Amendment of the Argentine Buy and Supplier Development Regime.
Public Law Department Report | Amendment of the Argentine Buy and Supplier Development Regime
Decree of Necessity and Urgency No. 509/2023, published in the Official Gazette on October 6, 2023, replaces Articles 9 and 10 of Law No. 27,437 on Argentine Buy and Supplier Development, and Article 25 of its Regulatory Decree No. 800/18, with the following:
a) Productive Cooperation Agreements: These shall consist of the firm commitment by the awardee to purchase, contract, produce, or provide local goods and/or services equivalent to 20% of the value of the offer related to the subject of the selection process. (Article 9, Law 27,437). Currently, the commitment implied in the Productive Cooperation Agreement is broader since, unlike the previous regulation that only contemplated the possibility of contracting local goods and services related to the object of the contract, it now extends to the awardee commitment to acquire, contract, produce or provide such goods and services.
b) Productive Cooperation Agreement – relationship with productive sector: In cases where it is not feasible to reach 20% of the contract value through the mentioned procurement, production, or provision, the application authority may authorize that this amount may be completed through investments in the national territory, technology transfer, investments in research or technological development and innovation to be carried out within the same productive sector of the contract object and/or its value chain, in the forms and conditions established by the regulations (Article 10, Law 27,437). The scope of the Productive Cooperation Agreement under the previous regime was broader because, unlike the new regulation, it was not required to be related to the productive sector or to the value chain of the object of the contract.
c) Productive Cooperation Agreement: must include the purchase, production, or hiring of goods produced in Argentina or the provision or hiring of local services, in both cases directly linked to the production process carried out in national territory, in order to execute the contract subject to the bidding. In cases where it is not feasible to reach 20% of the contract value, the Application Authority may authorize this amount to be completed through the categories of investments; technology transfer, and research and technical training to be carried out within the same productive sector of the goods subject to the contract and/or its value chain. (Article 25, Decree 800/18). As in the last item, the previous regime was broader because it did not require the Productive Cooperation Agreement to be related to the productive sector or to the value chain of the object of the contracting.
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Sincerely,
Oscar Aguilar Valdez
Santiago Barbarán