Argentina is in discussions with the United States over a potential trade agreement that could grant Buenos Aires special commercial advantages, President Javier Milei said on Wednesday, signaling deepening economic ties between the two countries.
“There is an issue of trade advantages that the United States would be giving us; the U.S. has strongly favored Argentina,” Milei said in a televised interview.
Earlier the same day, U.S. Treasury Secretary Scott Bessent told reporters that Washington had once again purchased Argentine pesos in the open market.
He also revealed that the Treasury Department was working with banks and investment funds to create a $20 billion facility aimed at investing in Argentina’s sovereign debt, a move seen as a strong vote of confidence in the country’s reform agenda.
The talks come as Milei faces growing economic and political challenges at home, including surging inflation, stalled reforms, and an opposition-controlled Congress that has slowed his legislative agenda.
Argentina’s midterm elections, scheduled for October 26, are widely viewed as a crucial test of his libertarian government’s political strength as it enters the second half of its term.
Milei also said he was considering changes to his cabinet following the vote, a possible shake-up meant to reinvigorate his administration amid declining approval ratings.
U.S. President Donald Trump, a close ideological ally of Milei, said on Tuesday that Washington would not “waste our time” with Argentina if Milei’s party fails to perform well in the parliamentary elections.
However, Milei noted that Trump had reaffirmed his overall support for the current government, which is set to remain in power until at least 2027.
A trade agreement with the United States could provide a significant boost to Argentina’s struggling economy, offering improved access to U.S. markets and renewed investor confidence as the Milei administration pursues its ambitious free-market reforms.
Source: Reuters
Written By Rodney Mbua
