US and Argentina sign agreement to reduce tariffs and access to critical minerals

Trump receives Milei for the first time at the White House Jonathan Ernst/Reuters The United States and Argentina signed this Thursday (5) a trade agreement with tariff reductions and a reciprocal investment plan. The understanding also covers critical materials, in line with President Donald Trump’s strategy of reducing dependence on China — currently dominant in the production and refining of these essential inputs for technology, energy and defense. 📱Download the g1 app to see news in real time and for free According to the text, there will be US cooperation and investments across the entire sector chain in Argentina — from exploration to refining, processing and export. North American ambassador and trade negotiator Jamieson Greer announced the agreement after meeting with Argentina’s Minister of Foreign Affairs, International Trade and Worship, Pablo Quirno. “The deepening partnership between President Trump and President Milei serves as a model for how countries across the Americas, from Alaska to Tierra del Fuego, can advance our shared ambitions and protect our economic and national security,” said Greer. See the videos that are trending on g1: See the videos that are trending on g1 According to the American trade representative, the agreement “reduces long-standing trade barriers and offers significant market access for exporters” from the USA. The expectation, he added, is to expand businesses ranging from motor vehicles to agricultural products. According to the document released by the US government, the agreement does not enter into force upon signing. It becomes valid 60 days after the exchange of written notifications confirming the completion of internal legal procedures — or on another date that the countries agree on. After coming into force, the agreement foresees that Argentina will eliminate tariffs or reduce them to around 2% on thousands of US products, in addition to opening exempt quotas for strategic items, such as 80 thousand tons of beef and 10 thousand vehicles. In return, the US will eliminate tariffs on selected Argentine agricultural products and limit any surcharges to a ceiling of 10% on other goods. The commercial opening also foresees the end of the Argentine statistical tax — a charge on imports to pay for customs services — within three years, in addition to gradual tariff reductions, applied every year on January 1st. Other investments In addition to critical minerals, the Agreement between the United States and the Argentine Republic on Reciprocal Trade and Investment (ARTI) expands access for American investments to other strategic sectors of the Argentine economy. Among them: Energy: facilitating contributions across the entire chain, from exploration and production to refining, transport and electrical generation, with a focus on energy security and industrialization. Infrastructure: with investments in telecommunications, transport and logistics, including shipbuilding and navigation. Technology and communications: opening up contributions to information and communications infrastructure, such as 5G and 6G networks, satellites and submarine cables. Capital goods: facilitating the entry of machinery and equipment, including used and remanufactured ones, for construction, agriculture, mining and health. Defense: with simplification and expansion of trade and industrial cooperation in the sector. Financing: with the possibility of support from US agencies, such as EXIM Bank and DFC, in partnership with the private sector. Conversations with Brazil Reuters revealed that Brazil participated in a meeting in the USA, on Wednesday (4), in which the North American vice-president, JD Vance, presented plans to bring together allies in a trading bloc for critical minerals. The Brazilian government is still evaluating whether it will join the group, the agency found. Itamaraty confirmed to Reuters that Brazil was present at the meeting through the Embassy in Washington, but did not say whether the country would be able to join the initiative or how possible participation would take place. A Brazilian government source told the agency that the country is open to partnerships, as long as they bring added value. According to this source, due to the scale of the issue, the issue needs to be addressed bilaterally, and a decision will not be taken quickly.

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