Two people shaking hands at a meeting with the flags of Argentina and the United States in the background.
ARGENTINA

After Trump's endorsement, Milei seeks to move forward with the trade agreement with the U.S.

Milei's government accelerates diplomatic efforts while facing obstacles within Mercosur.

Donald Trump's recent endorsement of Javier Milei reignited the possibility of a trade agreement between Argentina and the United States, prompting the Casa Rosada to activate its diplomacy to advance in that direction.

"I'll consider anything. I think he's a great, great leader. He's doing a fantastic job. He's rescued that country from oblivion. Yes, we'll look into the possibilities", stated the former U.S. president when referring to Milei and the possibility of a bilateral agreement.

From the Ministry of Foreign Affairs, headed by Gerardo Werthein, they confirmed that exploratory work has already begun. Although they acknowledge that it is still premature to talk about a free trade agreement,  the initial meetings aim to define work lines for an agreement with more limited but feasible goals.

"We are beginning to study the guidelines and work lines to advance in a trade agreement with the U.S.," diplomatic sources explained to Infobae.

The Mercosur obstacle

For Argentina to advance in a trade agreement with the U.S.,  it must first solve its position within Mercosur. Milei has been critical of the bloc and considers that, far from promoting development, it has become an obstacle to economic openness.

Two people in suits talking in an indoor setting with dark curtains in the background.
After Trump's endorsement, Milei seeks to move forward with the trade agreement with the U.S. | La Derecha Diario

As the pro tempore president of Mercosur, Milei faces resistance from Brazil and its leader, Lula da Silva, who opposes loosening the bloc's rules that  prevent countries from signing individual trade agreements.

From the Argentine government, they maintain that Mercosur needs to update to allow greater freedom in signing bilateral agreements. "Economic blocs should promote progress, not become barriers against it," official sources stated.

In contrast,  Lula and the new president of Uruguay, Yamandú Orsi, defended the bloc's current state, highlighting the difference in approaches with Milei.

Changes in Argentine diplomacy

In parallel with the negotiations with the U.S., the government is preparing key moves in the diplomatic field:

  • Wenceslao Bunge will be proposed as ambassador to Spain, and his nomination will be sent to the Senate in the coming days.
  • Carlos Cherniak will replace Sonia Cavallo as Argentina's representative to the OAS, at a crucial time for the election of the organization's next secretary-general.
  • Progress is being made in planning Milei's trip to Israel, which seeks to strengthen the bilateral relationship.
A group of people sitting on chairs at a formal meeting with United States and Argentina flags in the background.
After Trump's endorsement, Milei seeks to move forward with the trade agreement with the U.S. | La Derecha Diario

Cherniak's appointment to the OAS comes in a context of dispute over the organization's leadership, currently held by Luis Almagro. Among the candidates for succession are figures aligned with Chavismo, such as Suriname's foreign minister, Albert Ramdin, and more neutral ones, like Costa Rica's foreign minister, Arnoldo André.

The United States has not yet publicly defined which candidate it will support, while other regional leaders, like Nayib Bukele, have also not revealed their preferences.

A complex geopolitical scenario

Milei's progress in his international insertion strategy occurs in a context of global tensions, with Trump facing the progressive bloc of Latin America, where the following stand out:

  • Mexico, with Claudia Sheinbaum.
  • Brazil, with Lula da Silva.
  • Colombia, with Gustavo Petro.
  • Venezuela, Nicaragua, and Cuba, with regimes aligned with Chavismo.

Meanwhile, Milei seeks to strengthen the relationship with the U.S. and Israel, his critical stance toward China, Brazil, and Mercosur poses challenges for achieving a quick and effective trade opening.

While it is still early to talk about a concrete agreement with Washington,  the political affinity with Trump and the diplomatic alignment with Western sectors could mark a change of course for Argentina in international trade.

➡️ Argentina

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