Argentina considers Mercosur exit to pursue us trade deal
The President of Argentina, Javier Milei, announced on Wednesday that his country might consider withdrawing from Mercosur, the regional economic bloc, if it prevents Argentina from securing a bilateral free trade agreement with the USA.
Milei, a supporter of US President Donald Trump, attended Trump's inauguration ceremony on Monday and then traveled to Davos, Switzerland, for the World Economic Forum. Prior to this, he gave an interview to Bloomberg News.
President Milei seeks a free trade agreement with the USA
Milei stated that to restore the strength of the Argentine economy, free trade agreements are essential.
We need to open up the economy, and Mircosor can't become an obstacle to that, he said.
Thus, while working with the United States on a free trade agreement, we are also striving for open cooperation within Mercosur to ensure it does not hinder the path to free trade, Milei emphasized.
He added that in "extreme conditions," he is prepared to withdraw Argentina from this agreement, but he expressed confidence that such a measure will be unnecessary. Mercosur includes Argentina, Brazil, Paraguay, Bolivia, and Uruguay.
The Argentine President also mentioned a planned visit to China to " deepen trade relations." Milei said, "We consider our economies complementary and that there's a lot for us to do together as great trade partners."
Meanwhile, a team from the International Monetary Fund has arrived in Argentina for negotiations on a new agreement regarding the country's $43 billion debt. According to reports, the government in Buenos Aires hopes that Milei's good relations with Trump will help facilitate a favorable agreement on this matter.
