Unlike other global leaders, the prevailing sentiment at the Casa Rosada is one of marked optimism. While the arrivals of Biden in 2021 and Obama in 2009, to name a few examples, were well-received by the administrations of the time, current expectations for U.S.-Argentina relations under the Milei administration are substantially higher.
A key factor is the personal rapport between Javier Milei and Donald Trump, evidenced by mutual praise and frequent meetings the leaders have held in recent months. Milei regards Trump as his role model in international politics, and the U.S. president has expressed admiration for his Argentine counterpart.
Argentina has reasons for optimism on key issues, such as political support in its legal dispute over the nationalization of the YPF energy company or in unlocking new IMF aid and resources.As for the prospect of a free trade agreement, it seems unlikely at present due to several factors, including Mercosur’s restrictive policies and the lack of complementarity between their economies, despite the Milei government’s rhetoric.
Argentina’s path to sustained economic recovery will require, apart from significant domestic reforms, a pragmatic foreign policy strategy that aligns with its development priorities. The United States can undoubtedly be a valuable partner in this process, and Trump’s presidency certainly offers opportunities for collaboration. Nevertheless, managing expectations will be critical.
Buenos Aires must recognize the limitations of personal diplomacy and ideological alignment in achieving substantive outcomes. By anchoring its optimism in realism, Milei’s Argentina can better navigate the challenges – and better capitalize the opportunities – of the U.S.-Argentina relations during this period.
January 27, 2025
SOURCE: GLOBAL AMERICANS ORG
Milei’s Argentina and the Need for Cautious Optimism with Trump’s Return