Argentina and the United States have announced they have agreed the framework for a new trade deal that will strengthen the “strategic alliance” between the two nations.
In a joint statement issued Thursday by the White House, the US government confirmed a “Framework Agreement on Trade and Reciprocal Investment” had been reached with Argentina.
Agreements with three other nations – Guatemala, Ecuador and El Salvador – were also confirmed.
The four countries, all in the Americas, have agreed to open up their markets and grant “preferential access” to the US, while Washington had granted tariff relief on some items in return, said the White House.
“Presidents Donald J. Trump of the United States and Javier Milei of Argentina have announced the creation of a Framework for an Agreement on Trade and Reciprocal Investment with the aim of boosting the bilateral economic relationship, encouraging the opening of markets and promoting the cooperation in strategic areas,” read the joint statement released by the White House.
Details about the proposed agreement were thin on the ground, but Milei government officials rushed to celebrate the news on social media.
The framework agreements will be completed in around two weeks and are expected to exempt specific products rather than reduce existing reciprocal tariffs, according to a senior Trump administration official who spoke on condition of anonymity.
The framework for the Argentina agreement comes after the Trump administration’s sweeping rescue package last month amid a market sell-off. The US rushed to provide US$20 billion in financing and directly purchased pesos in a bid to stem a currency sell-off and help Milei’s party pull off a major comeback in midterm elections
Opening up Argentina’s economy will likely be met with some resistance as many domestic industries are not competitive at a global level due to high costs and tax burdens.
For its part, the US will also remove “reciprocal tariffs on certain unavailable natural resources and non-patented articles for use in pharmaceutical applications,” according to the White House.
‘Tremendous news’
Speaking at an event in Corrientes Province Thursday, Milei described the agreement as “tremendous news.” He even quipped that the frequent visits he makes to the United States (he has taken 14 trips there since December 2023) “were paying off a little.”
“The conditions are right for Argentina to enter a new golden age, to leave behind populist barbarism and become the world’s leading power once again,” he declared to applause.
Foreign Minister Pablo Quirno – who met with US Secretary of State Marco Rubio in Washington on Thursday – said in a post on social media that the agreement “creates the conditions for increased US investment in Argentina and includes tariff reductions for key industries, increasing bilateral trade between the two countries.”
He said it was a “privilege and an honour” to announce the deal as minister.
Some of the agreements announced also guarantee US access to strategic minerals, according to one US senior official quoted by the AFP news agency. The countries also committed to not imposing tariffs on US digital services.
US Ambassador to Argentina Peter Lamelas hailed the “historic” announcement.
“The government of the United States is convinced of the importance of accompanying the growth of Argentina. This historic agreement moves our countries toward the future. We have never been so determined. We have never been so together,” he posted on social media.
Security Minister and senator-elect Patricia Bullrich declared that Argentina will be “enormous” as from this free trade agreement with the United States.
“What we are achieving in terms of cooperation, trade and freedom is incredible. Argentina will be enormous. Tremendous, Pablo Quirno,” expressed Bullrich on social media, highlighting the foreign minister’s contribution.
What we know
The agreement is grounded in “shared democratic values and a common vision of free enterprise, private initiative and open markets,” said the White House.
The objective, according to the communiqué, is “to promote long-term growth, expand the opportunities and create a transparent environment based on norms for trade and innovation.”
The White House highlighted that the pact is based on “actions which Argentina has already taken to modernise its regimes of trade and investment and encourage reciprocal conditions.”
“The initiative contemplates tariff benefits, opening up agricultural and industrial markets, common regulatory standards, the protection of intellectual property and cooperation in areas like labour, the environment and digital trade,” it continued.
Among the main points, it highlights that Argentina will give preferential access to US products like medicaines, machinery, information technology and farm produce. At the same time the United States will eliminate tariffs on some Argentine natural resources and non-patented pharmaceutical goods and will consider the impact of the agreement when applying trade measures related to national security.
In the agricultural sphere, both sides committed themselves to improving the conditions for access to beef and poultry markets, as well as easing the trade in products like offal, pork and dairy produce. It was also agreed not to restrict the use of certain designations for meat and dairy produce.
The document also underlines that Argentina will eliminate non-tariff barriers like import licences and consular formalities, committing itself to gradually dismantling the statistics tax for US products. It will also align itself with international standards in multiple sectors, recognising the certifications of US entities like the FDA (Food & Drug Administration).
As for intellectual property, Argentina will advance in the struggle against falsification and piracy, working to align its legislation with international standards and heeding the observations in the Special Report 301 of the US government.
The agreement also includes commitments to prohibit the import of goods produced by forced labour, combat illegal logging, promote the efficient use of resources and apply international norms on fisheries subsidies.
Both countries agreed to cooperate in economic security to confront distortive trade practices by third countries, align policies on export controls, investment and tariff evasion and boost commerce in critical minerals. Furthermore, Argentina will review the role of its state companies and industrial subsidies.
As for digital commerce, it will establish a legal framework for the transfer across frontiers of personal data with the United States, avoiding discrimination towards US digital services and recognising the validity of electronic signatures issued under its legislation.
While the full size and scope of the looming agreement isn’t finalised, Argentina can’t secure a very broad agreement with the US because it is part of Mercosur, which prohibits members from negotiating large agreements outside the bloc.
However, Mercosur countries earlier this year granted each member to choose up to 50 products that could be negotiated outside the bloc and be free of its common external tariffs.
Key elements of the agreement
Document details the central pillars of new bilateral US-Argentina understanding:
Tariffs
Argentina opening up: preferential access to exports from the USA (medicaments, chemicals, machinery, technology, medical equipment, vehicles and farm produce)
USA opening up: elimination of tariffs on certain unavailable natural resources and items not patented for pharmaceutical use
Meat: improving the reciprocal conditions for bilateral access to beef markets
National Security: The United States will be able to consider positively the agreement to take commercial action under Section 232
Elimination of Non-tariff Barriers
Not subjecting US exports to consular formalities
Gradual elimination of the statistics tax on US goods
Dismantling import licences restricting market access
Standards and Norms
Accepting goods complying with US or international standards without extra requisites to evaluate conformity
Recognising federal standards of safety and emissions for vehicles manufactured in the United States.
Acceptance of FDA (Food & Drug Administration) certificates and prior authorisation of medical equipment and pharmaceutical products
Access to Agricultural Markets
Opening up to live cattle from the USA
Access to the US poultry market in the space of a year
No restrictions on the access to products using certain designations for cheeses and meat
Simplifying the registration of US beef,pork and dairy produce
Digital trade
Facilitating digital trade by recognising the USA as a suitable jurisdiction for data transfer across frontiers
Recognising the validity of electronic firms under US law
Intellectual Property
Improving its application against falsified and pirated products, including the online domain
Tackling the structural challenges pointed out in the Special Report 301 of 2025 (patentability and delays in conceding patents)
Strategic Alignment and Economic Security
Co-operation to combat the anti-commercial policies and practices of other countries
Identification of tool to align controls on exports, investment security and tax evasion
Cooperation to facilitate investment and trade in critical minerals
State Companies and Subsidies
Labour and Environment
Prohibition of importing the products of forced labour and reinforcing the application of labour laws
Measures against illegal logging
Implementing the WTO agreement on fisheries subsidies
The communiqué concludes that both countries “will work rapidly to finalise the text of the Agreement for its signature” and will carry out the respective internal paperwork before it comes into force.
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by – TIMES/AFP/BLOOMBERG/NA
