Repatriation Law Worsens Country Profile

The ongoing policy of re-elected president Cristina Fernández to force local operations of foreign companies to repatriate their export revenues into Argentina is now being enforced in the autos industry, with PSA Peugeot Citroën and General Motors Company (GM) the most recent businesses to be affected by the policy. BMI sees the move as a significant blow to the already difficult operating environment for carmakers in the country, and we expect this policy to discourage new autos investment. The policy creates downside risks to Argentina's fourth position in BMI's Risk/Reward Ratings for the autos industry in the Americas.

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