Argentina's Milei Meets Top US Officials, Seeks IMF Reset

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Facts

  • Argentine President-elect Javier Milei met with senior US officials on Tuesday as his economic advisers held talks with an International Monetary Fund (IMF) team in Washington to win support for Milei's plans to boost Argentina's struggling economy. His two-day trip comes ahead of his Dec.10 inauguration.1
  • The libertarian stated he had 'very comfortable' talks with the US national security advisor Jake Sullivan and Latin America advisor Juan González, in which Argentina's economic and social situation was discussed. He added that his foreign policy would consist of 'alignment with the US and Israel.'2
  • On behalf of the Biden administration, Sullivan confirmed that the US wants to cooperate with the incoming Argentine government. The White House further revealed that investments in technology and clean energy, human rights, and support for democracy were covered in the meeting.3
  • Meanwhile, Milei's economic advisor Luis Caputo and campaign manager Nicolás Posse met with the IMF and the US Dept. of the Treasury, as the South American country seeks to restructure its $43B loan agreement with the IMF.4
  • Caputo was announced as the next economy minister on Wednesday, confirming that a more traditional team will manage Argentina's inflation-ridden economy despite Milei reportedly still planning to make good on his campaign promises to shut the Central Bank and dollarize the economy in the long-run.5
  • Milei, a former economist and political outsider, defeated his left-wing rival Sergio Massa in the Nov. 19 run-off election. Following his victory, he announced drastic and immediate economic and social reforms as the country is in a deep economic crisis, with 40% of Argentines living in poverty and inflation at 143%.6

Sources: 1Reuters, 2Financial Times, 3Latin Post, 4Yahoo Finance, 5Associated Press and 6BBC News.

Narratives

  • Pro-establishment narrative, as provided by El País English. The fact that his first trip as president-elect took him to the US illustrates the significance Milei attaches to bilateral relations with the US. In terms of foreign policy, Milli has made it clear that he's standing firmly on the side of the West and Israel. During his election campaign, he also pledged to distance himself from China and reject Argentina's BRICS membership. For the free world and Latin America, Milei's election is a positive signal and the US should support this.
  • Establishment-critical narrative, as provided by Global Times. Pres. Joe Biden snubbing of this visit indicates that his administration has mixed feelings about deepening ties with a pro-Trump leader. Thus, it's not surprising that Milei has adopted a more moderate tone towards Beijing — Argentina's second-largest trading partner and the country's largest market for agricultural products — in contrast to his populist anti-Chinese comments during his campaign. The world is changing and it would be foolish of Milei to jeopardize relations with China, especially as support from the US always comes with a cost.

Predictions