President Trump indicated openness to negotiating a Free Trade Agreement with Argentina, supporting President Milei’s efforts to boost US-Argentina trade relations despite existing Mercosur constraints. Milei believes Mercosur hampers Argentina’s economic growth and seeks to negotiate directly with the US for improved trade terms.
US President Donald Trump acknowledged he might explore signing a Free Trade Agreement (FTA) with Argentina, following comments from US Special Envoy for Latin America, Mauricio Claver-Carone, who stated that the US had no interest in such an agreement. Trump expressed support for Argentina’s President Javier Milei, referring to him as “a great leader.” Trump made these remarks during a press conference at the White House after participating in the Conservative Political Action Conference (CPAC).
Milei has proposed that Argentina should consider making its participation in Mercosur more flexible or even exiting the bloc to pursue an FTA with the US. This initiative aims to boost Argentine exports, attract US investments, and facilitate technology transfer. However, Mercosur’s rules mandate that member countries negotiate trade agreements collectively, which complicates Milei’s ambitions.
Milei highlighted that Mercosur primarily benefits Brazil’s wealthy industries rather than the other member nations. At a recent session of the Legislative Assembly, he stated, “Our first objective will be to push during the next year for a free trade agreement with the US, the agreement that should have happened 19 years ago.” He emphasized Argentina’s potential growth if trade with the US had been established earlier.
Milei further insisted that Argentina aims to be the first country to execute the reciprocal trade agreement desired by the Trump administration. He asserted that Mercosur restrictions hinder Argentina’s ability to negotiate an FTA with the US. Trump praised Milei, stating, “I would consider anything. I think he is a great leader… he resurrected the country from oblivion.”
In terms of trade, Argentine exports to the US amounted to $6.454 billion last year, while imports reached $6.226 billion, resulting in a trade surplus of $228 million.
This developing scenario highlights the complex dynamics of trade negotiations influenced by political leadership changes and international trade laws. As Milei actively seeks to redefine Argentina’s trade relationships, the feasibility of an FTA with the US remains to be seen.
The possibility of a Free Trade Agreement between the US and Argentina is a significant development as President Milei seeks to redefine his country’s trade strategies. Despite existing constraints from Mercosur, Milei’s push for direct negotiations with the US might open new economic opportunities. Trump’s support adds a political layer to this potential agreement, but its actualization will depend on navigating complex trade regulations and mutual interests.
Original Source: en.mercopress.com
