Today, U.S. Secretary of Commerce Penny Pritzker delivered remarks at the signing of the Memorandum of Intent (MOI) between the U.S. Department of Commerce and the Argentine Ministry of Production as part of President Obama’s trip to Argentina. President Obama traveled to Buenos Aires to meet with new Argentine President Mauricio Macri, and to increase cooperation between our two governments in a range of areas, including trade and investment, renewable energy and climate change, and security issues.

Signed by Secretary Pritzker and Argentine Minister of Economic Development Francisco Cabrera, this MOI establishes the U.S.-Argentina Commercial Dialogue. The Dialogue aims to strengthen the economic and commercial ties between the two countries by fostering communication across our respective public and private sectors.

Remarks As Prepared For Delivery

While this is my first visit to Argentina in an official capacity, I have been here many times before for business and pleasure. It is a beautiful and amazing place, and I am thrilled to be back with President Obama for this historic visit.

There are tremendous opportunities for the United States and Argentina to work together on a range of issues, including climate change, renewable energy, nuclear nonproliferation, counterterrorism, peacekeeping, and, of course, strengthening the economy in both countries. In particular, our presence here this week is a testament to the potential we see for a stronger U.S.-Argentine commercial relationship.  

As you all know, President Macri came into office at a challenging time. Argentina’s average economic growth from 2012 to 2015 was 1.1 percent. Foreign exchange reserves were dwindling, and the budget deficit was estimated to be approaching 7 percent of GDP.  Price freezes, import licensing requirements, and bans on the repatriation of profits were having a chilling effect on investment in Argentina and made it difficult for U.S. and other foreign companies to operate here.           

Today, as you heard during the panel, the view of the Argentine economy is changing quickly.  In less than 100 days, President Macri has demonstrated a remarkable and courageous commitment to policies that will strengthen Argentina’s investment climate and take full advantage of the country’s tremendous human and natural resources. 

For example, the Macri Administration moved quickly and in good faith to resolve the long-standing dispute with Argentina’s creditors, which will allow Argentina to access global capital markets and return to the path of economic growth. President Macri also lifted capital controls, reduced export taxes on soy by 5 percent and eliminated export taxes on a raft of other agricultural and industrial goods. Furthermore, by cutting energy subsidies to utilities, the government will save billions and create an incentive for private investment to return to Argentina’s energy sector.

Reigniting Argentina’s economy will be a challenging and lengthy process, but President Macri and his team are off to an impressive start. Given time, this difficult path will yield investments – both foreign and domestic – which means new jobs and opportunity for the people of Argentina.

As you heard during our panel, these American companies have taken notice and are excited about the new direction of Argentina’s economy.  They are prepared to invest significant long-term capital here. Given the direction of the Macri government, a prosperous future is not hard to envision.  Argentina has enormous comparative advantages.  This is a resource-rich country with a hard-working, highly literate, and well-educated population. 

Even during difficult times, more than 400 U.S.-based companies were operating in Argentina, directly employing nearly 170,000 Argentines, because of the immense value proposition Argentina presents. American companies, including the three represented on stage today, recognize that there is so much potential for our countries to do more trade and investment together if our governments take advantage of this moment.

That is precisely why the U.S.-Argentina Commercial Dialogue, which Minister Cabrera and I announced today, is so critical.  Our dialogue will focus on removing barriers to trade and identifying new commercial opportunities.  It will help us deepen our understanding of Argentina’s priorities and focus on identifying pragmatic steps our governments can take to promote economic prosperity and build brighter futures for our peoples.  We want it to be the vehicle that jumpstarts a modern, comprehensive economic relationship between our two countries. 

Our goals are to support President Macri’s efforts to open up Argentina’s economy, strengthen the commercial ties between our two countries, and create opportunity for both our peoples.  I feel confident saying that the burgeoning relationship between President Macri and President Obama is setting us on a path of cooperation and prosperity.  We look forward to working with all of you to make this ambition a reality. Thank you.