Currently, the “Argentine brand” faces a new process of change, which only history will be able to tell if it is the beginning of a new era, or another cycle in the country’s wandering trajectory.
As with any product or service, the country brand is an extremely important element that affects consumer perception, since it is related to the recognition and trust, in this case, of the production and reliability of the country of origin. facing international markets.
As marketing experts know, building a brand is a “continuous” process that requires dedication and “long-term commitment” and is also a very fragile value that is easy to damage.
Our battered “Argentine brand” is a particular case, which contrasts with the enormous potential of a country that has everything to take off towards the best of levels in terms of its brand perception in the markets.
In its latest report updated as of March 2024, the World Bank highlights:
“In its territory of 2.8 million square kilometers, Argentina has abundant natural resources. It has extraordinarily fertile agricultural land, has significant gas and lithium reserves, and has enormous renewable energy potential. It is a leading country in food production, with large-scale industries, particularly in agriculture and cattle ranching. Likewise, it has great opportunities in some manufacturing subsectors and in the innovative high-tech services sector.”
The summary talks about abundance in food, opportunities in the industry and even high technology, where several of the most successful “unicorn companies” in Latin America stand out. What could go wrong?
Clearly a lot, because, for example, the country’s participation in world GDP was only 0.36% in 2023, when it was 0.78% in 2017 and 1.34% in 1953.
The World Bank itself points out that the main reason for this problem is “the unusually unstable macroeconomic environment and the large fluctuations in economic activity.”
Within the framework of international competition, Argentine foreign trade and its professionals are the ones at the forefront suffering the consequences of this situation that, however, directly affects the entire society.
Citing a recent example, the difficulties in paying for imports due to the non-availability of dollars for local companies to pay their debts, generated major problems between companies and a strong erosion in commercial ties, even in long-standing relationships, where Many foreign suppliers stopped sending products and supplies when debts accumulated for months in arrears.
Without a doubt, these types of problems damaged our country brand, as well as the spirit and drive of many businessmen, since, as the Chamber of Exporters of the Argentine Republic (CERA) points out, in 2022 alone more than 1,000 export companies stopped participating. in foreign trade, due to the multiple complications generated by the continuous change in the rules of the game.
On the other hand, in recent months, the new Argentine government has generated solutions for several of these foreign trade problems, which, as specialists point out, are not ideal, but do mark a more predictable path for international trade ties.
Given so much complexity and uncertainty about the near future, if there is one thing certain, it is that the path towards a positive evolution of the Argentine brand will necessarily be linked to a better performance of the country in its foreign trade and, therefore, in its associated logistics.
Clearly, we are facing a new turning point, where Argentina is risking the possibility of moving up the ranking or continuing to submerge itself in the international context table.
