On April 27, 2017, President Trump hosted a visit by Argentine President Mauricio Macri at the White House in which the two leaders discussed ways to deepen relations in such areas as trade and investment, cooperation on measures to combat illicit trafficking and financing, and cyber policy. The two leaders also agreed to work closely on the situation in Venezuela. Political and Economic Situation

		Political Background

Argentina—a South American nation located in the continent's southern cone—has had elected civilian democratic rule since the military relinquished power in 1983 after seven years of harsh dictatorship. Cristina Fernández completed her second term as president in December 2015. 2015 Presidential Election

On November 22, 2015, Argentines went to the polls in the second round of the 2015 presidential race and opted for change by electing Mauricio Macri of the opposition Let's Change coalition representing center-right and center-left parties. Macri Administration

Inaugurated in December 2015, President Macri moved swiftly to usher in changes in the government's economic, foreign policy, and other policies. His election ended the 12-year run of Kirchnerismo that helped Argentina emerge from a severe economic crisis in 2001-2002 but also was characterized by protectionist and unorthodox economic policies and at times difficult relations with the United States. Economic Policy Changes. At times, however, there have been tensions in the bilateral relationship. Since Macri's election, U.S. relations with Argentina have notably improved. In August 2016, then-Secretary of State Kerry visited Argentina and, along with then-Argentine Foreign Minister Susana Malcorra, launched a High-Level Dialogue (HLD) to serve as a means of strengthening bilateral relations in such areas as trade and investment; law enforcement cooperation; people-to-people ties; and energy, science, and education cooperation. Legislative Action in the 115th Congress

U.S.-Argentine relations largely have been an oversight issue for Congress, although in the aftermath of Macri's election in 2015, key Members of Congress urged the Obama Administration to prioritize relations with Argentina. On April 3, 2017, the House approved by voice vote H.Res. 54 (Sires), which upholds commitment to the partnership between the United States and Argentina; reaffirms that Argentina is a major non-NATO ally of the United States; encourages the Department of State to coordinate a new interagency strategy with Argentina in areas of bilateral, regional, and global concern; commends Argentina for making far-reaching economic reforms; commends Argentina for resolving most of its business disputes at the World Bank's International Centre for the Settlement of Investment Disputes; and encourages Argentina to continue to investigate and prosecute those responsible for the 1994 AMIA bombing in Buenos Aires and the 2015 death of AMIA Special Prosecutor Alberto Nisman. A similar but not identical Senate resolution, S.Res. 18 (Coons), was introduced in January 2017, and reported (as amended) by the Senate Foreign Relations Committee on June 5, 2017. Among Argentina's trade concerns with the United States, Argentina is seeking access to the U.S. market for fresh beef and lemons, and it is seeking reinstatement of U.S. preferential trade benefits under the GSP program. U.S. officials expressed concerns regarding IPR protection and Argentina's various trade restrictions on imports. Debt Issues70

