The incoming government Javier M It has already confirmed that it will not enter into the geopolitical and economic bloc BrixIt involves Argentina’s two main trading partners: Brazil And China. The announcement was made by the Chancellor Diana MondinoLa Libertad Avanza confirmed that the administration does not plan to join BRICS, but has an invitation to join OECD.
Despite the invitation to join the group Brix, the country does not consider membership of this association of developing countries a priority. “The call is on the table, but there is no rush to make a decision. At the moment, the benefits of joining the BRICS system are insufficientMondino said in conversation Reuters.
“Not joining BRICS will not change the relationship with China much. In fact, today Argentina is not in the alliance and has a serious business relationship,” said the international business expert. Marcelo Elizondo to do Ambit. And he highlighted that entry Brix It will not facilitate trade for our country with an Asian company, the trade relationship will be more or less.
For his part, the director ABCEB, Gustavo PeregoThere was further doubt about the possibility China “Cut” ties with Argentina Due to administrative change or non-entry Brix. “So far it has been a smooth relationship.. The only positive signal the Miley government can give is being a trading partner Politically it is aligned with the West“He added in an interview with this newspaper.
China, in addition to being a trading partner, is one of Argentina’s main lenders today. It is significant that he said that Ambit Economist in Foreign Relations Miguel Ponce70% of total stock Central Bank (BCRA) They belong Exchange With the Asian giant. In that respect, Ponce promised He Exchange Suspended and clarified that attitudes are due Javier M In the campaign for removal Central BankSo China is not sure that Argentina will honor its debt. Half of the two tranches executed by the Asian firm, which exceeded USD 10 billion, have been utilized so far.confirmed as Ambit Sources of monetary power.
“Our diplomatic relations affect our trade and economic relations“said Ponce. It’s true that Brazil calls the president Lula da Silva “Communist“and”Corrupt file“, or insisting that he would not maintain political relations with this country, affected relations with Brazil. The former president and opponent of the Workers’ Party (PT) government was invited to the presidential inauguration ceremony. Jair BolsonaroHe will be joined by a group of governors and former officials of his administration.
Why is Brazil interested in joining Argentina’s BRICS?
Argentina’s entry Brix As it is of special interest to Brazil Political density This will contribute to the establishment of two main axes of Mercosur there.
After refusing to accept the invitation to be part of Argentina Brix At the moment, it has already been confirmed in Brazil Lula da Silva He will not appear at the inauguration ceremony Javier M. There were many political gestures against the Brazilian president, so he decided to send his foreign minister to the protocol event on December 10. Mauro Vieira.
Do diplomatic relations affect trade relations?
only one Goodwill gestures Argentina were with Brazil after Mille’s selection: keeping Daniel Cioli At the embassy – a man with Peronism who knew how to build good relations first with Bolsonaro and then with Lula -; and attendance Mondino Even though it took place on a Sunday – a day when the embassy does not work – it helped deliver Da Silva Supported by the government of Mercosur’s pro-temporary president, Javier Millay Mercosur-European Union AgreementThat administration Alberto Fernandez rejection.
to Bones, hostile diplomatic relations displayed by the incoming administration weaken business ties. “Lula did not even send a vice president (Gerardo Algimin) to manage business relations.” he noted.
Although there are still gestures that are political. PeregoFor his part, he remembered it on assumption Alberto Fernandez, in 2019, Bolsonaro did not attend, and the relationship continued as the two countries have a “deep commercial relationship” with investments. “Lula’s absence is related to the rift in local politics, which runs deepDirector of ABECEB said.
No to BRICS, yes to OECD
After refusing BrixThe Chancellor-designate confirmed, in the same interview he gave ReutersThat Invitation to Argentina to join the OECD is already on the table along with other countries like Peru, Romania, Bulgaria And Croatiawho started the process in January 2022.
Benefits of Entry OECD There are several: In the short term, this may impact lower cost of capital and risk assessment, It paves the way for investments Production In the medium and long term, entry OECD It can boost the country’s economic and social development as it allows access to a market of 500 million consumers and best practices from developed countries.
Requirements Argentina must meet to enter the OECD
Among the entry requirements for Javier Mille’s government are:
- Improve organizational quality
- Encourage productivity growth
- Ensuring social welfare
How does Argentina’s inclusion in the OECD affect it?
About the possibility of entry OECDThis was dropped when he took over the administration in 2019 Alberto Fernandez, Perego He looked excited. “It will be a great achievement.”He insisted.
entrance OECD It reads like an “international cover letter” and gives you an endorsement Transparency and quality Institutional For a country that can attract investments from abroad, Perego explained.
“Complying with the standards imposed by the OECD improves the reputation of those who comply with them and builds reputation with third parties,” observed Elizondo, who supported the members.
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