Topic: 2024-Supply Chain Stability
Country: Argentina
Delegate Name: Gavin Dakhi
Throughout the 21st century the world’s supply chain has become increasingly unstable. With recent events such as the Covid-19 pandemic which in turn has led to labor shortages and national debt around the globe. In addition, climate change is rapidly speeding up the deterioration of our trade networks by means of natural disasters, and reduced sea levels. As seen with the Hurricane Ian which struck the Caribbean and the United States in September of 2022 resulting in a 75% drop in shipments coming in and out of areas affected. This had global effects on other countries due to the fact that The United States is a high-power trade country. Argentina has been directly affected by climate change Argentina’s agriculture especially is directly affected by the droughts within the country. With these droughts water demand will increase by upwards of 11% by 2050 if the current plans are kept. Damage caused by climate change also heavily affects the economy of Argentina. The costs for rebuilding infrastructure from climate change disasters will take a toll on Argentina’s economy. The United Nations need solutions for the world supply chain crisis, and we need to work together to find them. Argentina is on board to finding sustainable and fair solutions.
With Argentina’s total value of exports being around $90 million and the total value of imports being $80 million. The total percent of crop related exports in Argentina is 54%, this makes Argentina a strong export country for agricultural goods. Argentina’s GDP lowered by 3.4% throughout the first half of 2024. An expected 4% GDP reduction is also to be expected by the end of 2024. But entering 2025 a 6% rebound is predicted. Due to greater investments from big corporations and a higher export of goods out of Argentina, this will benefit the country throughout 2025.
Argentina will move to strengthen the partnerships with Mercosur (an international South American trade bloc promoting free trade and economic integration). Meeting with countries involved with Mercosur such as Brazil and Paraguay to establish local trade route stability. This is the first step Argentina needs to take in order to repair damaged trade routes. Additionally, to mitigate the threat of climate change Argentina would propose energy projects such as solar farms and wind farms that align with international climate goals. These farms will utilize domestic consumption of Argentina’s lithium stock. Another proposition is applying for financing from global green funds such as the Green Climate Fund (GCF) to additionally reduce the impact of the climate crisis. In turn these strategies will work to reopen trade routes internationally and globally.
Implementing these strategies Argentina is enthusiastic about working with other countries to restore the national and global trade systems and help reduce the impact of climate change disasters. Working with neighboring countries and larger global organizations Argentina is willing to work towards a sustainable and practical solution to the supply chain crisis.
