Milei secures trade deal with Trump, challenging Argentina's closed economy
Argentina's President Javier Milei has secured a trade deal with Donald Trump, marking a political victory for the libertarian leader. However, this achievement also poses a challenge as Milei works to open up Argentina's protectionist economy.
Washington rolled out the framework for an agreement with the crisis-prone South American nation on Thursday, after Milei made more than a dozen trips to the US in two years, News.Az reports citing foreign media.
The pact adds to the Trump administration’s tens of billions of dollars in financial support for its ideological ally and delivers on the Argentine president’s promise to voters to secure such a deal.
“This trade agreement shows the United States remains engaged in Argentina and invested in Milei’s success but it won’t solve the most daunting challenges he faces,” said Benjamin Gedan, director of the Latin America programme at the Washington-based Stimson Center. “Argentina has been one of the most closed markets in the world for so long that many of its industries simply can’t compete.”
The deal, which US officials say could be signed within about two weeks, builds on Milei’s political momentum after his party won Argentina’s midterm elections in a resounding comeback, spurring a market rally and renewing investor optimism for big economic reforms given he’ll have more seats in Congress by December.
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