Mercosur - European Union Agreement: An opportunity for Argentina?

Relations between Argentina and the European nations have always been very strong, from Spanish rule, to the  various waves of immigration the southamerican country has received across the nineteenth and twentieth centuries, and now the economical exchanges and international cooperations with Europe. Argentina and Europe, in particular, have much closer links and connections than what we might assume. Now, the European Union and MERCOSUR (Common Southern Market, of which Argentina is a member alongside Brasil, Paraguay, Uruguay and Bolivia) are working together towards a Trade Partnership . There’s two key aspects that I would like to analyse:  How does it affect EU - Argentinian economic relations and cooperation? And how does this agreement impact the Argentinian economy itself?

Argentinian - European Union Partnership

To answer the first question, we should first look into what the EU - Argentinian dynamic is like. Argentina has various programs of international cooperation in diverse areas such as: Human Rights, Environment, Science and Innovation, among others. And in regards to economics and trade, the European Union is Argentina’s 3rd biggest trade partner, and represents 12.3% of the country’s total trade, according to official EU sources. The European Union and Argentina already have a successful partnership which will only grow and become stronger with the agreement, which through facilitating trade through tariff reduction in Argentina’s key exports: meat, soy oil, dairy products, wine, among others, which will position more argentinian products in the international market and also give the country access to foreign currency (EURO), something critical for Argentina’s economy. With the partnership, Argentina and the EU will have closer ties than ever before, hopefully opening doors for more cooperation and economic partnership and more benefits for both parties. 

Consequences for the Argentinian economy at large

 As for the second question, the Argentine economy heavily relies on foreign currency that comes from agricultural exports, and the agreement, like I said before, by allowing access to European markets as well as reduced tariffs (more profits for the country), will give Argentina foreign currency, which is needed for the Argentine economy to grow, since it’s used to buy imported goods like machinery for economic activities, and that those activities start developing and further economic growth, something that Argentina has been very lacking in for the last 14 years (since 2011) This all means, at least in my opinion, that if Argentina aspires to grow economically, it should really encourage the partnership with the EU. Milei’s administration has been pushing for the implementation of the partnership, a move in the right direction towards a path of growth, one that cannot be achieved alone, only through cooperation and trade with actors like the European Union.