US announces trade and investment agreement with Argentina | World

The White House announced similar agreements with Ecuador, Guatemala and El Salvador. Argentina, El Salvador, and Guatemala are subject to a 10% tax from the United States. Products from Ecuador are subject to a 15% customs duty.

The deal with Argentina is a boost for the South American country, led by President Javier Milei, an ideological ally of President Donald Trump. “The countries will open their markets to each other for key products,” the document released by the Trump administration continued, adding that Argentina would be granted “preferential market access for exports of U.S. products,” including certain pharmaceuticals, chemicals, machinery, information technology products, and medical devices.

The US also reported that Argentina is opening its market to live cattle from the US and will allow access to the US poultry market within a year.

Millais’s government also pledged not to restrict market access for dairy and meat products such as cheese. Argentina will also simplify the product registration process for U.S. beef, beef offal and pork products, and will no longer require local facilities to register for imports of U.S. dairy products.

“The United States and Argentina will work quickly to finalize the text of the agreement for signature and compliance with their respective domestic procedures before it enters into force,” the statement added.

Milley hailed the country’s first bilateral trade deal with the United States in nearly a decade as “great news.” “As you can see, we are strongly committed to making Argentina great again,” he said.

Argentina also plans to accept imports of U.S.-made vehicles that meet U.S. federal vehicle safety and emissions standards, according to an anonymous Washington official involved in the matter.

The deal is part of President Trump’s even bigger bet on Argentina, after the United States rushed in $20 billion in funding and directly purchased pesos last month to prevent currency devaluation and support Milley’s party ahead of the Oct. 26 midterm elections.

It also represents a political victory for Milley, who has positioned herself as one of President Trump’s key allies on the world stage.

“It is clear that the Trump administration’s strategy regarding Argentina is based on strengthening the US presence in the region while reducing China’s influence,” Argentine political analyst Sergio Berenstein told Valor. “The relationship between the United States and Argentina, which has historical roots, is currently trending even stronger for geopolitical and ideological reasons,” he said.

The agreement also includes “commitments to reduce non-tariff barriers and zero tariffs” on U.S.-made products and a promise not to tax U.S. companies on digital services. Tariffs on some products from these countries will also be reduced.

The White House’s announcement came on the same day that the International Monetary Fund (IMF) warned Argentina’s government to take steps to rebuild its foreign exchange reserves, one of the key points of a US$20 billion agreement with the International Monetary Fund.

“In our discussions with the (Argentine) authorities, we emphasized the need to accelerate reserve building efforts to better manage volatility and further strengthen market confidence,” IMF spokeswoman Julie Kozak told a news conference.

It was also revealed yesterday that the United States had used some of its foreign exchange reserves with the IMF before paying important debts to Argentina, which received an equal amount during the same period, a deal that analysts believe was a U.S. effort to shore up Milais’ government.

The United States’ special drawing rights (SDRs) at the IMF – funds that can be used to pay debts or exchanged for currencies such as the dollar or euro – fell by $870 million last month, according to calculations by the Financial Times.

Argentina’s SDR account at the Fund increased by the same amount during this period, which occurred just before the November 1 deadline for payment of US$840 million to the IMF. Neither Argentina nor the United States have confirmed that the transaction took place.

For Luis Seco, an economist and founder of Argentine consultancy Perspective@s, while US financial support for Argentina is seen as welcomed by the market, Casa Rosada must avoid over-reliance, which could signal the government’s inability to foster confidence and attract foreign exchange. “Transparency is highly desirable in cases like this,” he said. (Cooperation: Roberto Rameirinhas)