This report provides background on the political and economic situation in Argentina and U.S.-Argentine relations. Argentina, a South American country with a population of almost 42 million, has had a vibrant democratic tradition since its military relinquished power in 1983. Argentina has Latin America's third-largest economy and is endowed with vast natural resources. Agriculture has traditionally been a main economic driver, but the country also has a diversified industrial base and a highly educated population.

This report summarizes the economic and political crisis in Argentina and the policies implemented by President Nestor Kirchner, Argentina's President, winner of the 2003 election.