CaliToday (16/10/2025): Argentina and the United States are advancing talks on a significant trade agreement, Argentine President Javier Milei announced Wednesday, a move that comes alongside a robust U.S. financial assistance package aimed at stabilizing the South American nation's economy. The discussions unfold against a politically charged backdrop, with crucial midterm elections in Argentina looming and strong statements of support and caution from U.S. President Donald Trump.
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| U.S. President Donald Trump points a finger as he welcomes Argentina's President Javier Milei at the White House in Washington, D.C., U.S., October 14, 2025. REUTERS/Jonathan Ernst |
"There is a matter of trade advantages that the United States would grant us; the United States has been very favorable to Argentina," Milei stated in a televised interview, signaling a deepening of ties between his libertarian government and the Trump administration.
This potential trade pact is bolstered by concrete financial maneuvers from Washington. U.S. Treasury Secretary Scott Bessent confirmed earlier on Wednesday that the Treasury has once again been active in the open market, purchasing Argentine pesos to support the currency.
Furthermore, Bessent revealed that the Treasury is collaborating with a consortium of banks and investment funds to structure a $20 billion loan facility. This fund is intended to spur investment into Argentina's sovereign debt, a critical step for a country that has long struggled with access to international credit markets. This initiative is in addition to a previously announced $20 billion currency swap line designed to shore up Argentina's foreign reserves.
The timing of this enhanced cooperation is critical. Argentina is scheduled to hold legislative midterm elections on October 26, a vote widely seen as a referendum on President Milei's aggressive economic reforms and austerity measures. The elections will determine the balance of power in a Congress currently controlled by the opposition, which has stalled several of Milei's key legislative initiatives. With his approval ratings facing pressure, a strong showing for his La Libertad Avanza party is vital for the second half of his presidential term.
In a clear sign of the stakes involved, President Trump on Tuesday explicitly linked continued U.S. support to the election's outcome. He declared that the United States would not "waste its time" with Argentina if Milei's party suffers a defeat.
However, President Milei downplayed any uncertainty, emphasizing Trump's broader backing for his administration, which is set to remain in power until at least 2027. "Trump has expressed his support for the current government," Milei affirmed.
As the election approaches, the Argentine president is also contemplating the future of his administration's structure. Milei acknowledged that he would consider a cabinet reshuffle following the October vote, a common practice for presidents looking to recalibrate their teams and political strategy for the remainder of their term.
The confluence of trade negotiations, substantial financial aid, and overt political alignment marks a pivotal moment in U.S.-Argentina relations, with the upcoming midterm elections poised to be a decisive factor in the trajectory of both Milei's presidency and his international partnerships.
