Argentina’s New Government Aims to Strike EU-Mercosur Deal ‘Someday, Somehow’

Argentina’s Trade Ambitions

Argentina’s incoming government aims to strike a trade agreement between the European Union and Latin American economies, according to the country’s future Foreign Minister Diana Mondino. She expressed hope for an agreement despite the unlikely possibility of finalizing a deal under the current administration.

Postponed Trade Deal

Mercosur members Brazil, Argentina, Uruguay, and Paraguay were set to gather on Dec. 7 in Rio de Janeiro to negotiate a trade deal. However, Brazilian President Luiz Inacio Lula da Silva’s recent statement indicated a postponement due to the need for Argentina’s incoming government to approve the outstanding issues.

Negotiation Continues

Despite the postponement, Mondino remains optimistic, stating that if an agreement is not reached by the scheduled time, negotiations will continue. She expressed the hope that eventually, a deal will be made.

Challenges in Negotiations

The trade negotiations, which began two decades ago, faced obstacles when additional environmental commitments demanded by the EU led to prolonged discussions between Brazil and Argentina. With President-elect Javier Milei set to take office on Dec. 10, the incoming administration has minimal information about the current state of negotiations.

Argentina’s Global Engagement

Mondino clarified that Argentina does not consider joining the BRICS grouping a priority. However, the country is committed to working towards membership in the Organisation for Economic Co-operation and Development (OECD).

Hope for OECD Membership

Despite the lengthy procedure involved, Mondino expressed determination in pursuing OECD membership, emphasizing that Argentina has received an invitation letter and hopes to sign it. This step aligns with the country’s efforts to abide by the rules of more developed nations.

Expansion of OECD Membership

Argentina, Peru, Romania, Bulgaria, and Croatia were invited to start the process of joining the OECD in January 2022. Brazil had taken a step forward by filing an initial memorandum of accession, a move Argentina has yet to make.