Government announces £1bn of support for UK firms seeking business in Argentina

The UK Government will now offer up to £1bn for UK businesses wanting to trade with Argentina, for the first time in almost 20 years.

International Trade Minister Greg Hands, announced the reintroduction of export credit financial support in Buenos Aires as part of a visit to South America.

On March 20th, the minister confirmed that UK Export Finance, the government’s export credit agency, will offer up to £1bn of support to help UK companies secure business links in Argentina.

The £1bn support will help UK companies secure contracts by providing financing terms, loans for delivering projects and insurance against the risks of operating in other countries.

International Trade Minister Greg Hands said: “Argentina has huge potential to be a modern vibrant economy, which is why we are reintroducing financial support for UK companies to maximise investment opportunities and wealth creation.

“The UK’s world leading expertise in areas like green energy and healthcare are in demand across the world and will form the basis of new trading relationships with South American countries as we leave the EU.”

With bilateral trade between the UK and Argentina at £1.3bn, the support will provide a boost to UK companies and comes as the Department for International Trade (DIT) announces a new UK-Argentina Commercial Dialogue group with the Argentine Production Ministry.

The group will build on a joint statement from the UK and Argentina in September, committing to boosting bilateral trade and investment by helping develop new commercial links and reducing existing barriers.

During the visit this week, the minister will also sign an updated Air Services Agreement, making it easier to establish more direct flights between the UK and Argentina to further increase commercial links.

In Brazil, the minister will visit Rio de Janeiro where he will open the UK Energy in Brazil conference, welcoming Brazilian government officials and over 200 business leaders and investors to a showcase of new UK technologies which can help Brazil’s energy sector.

In the last three years the sector generated £2bn in contracts for UK companies in Brazil with the support of DIT.

He will also meet business leaders in Brazil’s mining sector, with investment opportunities estimated at US$53bn in 2014 to 18, where UK expertise can support the sustainable development of Brazilian mining.

Finishing his five day regional tour, in Peru the minister will address a Latin America Infrastructure Development Conference, hosted by DIT and CAF – a development bank which funds projects to improve infrastructure, energy, water and sanitation in South America.

15 UK infrastructure companies are attending, connecting them to figures in CAF and the Peruvian government, with the Minister announcing a capacity of US$200m from UK Export Finance to support UK companies to work on CAF projects.

This is part of the department’s work to enable UK businesses to benefit from opportunities to help deliver US$12bn worth of infrastructure projects planned across South America, such as new railways hospitals, and green energy projects.

The visit will also promote UK expertise in delivering global sports events, ahead of Peru hosting the 2019 Pan-American Games, with potential contracts worth £600m.

Looking to promote your product/service to SME businesses in your region? Find out how Bdaily can help →