Argentina’s rapprochement to the United States under President Javier Milei is not just ideological—it is strategic. While pushing through painful economic reforms at home, Milei is aligning with Washington on multiple fronts: International Monetary Fund (IMF) negotiations, defense ties (NATO partnership bid and F-16 purchase), and personal diplomacy with U.S. President Donald Trump. U.S. Secretary of the Treasury Scott Bessent’s one-day stop in Buenos Aires—right as the new FX regime kicked in and amid Trump’s tariff rollout—was no coincidence. It signals that Argentina is being treated as the closest ally in South America, where U.S. influence is under pressure under China’s global rise.
Bessent offered “full support” for President Javier Milei’s policies and reaffirmed Washington’s intent to be Argentina’s “partner of choice,” while sending a clear message that Argentina should get rid of the controversial swap currency deal with China. The visit followed the IMF’s approval of a $20 billion rescue package, marking the second biggest IMF deal of its kind, signaling a new stage in the country’s economic and geopolitical realignment.
Argentina’s pro-U.S. realignment is not confined to economics and politics—it extends decisively into defense and security cooperation. This alignment carries strategic implications. It enhances Argentina’s defense capabilities while embedding it more deeply in U.S.-led security frameworks. It includes an agreement with the U.S. Department of Homeland Security to improve investigative coordination and joint responses to transnational crimes.
Argentina’s pivot comes amid heightened U.S.-China competition in Latin America. Still, for the time being, Argentina has become one of the most strategically aligned U.S. partners in the Western Hemisphere. While the relationship is not yet fully institutionalized, it has moved well beyond words and into deeds, deepening relations across finance, defense, and diplomatic coordination as the landscape allows.
SOURCE: CSIS ORG