Argentina might exit Mercosur for US trade deal pursuits
On Wednesday, the President of Argentina, Javier Milei, declared that his country might withdraw from the regional economic bloc Mercosur if it obstructs Argentina from securing a bilateral free trade agreement with the USA.
Milei, an outspoken supporter of US President Donald Trump, attended Trump's inauguration ceremony on Monday and subsequently went to Davos, Switzerland for the World Economic Forum. Before this event, he gave an interview to Bloomberg News.
President Milei seeks free trade agreement with the USA
The President argued that free trade agreements are essential to restore the Argentine economy's greatness.
We need to open up the economy, and Mircosor can't become an obstacle to that, he said.
Therefore, as we work simultaneously with the United States on a free trade agreement, we strive to ensure open doors within Mercosur so it does not impede the path to free trade, Milei emphasised.
He added that he is prepared to withdraw his country from this agreement in "extreme conditions," but he is confident that such a measure will not be necessary. Mercosur comprises Argentina, Brazil, Paraguay, Bolivia, and Uruguay.
The President of Argentina also mentioned that a visit to China is on the agenda, with the goal of "deepening 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 has arrived in Argentina to negotiate a new agreement concerning the country's £35 billion debt. According to the media, the government in Buenos Aires hopes that Milei's good relations with Trump will contribute to a favourable agreement on this matter.
