Argentina’s New Opening: Why Global Companies Are Looking for Market Entry Opportunities in Argentina

In recent years, Argentina has started a decisive shift away from a heavily protected, bureaucratic economic model toward a more open, market-oriented one. The election of President Javier Milei, followed by a strong performance in the latest midterm elections, has strengthened the government’s mandate to deepen reforms that affect trade, labor, and investment.

In a recent Inti Consulting Services briefing, Diego Montes moderated a conversation with two members of the Inti network based in Argentina:

• Walter Montalbano – specialist in business development, finance and business administration.
• Gianni Sabbione – consultant and trainer in IT service management, process improvement, and operational / ITIL best practices.

Together, they explored what is changing on the ground in Argentina and what these shifts mean for companies in Latin America and around the world.

A New Phase of Economic Openness

One of the most important updates shared during the session was the new trade agreement between Argentina and the United States. According to official announcements, the agreement centers on a reciprocal opening of markets through the reduction or elimination of tariffs and bureaucratic barriers.

This deal is both symbolic and practical: it signals a new era of cooperation and makes trade flows between the two countries more flexible and predictable. And it is only the first step. Argentina is now actively pursuing further agreements with the European Union, China, and other regions.

From a macro perspective, Argentina’s economic openness (exports + imports as a share of GDP) has risen from roughly 20% to 25% in just a couple of years. That is still far below:

• ~42%: the Latin American average
• ~80%: typical levels in developed economies

The gap between 25% and even 40–42% represents billions of dollars in potential trade and investment, and that is precisely where the opportunity lies for new entrants.

What’s Changing in Argentina

1. Import Volumes

The textile sector illustrates the scale of change. Between January and May of the period:

• Clothing imports grew 77% in dollar terms
• Import volume increased 186%

Many Argentine textile companies are shifting from local manufacturing to importing finished goods. Imported textiles are now around 15–20% more competitive than locally produced equivalents. The reasons:

• Lower production costs and higher productivity abroad
• An aging production infrastructure in Argentina
• A historically highly protected textile sector, which reduced pressure to modernize

The result: some domestic factories are closing, many are pivoting to import-based models, and the retail landscape is rapidly internationalizing.

2. Lower Barriers to Entry and Red Tape/Bureaucracy

In the past, importers had to overcome multiple layers of local approvals for food and consumer goods. Now, that paperwork can “travel” with the product, dramatically reducing friction and cost.

“The biggest change has not been the tariff percentages themselves, but the removal of bureaucratic obstacles that previously made importing extremely expensive and slow.”      – Walter Montalbano

Two things made this possible:

1. A more flexible import system – permits, approvals and procedures have been simplified.
2. Acceptance of foreign certifications – if a product has the required paperwork in the US or EU, those certificates can now be accepted in Argentina, avoiding costly and time-consuming duplication.
3. Less Regulated Labor Market

The midterm elections were a turning point. Milei’s coalition significantly increased its representation, which has two major implications:

1. Greater ability to pass structural reforms that were previously blocked.
2. Momentum to pursue deeper economic changes in labor, tax, and investment rules.

One key area is labor market flexibilization. Today, firing employees in Argentina is associated with high severance costs. Proposed reforms aim to:

• Move toward a system where companies contribute to an insurance mechanism,
• That insurance then covers severance payments when terminations occur,
• Reducing the direct and immediate burden on employers and lowering perceived hiring risk.

For foreign investors, more predictable labor rules and lower indirect hiring costs can be a decisive factor when comparing Argentina to neighboring markets.

4. More Stable Exchange Rate

FX and payment restrictions have been significantly relaxed, improving reliability for exporters selling into Argentina.

In the past, foreign companies often avoided the market due to:

• Unpredictable access to US dollars
• Delays in payments (sometimes months)
• Partial or delayed settlements to suppliers abroad

Sector-Specific Opportunities and Acquisition Targets

The briefing also highlighted several sectors where opportunities are emerging—not only for greenfield investment, but also for acquisitions.

1. Meat Packers

The new trade agreement includes a specific chapter on meat, modifying access for Argentine beef in the US market. Many local meat packing plants are:

• Under financial pressure
• Open to being sold or recapitalized
• Well-positioned to benefit from improved access to the US and other premium markets

For strategic investors, this may be a rare opportunity to acquire assets in a sector where Argentina has global brand recognition.

