Expanding Horizons: Exporting to the United States from Argentina

09/14/2023

Are you the owner of a small or medium business in Argentina trying to grow, but you have lots of doubts due to the economic environment. Looking to export you products to countries like USA but you dont know how to make the first move? Well, pay atention to this blog becasue its just for you.

In Argentina, the world of exports is a vast territory with nearly 9,000 registered companies. However, only around sixty of them venture into the international market, generating an average of one hundred million dollars annually, representing a mere 0.3 percent of the country's global exports. This may seem discouraging, especially when considering the economic challenges that small and medium-sized enterprises (SMEs) face in Argentina, such as increasing inflation, the need to import raw materials and technology, and a dollarized economy. Nevertheless, we must not lose sight of the opportunities that lie beyond our borders.

Entering the US market, in particular, may seem like an unreachable goal for many SMEs. They face a range of obstacles, from a lack of knowledge on how to conduct their first export to understanding the market and its opportunities. Additionally, they must contend with tariff barriers, regulations, competition, and cultural differences. However, one of the biggest challenges, excluding the issue of payments and collections, is logistics. Managing international logistics for export operations to the United States or other destinations is a considerable challenge for an SME.

Despite these obstacles, it is worth seriously considering the possibility of creating an action plan to expand internationally. The benefits are significant and favor Argentinean companies:

  • Vast Market: The United States has one of the world's largest economies, offering tremendous potential for sales and growth for companies exporting there.
  • Purchasing Power: American consumers have high purchasing power compared to many other markets, potentially enabling companies to achieve more solid profit margins.
  • Diversification: Exporting to the United States can help diversify a company's commercial risks by not relying solely on the Argentinean domestic market.
  • Access to Technology and Innovation: The United States leads in technology and innovation in many sectors. Exporting there could allow the company to access new technologies, business practices, and advanced knowledge.
  • Learning and Knowledge: Exporting to a sophisticated market like the United States can provide the company with valuable experience in terms of marketing, sales, and international logistics.
  • Reduced Seasonality: If the company faces seasonality in its domestic market, exporting to the United States could help level demand throughout the year due to seasonal differences between the two markets.
  • International Brand Image: Penetrating the US market can enhance the international perception of the company's brand, thus attracting other global markets.
  • Access to Global Supply Chains: Exporting to the United States could facilitate access to international supply chains and global suppliers, improving efficiency and reducing costs.
  •  Government Incentives: In some cases, governments can offer tax incentives and support programs to companies looking to expand through exports.

However, before embarking on exporting to the United States or any other international market, it is essential to conduct thorough research and develop a robust strategy to maximize benefits and mitigate risks. An excellent way to start is by exploring opportunities through Directoro.com, a marketplace that serves as a window to the world for Argentinean companies. With the right support and a strategic approach, Argentinean SMEs can take the leap into the international market and capitalize on the benefits it offers. Exporting can be a challenging path, but the results can be truly rewarding for those willing to take the risk and expand their business horizons.


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