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Viewing cable 08BUENOSAIRES1445, AMCHAM ARGENTINA CELEBRATES 90TH ANNIVERSARY

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Reference ID Created Released Classification Origin
08BUENOSAIRES1445 2008-10-22 14:37 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Buenos Aires
VZCZCXYZ0000
RR RUEHWEB

DE RUEHBU #1445/01 2961437
ZNR UUUUU ZZH
R 221437Z OCT 08
FM AMEMBASSY BUENOS AIRES
TO RUCPDOC/USDOC WASHDC
RUEHC/SECSTATE WASHDC 2290
INFO RUCNMER/MERCOSUR COLLECTIVE
UNCLAS BUENOS AIRES 001445 
 
SIPDIS 
SENSITIVE 
 
USDOC FOR 4322/ITA/MAC/OCAC/APEACHER 
USDOC FOR 3134/USFCS/OIO/WH/RD/BBRISSON 
STATE FOR ECON WHA/BSC 
 
E.O. 12958: N/A 
TAGS: OVIP BEXP ECON AR
SUBJECT: AMCHAM ARGENTINA CELEBRATES 90TH ANNIVERSARY 
 
------- 
SUMMARY 
------- 
 
1. (U) The American Chamber of Commerce in Argentina (AMCHAM) is 
currently celebrating its 90th Anniversary.  Embassy and AMCHAM have 
organized several successful celebrating events and we continue to 
work together vigorously to promote US values and the positive role 
of US companies in Argentina.  AMCHAM and its members are strong 
partners of the Embassy in promoting what is good about the U.S. as 
well as our efforts to promote US commercial interests and good 
business practices.  AMCHAM has more than 760 members who together 
employ more than 320,000 Argentines and whose earnings represent 19 
percent of GDP.  Of these companies, 63 percent are U.S. firms, 
representatives of U.S. companies, or have U.S. capital.  AMCHAM has 
promoted U.S. business interests in Argentine since 1918 and 
currently has eleven committees and three specialized departments 
that have dedicated responsibilities such as environmental concerns, 
IPR protection, and the promotion of Corporate Social Responsibility 
initiatives.  Throughout the year, AMCHAM has celebrated their 90th 
anniversary via several events and activities, including its 90th 
Anniversary Gala Dinner that attracted more than 800 participants. 
AMCHAM will celebrate its 10th anniversary of the "Premio Ciudadania 
Empresaria" (Corporate Social Responsibility Award), in which they 
will acknowledge several companies for their work in this area later 
this month.  U.S. firms have enjoyed a rich history in Argentina, 
many having established themselves nearly 100 years ago.  However, 
the current U.S. economic crisis, combined with Argentina's own 
economic challenges, could cause a difficult year ahead.  END 
SUMMARY. 
 
 
---------------------------------- 
AMCHAM'S LONG HISTORY IN ARGENTINA 
---------------------------------- 
 
2. (U) AMCHAM was founded on December 18, 1918, marking Argentina as 
one of the first countries to establish a binational chamber to 
promote commercial relations with the United States.  AMCHAM was 
founded on the principles of promoting stronger business relations, 
direct investment, technology transfer, free market enterprise, an 
increased market economy, protection of intellectual property, and 
Corporate Social Responsibility (CSR).  Currently, AMCHAM has more 
than 760 members who employ more than 320,000 Argentines and whose 
earnings represent nearly 19 percent of GDP.  In total, these 
companies account for more than 300 industrial plants located 
throughout Argentina.  Specifically, 63 percent of AMCHAM's members 
are U.S. firms, representatives of U.S. firms or have U.S. capital. 
Combined, this accounts for approximately 468 U.S. member firms. 
Combined, these U.S. companies employ nearly 150,000.  In 1999, 
AMCHAM created a branch in the city of Cordoba, which currently has 
30 Argentine company members and 45 multinational companies. 
 
3. (U) Since its founding, AMCHAM has taken a strong role in 
promoting business interests in the Argentina market.  Much of the 
work is accomplished through one of its 11 committees, which cover 
issues that range from the environment to IPR protection.  AMCHAM 
has also established three specialized departments: a trade center, 
public-private relations, and Corporate Social Responsibility (CSR). 
 AMCHAM has been a pioneering force in the promotion of CSR.  In 
1998, it began its "Premio Ciudadania Empresaria" (CSR Award) that 
acknowledges the contributions that firms have made to the 
sustainability of their local communities.  Via this mechanism, 
AMCHAM has highlighted 738 CSR projects, awarded 33 companies, and 
selected 37 companies for honorable mention.  Importantly, projects 
have been recognized for their positive results in more than 14 of 
Argentina's 23 provinces with the support of more than 235 
companies. 
 
