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    | THE 2019 AGENDA OF INTERNATIONAL TRADE IN ARGENTINAUnderstanding cultural diversity as a relevant issue in today's world
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    | by Félix PeñaDecember 2018
 
 English translation: Isabel Romero Carranza
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    |    | Argentina's role as a G20 member country will go on 
        after the Buenos Aires Summit. In the shortest term as part of the troika, 
        along with Japan and Saudi Arabia, during 2019. As such it can contribute 
        with its recent experience in managing the dialogue process and building 
        the necessary consensus. Secondly, as could be seen in the development 
        of the 2018 G20, the country can play an effective role in the dialogues 
        aimed at building consensus on the relevant issues of the global agenda. 
        Thirdly, due to the fact that it is convenient for our country and our 
        region to participate in the construction of a new global governance adjusted 
        to the current realities of a world in which all the protagonists -not 
        just the largest-have multiple options in their strategies for international 
        insertion.
       Several new issues stand out in the 2019 agenda of priorities for 
        Argentine foreign trade. They are related with the need to update the 
        strategies for the projection to the world of the goods and services of 
        quality that the country is able to produce efficiently, based on competitive 
        advantages and, in particular, on the endowment of natural resources, 
        talent and creativity, and the diversity of its industrial and technological 
        development. This renewal becomes necessary in view of the changes that have been 
        taking place recently at global scale and in the Latin American regional 
        environment. Moreover, these changes make the interaction between the 
        different cultures that characterize countries and regions and, therefore, 
        international trade, more intense. Understanding the scope and effect 
        of cultural diversity, with its impact on the priorities and preferences 
        of citizens and consumers, is increasingly becoming a crucial factor in 
        ensuring the international competitiveness of a country and its companies. The main issues to be included in the 2019 agenda of Argentine foreign 
        trade are: globally, to understand and to influence the necessary renewal 
        of the multilateral system of world trade, institutionalized in the WTO 
        and, at the same time, to achieve the country's linkage with the growing 
        network of preferential trade agreements of regional and inter-regional 
        scope; at the Latin American level, to have an active participation in 
        the adaptation of Mercosur to the new realities of world trade, including 
        the necessary articulation between its member countries and those of the 
        Pacific Alliance, and fully harnessing the potential of 1980 Montevideo 
        Treaty (LAIA), and at the national level, to achieve an effective development 
        of the strategy included in the "Argentina Exports" program, 
        launched last October by the national government through the Ministry 
        of Production. |  
   
    |  At the conclusion of the G20 Summit in Buenos Aires, the process that 
        will lead to the 2019 Summit has begun. Japan took over the Presidency 
        of the G20 and, with it, the task of ensuring that the dialogue among 
        the participating countries helps build effective consensus in relation 
        to the relevant and interconnected global issues that have a strong economic, 
        social and, thus, political impact. These issues go beyond what individual countries -even the most powerful 
        ones- could tackle on their own or solve with realistic expectations of 
        success and, if kept unresolved, could affect them sooner or later. They 
        show that in today's world countries and their citizens are increasingly 
        interconnected and exposed to situations that transcend their national 
        borders. The G20, at the level of Heads of State, arose precisely at a 
        time when the strong financial crisis could not be addressed through the 
        existing international organizations. It was necessary to create a forum 
        of dialogue geared towards the action of the top political leaders of 
        a group of countries that were supposed could add more capacity to agree 
        upon the required actions at global scale. As demonstrated by the successive summits held since the G20 was elevated 
        to the level of a global forum of leaders, ten years ago, both dialogue 
        and consensus-building are arduous endeavors. There are many participants 
        and their interests and perspectives can often differ greatly. Therefore, 
        conducting the dialogue requires direct and committed participation of 
        the Head of State of the country that holds the annual presidency. Being 
        a process that takes place over several months and with multiple meetings, 
        many of them at Ministerial level and with the active participation of 
        different expressions of social life, effective teamwork is required, 
        and the figure of the "Sherpa" becomes crucial. Argentina's role as a G20 member country continues after the Buenos Aires 
        Summit. In the very short term as part of the troika during 2019, along 
        with Japan and Saudi Arabia. As such, it can contribute its recent and 
        valuable experience in managing the dialogue process and, in many cases, 
        building the necessary consensus, in the same way as it was able to take 
        advantage of the experiences gained by China and Germany in their own 
        presidential periods. Secondly, as could be seen in the development of the G20 this year, the 
        country can have an effective role in the dialogue aimed at building consensus 
        on relevant issues of the global agenda. This may be so precisely because 
        our country has neither the power nor the economic dimension to aspire 
        to become an undisputed leader at global scale. Argentina is part of a 
        group of significant countries when it comes to building global consensus 
        precisely because it has a medium level of power and some capacity to 
        influence certain sectors (for example, food) or regions (for example, 
        South America, the South Atlantic and Antarctica) that are relevant at 
        global level. Additionally, it is a country that is relatively far from 
        the main lines of international tension and that, in keeping with its 
        values and preferences, has no reason for not getting along with all the 
        countries of the world. Likewise, as a country and as a region characterized 
        by the diversity of origin of its population, it has the capacity to understand 
        a world where a dominant feature is, and will continue to be, cultural 
        plurality. Thirdly, it is in the interest of our country and our region to participate 
        in the construction of a new global governance adjusted to the current 
        realities of a world in which all the protagonists -not just the largest-have 
        multiple options in their strategies for international insertion and know 
        that they can exercise them, even in the dialogue with the great and powerful. What is also increasingly clear is that to navigate as a country in a 
        world of multiple protagonists and multiple options, at least three conditions 
        are required. The first is to have a strategy of insertion in the world, 
        with a long- and short-term vision, sustained in the social bases of the 
        country. The second is to achieve an effective regional insertion that 
        takes into account the need to build an institutional architecture that 
        facilitates convergence in diversity. And the third is to craft work and 
        trust relations with the other regions of the world and, in particular, 
        with all the great powers. In the perspective outlined in the previous paragraphs, several novel 
        issues can be highlighted from the 2019 agenda of priorities for Argentine 
        foreign trade. These have to do with the need to update and renew the 
        strategies for projection to the world of the quality goods and services 
        that the country is able to produce efficiently, based on its competitive 
        advantages, the endowment of natural resources, talents and creativity, 
        and the diversity of its industrial and technological development. It is a necessary renewal on account of the changes that have been taking 
        place in recent times at global level and in the Latin American regional 
        environment. These are the expression of an era characterized by the presence 
        of a great number of diverse players -countries, companies, consumers, 
        social organizations- in the competition for world markets, with multiple 
        options for buying and selling the goods and services they need, prefer 
        and value. They reflect the fact that the distribution of relative economic 
        and technological power allows us to consider an increasingly large number 
        of potential competitors with a very diverse geographical distribution. Moreover, these changes make the interaction between the different cultures 
        of each country and region and, therefore, international trade more intense. 
        Understanding the scope and effect of cultural diversity, with its impact 
        on the priorities and preferences of citizens and consumers, is increasingly 
        becoming a crucial factor for ensuring the international competitiveness 
        of a country and its companies. We are entering a stage of world trade in which the protagonists are 
        increasing in number and tend to be more connected. Therefore, it would 
        be difficult to hold the idea that there are just a handful of players 
        with a major influence on the definition of priorities and, above all, 
        of the rules of global competition. In practice, unless hindered by security 
        restrictions, countries will increasingly seek to have good relations 
        with every other country. The main issues to be included in the 2019 agenda of Argentine foreign 
        trade are the following: 
        At global level, to understand and influence the necessary renewal 
          of the multilateral system of world trade, institutionalized in the 
          WTO and, at the same time, achieve the effective linkage of the country 
          with the growing network of preferential trade agreements of regional 
          and inter-regional scope;
 
