President Donald Trump-Xavier's Relationship and the Economic Equation for Argentina

President Donald Trump-Xavier's Relationship and the Economic Equation for Argentina

Buenos Aires: U.S. President Donald Trump and Argentine President Javier Milei have built a special relationship. However, analysts say it is still unclear whether this relationship will be economically beneficial for Argentina.

Milei, who has implemented a strict austerity program to revive Argentina's economy, recently attended Trump’s Mar-a-Lago club and rallied behind the slogan "Make Argentina Great Again!" This was the fourth personal meeting between the two, where Milei expressed his support for Trump’s political philosophy and his culture wars.

However, Argentina’s economy remains in a tough spot. The country recently withdrew from the World Health Organization (WHO) this year and has threatened to leave the Paris Climate Agreement, following Trump’s footsteps. Additionally, the country has banned gender-affirming treatments and taken a stance against transgender athletes participating in women’s sports.

Despite this, analysts say that while Milei's relationship with Trump has politically strengthened him, it remains to be seen whether it will prove effective for Argentina’s economy. Marcelo G. Garcia, Director for Americas at Horizon Engage, stated, "While his relationship with Trump is politically beneficial, he must leverage it for the benefit of the country’s economy."

One of the significant goals that Milei and Trump have aligned on is securing a $20 billion loan from the International Monetary Fund (IMF), which is crucial for his tough economic reforms. However, the final loan agreement is still pending approval and discussions are ongoing.

Additionally, Argentina is hoping to establish a free trade agreement with the United States. Milei has repeatedly stated that positive discussions are underway on this matter.

Meanwhile, Milei has yet to have a long-awaited meeting with Trump, which has sparked taunts from his political opponents. Former Argentine President Cristina Fernández de Kirchner once mocked Milei, saying, "Where is that photo you hoped to take with Trump?"

Despite all these events, Argentina’s rulers view Trump’s decisions as irresistible, though it remains uncertain whether they will bring substantial economic benefits to the country.