Argentina-US sign reciprocal trade and investment deal

Argentina and the United States signed an agreement on reciprocal trade and investment, both countries confirmed on Thursday. “Today Argentina sent a clear signal to the world: we are a reliable partner, open to trade and committed to clear rules, predictability, and strategic cooperation,” Argentine Foreign Minister Pablo Quirno said on X. A statement by Argentina’s Foreign Ministry said that the United States would eliminate reciprocal tariffs on 1,675 Argentine products, allowing an additional US$1 billion worth of exports. According to the communiqué, US$800 billion of that would come from the U.S. granting preferential access to 80,000 extra tons of Argentine beef this year, totaling 100,000 tons. The U.S., said the statement, will also work through institutions such as the Export-Import Bank of the United States (EXIM Bank) and the U.S. International Development Finance Corporation (DFC) to support financing for investments in critical sectors in Argentina, in collaboration with the U.S. private sector. Argentina, for its part, will eliminate tariffs on 221 sectors, such as machinery, transportation equipment, medical devices, and chemicals; reduce tariffs on another 20 areas, mainly auto parts, to 2%, and grant quotas for vehicles, meat, and other agricultural products.  “These commitments aim to improve systemic competitiveness by reducing or eliminating tariffs on inputs and capital goods and simplifying procedures, which will ensure predictable conditions for the sectors involved,” said the statement. Quirno also posted a photo of the agreement’s cover, but not of its content, which was made public a few minutes later. The first announcement In November, both countries announced the agreement’s framework, which listed 11 key sectors that would be affected by the deal: tariffs, intellectual property, agricultural market access, labor, and economic security alignment, among others. That announcement was heavily criticized, as the bulk of concessions appeared to fall on Argentina’s shoulders. On that occasion, a statement by the White House said that Buenos Aires was expected to “provide preferential market access for U.S. goods exports, including certain medicines, chemicals, machinery, information technologies products, medical devices, motor vehicles, and a wide range of agricultural products.” Argentina would also cease from requiring consular formalities for U.S. exports and phase out the statistical tax for U.S. goods and “simplify product registration processes for U.S. beef, beef products, beef offal, and pork products, and will not apply facility registration for imports of U.S. dairy products.” Buenos Aires also committed to prohibiting the importation of goods “produced by forced or compulsory labor,” which some read as a way of banning certain Chinese imports, as well as addressing “potential distortionary actions” of state-owned companies and “industrial subsidies that may have an impact on the bilateral trading relationship.”