Argentina's 2001 default has been a long-standing issue in relations with the United States. As noted above, H.Res. 201 (Ros-Lehtinen), introduced in March 2017 near the date of the 25 th anniversary of the 1992 bombing, would express support to the government of Argentina for its investigation of the Israeli embassy bombing; among its provisions, the resolution would call on the U.S. government to assist Argentina in any way possible so that the perpetrators of the 1992 Israeli embassy bombing as well as the 1994 AMIA bombing are brought to justice. Economic adjustment measures triggered an economic downturn in 2016, with GDP declining by almost 2.3%, but also are leading to more sustainable growth in 2017, with a forecast for 2.2% growth. This is especially true as the country approaches legislative elections in October 2017, which many observers see as a referendum on the policies of the Macri government. In the foreign-policy arena, the Macri government has improved relations with neighboring Brazil and Uruguay, the promarket countries of the Pacific Alliance, and the UK. U.S.-Argentine relations have greatly improved under the Macri government compared to under the Kirchner governments, when the bilateral relationship was often tense. Macri's election brought to power a government that to date has demonstrated a strong commitment to constructive bilateral relations. The Obama Administration moved swiftly to engage the Macri government, highlighted by President Obama's state visit to Argentina in 2016 and the launching of a High-Level Dialogue in August 2016. Appendix.
Argentina, a South American country with a population of almost 44 million, has had a vibrant democratic tradition since its military relinquished power in 1983. Current President Mauricio Macri—the leader of the center-right Republican Proposal and the candidate of the Let's Change coalition representing center-right and center-left parties—won the 2015 presidential race. He succeeded two-term President Cristina Fernández de Kirchner, from the center-left faction of the Peronist party known as the Front for Victory, who in turn had succeeded her husband, Néstor Kirchner, in 2007. Macri's election ended the Kirchners' 12-year rule, which helped Argentina emerge from a severe economic crisis in 2001-2002 but also was characterized by protectionist and unorthodox economic policies.
President Macri has moved swiftly since his December 2015 inauguration to usher in changes to the government's economic, foreign, and other policies. Among its economic policy changes, the Macri government lifted currency controls; eliminated or reduced taxes on agricultural exports; and reduced electricity, water, and heating gas subsidies. The government also reached a deal with remaining private creditors in 2016 that ended the country's 15-year default, an action that allowed the government to repair its "rogue" debtor status and to resume borrowing in international capital markets. Although economic adjustment measures resulted in a 2.3% economic contraction in 2016, the economy is forecast to grow by 2.2% in 2017. In the foreign policy arena, the Macri government has improved relations with neighboring Brazil and Uruguay and with the promarket countries of the Pacific Alliance. Forthcoming legislative elections in October 2017 can be seen as a referendum on Macri's policies.
U.S. Relations
U.S.-Argentine relations generally have been characterized by robust commercial relations and cooperation in such issues as nonproliferation, human rights, education, and science and technology. Under the Kirchner governments, however, there were periodic tensions in relations. Macri's election brought to power a government that has demonstrated a commitment to improved relations with the United States.
The Obama Administration moved swiftly to engage the Macri government on a range of bilateral, regional, and global issues. Demonstrating the change in relations, President Obama traveled to Argentina in March 2016 for a state visit that increased cooperation in such areas as trade and investment, renewable energy, climate change, and citizen security. In August 2016, then-Secretary of State John Kerry launched a High-Level Dialogue with Argentina to serve as a mechanism to ensure sustained engagement.
Strong bilateral relations are continuing under the Trump Administration. President Macri visited the White House on April 27, 2017, with the two leaders discussing ways to deepen relations in such areas as trade and investment, combatting illicit trafficking and financing, cyber policy, and the situation in Venezuela. On trade issues, U.S. officials have raised concerns for a number of years about Argentina's enforcement of intellectual property rights protection and various restrictions on imports; Argentina is interested in the restoration of U.S. trade preferences under the Generalized System of Preferences, which were suspended in 2012, as well as in access to the U.S. market for fresh beef and lemons.
U.S.-Argentine relations largely have been an oversight issue for Congress, but in the aftermath of Macri's election in 2015 key Members of Congress urged the Obama Administration to prioritize relations with Argentina. In the 115th Congress, the House passed H.Res. 54 (Sires) on April 3, 2017, which, among other provisions, upholds commitment to the bilateral partnership between the United States and Argentina. On June 5, 2017, the Senate Committee on Foreign Relations reported a similar but not identical resolution, S.Res. 18 (Coons), as amended. Another congressional interest has been Argentina's progress in investigating two terrorist bombings in Buenos Aires—the 1992 bombing of the Israeli embassy and the 1994 bombing of the Argentine-Israeli Mutual Association (AMIA)—as well as the 2015 death of the AMIA special prosecutor. H.Res. 201 (Ros-Lehtinen), introduced in March 2017, would express support for Argentina's investigation of the two bombings.
This report provides background on the political and economic situation in Argentina and U.S.-Argentine relations. An Appendix provides links to selected U.S. government reports on Argentina.