Argentina Signs Trade Framework with US, But Analysts Note Uneven Commitments
BUENOS AIRES – Argentina and the United states have formalized a trade and economic framework agreement, but early analysis reveals a important imbalance in commitments, raising questions about the long-term benefits for the South American nation. The agreement, details of which emerged today, focuses heavily on opening Argentine markets to US agricultural and industrial products while offering limited reciprocal concessions.
The core of the agreement centers on dismantling non-tariff barriers. Argentina has pledged to open its market to live American cattle, allow the entry of poultry meat within one year, and refrain from restricting access based on terminology used for cheeses and meats. Further commitments include simplifying import records for US beef, meat products, offal, and pork, and eliminating facility registration requirements for US dairy imports.
Beyond agriculture, Argentina accepts US product standards – including those for vehicles, medical devices, and pharmaceuticals – without imposing additional requirements, effectively endorsing the US regulatory framework.
However, the agreement conspicuously lacks any mention of a review of Argentine concerns regarding US trade practices.Specifically, there is no commitment to address antidumping measures on products like honey and must, tariff quotas affecting beef, peanuts, and sugar, or sanitary restrictions impacting Argentine exports to the US.
“On the Argentine side, though, there is not a single mention of the review of antidumping measures…or sanitary restrictions that affect exports to the US,” a recent analysis of the agreement highlighted.
Further signaling the asymmetry, the language used to describe commitments differs markedly between the two nations. Argentina “will grant,” “will open,” “will allow,” “will not restrict,” “will not require,” “will gradually eliminate,” “commits to,” and “intends to” reform its regulations. The United States, in contrast, “may consider,” “will eliminate tariffs on certain products to be defined,” “will cooperate,” and “work together.”
While the agreement includes provisions for cooperation on critical minerals – a sector gaining geopolitical importance with the rise of the “lithium triangle” – it falls short of the specific agreements the US has already secured with countries like Australia, Malaysia, and Thailand. Analysts characterize this aspect as a “declaration” rather than a concrete preferential framework.
Argentina has also committed to eliminating consular formalities for US exports and gradually dismantling the statistical tax on these products. The overall impression, according to observers, is a prioritization of reaching a macro-level agreement quickly, perhaps at the expense of detailed negotiation on specific trade barriers.
