

Also, 69 percent of these startups have received funding from a third party in the market. However, only 4 percent of the total startups surveyed have raised funds of more than $10 million.  While around 18 percent of them have raised around $100,000 to $500,000, interestingly, 44 percent of them have raised investment of less than $100,000. The total investment accumulated by the Mexican fintech startups is estimated to be around $800 million.

The CEO and co-founder of Smart Lending – a Mexico-based financial services company that provides mortgage loans digitally – Bernardo Silva told International Finance that, since Mexico is one of the strongest fintech ecosystems in Latin America, a lot of external investors have their eyes on Mexico. According to him, the fintech sector in Mexico provides tremendous opportunities to investors to participate in fintech projects of various dimensions.

“As for the funding environment in Mexico, it is very competitive, the private equity investors, mainly banks or investment funds, are those who participate in the financing of new or small projects in the financial sector. In our experience, we have recently been recognised by DILA Capital, Jaguar Ventures, and other international investor angels, including founders of similar companies in the United States, securing US $80 million in capital and debt to operate and grant mortgage loans,” said Silva.

A spokesperson for Albo,  a leading Mexican challenger bank, corroborated the view that Mexican fintechs were attractive targets for investors. “A lot of funds are eager to invest in the country and fintech firms. That’s why we have seen a lot of huge investment rounds. Albo, for example, managed to raise 7.4 million dollars in a Series A investment round in January this year, the spokesperson told International Finance.

Challenges with old regulations in Mexico

Prior to the introduction of Mexico’s fintech law in 2018, the sector in Mexico was highly unregulated. Some of the conventional financial activities carried out by fintechs now such as crowdfunding, financial consultation, loans to SMEs and individuals, payments and remittances and foreign currency exchange services were unregulated.

Another problem for the Mexican fintech sector was the lack of supervision from the National Banking and Securities Commission. Neither the consumers nor the investors were provided with any kind of security despite the existence of two consumer protection bodies in the Commission for the Protection and Defence of Users of Financial Services (CONDUSEF) and the Federal Consumer Protection Office (PROFECTO).

To put things into perspective, the legislations were highly inadequate to monitor the activities carried out in the fintech sector. Even though regulators amended various laws to bring in stability and bring the fintech sector under its blanket, such attempts proved futile. These very challenges faced by the Mexican fintech sector led to the creation of the new fintech law.

What is the impact of the Fintech Law 2018?

The financial technology Institutions law (Fintech Law) was enacted on March 9, 2018 to promote financial inclusiveness in Mexico and to build a regulatory framework aimed at the fintech sector. It also aims to promote the development of financial services, regulate competition, accelerate Mexico’s financial inclusion and also position Mexico as the strongest fintech ecosystem not only in Latin America, but globally. The law also aims to promote innovation and provide testing grounds for new technology; facilitate innovation experimentation; and encourage the sharing of data between different players in the financial sector.

The CNBV, Mexico’s central bank, published certain general provisions in the Federal Official Gazette on September 10, 2018. The provisions made it mandatory for the Mexican fintech startups to follow proper documentation and licencing processes before carrying out any activities related to fintech. The provisions also gave the Mexican central bank and other authorities the ability to supervise and monitor the activities being carried out in the fintech sector.

The fintech law also created the anti-money laundering provision to prevent or detect transactions that could lead to fraud or money laundering. Despite the central bank publishing the general provisions of the fintech law, it is expected to amend or further develop the provisions of the law in the near future.

While speaking about the new fintech regulations in Mexico, co-founder and CEO of Smart Lending, Bernardo Silva told International Finance,“As far as Smart Lending is concerned, the open banking regulation being pushed through by the Mexican government could provide a huge benefit. This regulation will allow us to have equal conditions in terms of obtaining information from potential clients. This will allow us to perform a better risk analysis, to better understand their finances and, therefore, will give us the opportunity to lend to more clients and at lower rates, it will be for the benefit of the entire market.” However, according to him, the legal process of recovering a property in case of defaulting customer is arduous and requires a more balanced approach.

Albo, on the other hand, believes the new regulations are necessary but calls for improvement by better understanding the new technologies and the regulator being faster in adapting to innovation and the new initiatives and services offered by the fintech companies.

