Argentina’s Exports and why Australia Imports Them
Ever since establishing relations towards the end of the 1950s, both Australia and Argentina have had a steady relationship in the decades that followed.
Trade was established between the two countries not long after, with exports and imports being exchanged between the two. The import/export market has helped both countries grow economically. While Australia has its own products to export, what products does Argentina have to export to Australia?
Argentina is among the top 50 largest economies in the world, and is the third largest economy in Latin America after Brazil and Mexico. Argentina's per capita income is estimated at $20,000, which classifies it as a middle emerging economy according to many economists. Argentina's profitable exports include professionals, natural resources, industry. Despite the highs and lows over the years, it has maintained a steady growth.
Agriculture is Argentina's top export, which estimates about eight to nine billion dollars each year, or almost 13% of its total exports. This includes wheat and corn, which is also their main crop that is planted in a majority of farms throughout the country. Foreign consumption of corn, while reduced decades ago, still maintains a high level of demand. Wheat is mainly used as animal feed, and Australia has many ranches and animal farms that require wheat to feed their livestock.
Meat is an important food product, and the average person consumes at least 75 pounds of meat each year, multiplied by a massive world population, and Argentina takes advantage of the constant meat demand, shipping about two to three billion dollars' worth of meat on a yearly basis.
Vehicles are also one of their top exports. You see, Argentina exports about billions of dollars worth of vehicles each year. The automotive industry is constantly fast-paced, with demands rising or decreasing, prices fluctuating easily. Cars are the most popular form of transportation, and unfortunately, it takes more than one factory to produce them. Manufacturers such as Fiat, Volkswagen, and Toyota are among the top car makers in the world that has manufacturing plants located in Argentina. Local workers produce the vehicles and ship them off to different parts of the world to be sold to interested parties, Australia included.
Metals are another major international export from Argentina. Metals are in constantly high demand because of their wide variety of uses, mainly in construction. Gems are also in pretty high demand because of their usage outside of jewelry, as gems are being used in electronics as well. Gem and metal exports earn about 2.5 to 3 billion dollars.
Argentina and Australia's strong economic relations is a major boon to the import and export industry. Despite an ever-fluctuating market over the years, there's definitely no sign of their partnership slowing down. With billions of dollars and more being earned each year, the future is definitely bright between the two countries.