Argentina?s recent move towards the right under libertarian outsider President Javier Milei is illustrated by this decision, with Milei campaigning against countries ruled by communism while vowing to cut ties with China.
BRICS, an alliance of emerging economies, invited Argentina, Egypt, Ethiopia, Iran and Saudi Arabia in August to become full members beginning January 1.
What Is BRICS?
BRICS countries represent over 40 percent of global population and one quarter of economic activity, making it attractive to emerging and developing nations as they look for an alternative to Western dominance exercised through institutions like International Monetary Fund and World Bank.
As part of its efforts to foster trade and cooperation between its members, BRICS is taking several initiatives that aim to protect member economies from liquidity pressures such as creating a contingent reserve arrangement or setting up a New Development Bank.
The BRICS Club also regularly convenes ministerial meetings that explore a range of issues, from energy (BRICS Oil and Gas Initiative), health research network (BRICS Health Research Network), science, and security (BRICS STI Task Force on Countering Terrorism). Through these activities, it aims to increase its impactful presence in areas that matter to its members.
Why Argentina Won’t Join?
Argentina needs to diversify its international ties in order to support its struggling economy and maintain economic vitality; BRICS would have provided that opportunity.
Milei?s administration may eventually decide that aligning itself with the US rather than China or Brazil would be best. He won the presidential elections with an overwhelming victory on October 28 and is trying to dollarize Argentine economy while decreasing inflation rates.
Milei wrote to Brazilian president Luiz Inacio Lula da Silva, Chinese president Xi Jinping, Indian prime minister Narendra Modi and Russian President Vladimir Putin and Cyril Ramaphosa of South Africa and stated that it wasn’t time for Argentina to join as full member. Nonetheless he expressed his willingness to hold meetings with them all, along with suggesting BRICS should strengthen bilateral cooperation as well as increase trade and investment flows.
What Will Argentina Do?
BRICS (Brasil, Russia, India, China and South Africa) announced in August an invitation for Argentina, Egypt, Ethiopia Iran Saudi Arabia and United Arab Emirates to become full members effective January 1. This move was seen as an effort against Western hegemony.
Argentina’s new far-right President Javier Milei – who replaced leftist Peronist President Alberto Fernandez with radical pledges to reform Argentina’s ailing economy in November – now believes the time is not suitable for full membership of BRICS; his letters sent directly to BRICS leaders indicate this decision is being reconsidered by his administration and past decisions taken by predecessors.
Milei, who describes himself as an anarcho-capitalist, has implemented policies designed to deregulate the economy. These include cutting public spending by more than 20% and dismissing thousands of government workers while also devaluing the peso by 54% – all key moves toward deregulating it further. Furthermore, his decision to reverse key foreign policy decisions marks an important change in his approach to politics.
Will Argentina Break Ties With China?
China has made clear it will engage with Argentina despite the election victory of right-wing libertarian Javier Milei, even with his antagonistic rhetoric directed at China and Brazil, two major trading partners of Buenos Aires. Milei has likened Chinese leaders to “assassins,” while alleging their people do not enjoy freedom of choice.
Foreign ministry spokespersons recently stated it would be wrong for Argentina to sever relations with key nations like China and Brazil, emphasizing how important bilateral ties are to both governments elected governments.
Argentina remains heavily reliant on Chinese markets, and provincial governments often engage directly with Beijing. Many analysts see their bilateral relations with China weathering any controversy and remaining intact; many point out that with its federal structure, each province can make decisions independent from Buenos Aires; this can be seen with solar projects owned in part by Chinese firms as well as lithium extraction plants in Jujuy that partially fall under their purview.