A recent trade agreement between the United States and Argentina includes provisions that limit Argentina's use of foreign providers in its telecommunications networks, particularly affecting Chinese suppliers such as Huawei. This pact, signed on Friday, February 6, stipulates that Argentina will only use telecommunications technology exclusively for civilian purposes and committed to avoiding requirements for US entities to transfer technology or intellectual property. The agreement covers ICT infrastructure, including 5G, 6G, communication satellites, and undersea cables, and mandates cooperation with US government technical experts on security. Huawei has historically collaborated with all three major mobile operators in Argentina for 4G and 5G network deployments and trials.
This trade pact is part of a broader US effort to curb Chinese influence in Argentina. American officials have consistently expressed concerns about several Chinese projects, including a radio telescope project at the Cesco observatory in San Juan Province and a satellite and space mission control station in Neuquén Province. The Chinese radio telescope, a $32 million investment, has been stalled due to US pressure, with key parts frozen at customs. Similarly, Chile halted a Chinese astronomical observatory project after strong urging from the US ambassador. The US has also reportedly expressed "grave concerns" about Chinese involvement in a $10 billion contract bid for dredging and operating Argentina's Parana River, a vital waterway for agricultural exports.
In a related incident, Huawei's Argentine subsidiary faced a $2 million fine and $28 million in unpaid taxes from Argentine Customs for allegedly not declaring software imports. Customs argued that Huawei imported equipment without declaring the associated software and licensing fees, which are considered integral to the value for customs purposes. This aligns with US concerns about Chinese technology suppliers, although the trade agreement also states that Argentina will not be forced to transfer proprietary knowledge or purchase specific technology.
