Without details yet on the scope of the long-awaited trade and investment agreement that the White House finally announced on Thursday that Argentina and the United States had reached, national exporters are anxiously awaiting the fine print to analyze the impact on their activities.
The initial reactions were generally positive, describing it as a strengthening of the bilateral relationship that will facilitate trade and attract investment. However, the sectors involved are eagerly awaiting further details.
In this regard, the statement released by the US government indicated that they “will work swiftly to finalize the text of the agreement for its signature and carry out their respective internal formalities before the agreement enters into force.” In that sense, Javier Milei is expected to travel to Washington in the coming weeks for its signing and a photo with Donald Trump as the final touch.
In recent weeks, secrecy prevailed due to the confidentiality agreement signed between the parties. While several officials anticipated that the agreement was almost finalized and news was expected during Milei and Trump's last meeting before the midterm elections, the government repeatedly emphasized that it would not be announced"until it's finalized."
Secrecy prevailed due to the confidentiality agreement signed between the parties. Photo: Reuters
Caution over the impact of the trade agreement
Currently, the United States is the third most important destination for Argentine exports, behind Brazil and China, with a slight surplus. In 2024, sales to the North American giant totaled US$6.4 billion, approximately 10% of the US$70 billion that Argentina earns in total from its annual exports. But it is estimated that an additional US$4.5 billion could be generated.
The steel and aluminum sector is one of the most eagerly awaited. In April, Trump imposed reciprocal tariffs on almost the entire world, in what he called “the biggest game-changer” in recent international trade history.
Argentine products entering the United States were subject to a 10% tariff—the lowest imposed—while aluminum and steel were subject to a 50% tariff.
Exports to the United States represent 10% of Argentina's total exports. Photo: EFE
The measure hits the sector hard, given that its sales to the United States represented half of its total exports in 2024 and has already caused US$500 million in damage to the exports of Aluar and Techint, who at the time of this writing were cautiously reading the White House statement, as was the American Chamber of Commerce in Argentina (Amcham), which held meetings to analyze it.
Another sector on edge is the pharmaceutical industry. “We are in favor of a trade agreement that promotes trade and investment, in terms of reciprocity regarding health regulations for pharmaceutical products, and that establishes the foundations for greater competition, access to medicines, and balanced intellectual property,” said Eduardo Franciosi, executive director of the Argentine Chamber of Pharmaceutical Laboratories (Cilfa).
He added that “the announcements refer to the basis for a framework agreement, the full content of which will be known with the final text of the agreement.” And he clarified: “Consequently, until that happens, it will be difficult to foresee its impacts on the sector.”
In the negotiations, foreign companies argued that patent restrictions favor the domestic industry and insisted on incorporating a clause for strict compliance with the medicinal patent law.
The agricultural sector also expressed its opinion on the matter.“We value any initiative aimed at strengthening the country's international integration and promoting clear and predictable rules for trade and investment. This is a significant announcement, encompassing multiple productive sectors. We will await the final text and evaluate it technically together with the sectors that make up the Stock Exchange,” stated the entity's president, Ricardo Marra, and reaffirmed “the commitment to contribute to the public debate with a strategic vision that favors the competitive development of agribusiness chains.”
Regarding the arrival of US cars, a leading importer in the local market pointed out that, for now, Argentina cannot authorize the import of vehicles based on their origin with a tariff lower than 35%, except for those from Mercosur countries or with special quota agreements such as those signed at the time with Mexico, Colombia, and Chile.
“In principle, the Automotive Economic Complementation Agreement between Argentina and Brazil, known as ACE 14, would prevent Argentina from importing cars from outside the trade zone without a 35% tariff until 2029,” he noted. He also recalled that the recent import of hybrid and electric cars (a quota of 50,000 units this year) was not based on origin, but rather on their alternative powertrains. However, in reality, the brands that bid for that quota are almost entirely of Chinese origin.