2. Wineries

Argentina’s wine industry—concentrated in Mendoza—is highly developed, but under stress:

• It has invested heavily in international expansion.
• It faces intense competition from Chile and other producers.
• Tax burdens and macro volatility have affected competitiveness.

Some wineries are experiencing financial distress linked to peso devaluation, regional competition, and structural costs. For foreign investors, this segment may offer:

• Distressed M&A opportunities
• Partnerships to expand distribution
• Modernization of operations and routes to premium markets

3. Oil & Gas Services (Beyond Vaca Muerta)

While exploration and production remain tightly regulated and centered around national actors such as YPF, the services ecosystem around energy is expanding:

• The Vaca Muerta shale formation is driving demand for field services, logistics, infrastructure, and specialized support.
• Foreign companies cannot simply come in and operate wells on their own, but they can serve the oil and gas value chain with technology, equipment, and specialized services.

4. Knowledge Services and Nearshoring

Argentina has long been a competitive source of remote talent for IT and consulting. However, the situation is evolving:

• When the US dollar was extremely strong relative to the local currency, Argentina became a “bargain” for international employers.
• As the exchange rate stabilizes toward a more realistic level, some of that extreme cost advantage is eroding.

US firms may increasingly compare Argentina with other Latin American markets. Still, as Gianni notes: “consulting rates have not collapsed or spiked, and the sector remains active. The opportunity is shifting from pure cost arbitrage toward quality, specialization, and reliability.”

Will the Changes Last?

A recurring theme in conversations with Argentinians is skepticism around eventually going back to the way it was. 

The long-term sustainability of reforms will depend on whether:

• Macroeconomic changes translate into tangible improvements for everyday citizens.
• Voters perceive that a more open, disciplined model improves employment, purchasing power, and stability.

“The recent midterm results suggest a shift in public attitudes—at least for now—away from the previous model of high inflation, money printing, and unsustainable subsidies. But the political challenge is ongoing: economic reforms must be felt in household budgets, not just in investor presentations.” – Walter Montalban

How to Enter the Argentinian Market? (Operational Considerations)

As Gianni emphasized, to expand successfully into a new market, companies must upgrade their operational backbone.

Global retailers and manufacturers entering Argentina face a familiar—but complex—challenge:

• Integrating global systems with local logistics and distribution
• Connecting to local payment platforms and financial flows
• Adapting customer support operations and service levels
• Aligning processes to local culture and expectations

This is where IT service management (ITSM) and process frameworks become strategic, not just technical:

• Incident, problem and change management processes must be adapted to new markets.
• Monitoring tools originally used for IT operations now support the brand promise: uptime, delivery reliability, omnichannel experience.
• AI-driven analytics and automation (demand forecasting, predictive maintenance, exception management) become essential for real-time decision making.

Argentina’s economic opening sets the stage, but operational excellence will be the true differentiator between companies that merely enter the market and those that build a durable advantage.

Conclusion

Argentina is not simply reopening—it is redefining its role in global trade and investment. For brands, manufacturers, distributors and service providers, the combination of:

• Pro-market reforms
• Growing consumer appetite for international products
• Simplified bureaucratic and financial conditions

creates a window of opportunity that may not last forever.

How Inti Consulting Services Helps Companies Enter Argentina

In this context of rapid change, Inti positions itself as a strategic partner for international companies evaluating or entering the Argentine market. Our network on the ground—professionals like Walter and Gianni—allows us to combine policy-level understanding with operational execution.

We support clients in four key areas:

1. Market & Opportunity Analysis
   • Sector mapping and demand analysis
   • Competitive landscape and price benchmarks
   • Trade and regulatory conditions by product line
2. Financial & Business Modeling
   • Entry scenarios and profitability models
   • FX, tax, and cost structure analysis
   • Valuation and M&A scenario planning (e.g., meat packers, wineries)
3. Local Partner Connection & Regulatory Support
   • Identification of distributors, importers and JV partners
   • Navigation of customs, certifications and compliance
   • Structuring of local entities and go-to-market strategies
4. Logistics, IT & Service Ecosystem Development
   • Operational readiness and supply chain design
   • ITSM and process frameworks for resilient operations
   • Implementation of analytics, monitoring, and automation to support real-time decisions