Argentina’s incoming government is expressing ambitions to rekindle talks on a trade agreement between the European Union and the South American trade bloc Mercosur, according to Diana Mondino, the country’s future Foreign Minister. As the current administration’s window for sealing the deal narrows, prospects for an agreement during the upcoming Mercosur summit on December 7 in Rio de Janeiro are dwindling.
Brazilian President Luiz Inacio Lula da Silva had expressed hope that a trade agreement could be achieved before the summit. However, officials and diplomats from Brazil now acknowledge that the deal is likely postponed, awaiting approval from Argentina’s incoming government.
Diana Mondino, in an interview with Reuters, stated, “The world doesn’t end on December 7. If an agreement is not reached by that time, we will keep on negotiating. And hopefully, someday, somehow, it will be done.”
While a trade treaty was tentatively agreed upon in 2019 after two decades of negotiations, additional environmental commitments requested by the EU prompted Brazil and Argentina to seek further concessions, prolonging the discussions.
Mondino emphasized that the incoming administration, led by President-elect Javier Milei, has limited information on the current status of negotiations, but she expressed hope for a fresh perspective leading to an agreement.
Argentine negotiators, originally scheduled to travel to Brasilia for a final push to close the deal, canceled their trip. An Argentine source familiar with the talks indicated that the outgoing government’s negotiating team had made significant changes before the handover to the incoming administration.
Mondino also addressed Argentina’s stance on joining the BRICS grouping, clarifying that it is not a priority. Despite being among the six countries invited to become members, Argentina is yet to decide on acceptance. Mondino highlighted that the decision would be reviewed as the situation evolves.
However, she affirmed that Milei’s administration is committed to working towards Argentina’s membership in the Organisation for Economic Co-operation and Development (OECD). Joining the OECD is expected to be a challenging and lengthy process, but Mondino expressed optimism about the country’s efforts to adhere to the standards of more developed nations.
“We have an invitation letter there. And we hope that we can sign that invitation letter,” Mondino added. Argentina, along with Peru, Romania, Bulgaria, and Croatia, was invited to initiate the process to join the OECD in January 2022.
