Argentina-US trade deal can unlock opportunities, but Congress must approve it
As ‘friend-shoring’ grows, business leaders and US diplomats stress the importance of getting the agreement over the finish line La entrada Argentina-US trade deal can unlock opportunities, but Congress must approve it se publicó primero en Buenos Aires Herald .
The United States and Argentina are experiencing a period of significant diplomatic progress, thanks to the close alignment between President Javier Milei's government in Argentina and former President Donald Trump's administration in the United States. This strategic partnership has paved the way for the recently signed Agreement on Reciprocal Trade and Investment (ARTI), which holds the potential to create new business prospects for American companies looking to invest in Argentina, as well as for Argentine firms seeking to enter the U.S. market.
One strategy that could be employed to capitalize on these opportunities is friendshoring, a practice that involves shifting or developing key parts of a country's supply chain in countries that are geopolitical allies. This approach has gained traction since Donald Trump's second term began and his administration intensified its tariff war with China.
However, for this agreement to be fully effective, one crucial step remains: approval by the Argentine Congress. This was the main point emphasized by several speakers at the American Chamber of Commerce (AmCham) Trade & Conference, which was attended by over 300 representatives from European and Brazilian companies operating in Argentina.
Alejandro Díaz, CEO of AmCham Argentina, emphasized the unique nature of the current moment in US-Argentina relations. He noted that both presidents have not only found a personal ideological dynamic for interaction, but also have a predisposition for establishing a strategic relationship that transcends trade and places geopolitics as a central focus.
Despite the generally positive outlook, not everyone shares the same enthusiasm for the agreement. Daniel Novoa, president of the Hispanic Retail Chamber of Commerce, expressed concerns about the alleged focus on natural resource extraction rather than supporting the domestic market. He argued that the agreement should also prioritize issues such as financing for small and micro businesses, which are key drivers of job creation and economic growth in Argentina.
Furthermore, Novoa pointed out that the challenges Argentina currently faces, such as low profitability and weak consumption, are also affecting the United States.
To facilitate the approval of the PATENT COOPERATION TREATY (PCT), included in the ARTI agreement, the U.S. Embassy in Argentina is actively engaged. Joel Reynoso, Commercial Counselor at the U.S. Embassy, stated that Argentina offers significant potential in natural resources, particularly in energy, minerals, and agriculture. He also highlighted the country's highly skilled workforce and dynamic technology sector.
The embassy is eager to see the PCT approved this week, as it can facilitate patent protection in 159 countries. Additionally, the embassy is seeking to expand investment and financing opportunities for Argentine companies and is planning an energy mission and a security and defense event to showcase American technologies and foster contact between American companies and Argentine authorities.
Written by urgent.news from Buenos Aires Herald's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
