ANNOUNCEMENT 10 May 2018
The Argentine Congress passed a law to ensure that public procurement include minimum local content requirements.
NUMBER OF INTERVENTIONS
Official Gazette of Argentina. Boletín Oficial de la República Argentina. Ley de Compre Argentino y Desarrollo de Proveedores. Ley 27437. Available at: https://www.boletinoficial.gob.ar/#!DetalleNorma/183197/20180510
Ministry of Production. Ministerio de Producción. "Compre argentino: el Congreso sancionó la Ley con la que el Gobierno busca potenciar a la industria y el empleo" Available at: https://www.argentina.gob.ar/noticias/compre-argentino-el-congreso-sanciono-la-ley-con-la-que-el-gobierno-busca-potenciar-la
On 10 May 2018, the Law 27437 concerning the imposition of local content requirements in public procurement was published in the Argentine Official Gazette.
The new law establishes that in any public contract surpassing ARS 240 million (USD 10.6 million at the time the measure was published), the awardee must enter into a productive cooperation agreement to subcontract goods and services provided by local companies worth at least 20% of the total value of the public contract.
Previously to the new law, the minimum local content requirement on public procurement was not defined and decisions were made on an individual basis.
Law 27437 published in the Argentine Gazette on 10 May 2018, also established certain public procurement preference margins to promote the inclusion of local content in public procurement offerings.
In this sense, the new legislation increases the preference margins for suppliers of goods of national origin will be increased from 7% to 15% in the case of SMEs and Cooperatives, and from 5% to 8% for big companies.
In addition, in the cases where the price comparison is to happen between foreign offers, a margin of preference of 1% will be granted every 5 percentile points of local goods and services integrated into the offer with a maximum preference margin of 8%.