Trump Considers Free Trade Agreement with Argentina

President Donald Trump expressed willingness to consider a Free Trade Agreement (FTA) with Argentina during a recent interaction with the press.

Key Facts:

President Trump praised Argentine President Javier Milei as a “great leader” and indicated openness to exploring a trade agreement.
President Milei has advocated for a free trade deal with the U.S., even suggesting Argentina might exit the Mercosur trade bloc to facilitate such an agreement.
Mercosur’s regulations prevent member countries from independently negotiating trade deals without collective approval, limiting Argentina’s ability to pursue bilateral agreements.

The Rest of The Story

President Trump’s openness to an FTA aligns with President Milei’s ambitions to strengthen Argentina’s economic ties with the United States.

🚨 Trump: “@JMilei is a great leader. I will consider a free trade deal with Argentina 🇦🇷”

That's the way! “America First 🇺🇲” means that if you are with America, you will prosper too, and if you are not aligned with America, you're f*cked 💪
pic.twitter.com/jx09lTbBn6

— Dr. Eli David (@DrEliDavid) March 4, 2025

However, Argentina’s membership in Mercosur poses challenges, as the bloc requires consensus among members for external trade negotiations.

President Milei has criticized Mercosur, arguing that it has hindered Argentina’s economic growth and expressing a willingness to leave the bloc to pursue beneficial trade agreements.

Commentary

A potential FTA between the United States and Argentina could yield significant benefits for both nations.

For the U.S., such an agreement would open new markets for American goods and services, fostering economic growth and job creation.

It would also strengthen geopolitical ties in Latin America, countering the influence of rival nations in the region.

For Argentina, an FTA with the U.S. could serve as a catalyst for economic reform and modernization.

President Milei’s pro-market policies align with the principles of free trade, and a bilateral agreement could attract foreign investment, enhance competitiveness, and stimulate economic growth.

However, to fully realize these benefits, Argentina may need to address internal challenges, such as regulatory reforms and infrastructure development.

The potential exit from Mercosur to pursue an FTA with the U.S. reflects a strategic shift in Argentina’s trade policy.

While Mercosur has facilitated regional integration, its restrictive rules on external trade agreements have limited individual member countries’ flexibility.

Argentina’s consideration of an alternative path underscores the need for Mercosur to adapt to the evolving global trade landscape.

Critics may argue that bypassing regional alliances could lead to isolation or weaken collective bargaining power.

However, the pursuit of bilateral agreements tailored to national interests can provide more immediate economic benefits and reflect a pragmatic approach to international trade.

The Bottom Line

President Trump’s willingness to consider an FTA with Argentina signals a potential shift in U.S.-Latin American trade relations.

While challenges exist, particularly concerning Argentina’s position within Mercosur, the prospect of a bilateral agreement offers opportunities for economic growth and strengthened ties between the two nations.