Argentina's Milei eyes U.S. trade pact, warns on Mercosur exit
The President of Argentina, Javier Milei, declared on Wednesday that his country might withdraw from the regional economic bloc Mercosur if it blocks Argentina from securing a bilateral free trade agreement with the U.S.
Milei, a known supporter of U.S. President Donald Trump, attended Trump's inauguration ceremony on Monday and then travelled to Davos, Switzerland, for the World Economic Forum. Prior to the event, he gave an interview to Bloomberg News.
President Milei seeks free trade agreement with the U.S
The President noted that to restore the strength of the Argentine economy, free trade agreements are necessary.
We need to open up the economy, and Mircosor can't become an obstacle to that, he said.
Therefore, while working with the United States on a free trade agreement, we are striving for open doors within Mercosur, so it does not become an obstacle on the path to free trade, Milei emphasized.
He added that in "extreme conditions," he is ready to withdraw his country from this agreement, but he expressed confidence that this won't be necessary. Mercosur includes Argentina, Brazil, Paraguay, Bolivia, and Uruguay.
The President of Argentina also mentioned that a visit to China is planned to "deepen trade relations." We consider that our economies are complementary and that there's a lot for us to do together as great trade partners, Milei stated.
Meanwhile, a working team from the International Monetary Fund arrived in Argentina for negotiations on a new agreement regarding the country's $43 billion debt. According to media reports, the government in Buenos Aires hopes that Milei's good relations with Trump will contribute to a favourable agreement on this matter.
