Back

Weekly Report - 05 January 2012 (WR-12-01)

TRACKING TRENDS

ARGENTINA | 2012 Budget. The ruling Frente para la Victoria (FPV) and its allies in the senate approved the 2012 budget by 44:26 on 21 December, turning it into law as it had already been approved by the lower chamber. The budget allows for total spending worth Arg$505.13bn (US$117.22bn), forecasts inflation of 9.2%, economic growth of 5.1%, allows for the use of US$5.67bn to service the foreign debt and estimates an average peso/dollar exchange rate of Arg$4.40/US$.

ARGENTINA | Anti-terrorism law. President Cristina Fernández promulgated Law 26,734, the so-called anti-terrorism law, on 28 December. The passage of the law had been requested by the Financial Action Task Force (FATF) to combat money-laundering and terrorist-financing. However, the extremely vague wording of the article reforming the penal code triggered criticisms from both pro- and anti-government corners, who say the law could be used to criminalise social protests and persecute political opponents.

URUGUAY | Export record. Uruguay smashed its export record in 2011. Exports totalled US$8.02bn, up 18.5% on 2010, according to official figures. It is the second year in a row that Uruguay has broken its previous export record. Once again, however, exports were outstripped by imports, which increased by 23.5% on 2010 to US$8.57bn last year. Brazil is Uruguay’s main trading partner, taking 20.3%, or US$1.63bn, of total exports. China is the second largest recipient of Uruguayan exports, accounting for US$665m, up 78.3% on 2010, ahead of Argentina, with 7.3%, or US$588m. Frozen meat was the biggest single export, amounting to US$979m, 12.2% of the total, followed by soya (10.7%, US$858m) and rice (5.9%, US$475m).
The government of President José Mujica also received a boost last month when the Organisation for Economic Co-operation and Development (OECD) removed Uruguay from its “grey list” of nations deemed to be taking insufficient action to combat tax evasion. The OECD released a statement saying Uruguay had shown its commitment to meet the international standard by signing seven new bilateral tax accords, most recently with Ecuador, Liechtenstein and Switzerland, although it is yet to sign accords with Brazil or Argentina. The OECD announcement came just weeks after French President Nicolas Sarkozy irked the Mujica administration by including Uruguay in a list of nations he said should be shunned by the international community for being tax havens.

End of preview - This article contains approximately 410 words.

Subscribers: Log in now to read the full article

Not a Subscriber?

Choose from one of the following options

LatinNews
Intelligence Research Ltd.
167-169 Great Portland Street,
5th floor,
London, W1W 5PF - UK
Phone : +44 (0) 203 695 2790
Contact
You may contact us via our online contact form
Copyright © 2022 Intelligence Research Ltd. All rights reserved.