--------------------------------- 
AMCHAM CELEBRATES THROUGHOUT 2008 
--------------------------------- 
 
4. (U) Throughout the year, AMCHAM has highlighted their 90th 
anniversary via numerous events and activities.  On September 3, it 
held its annual Intellectual Property Seminar in which the 
Ambassador provided opening remarks commenting on the importance of 
IP protection in the promotion and support of innovation.  Later in 
September, AMCHAM hosted the photographic exhibition "Argentina and 
the United States, Tied Together in Images" that detailed the 
everyday idiosyncrasies of both Argentine and U.S. culture.  DCM and 
several other Embassy personnel attended this exhibition.  In 
October, AMCHAM hosted its 90th Anniversary Seminar titled "The 
State of Business in the Global Economy," attracting hundreds of 
participants from the public and private sectors.  Ambassador Wayne 
provided opening comments, and former Secretary of the Treasury 
Larry Summers was the featured speaker.  This was an especially 
relevant topic given the current global financial crisis. 
 
5. (U) AMCHAM's most important anniversary event was the 90th 
Anniversary Gala Dinner on October 9, which more than 800 attended. 
The Ambassador was a Guest of Honor and spoke about the value of 
person to person ties built by US business workers in Argentina. 
The evening consisted of a thematic celebration in which historical 
and cultural events in the United States and Argentina were 
interpreted through dance, song, art, film, and cuisine.  AMCHAM 
organized a mini-exhibit in honor of its Anniversary Gala that 
consisted of products from several of its representative sectors 
such as information technology, automobiles, and consumer goods. 
AMCHAM President Juan Bruchou (Citibank) explained that AMCHAM 
Argentina was founded on such principals as innovation and corporate 
social responsibility, as reflected in AMCHAM's donation to a local 
children's hospital on behalf of its members. 
 
6. (U) AMCHAM will also be celebrating the 10th anniversary of its 
"Premio Ciudadania Empresaria" (CSR Award) on November 4.  The 2008 
edition will feature a new category, "Business Management Oriented 
to Sustainability," in order to strengthen the idea of CSR and also 
introduce this concept to its members.  The DCM will provide opening 
comments and co-present the awards.  AMCHAM has held several other 
cultural activities throughout the year in honor of their 90th 
Anniversary. 
 
----------------- 
Challenges Ahead? 
----------------- 
 
7. (SBU) U.S. business has enjoyed a rich history in Argentina. 
Citibank's first location outside of the U.S. was in Buenos Aires in 
1914, Deloitte is currently celebrating its 100th year in the 
market, and others, such as Ford and GM, have had a presence here 
for nearly a century.  Several sectors such as broadcasting, IT and 
telecom, safety and security, travel and tourism, and automobiles 
have enjoyed several years of sustained growth and profitability. 
However, with Argentina facing many economic challenges, including 
high inflation, energy shortages, price controls, and a decelerating 
economy, the upcoming months could be challenging.  The policy 
environment in Argentina is also increasingly challenging.  The GOA 
has responded to the global financial crisis by announcing tighter 
import controls on selected items, a weaker peso:USD exchange rate, 
and a reduction in all non-politically sensitive capital 
infrastructure projects.  The Commercial Section has already 
received concerned comments from WalMart Argentina, as the firm 
imports a number of products directly from China, one of the 
countries specifically targeted for tighter import controls. 
 
------- 
COMMENT 
------- 
 
8. (U) AmCham's longevity demonstrates that, for all its troubled 
economic history, Argentina has been a lucrative market for many 
American firms.  Business remains good for many U.S. firms here, as 
Argentina recovers from its deep economic crisis earlier this 
decade.  But even the firms that are doing well comment that they 
could do even better, investing more, and creating more value in the 
market if the attitude of the GOA toward the private sector was more 
positive and proactive.  Today's turbulent economic conditions could 
change the equation for growth and company profitability, but it 
does not appear that U.S. firms established and operating 
successfully in Argentina will retreat from their profitable market 
niches here anytime soon.  AMCHAM and its members are and continue 
to be some of our very best "Ambassadors" in an Argentina with many 
skeptical views of the U.S.  Post will continue its close 
cooperation with the AMCHAM on the public diplomacy of enhancing 
America's image as well as the Commercial diplomacy of preserving 
our economic relationship.  The two are as mutually reinforcing and 
important as ever.  WAYNE