Mexican fintechs drive efficiency in financial system

Fintech startups are definitely driving efficiency when it comes to the financial system of Mexico. A Mexican can today send money to another part of the globe just by logging into his mobile phone. Smart Lending, for example, has redesigned the experience of acquiring a mortgage loan focusing on the needs of the consumer, the digitalisation of operations, and the attention to customer service by leveraging a high degree of technological and financial knowledge. “We improve and update mortgage processes and procedures that are currently frustrating, bureaucratic and slow; and that without a doubt should remain in the past,” says Smart Lending’s Silva.

“We are the only automated platform in Mexico that provides a completely online experience and we have the power to adapt the credit products based on customer needs. To mention some technological solutions, we have automatic integrations for the validation of income and credit history and we make appraisals with big databases,” added Silva.

Meanwhile to access Albo’s services, a consumer does not need to walk into the nearest branch, but all he needs to do is download Albo’s app and his bank account will be ready within the next five minutes and free of cost. Such is Albo’s business model that it does not need to charge any additional cost from its clients. While the traditional way of opening a bank account by walking up to the branch and filling up paperwork would require a minimum of 24 hours, the same can be done within five to ten minutes on Albo’s app. Same goes with applying for loans, deposits, withdrawals and transfer of funds.

Where Mexican fintechs outdo banks

Fintech startups in Mexico have been so successful because they tap into those sections of the market which are often overlooked by traditional banks. In Latin America, Mexican fintech startups have caused disruption throughout the lending, payments, trading and crowdfunding sector.

While traditional banks in Mexico have been operating in the country for a very long time, they are still not easily accessible by the unbanked or underbanked Mexicans. The very problem of access is being solved by the fintech startups. The digital products and services offered by fintech startups are easily accessible compared to products of traditional banks.

Traditional banks offer their products with high commission and long operating processes. Fintech startups such as Albo are taking on the traditional banks by providing affordable services that are accessible through a digital device.

Many fintech startups have taken advantage of the low-quality service provided at a high cost when it comes to cross-border transfer of funds. Similarly, fintech startups have also targeted the 69 percent of Mexicans who still do not have access to credit. Many startups are now offering fast and easy international money transfer services and also offering credit products at a lower and competitive rate.

Collaborate or compete with banks?

But are traditional banks willing to willing to collaborate with fintech startups? When International Finance asked the same questions to Smart Lending’s Bernardo Silva, he said that there is a huge possibility of collaboration between with traditional banks in Mexico because fintech startups could gain from these banks’ size and the scale they operate in, the way they raise capital and the cheap capital cost they handle. He revealed that Smart Lending seeks such kinds of collaboration as it would improve its product offerings.

Albo, too believes there is potential for such collaborations as its ultimate goal is to improve client experience. However, Albo did also point out that many traditional banks in Mexico currently do not have the technological infrastructure to form alliances with fintech startups. Similarly, PayU the fintech and electronic payments division of Prosus, also revealed its priority is growth and to improve Mexico’s financial ecosystem. Therefore, it is open to and actively seeking partnership opportunities. PayU is also working closely with banks in Mexico to improve its product offerings

Are digitalising banks a threat to Mexican fintechs?

While the transition of many Mexican traditional banks into the fintech sector provides an opportunity to collaborate and form alliances, it also brings along a degree of threat to the fintech startups. The size and structure of the traditional banks that are operating in the market for years might overshadow the newly formed startups. But according to SmartLending’s Bernardo Silva, the fintech startups have an edge over the traditional banks because of characteristics such as speed, convenience, and transparency.

In this regard, he told International Finance, “It is true that every day more traditional Mexican banks add similar products and services to fintech companies, they don’t want to be left behind in this technological revolution, but it’s also true that fintech’s DNA is made up of innovation, extensive use of technology and a 100 percent customer-oriented approach, which makes it difficult for banks to compete against fintech.”

While PayU, on the other hand, sees the traditional banks’ entry into the fintech sector as a possible sign. PayU believes it represents an understanding across the industry that there is a need to innovate especially in the way the players in the fintech sector deliver banking services, particularly within densely underbanked populations.  However, PayU highlights that the investment from fintech in technology is superior to that of the legacy banks as it underlines its core business approach. PayU even states that the real threat is faced by the traditional banks and not the fintech startups as technological investment is key to survive in the Mexican financial ecosystem.

Regulatory flexibility and dynamism is key for Mexican fintechs

Authorities in Mexico are not oblivious to this fact and the fintech law proves that. Even though it is at its initial stage and various amendments are anticipated, the law aims to provide a regulatory framework and protect the players in the sector. It is highly important that regulators understand the rapid changes taking place and keep themselves up to date with regards to innovation in fintech. The growth of fintech will also depend on the rules and regulations that the regulators will set and the enabling ecosystem they create.

