Brazil and Argentina schedule first meeting to discuss trade

It will be the first time that Brazil and Argentina hold a meeting to discuss the product trade relationship between the two countries after Javier Milei took office. The economy in Argentina has worsened significantly and, as a result, the export of Brazilian products there has fallen. This would be the main reason for this meeting between the two foreign trade secretaries.

Argentine and Brazilian trade

Javier Milei made a considerable economic adjustment and this caused Brazilian exports to the Argentine market to fall by 28% in the period from January to March this year compared to the first three months of last year. Argentina is the fourth largest market for Brazilian merchandise, despite this drop. China, the United States and the European Union are the three markets to which Brazil exports most.

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_{Javier Milei at the monument in memory of the victims of the Falklands War (Photo: reproduction/ Getty Images Embed)}

The “thump” of imports from Argentina was expected

CNN interviewed Tatiana Prazeres, who stated that this drop was to be expected as Argentina is going through an economic crisis. She also said that: “The first assessment is positive regarding the end of administrative restrictions”. The secretary of commerce said that what remains now are “exchange rate uncertainties”, referring to the new arrangement made by Milei, where the Central Bank divides the release of dollars into four installments for companies to pay for what is purchased abroad.

Tatiana also brought up the point that no new financing mechanisms or credit lines are in the plans to maintain bilateral trade. There were attempts to implement these ideas last year, during Alberto Fernandez's government, but the lack of guarantees offered in Argentina did not make it possible.

This meeting will be important, as it will be a chance to readjust business and try to rebuild the economy between the two largest Mercosur countries. The meeting between Tatiana and Pablo will take place in person in Buenos Aires.

Featured photo: Javier Milei at the cenotaph in memory of the victims of the Falklands War (reproduction/ Luis Robayo/ Getty Images)