Washington’s announcement of a framework agreement on trade and investment between Argentina and the United States signifies the maturity of the approach and negotiation process pursued by the Argentine government. Javier Millay It started with donald trump “April 3rd, just one day after the incident”liberation dayIn it, the White House secretary announced the first of a series of revised (sometimes increased, sometimes decreased) “reciprocal tariffs” in a series of “fait accompli” that later became political agreements (or disagreements).
More than seven months ago, an Argentine delegation led by the then Minister of Foreign Affairs, Gerald VerteinAmbassador of Argentina to the White House alec oxenfordSecretary of International Economic Relations; Luis Maria Krecklerproduction adjustment, Pablo Lavignederegulation; alejandro cacaceand Head of Mission of the Argentine Embassy, Juan Cortellettia bilateral exercise promoted by Trump and Milley at the highest levels began, which grew with decisive contributions such as the intervention of the US Treasury in the Argentine exchange market and the announcement of a US$20 billion currency swap that helped support the peso in the run-up to October’s parliamentary elections.
That could continue – he estimated Marcelo Elizondoheading to Argentina and Latin America. international chamber of commerce– Implementation of an additional $20 billion in private contributions. This has already been discussed and will provide clarity on the outlook for Argentina’s debt maturities beyond 2026, which will further reduce country risk and facilitate the Argentine state’s re-access to international capital markets.
From Panama, he attended the conference. international chamber Regarding Latin America, Elizondo noted that although details are lacking and the White House statement was written from a standpoint of U.S. interests, the agreement is positive and will enable the development of new tools. For example, he pointed out that the announcement refers to the entry of Argentine products into goods that are not in sufficient supply in the United States, but does not specify the steps or decisions.
“This is a framework for strategic relations and a step forward for Argentina, which is very isolated from the rest of the world, because even its friends have not given it much. It will boost trade and force Argentina to become more agile in terms of competitiveness. It also envisions investments in energy and mines to supply the U.S. market itself,” the expert said, which “includes all the important minerals for the hardware of knowledge.” The package ranges from aluminum and steel (Argentine distributors currently pay a 50% tariff) to copper, and the sum of projects and investments, as well as the entry of giants into the sector, will see Argentina become a major supplier in the coming years. In the case of beef, Argentina’s minimum tariff is expected to increase from 20,000 tonnes a year to 80,000 tonnes, but until this week it was 10%, when President Trump announced a direct repeal.
“This is where commercial, financial and strategic matters come into play. President Trump is also sending a message that there are advantages for friendly governments and countries, and that the United States is willing to discount some of the advantages that China has gained in the region,” Elizondo said, adding that at this stage in global economics and politics, Argentina could be an example. friend shoring (sourcing from friendly suppliers) nearshoring (Supplied from nearby suppliers). He added that this does not mean Argentina will export more to the United States than Mexico, but it does mean that Argentina is more of a friend, even if they are not as close geographically.
“The United States is the world’s leading economy and largest importer (…) The new agreement puts Argentina in an advantageous position, especially in the face of the changes that global trade is undergoing. It opens the door to the integration of bilateral incentive routes that will allow to facilitate foreign trade, increase exchanges and strengthen access to key markets such as the United States. The potential removal of sub-tariff barriers will improve the competitiveness of Argentina’s export sector and promote Argentina’s export industry, promoting internationalization and positioning the country as an attractive destination for new investments, especially in strategic sectors,” AmCham Argentina emphasized in a statement.
Meanwhile, the Chamber of Exports of the Republic of Argentina (CERA) said the announcement was “a very important step forward, as the precise terms of the agreement covering both trade and investment will be discussed,” but stressed that the agreed framework conditions “preclude a complete understanding of the implications regarding Mercosur and Most Favored Nation (MFN) standards to which Argentina is bound by the World Trade Organization (WTO) agreement.”
Another analyst who was consulted and requested anonymity also included the announcement in the trend. friend shoring, The situation dates back to Russia’s invasion of Ukraine, and the emergence of President Trump and further deepening tensions between the United States and China.
The official recalled that the framework agreement with Argentina coincided with similar agreements with Ecuador, El Salvador and Guatemala on the same day, and with Switzerland the following day.
“It’s clear that Trump is driving all of this. (Scott) Bessent, (Jamieson) Greer “Beyond the internal things that may exist on the other side of the[U.S. Trade Representative’s]negotiation,” he said, adding that much of what the president is doing would be beyond his authority because it relates to issues such as security of supply and bidding with China, which were already concerns of previous Democratic administrations.
“Brazil is also attracting the United States’ attention because it has the world’s second-largest rare earth reserves and is the largest and most important country, bordering Venezuela,” the analyst said, adding that keeping these issues in mind is key to getting the most out of a deal with the United States.
He noted that Argentina and the United States are in principle more competitive than complementary economies, and although there are Mercosur rules that could lead to incompatibilities, the general trend is clear.
In this regard, the economist and ambassador said: felipe friedman He recalled that Argentina recently agreed in Mercosur’s Common Market Group to a list of 50 tariff positions that could be negotiated with third countries without applying the bloc’s common external tariff.
Argentine probably moved within its limits in the negotiations, he speculated, but said the negotiations should have already been concluded and the details will become clear when Milay goes to sign the deal with the United States.
Regarding what was announced, Friedman emphasized that, for example, Argentina is committed to recognizing certifications and quality certificates issued by the United States, which seems reasonable because the United States has the highest standards in the world in areas such as food, animal health, and automobile safety, and requires this certification from all countries, not just Argentina, and the majority accepts it, Friedman stressed.
Friedman said it’s still unclear, for example, what tariffs the U.S. will apply to Argentine steel and aluminum imports. “Some say Argentina has given too much, but the certificates indicate an intention to establish closer trade ties and a willingness to grant tariff preferences, but we do not yet know what that looks like,” he said.
Beyond its product composition, Argentina’s trade has very distinct national characteristics. Since 2008, the company has amassed a total surplus of nearly $120 billion, according to data from the International Trade Center’s Trade Map, but there are significant geographic differences. The bilateral deficit with China has reached nearly $100,000, with exchanges with Brazil and the United States adding up to an additional $100,000, and the surplus with other countries reaching $320 billion, but this situation is sure to change based on the agreement with Washington.
In fact, the “Framework Agreement” that was announced includes content that hints at China, such as warning state-owned enterprises that receive subsidies against dumping and respecting labor standards. “These are positive things and represent a closer and deeper commercial relationship,” Friedman said, ending by mentioning intellectual property issues.
“The US complains that INTI takes years to grant patents, creating a profit window for local companies. This is somewhat controversial, but without proper patent protection, Argentines themselves will end up getting patents in the US. If we want to make progress, we need a good patent system. For example, Invap patented its small modular reactor model in the United States rather than in Argentina. The piracy phase is over. All it does is hinder technological progress in its own country.” Ambassador, economist, and international trade expert, he even considered the possibility that the Argentine Congress, based on the new legislative structure, would address issues such as: patent cooperation treaty It’s up to you. “Competing on a firmer basis, he concluded, is legal modernization.”
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