- Milei cancels Argentina Brics entry
- Shift from Fernández’s policies
- Economic challenges influence decisions
Javier Milei, the newly elected president of Argentina, has cancelled the country’s intended induction into the expanding Brics club.
Mr. Milei informed the leaders of Brazil, Russia, India, China, and South Africa in a letter that previous administration decisions had been reconsidered.
The Brics nations are frequently regarded as a counterbalance to the world led by the West.
Argentina was scheduled to be included in a highly anticipated grouping of six countries beginning the following month.
Joining Egypt, Iran, Ethiopia, Saudi Arabia, and the United Arab Emirates, it would have been admitted to the Brics club on January 1.
Its reversal of position follows the unexpected election victory of populist right-wing outsider Milei in November, who campaigned on radical reforms to the struggling economy of the South American nation.
Argentina’s Foreign Policy Shift under Mr. Milei
He succeeded left-wing Peronist Alberto Fernández, who aligned with the bloc’s contemporary views.
In his letter, Mr. Milei stated that the foreign policy of his administration “distinguishes significantly from that of the previous administration.”
He further stated that while he did not believe Argentina’s full membership in the Brics to be “appropriate,” he remained dedicated to enhancing bilateral relations, specifically in an effort to stimulate greater trade and investment.
Though it promotes multipolarity, the Brics alliance dominates the economy. China contributes over 70% of the bloc’s aggregate GDP.
Beijing supported Argentina’s quest for membership during the administration of Mr. Fernández, whereas Mr. Milei has harshly criticised China.
He referred to the Chinese government as “assassins” and declared his refusal to collaborate with communists while on the campaign trail.
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Argentina’s Complex Economic Landscape and Shifting Alliances
The shifting perspectives of Argentina underscore the sensitivity of its political and economic predicament. The country is attempting to recover from years of economic mismanagement.
It is grappling with intense inflation, as prices have increased by approximately 150% in the past year. In addition, the nation grapples with substantial government debt and inadequate cash reserves, and forty percent of its populace lives below the poverty threshold.
As part of his economic shock therapy, Milei has depreciated the currency by nearly 50%.
Externally, Argentina’s two largest trading partners are Brazil and China, both of which are Brics members. However, the United States is not far behind, so it is crucial to maintain cordial working relationships with all three.
Additionally, considering his previous consideration of substituting the Argentine peso with the US dollar, Mr. Milei demonstrates potential future leanings towards Washington rather than Beijing.
