INDEX Presentation of Argentina General Features of Argentina´s Economy Argentinean General Trade Balance Argentina – Taiwan MERCOSUR 1

I. Presentation of Argentina Source: Wikipedia database. 2 2

South America Area: 17.840.000 km2 (4th) Number of countries: 12 Population: 382.000.000 (5th) GDP (PPP): USD 4.3 trillion GDP per capita: USD 7.264 Largest Cities: 1. Sao Pablo, Brazil (10,9 millions) 2. Rio de Janeiro, Brazil (6 millions) 3. Buenos Aires, Argentina (3 millions) Source: Wikipedia database & CIA World Fact Book. 3

Economic Information Argentina Brazil Mexico Popultation 40.677.348 191.908.598 109.955.400 Labour Force (LF) 16.1 million 99.47 million 45.38 million Rate Growth Population 0,90% 0,98% 1,14% Natality Rate 16.32/1000 16.04/1000 20.04/1000 Death Rate 7.54/1000 6.22/1000 4.78/1000 Human Capital Index 0,767 0,57 0,477 GDP* 523.7 billions 1.838 trillion 1.353 trillion GDP** 245.6 billions 1.269 trillion 886.4 billion Rate Growth GDP *** 8.5% 2.8% 3% GDP p.c.* USD 13.000 USD 9.700 USD 12.500 Agricultural GDP 6,00% 5,10% 3,90% Industrial GDP 29,00% 30,80% 26,30% Services GDP 65,00% 64,00% 69,90% 14,74 64,72 34,57 71,22 390,85 233,12 159,64 812,16 619,59 Agricultural LF 1% 20% 18% Industrial LF 23% 14% 24% Services LF 76% 66% 58% Exports 54.6 billions 159.2 billions 267.5 billions Imports 40.26 billions 115.6 billions 279.3 billions Argentina grew at an average annual rate of around 9% over the past four years, ranking among the fastest growing economies worldwide. * Purchasing Parity Power ** Offcial Exchange Rate *** Average of the last four years Source: EIU- 2008, CIA World Fact Book 2007 and UNCTAD 2005 4

Principal Forecasts 2008 2009 2010 2011 2012 Real GDP growth (%) ARG   2008 2009 2010 2011 2012 Real GDP growth (%) ARG 6,2 4,5 4,4 BR 4,6 4 4,3 4,2 MEX 2,1 2,5 3,7 3,5 Consumer price inflation (av; %) 10,3 10,6 8,7 7,7 7,4 5,1 3,6 3,4 3,3 Budget balance (% of GDP) 1,1 0,9 0,6 0,5 0,2 -1,8 -1,7 -1,5 -1,4 -1,3 Current-account balance (% of GDP) 2,8 2,6 1,5 1,3 1,2 -0,8 -0,5 -0,6 -0,4 -1,2 -1,6 Lending rate (av; %) 13,9 13 11 9 8,5 11,7 10,7 9,5 9,3 7,2 6,8 7 Exchange rate Ps:US$ (av) 3,2 1,71 1,79 1,86 1,91 1,96 11,1 11,5 11,8 12 12,2 Source: EIU- 2008 5

I. Presentation of Argentina Capital city: Buenos Aires. Federation of 23 provinces Area : 2,766,890 km2 Population : 40.301.927 (0,61% of world population) GDP (PPP) in 2007: USD 691.694 millions (19th). Highest Human Development Index level in South America The Second Highest GDP per capita (PPP) in South America: USD 13.307 (57th). The country is currently classified as a secondary emergent market by the World Bank 6 Source: CIA World Factbook and IMF.

