December 19th, 2025
1. The 2026 budget moves forward, but the ruling party suffers a setback in the Chamber of Deputies
A marathon session took place in Congress this week. The Chamber of Deputies gave preliminary approval to the 2026 National Budget, promoted by the Executive Branch, with 132 votes in favor, 97 against, and 19 abstentions, thanks to the support of La Libertad Avanza, the PRO, and some provincial blocs and “dialogue-oriented” groups. However, as the initiative was discussed chapter by chapter, the ruling party failed to pass one of the key sections, which provided for the repeal of the National Emergency in Disability and University Financing laws, both initiatives that the government sought to eliminate. With this result, the bill must now be considered by the Senate. At the same time, the Chamber of Deputies also approved and sent to the Senate the ruling party’s bill to modify the Criminal Tax Regime and the tax procedure, known as “Fiscal Innocence,” with the aim of “recovering the dollar cushion” and reducing the criminalization of minor offenses. On the other hand, the last bill on the agenda was not debated: the Fiscal Commitment Law, aimed at curbing the passage of laws without funding.
Crónica: Tras maratónica sesión, Diputados dio media sanción al Presupuesto 2026
2. Foreign trade deregulation: requirements for importing products simplified
The government is moving forward with its goal of deregulating foreign trade. On Wednesday, it published Decree 892/2025 in the Official Gazette, introducing new provisions for the importation of products. The regulation makes entry procedures into the country more flexible, prioritizing international certifications and reducing the weight of local controls. Specifically, it establishes that technical requirements for importation will be considered met when products have valid certifications issued by countries or reference blocks, or endorsements from certifying bodies and accredited laboratories. The measure covers products regulated by ANMAT and SENASA, including: Class I and II medical products; Class A and B in vitro diagnostic products without a cold chain; household cleaning products; cosmetics, perfumes, and personal or oral hygiene products; disposable hygiene products for external and intravaginal use; phytosanitary products; and veterinary therapeutic products. In these cases, in addition to complying with the relevant technical standards, the importer must submit a sworn statement guaranteeing that the product does not pose a risk to human or animal health. Finally, the regulation will come into force 60 days after its publication.
3. New exchange rate measures: floating bands will move with inflation, and the Central Bank seeks to accumulate reserves
The Central Bank of Argentina (BCRA) announced that it will modify the exchange rate band system, which will begin to adjust in line with monthly inflation starting in January. In addition, the monetary authority announced that it could acquire up to US$ 17 billion with the aim of strengthening international reserves, as long as greater demand for money is consolidated. In this context, the BCRA will implement a strategy aimed at accumulating reserves, closely linked to the behavior of money demand and liquidity levels in the foreign exchange market. The agency’s central projection for remonetization forecasts an expansion of the monetary base from the current 4.2% of gross domestic product (GDP) to 4.8% by the end of the year. This process could be financed through the purchase of approximately US$ 10 billion, provided that balance of payments conditions allow it. If the demand for money increases by an additional percentage point of GDP, foreign currency purchases could escalate to US$ 17 billion. In addition, the Central Bank will adjust the daily volume of purchases to represent 5% of the total traded on the foreign exchange market. It will also be authorized to make larger purchases when necessary to avoid distortions or disruptions in the functioning of the market.
4. The EU postpones signing the free trade agreement with Mercosur
The signing of the free trade agreement between the European Union and Mercosur, scheduled for this Saturday during the summit in Foz de Iguazú, has finally been postponed. This was confirmed by the President of the European Commission, Ursula von der Leyen, who announced that the agreement will not be signed at this time and that its signing has been postponed until January, on a date yet to be determined. European sources indicated that, in the absence of a specific date, the intention is to move forward with the signing in early January. Von der Leyen needed to gather a qualified majority of member states to finalize the agreement. The position of French President Emmanuel Macron complicated the situation, although he failed to form a blocking minority, despite reservations expressed by countries such as Poland, Hungary, Austria, and Belgium. In the end, it was Italian Prime Minister Giorgia Meloni who tipped the balance. On Thursday, she warned that she considered it premature to move forward with the signing of the pact in its current state, although she expressed her willingness to do so later, once the demands of the agricultural sector had been addressed. This position ultimately thwarted the signing scheduled for Saturday.
5. The trade balance for November recorded a trade surplus of US$ 2.498 billion
This week, INDEC published its trade in goods report, which recorded a surplus of US$ 2.498 billion in November 2025, the highest level seen so far this year. This result is explained by significant growth in exports, which increased 24.1% year-on-year to US$ 8.096 billion, compared to a more moderate increase in imports, which rose 6.6% to US$ 5.598 billion. Export performance was mainly driven by Primary Products (+87.1%), including soybeans and their derivatives, and by the Fuels and Energy category (+52.8%), which reinforced the positive balance. In terms of imports, the increases in Passenger Motor Vehicles (PMV) stood out, with a rise of 68.1%, and in Consumer Goods (CG), which grew by 23.9%. In contrast, purchases of Parts and Accessories for Capital Goods (PyA) fell by 13.4%, while Intermediate Goods (BI) declined by 4.1%. This positive balance continues a favorable trend in Argentine foreign trade: the trade balance has accumulated 24 consecutive months of surplus results. In terms of relations with major trading partners, there was a surplus with India, the United States, and the rest of the ALADI countries, while there was a deficit with China, the country’s main trading partner, and with Mercosur. In particular, trade with Brazil was weaker than a year ago, due to the decline in energy exports.
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