UPDATE 3-Argentina eyes ways to limit crisis fallout-media

(Adds economy ministry source's comment)

BUENOS AIRES, Oct 12 (Reuters) - Argentina's government is considering a host of measures to contain the impact of global financial turmoil amid growing fears of declining output and employment, local media reported on Sunday, citing government sources.

President Cristina Fernandez wants a pact with businessmen and unions to avoid layoffs, coupled with measures to help underpin output, such as higher tariffs on imports, trade barriers and a weaker currency, they said.

She will also seek coordinated action by members of the Mercosur trade bloc -- which groups Argentina, Brazil, Uruguay, Paraguay, associate members Chile and Bolivia, as well as Venezuela, which is in the process of joining -- and which could lead to a higher external common tariff.

"The plan envisages an agreement to preserve jobs, the freezing of salary demands and the guarantee of a more competitive exchange rate of between 3.3 and 3.4 pesos per dollar," newspaper La Nacion said, citing government sources.

"The president ... is planning to urgently define some kind of hurdle for imports from China," it added.

The government says the country, which is enjoying a sixth year of strong economic growth, is well placed to face the global crisis, thanks to trade and fiscal surpluses and around $47 billion in international reserves with the central bank.

"The government's priority is to maintain the level of economic activity and safeguard the jobs of Argentines," state news agency Telam quoted Cabinet chief Sergio Massa as saying.

"We will use all tools at the disposal of Argentina and Mercosur."

Local bonds and the stock market have been hard hit by uncertainty that has pummeled emerging markets and spurred demand for safe-haven dollars.

A sharp drop in international commodity prices will also likely hit the trade surplus of Argentina, a leading global grains producer.

Some firms in the automotive and construction sectors have already cut hours for some staff.

"The presidential palace is scrutinizing China, Malaysia, Taiwan, South Korea, and the United States," newspaper Clarin said. "The external tariff which Mercosur applies to consumer goods imported from other regions will likely be raised.

"The backbone of the anti-crisis package will be a decision to float the peso," the paper added.

Newspaper Critica Digital said on Sunday the Central Bank would come up with the dollars necessary from its reserves to calm the population, while encouraging banks to raise interest rates on local peso-denominated deposits. It cited central bank sources.

Massa said the government was pushing ahead with plans to repay $6.7 billion of Paris Club debt in default since a 2001-2002 economic crisis, and to study a proposal to renegotiate debt with bond holders, who rejected a 2005 debt swap.