land quality, the relative lower price of the land compared to other markets such as Brazil and Chile, and Law 25,080, which has been in effect since 1999. This law, besides providing economic incentives for small and medium producers, has also created important fiscal benefits to attract both domestic and foreign investments. The outlook for the forestry sector is positive in the short term. The relative short average periods for harvest and Brazil's current young cultivation should help Argentina become more competitive in the wood market. However, there are still challenges that the industry needs to overcome to exploit its potential, such as the development of infrastructure in various forestry areas. Government policy Argentina currently does not have restrictions limiting the cultivation of forests in private properties. Only native forests are regulated by the government contingent upon the approval of the cultivation project by local government. Law Number 13,272 This law is intended to conserve the forests, prohibit deforestation, and the irrational use of forestry products. It also specifies that any investment project carried out in natural forests needs to be approved by the Argentine government. Law Number 24,856 This law oversees activities such as implementation of projects, restoration, maintenance, protection, and sustainable management of native forests. It also establishes rules for the commercialization of forestry products and non-forestry products from native forests. Law Number 25,089 This law was implemented in January 1999 and is intended to increase land development by the Argentine forestry industry to 3 million hectares of cultivated forest in 10 years. It also establishes an inventory process for planted forests and it has provided for the establishment of agreements with international organizations that focus on development and technology transfer for this industry. This law also provides tax benefits and economic support for Argentine and foreign investors. Tax benefits: Tax stability for 30 to 50 years for companies with forestry investment projects Accelerated amortization of income taxes Accelerated return of value-added tax (21 percent) Tax breaks on assets, real estate, sales, and gross income from state and municipal governments Accelerated depreciation of capital goods Economic Support The Argentine government will finance up to 100 percent for projects with 700 hectares, 50 percent for forests between 701 and 1,000 hectares, 30 percent for extensions between 1,001 and 2,000 hectare, and 15 percent for more than 2,001 hectares Support for projects focused in plantation of traditional species and enrichment