Argentine President Javier Milei has been sewing a free trade agreement with the United States since April, which would include the tariff exemption of 100 national goods, representing about 80% of Argentine exports to the country. US President Donald Trump extended the tariff truce to the South American country (which would end July 9 for all countries) until August 1. The information is from the Argentine journal Clarion.
If the negotiation is realized in these terms, between 70% and 80% of national exports to the United States would have zero tariff, which includes products such as wine, lemon and cotton. However, aluminum and steel would continue with the current rate of 50%.
According to the Argentine newspaper, commercial negotiations that provide for the tariff reduction of the export of Argentine products had been conducted across the country since before Trump, during the Biden government, through an Economic Complementation Agreement (ACE).
The agreement began to be discussed after the management of former President Alberto Fernández, after overcoming the diplomatic tensions between the two countries, caused by the rapprochement of Argentina with countries such as Russia and China in prior to Milei.
Argentina exports to the United States about $ 6.5 billion a year – which represents approximately 10% of the US $ 70 billion that the country collects annually with exports. The main products sold include agricultural inputs, energy, minerals, chemicals and processed foods.
According to the Argentine portal InfobaeArgentina’s Foreign Affairs and Foreign Trade Minister Gerardo Werthein would have advanced in negotiations for a broader free trade agreement between the two countries, at a Washington meeting with US Secretary of Commerce, Howard Lutnick.
According to the publication, Trump wants Argentina to eliminate all tariff barriers to US exports, which would be a way to expand partnership and ensure supply chains, avoiding a crisis in case of a wider trade war with China, for example.
Milei already said that Brazil should thank
In April, Milei implied that Brazil should thank him for Trump to have taxed Brazilian products in ‘only’ 10%.
For the Argentine agent the rate to Mercosur countries, considered low, was thanks to its good relationship with the White House. At the time, in an interview with Podcast “La Cosa en Si”, presented by Alejandro Fantino, the presenter questioned the president about why Brazil and Argentina were taxed in the same 10%, although Milei was allied near Trump, while Lula has a turbulent relationship with the US.
“I said to them, guys, if Brazil gets sick, we will be sick. So, at some point, Brazil should, I don’t know if they should thank you…” said Fantino. Milei agreed, “it’s true.”
The Argentine president also added that if it were not for his relationship with the United States, Argentina would receive a 35% tariff “plus penalties” due to the American commercial deficit with the country.
“This generated a deviation of commerce, extended to Mercosur and when they saw how much Mercosur weighed within South America, [afirmaram] ‘Let’s put everything in 10 [porcento]'”Said the Argentine president.
“That is, if they imposed a rate of 35% on Brazil, they could get sick or hurt with us [na economia]”Fantine said. Obviously,” agreed Milei.