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GlobalData’s latest report: ‘Q4 2018 Global Oil and Gas Discoveries Review – Russia and Colombia Lead with Highest Number of Discoveries’ reveals that globally 23 oil and gas discoveries were made in Q4 2018 comprising, 13 conventional oil and 10 conventional gasdiscoveries, with no unconventional discoveries in the quarter.

Regionally Asia leads with seven discoveries, followed by Europe and South America with fourdiscoveries each. The Former Soviet Union (FSU) had three discoveries, with North America and Africa having two discoveries each in the quarter. Oceania had only one conventional oildiscovery during the same period.

In terms of terrain, onshore accounted for the most with 13 discoveries, followed by shallow water followed with five discoveries. Ultra-deepwater and deepwater accounted for three and two discoveries, respectively.

Two of the oil and gas discoveries in Russia were made in the shallow water terrain and one discovery in onshore terrain, while all three discoveries in Colombia were made in the onshore terrain.

Soorya Tejomoortula, Oil & Gas Analyst, at GlobalData, said: “Russia’s two natural gas discoveries, Obskoye North (Severo-Obskoye) and PO-1, were made in the West Siberian basin and an oil discovery, Triton, was made in the Okhotsk basin. All three conventional oil discoveriesin Colombia, Acorazado-1, Danes-1, and Indico-1, are in the Llanos Orientales basin.”

The following operators: Eni SpA, Equinor Energy AS, OAO Novatek, and Oil India Limited led with two discoveries each in Q4 2018.

The post Russia, Colombia lead global oil and gas discoveries in Q4 2018 appeared first on International Finance.

In addition more than 25 sessions, workshops and other events will be held at the conference. The topics will range from Brazilian solar PV market, Latin American solar PV markets, project financing, renewable energy cooperatives, technology and inno­vations in PV equipment manufacturing to electrical energy storage.

The CEO of ABSOLAR, Dr. Rodrigo Sauaia, said: “Solar PV grows exponentially in Brazil, with a highly qualified business environment, generating employment and income in the most varied regions of the country.”

According to Ronaldo Koloszuk, President of the Board of ABSOLAR, “With the reduction in equipment prices over the recent years, along with the rising electricity tariffs and the professionalisation of the sector, solar PV energy has become an investment with very attractive return rates. This creates more and more business opportunities for our members.”

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The third edition of CBRE Asia Pacific Occupier Survey was conducted on 50 corporate real estate executives from various multinationals and Asian corporations between October and December 2017. Nearly 36% of the respondents were from companies headquartered in North America, and 64% of the respondents belonged to Europe and Asia Pacific. Key sectors including technology, media and telecommunications (30%); banking and finance; and  petroleum (22%), oil and gas (10%) were covered.

Rajesh Pandit, Head, GWS and Asset Services, CBRE India said: “With each year, India further establishes itself as one of the world’s most attractive markets for expanding occupiers. The strategies of multinationals to occupy more office space in Bangalore and emerging cities are testament to this fact.”

However, other cities such as Beijing and Guangzhou are listed under low interest based on the survey. “A perfect fusion of solid portfolio expansion, an accelerating workplace evolution and a surge in digital enablement tools is delivering a generational mindset shift in how occupiers view real estate,” Phil Rowland, CEO of Global Workplace Solutions, CBRE Asia Pacific added.

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IFM Correspondent

November 24, 2016: The UK is set for higher online Black Friday retail spending growth than the US, according to new data from Ingenico ePayments, the online and mobile division of Ingenico Group.

Ingenico ePayments’ global analysis of online retail growth from last year reveals that the estimated total amount spent online in the UK rose by 273% on Black Friday, compared to the average Friday. Enthusiasm in the United States was markedly low in comparison, with online spending only 137% higher than the average Friday that year.

Overall, the UK now spends more online per capita than the US, according to the Centre for Retail Research, and this trend is reflected on Black Friday, with UK spending growth almost double that of its transatlantic counterpart.

Besides the UK’s huge 24-hour Black Friday spike, online retail spending value was still high between Black Friday and December 31, but only 53% higher compared to the rest of 2015 – significantly lower than on Black Friday itself.

“We’ve witnessed first-hand the Black Friday migration from bricks and mortar to online, and now the momentum is shifting from the US to the UK,” said David Jimenez, Chief Revenue Officer at Ingenico ePayments. “This year, we expect to see online spending peaks on Black Friday in the UK, Cyber Monday in the US and we’ve already seen the Singles Day boom across China.” 

