According to a report by Reuters on the 14th (local time), Argentine President Javier Milei has voiced his support for the tariff policies of the former U.S. administration under Donald Trump and expressed his intention to conclude a trade agreement with the United States.
On this day, President Milei held a 1 hour and 30-minute meeting with U.S. Treasury Undersecretary for International Affairs, Brent McIntosh, who visited Buenos Aires, at the presidential office. McIntosh expressed support for President Milei's bold economic reforms during the meeting and congratulated the Argentine government on recently securing a total of $42 billion (approximately 60 trillion won) in loan support from the International Monetary Fund (IMF), the World Bank, and the Inter-American Development Bank.
In response, President Milei stated, "I understand the United States' policy of imposing reciprocal tariffs, and in line with this stance, we are preparing to conclude a trade agreement with the United States." This statement is interpreted as support for the protectionist trade policies pursued under the 'America First' principle of the former President.
Undersecretary McIntosh also expressed concerns about China's increasing influence in Latin America, stating that the United States is working to prevent a recurrence in Latin America of the situation that arose in Africa due to China's policies. In particular, he revealed the United States' intention to curb China's expanding influence, which is driven by infrastructure investment and the provision of loans.
In this context, local speculation arose that the United States could replace Argentina's currency swap with the Chinese yuan. However, Undersecretary McIntosh drew a line in an interview with Bloomberg TV, stating, "We are not considering a currency swap with Argentina."
President Milei's remarks signal a significant shift in Argentina's foreign policy direction. While Argentina has been strengthening its economic cooperation with China, this meeting suggests an intention to redefine its relationship with the United States and to check China's influence.
Background Information:
Argentina's Economic Situation: Argentina has been suffering from severe inflation and economic difficulties recently, and President Milei is implementing strong austerity policies to address these issues.
U.S.-Argentina Relations: The United States is a major trading partner of Argentina, and the two countries have maintained friendly relations for a long time. However, China's increasing influence in Latin America has become a new variable in their relationship.
China's Influence in Latin America: China has been strengthening its economic cooperation with Latin American countries through its 'Belt and Road Initiative,' which has raised concerns about a potential weakening of U.S. influence in the region.
Currency Swap: A currency swap is an agreement between two countries to exchange their domestic currencies, which is used to secure liquidity during foreign exchange crises. Argentina has a currency swap agreement with China in yuan, illustrating China's influence in the Argentine economy.
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