The N° 1 world producer and exporter of Sunflower Oil. I. Presentation of Argentina Argentinian territory has almost 250,000 km2 of farmland. This large quantity of fertile land together with a competitive industry places Argentina as: The N° 1 world producer and exporter of Sunflower Oil. The N° 1 world exporter and 3rd leading world producer of Soy Oil. The N° 1 world exporter and 3rd leading world producer of Honey. The N° 1 world exporter of Horse Meat. The N° 1 world exporter of Pears. The 2nd leading world exporter of Peanut Oil. The 3rd leading world producer of Beef. The 3rd leading world producer of Soy Beans. The 3rd leading world producer and the N° 1 exporter of Lemons. The 5th leading world producer of Wine. Source : FAO 7

II. General Features of Argentina´s Economy Growth is based on solid macroeconomic foundations (ie. twin surplus, commoditties prices) that strengthen the country’s economy. Source: MECON database. 8

II. General Features of Argentina´s Economy Sectors related to tradable goods led the initial GDP recovery, impulsed by the industry. Industrial production accumulated 64% growth since 1st Quarter 2002 (equivalent to an annual rate of 11%). 9

III. Argentinian General Trade Balance The change of commercial policies have boosted exports such as imports. 117% 394% Source: MECON database. 10

III. Argentinian General Trade Balance In the last years, the Argentinian Trade Balance showed a decreacing tendency. - 34% 11

III. Argentinian General Trade Balance Exports are showing a regular increasing tendency, impulsed by the prices of the comoditties. Since 2004, Imports are recovering from the economic crisis. 12

III. Argentinian General Trade Balance Exports of Industrial Manufactures are in records levels. 13

III. Argentinian General Trade Balance Imports are basically Industrial Manufactures. 14

III. Argentinian General Trade Balance 15 Source: MECON database.

III. Argentinian General Trade Balance Source: MECON database. Source: MECON database. 16

III. Argentinian General Trade Balance Source: MECON database. 17

IV. Argentinian & Taiwan Trade The trade balance has been in deficit for Argentina Source: MECON database. 18

IV. Argentinian & Taiwan Trade Source: MECON database. 19

IV. Argentinian & Taiwan Trade The Taiwan Participation in Argentinian Trade is moderated. Source: MECON database. 20

IV. Argentinian & Taiwan Trade The argentinian imports from Taiwan are increasing year by year, insted of the exports wich are strongly related with commodities prices. However, the trade between those countries have been growing up. Source: MECON database. 21

IV. Argentinean & Taiwan Trade Source: MECON database. 22

IV. Argentinean & Taiwan Trade Imports from Taiwan by Economic Use 23 Source: MECON database.

IV. Argentinean & Taiwan Trade Source: MECON database. 24

Full Members of MERCOSUR (Argentina, Brazil, Paraguay and Uruguay), V. MERCOSUR Composition: Full Members of MERCOSUR (Argentina, Brazil, Paraguay and Uruguay), Becoming Full Member (Venezuela) Associated States (Colombia, Ecuador, Peru, Bolivia and Chile) Observers Countries (Mexico) 25

MERCOSUR TIPS After seventeen years, the MERCOSUR has become the largest and strongest economic block in Latin America. Its principal character is Brazil, which is the region's largest economy with a GDP of nearly $800 billion that means almost 70% of MERCOSUR´s total GDP. Actually, the total population of MERCOSUR´s countries is more than 250 million people, which means that it is now the world's fourth-largest trading bloc, after the European Union (EU), North American Free Trade Agreement (NAFTA), and the Association of South East Asian Nations (ASEAN). 26

MERCOSUR TIPS The Asuncion’s Treaty, signed in March 1991 by Argentina, Brazil, Paraguay, and Uruguay meant the creation of the Common Market of the South (MERCOSUR). It main objective is to allow for a free trade between the full member states. The treaty establish an automatic and across-the-board trade liberalization program, a general regime of rules of origin, procedures for intraregional safeguards, a target date to enforce a dispute settlement mechanism, and ten working groups. The main objective is to manage the coordination of macroeconomics policies. 27

III. Argentinian General Trade Balance Composition by Mayor Items Source: MECON database. 28

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