The UK Black Friday online spending spike of 273% was mirrored across Europe, where the average rise in total value spent was 275%, as shoppers across the continent also leaped at the chance of Black Friday discounts:

—   Germany, France and Italy saw online total spending surge more than 215%.

—   Spain and Denmark registered particularly strong performances with total transaction value rising over 690% compared to the average Friday

—   US neighbour Canada saw an impressive 580% rise in total spend

US online shoppers have instead been shopping in far greater numbers on Cyber Monday, where sales volumes last year were 60%higher than Black Friday sales. This became the biggest ecommerce day in US history, as online sales tipped over the $3 billion mark.

Momentum also appears to be building in South America; eMarketer’s research revealed that Black Friday ecommerce sales were up 38% in Brazil, South America’s largest ecommerce market; and that Cyber Monday rose even faster, by 56% compared to 2014.

Across Asia and Australasia, Black Friday is overshadowed by Singles Day, now the world’s largest shopping day, exceeding the global sales of Black Friday and Cyber Monday combined. This year’s Alibaba-led event generated more than 121bn yuan (£14bn), a rise of 32% on last year’s sales, according to the Chinese company.

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Kamilia Lahrichi

August 25, 2014: International pressure on Argentina is increasing as the World Trade Organization (WTO) ruled on August 22 that the South American country’s import restrictions breach global trade rules.

The 170-page ruling sided with the European Union, the United States and Japan who complained to the WTO in 2012 over Argentina’s licensing requirements.

Its Advance Sworn Import Declaration requires companies to secure the Argentine authorities’ approval before importing goods. This violates the General Agreement on Tariffs and Trade, which calls for automatically granting licenses to importers.

Argentina’s set of trade measures “constitutes a restriction on the importation of goods,” reads the WTO ruling. It “modifies the conditions of competition in the Argentine market, so that imported products are granted less favorable treatment than like domestic products,” it concludes.

The WTO panel of independent arbitrators was set up in January 2013 after Argentina and its trade partners failed to reach an amicable agreement.

“This case sends an important signal that protectionism is not acceptable,” said the European Union Trade Commissioner Karel de Gucht.

Argentina’s vice-minister of the economy Emmanuel Álvarez Agis said that the country would appeal the WTO ruling “immediately”. The state has 60 days to decide whether to appeal it or not.

“We will continue to protect our industry and try to export to as many markets as possible,” he explained. Argentina’s borders are “not closed to commerce but carefully cared to protect businesses,” he added.

Curbing imports has hindered foreign trade, especially for the United States and the European Union.

In 2013, the United States’ exports to the South American market totaled US$10.2 billion, down 0.7% or US$67 million, from 2012, according to data of the Office of the United States Trade Representative.

The European Union is Argentina’s largest trade partner after Brazil. It accounted for more than 16% of the country’s total trade in 2013.

No Apple or Barbie dolls for Argentinians

Since 2011, Cristina Fernández de Kirchner’s government has imposed more “harmful” trade limitations that any country in the world, according to Global Trade Alert, a platform monitoring restrictions on international trade.

The South American state enacted 121 trade barrier policies in 2011 compared to 119 for Russia and 88 for the United States.

Argentina fostered an import substitution model to protect the national economy, reduce trade deficits and create local jobs. The president hopes to replace 45% of imports with locally made products by 2020.

The 10^th “EU Report on Potentially Trade Restrictive Measures”, released in September 2013, set out that Argentina, along with Brazil, Russia and Ukraine, has applied the heaviest tariff increases since 2008.

Brazil has accounted for more than one-third of restrictions related to government procurement, followed by Argentina and India. The report also indicates that there has been a “sharp increase” of measures applied directly at the border.

Protectionist policies that Argentina implemented include non-tariff barriers such as quotas (i.e. limitation on the import and export of certain goods for some time), import permits (i.e. blocking the entry of imported products), tax breaks and preferential access to loans for Argentine products and non-automatic import licensing (i.e. linking imports to compliance with specific criteria), among others.

In the agricultural sector, for instance, the government has impeded export of meat, dairy products, corn and wheat to boost the domestic market. On August 21, Argentina decided to restrict beef exports for 15 days to thwart the surge of prices in the country.

