US Exports to Argentina Boom in 2008

Fuel Oil Among Fastest-Growing American Imports into the Argentine

© Daniel Workman

Mar 4, 2009

With a population of 40.5 million, Argentina is the third largest South American country trailing only Brazil and Colombia.

Argentina grew its annual imports from America by 28.7% to US$7.5 billion in 2008, up 122.5% since 2004. Argentine exports to America rose 29.7% last year to $5.8 billion, a 55.5% increase from the 2004 amount.

Overall, the U.S. improved its annual trade surplus with Argentina by 25.4% to $1.7 billion last year. 2008 results represent a 580.2% improvement from America’s $357-million trade deficit with Argentina in 2004.

Argentina’s Top Imports from America

Below are the top ten goods imported from the USA into Argentina for 2008.

1. Fuel oil … US$652.4 million, up 232.4% from 2007 (8.7% of American imported goods)
2. Organic chemicals … $580.9 million, up 15.1% (7.7%)
3. Computer accessories … $409.8 million, up 7% (5.4%)
4. Telecommunications equipment … $330 million, up 29.4% (4.4%)
5. Plastic materials … $322.5 million, up 6.8% (4.3%)
6. Chemicals used as fertilizers … $292.9 million, up 17.4% (3.9%)
7. Industrial engines … $261.4 million, up 66.5% (3.5%)
8. Computers … $251.7 million, up 21.7% (3.3%)
9. Drilling & oilfield equipment … $237 million, up 57.1% (3.1%)
10. Generators … $235 million, up 191.1% (3.1%).

Fastest-Growing Argentine Imports from America

The following are 10 of the fastest-growing U.S. imports into Argentina last year.

1. Non-metallic minerals … US$16.3 million, up 429.7% from 2007
2. Fuel oil … $652.4 million, up 232.4%
3. Generators … $235 million, up 191.1%
4. Materials handling equipment … $124.2 million, up 110.6%
5. Industrial rubber products … $22.6 million, up 87.3%
6. Toys, games & sporting goods … $53.7 million, up 81.8%
7. Industrial engines … $261.4 million, up 66.5%
8. Drilling & oilfield equipment … $237 million, up 57.1%
9. Wood, glass & plastic … $25.4 million, up 56.6%
10. Food & tobacco machinery … $37.1 million, up 50.9%.

Argentina’s Exports to America

Oil and organic chemicals accounted for over 50% of Argentine exports to the U.S. in 2008.

1. Crude oil … US$896.6 million, up 6.8% from 2007 (15.4% of Argentine exports to USA)
2. Industrial organic chemicals … $891.1 million, up 527.2% (15.3%)
3. Fuel oil … $664.7 million, up 5.6% (11.4%)
4. Other petroleum products … $564.2 million, up 30.5% (9.7%)
5. Fruits including frozen juices … $335.6 million, up 4% (5.8%)
6. Bauxite & aluminum … $267.3 million, up 68.8% (4.6%)
7. Drilling & oil field equipment … $220.5 million, up 169.5% (3.8%)
8. Wine and related products … $184.7 million, up 38.6% (3.2%)
9. Tobacco, waxes & non-food oils … $176.9 million, up 14.8% (3%)
10. Food oils & oilseeds … $108.2 million, up 26.2% (1.9%).

Fastest-Growing Argentine Exports to America

Drilling & oil field equipment was among the top 10 fastest growing Argentine exports to USA in 2008. At the same time, America exported back into Argentina even $237 million worth of that same product category.

1. Industrial organic chemicals … US$891.1 million, up 527.2% from 2007
2. Drilling & oil field equipment … $220.5 million, up 169.5%
3. Iron & steel products, except advanced … $48.4 million, up 113.7%
4. Liquified petroleum gases … $23.3 million, up 99%
5. Dairy products & eggs … $56.5 million, up 89.1%
6. Unmanufactured steelmaking & ferroalloying materials … $26.2 million, up 78.2%
7. Bauxite & aluminum … $267.3 million, up 68.8%
8. Nuts & preparations … $27 million, up 59.2%
9. Cane & beet sugar … $19.4 million, up 58.1%
10. Farming materials, including farm animals … $106.2 million, up 57.5%.

Possible Duplication of Resource Allocation

One can understand the trade of exported California wine for imported Argentine vintages. However, the duplication of exports and imports for fuel oil and oil drilling equipment is less clear.

It would appear to be more efficient for America and Argentina to first service its home market demand. Each nation is supposed to specialize in making goods where it has a competitive advantage, like superior technology or lower labor costs.

In other words, why wouldn’t Argentina use its own fuel oil rather than ship barrels of the stuff to America only to then import fuel oil from the U.S. that the South American nation apparently needed anyways?

Sources for this Article

This article presents independent calculations and insights based on data drawn from the CIA World Factbook and the U.S. Census Bureau – Foreign Trade Statistics.

Andes Mountain in Argentina

Print Article

View All Articles

How to subscribe to feeds