at the Latin American regional level, to have an active participation 
          in the adaptation of Mercosur to the new realities of world trade, including 
          the necessary articulation between its member countries and those of 
          the Pacific Alliance, and the utilization of the full potential of the 
          Treaty of Montevideo of 1980 (ALADI), and
 
at the national level, to achieve an effective development of the 
          strategy included in the "Argentina Exports" program, launched 
          last October by the national government through the Ministry of Production. It is obvious that these are not the only priority issues of Argentine 
        foreign trade for the year 2019. Other issues will result from the policies 
        of macroeconomic stability and their ensuing effect on the stability of 
        the political system, which develop in the upcoming months and, especially, 
        those that seek to achieve clear gains in productivity, technological 
        innovation and social articulation, without which it would be difficult 
        to imagine a successful international insertion of the country. At the global level, reforms to the WTO are a priority. It is a key institutional 
        framework for preserving basic rules of international trade, such as the 
        principle of non-discrimination in tariff policies and other business 
        practices. The G20 meeting in Buenos Aires has agreed to seek the necessary 
        consensus and review the issue again at the next Summit in Japan. Argentina, 
        as a member of the G20 troika, will be able to continue developing a facilitating 
        role in the construction of such consensus, as it did in the recent summit. 
       At the Latin American regional level, the reform and updating of Mercosur, 
        as well as its articulation with the Pacific Alliance, will also have 
        a high priority. Everything indicates that, due to political reasons, 
        it would be most convenient to achieve this goal without the need to reform 
        the Treaty of Asunción, which could pose internal difficulties 
        in some of the member countries. This is feasible if practical and non-dogmatic 
        approaches prevail, especially on what should be a customs union, or a 
        free trade area. The combination of political sense, economic pragmatism 
        and legal flexibility would help achieve concrete results while ensuring 
        the necessary predictability of the rules that are agreed upon. At the 
        Latin American regional level, the Treaty of Montevideo of 1980 provides, 
        with the figure of "partial scope agreements", the necessary 
        instruments for the development of an intelligent and pragmatic strategy 
        of productive articulations of sectoral scope. Finally, at the national level, an effective development of the "Argentina 
        Exports" program would not only help get closer to the objective 
        of having approximately 40,000 exporting companies with a sustained presence 
        in other markets by the year 2030, but, above all, it would strengthen 
        the federal scope of the strategy of international commercial insertion 
        of Argentina, with its resulting impact on the political system of the 
        country. The successful experience of the role played by Argentina in the G20 
        Summit and throughout the process of meetings held over the twelve-month 
        period preceding it, leads us to value teamwork when it comes to achieving 
        difficult objectives at the international level. This is the case of the 
        three issues of the 2019 agenda mentioned above. As shown by Argentina's 
        participation in the G20, the direct commitment of the President and his 
        presidential team would be essential, as would the figure of a Sherpa 
        to address every issue. Therefore, assuming that President Macri will 
        have the necessary personal commitment for achieving the previously mentioned 
        goals of the 2019 agenda, it would be a good idea to consider having a 
        Sherpa in charge of monitoring each of these relevant issues.  |  
   
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    | Félix Peña Director 
        of the Institute of International Trade at the ICBC Foundation. Director 
        of the Masters Degree in International Trade Relations at Tres de Febrero 
        National University (UNTREF). Member of the Executive Committee of the 
        Argentine Council for International Relations (CARI). Member of the Evian 
        Group Brains Trust. More 
        information. |  
 
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