Argentina has failed to promote exports due to policies such as “taxes or export duties […] and the lack of credits to export,” explains Sebastián Auguste, Director of the MBA program at Torcuato Di Tella University in Buenos Aires.

He also refers to “the passivity of the government to foster the integration of our products, tax burden making products less competitive, and finally the inconsistent handling of the exchange policy”.

For example, the Argentine government announced in January 2011 that 600 industries needed import licenses so as to limit and slow imports.

Other protectionist policies include requiring firms seeking to import foreign products to export the same amount of Argentinian-made products.

In addition, exports are linked to promises of investments. German carmaker Porsche was forced to commit to purchasing Malbec wine and olive oil in return for exporting about 100 cars to Argentina.

As part of its “buy local” policy, Argentina introduced a “foreign exchange trap” to restrict its citizens from buying foreign currency. Since August 2012, they have to pay a 15% tax when using their credit cards abroad in order to impel local consumption.

What impact?

The country that once was the 10^th wealthiest nation in the world has therefore become less competitive.

The World Economic Forum’s “Global Competitiveness Report 2013-2014” ranks Argentina 104 out of 148 countries. It points out that inflation, foreign currency regulations, corruption, access to financing and inefficient government bureaucracy are the most problematic factors for doing business in Argentina.

The country’s business partners “as well as [national] companies have slowed their investments [in the country] until the next government implements [more liberal economic policies],” says Carlos Gonzalez Botana, Director at Agrosud, a brokerage company for agro-industrial products based in Buenos Aires.

Foreign direct investment in Argentina from 2009 to 2013 stood at US$9 billion compared with US$80 billion for neighbouring Brazil, according to the World Bank.

“It is impossible for Argentina to comply now the [WTO] verdict and free its imports. So, it will seek to appeal to gain time,” says Mauricio Claverí, Coordinator of Analysis on Foreign trade at abeceb.com, a consultancy in Buenos Aires.

“After more than a year, which is how long the appeal can last, if [Argentina] does not adjust its trade policy, it might face the retaliation of the claimants [who] represent 36% of national exports,” he adds.

If so, the European Union, the United States and Japan could settle the conflict with the WTO’s dispute settlement body.

From Buenos Aires’ standpoint, if it conforms to international trade rules, it will be compelled to have the same economic strategy for all commercial partners. It could not favour the main ones – Brazil and China.

In any case, “we will not see a visible impact of this verdict on the national economy for the rest of the year nor the main part of 2015,” says Mr. Claverí.

Falling from Charybdis to Scylla

In reality, Argentina has to open up its economy to avoid being further marginalised in international markets. The WTO’s ruling comes a few weeks after the country was declared in selective default for the eighth time in its history.

Last week, a court in the United States ruled “illegal” Argentina’s exit plan to pay its debt. The nation is battling with North American investment funds because it failed to pay its US$1.5 billion debt on July 30.

As Buenos Aires is a pariah of international capital markets and suffers from a shortage of dollars, it relies on exports to finance its imports.

“A country is like a company: it should buy and sell. Let’s not forget that Argentina is in a very delicate [economic] situation,” explains Mr. Botana.

The economy is in recession with a 10.9% inflation since January 2014, the devaluation of the peso since the beginning of the year, declining consumption and investment, and rising unemployment rate.

The economic outlook is gloomy as well.

By the end of the year, Argentina should register a drop in exports of nearly 10% (reaching US$74 billion) whereas Latin America’s exports should rise by 5.1%, according to estimates of Abeceb.com. The trend should persist in 2015 with a 2% fall in exports.

The consultancy also forecasts that Argentina will have in 2014 the biggest budget deficit of the last 30 years due to its interventionist monetary policy.

Jorge Capitanich, Chief of the Cabinet of Ministers, acknowledged earlier this month that the country faces difficulties to export.

Hopes on new government

There is hope, however, that a newly elected government in October 2015 will curtail Argentina’s heavy-handed trade restrictions.

“The next government has much to do, starting by promoting exports, reducing the tax burden, stimulating investment and taking a more consistent exchange rate policy,” says Mr. Auguste.

“I would start by improving [Argentina’s] profile as an exporter and then develop a more consistent policy on imports,” he adds.

Mr. Botana explains that the next government should also freeze public spending and advance clear investment policies to prop up the economy.

“It does not matter if this is a government from the left, the right or the centre, what it needs is a long-term national policy with clear objectives of growth and commercial exchange with the rest of the world,” he says.

Another Story: Poverty keeps growing in Buenos Aires as Argentina wakes up in default

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