The Argentine economy ( ARGT , quote ) received more bad news this week as the country struggles to regain its financial footing in the midst of the global financial crisis.
With the announcement that Mexico would file an official complaint with the WTO over Argentina's trade practices, the Argentine economy will likely continue to struggle.
Although the vitriol from foreign investors in Argentina has calmed somewhat as the aftermath of the YPF ( quote ) scandal becomes further and further in the past and problems elsewhere in the global economy take center attention, the Argentine economy continues to fester far below its potential as its structural problems have yet to be remedied.
The allegations from the Mexican government are representative of this shortfall in leadership on the economic front.
"The government of Mexico reiterates its deep worry over the protectionist measures that Argentina is applying, as well as practices that lack transparency and affect trade between our two nations and generate uncertainty," Mexico's Economy Ministry claimed, as reported by Reuters .
And Mexico isn't the only country that has voiced concern over the country's trade practices: the United States, the European Union, and Japan have all filed complaints with the WTO in the past three months.
It would thus not be particularly surprising if the WTO took action against Argentina; however, this should not be the primary concern for investors.
Those with interests in the Argentine economy should be more concerned of what these complaints are indicative.
President Cristina Fernández de Kirchner continues to run the country based on populist ideology and nepotism.
As opposed to devising solutions to improve her country's economic troubles, she continues to obfuscate by using tactics to distract the populace varying from manipulating the official inflation to antiquated territorial disputes.
Although superficially there may appear to be deep value in certain Argentine equities, until the country is able to commit to reforms that remedy the country's structural problems and enhance transparency, investors should continue to avoid the Argentine economy.
nasdaq.com
With the announcement that Mexico would file an official complaint with the WTO over Argentina's trade practices, the Argentine economy will likely continue to struggle.
Although the vitriol from foreign investors in Argentina has calmed somewhat as the aftermath of the YPF ( quote ) scandal becomes further and further in the past and problems elsewhere in the global economy take center attention, the Argentine economy continues to fester far below its potential as its structural problems have yet to be remedied.
The allegations from the Mexican government are representative of this shortfall in leadership on the economic front.
"The government of Mexico reiterates its deep worry over the protectionist measures that Argentina is applying, as well as practices that lack transparency and affect trade between our two nations and generate uncertainty," Mexico's Economy Ministry claimed, as reported by Reuters .
And Mexico isn't the only country that has voiced concern over the country's trade practices: the United States, the European Union, and Japan have all filed complaints with the WTO in the past three months.
It would thus not be particularly surprising if the WTO took action against Argentina; however, this should not be the primary concern for investors.
Those with interests in the Argentine economy should be more concerned of what these complaints are indicative.
President Cristina Fernández de Kirchner continues to run the country based on populist ideology and nepotism.
As opposed to devising solutions to improve her country's economic troubles, she continues to obfuscate by using tactics to distract the populace varying from manipulating the official inflation to antiquated territorial disputes.
Although superficially there may appear to be deep value in certain Argentine equities, until the country is able to commit to reforms that remedy the country's structural problems and enhance transparency, investors should continue to avoid the Argentine economy.
nasdaq.com
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