	Political and Economic Conditions

Argentina's democratic political system experienced considerable stress in 2001-2002 when the country experienced a severe economic crisis and related social unrest. Despite some difficulties, Kirchner made popular policy moves in the areas of human rights, institutional reform, and economic policy that helped restore Argentines' faith in democracy. These included an energy crisis early in the year and a series of farmers strikes beginning in March 2008 that led to the congressional defeat of the President's increase on taxes for soybean and sunflower seed exports. Looking ahead, President Fernández faces the challenge of dealing with the effects of the global financial crisis on Argentina's economy. Global Financial Crisis

Initially, President Fernández maintained that the financial crisis in the United States would not have an effect on the region. Argentina's growth in recent years has been fueled by its exports of primary commodities, but the rapid decline in the price of important export commodities for Argentina such as soybean products and corn will have an impact on economic growth and the government's fiscal situation. 1117 (Hinchey) to the FY2009 Intelligence Authorization Act, H.R. The House approved H.R. Argentine-U.S. Relations

		Overview

U.S.-Argentine relations generally have been strong since the country's return to democracy in 1983 and were especially close during the Menem presidency (1989-1999). With Cristina Fernández's presidential victory, there was considerable expectation that the tenor of relations with the United States would improve, compared to relations under the previous Kirchner administration. Just two days after her December 10, 2007 inauguration, however, an unexpected challenge to U.S.-Argentina relations occurred when U.S. federal prosecutors in Miami charged five foreign nationals in the so-called "suitcase scandal" involving the attempted delivery of funds to benefit Fernández's presidential campaign (see discussion below for details). In July 2007, the House approved H.Con.Res. On July 15, 2008, the House approved H.Con.Res. The provision was not included in the FY2009 continuing resolution. Legislative Initiatives in the 110th Congress

H.Res. Among its provisions, the resolution supports the counterterrorism efforts of the "3 + 1" mechanism, emphasizes the importance of eliminating Hezbollah's financial network in the tri-border area of South America, expresses concern over the emerging national security implications of Iran's efforts to expand its influence in Latin America, and recommends that the President create more mechanisms for joint counterterrorism operations and intraregional information sharing among supportive countries in the Western Hemisphere, especially in light of Iran's increased involvement in the region. The provision calls for a report (in unclassified form, but may include a classified annex) within 270 days by the Director of the Central Intelligence Agency (CIA) that includes a description of any information in possession of the intelligence community with respect to the accession to power of the Argentine military in 1976, violations of human rights committed by officers or agents of the Argentine military and security forces, and Operation Condor and the fate of Argentine people targeted, abducted, or killed during such Operation, including children born in captivity whose status remains unknown. Judgment Evading Foreign States Accountability Act of 2008. S. 3289 (Kohl). As reported, Section 736 of the bill would prohibit any funds appropriated by the act to pay the salaries and expenses of any individual to conduct any activities that would allow the importation into the United States of any ruminant or swine, or any fresh (including chilled or frozen) meat or product of any ruminant or swine, that is born, raised, or slaughtered in Argentina until the Secretary of Agriculture certifies to Congress that every region of Argentina is free of foot and mouth disease without vaccination. Also see related bills, S. 3238 / H.R.
A South American nation with a population of around 40 million, Argentina returned to elected civilian democracy in 1983 after seven years of harsh military rule. In 2001-2002, the democratic political system experienced considerable stress as the country experienced a severe economic crisis, but ultimately weathered the storm. Current President Cristina Fernández de Kirchner, elected in October 2007, succeeded her husband President Néstor Kirchner (2003-2007), who had made popular policy moves regarding human rights, institutional reform, and economic policy that helped restore Argentines' faith in democracy. In her first year in office, President Fernández has faced several major challenges, including an energy crisis in early 2008 followed by a series of farmers strikes that led to the defeat of her proposed agricultural export tax increase. More recently, the government has faced the challenge of dealing with the effects of the global financial crisis. The rapid decline in prices for several of Argentina's key exports will have an impact on economic growth and government revenue.
U.S.-Argentine relations generally have been strong since the country's return to democracy in 1983 and were especially close during the Menem presidency (1989-1999). There was some friction in relations when the United States did not support Argentina during its 2001-2002 financial crisis, and under the Kirchner presidency when Argentina moved toward closer relations with Venezuela. There was expectation that the tenor of relations with the United States would improve under President Fernández. This was thwarted, however, by the so-called suitcase scandal involving the arrest of four foreign nationals from Venezuela and Uruguay in Miami for the attempted delivery of funds to benefit Fernández's presidential campaign. Nevertheless, the United States and Argentina continue to cooperate on many areas of mutual interest, including anti-drug and anti-terrorism efforts.
In the 110th Congress, several initiatives regarding Argentina were adopted or introduced. The House adopted two resolutions for the anniversary of the 1994 Argentine-Israel Mutual Association bombing: H.Con.Res. 188 approved in July 2007, and H.Con.Res. 385, approved in July 2008. The House also adopted H.Res. 435 in November 2007 that emphasized the importance of eliminating Hezbollah's financial network in the tri-border area of South America. The House version of the FY2009 Intelligence Authorization Act, H.R. 5959, included a provision requiring a Central Intelligence Agency report on human rights violations committed by Argentine military and security forces during the military dictatorship (1976-1983). In September 2008, a bill was introduced, H.R. 7205, that would bar access to U.S. capital markets to foreign states that fail to satisfy U.S. court judgments, and specifically cited Argentina as an egregious example. The Senate version of the FY2009 agriculture appropriations bill, S. 3289, contained a provision prohibiting funds from being used for the importation of fresh meat from Argentina until the Secretary of Agriculture certifies to Congress that every region of Argentina is free of foot and mouth disease; the provision was not included in the FY2009 continuing appropriations resolution. Separate bills, S. 3238 and H.R. 6522, were also introduced on the issue. This report, which may be updated, summarizes political and economic conditions in Argentina and issues in Argentine-U.S. relations.