Argentina and Canada Announce Trade Agreement

Canadian Prime Minister Justin Trudeau met with Argentine President Mauricio Macri on November 16 to discuss economic relations between the two nations. The leaders addressed Canadian agricultural exports, a possible deal through MERCOSUR, the South American common market, and future economic relations in the Americas. Macri’s emphases on pro-business policies and globalization helped Argentina rise to the economic level of a number of western nations and led to increased foreign trade. In May, Argentina signaled willingness to join the Trans-Pacific Partnership, although recent developments regarding the United States’ role in the bloc put the deal on hold.

Argentina increasingly relies on international trade as a cure for its current financial woes. Since Macri removed currency controls and implemented other economic reforms, the Argentine peso has been devalued by more than 30 percent.

In the discussion, Trudeau attempted to downplay fears of protectionist policies that may occur in the United States by affirming Canada’s commitment to international trade and development while highlighting the need for countries to engage one another for the economic benefit of all.

Since 2011, the countries discussed the possibility of Canadian trade deals through MERCOSUR, but talks were abandoned due to the accession of protectionist policies under former President Cristina Fernandez de Kirchner. However, Latin American governments, particularly in Brazil and Argentina, in recent months increasingly favor opening markets to Canadian investment in an effort to boost wages.

The talks finished with the announcement that Argentina will open itself to Canadian pork exports, and both countries committed themselves to working through the World Trade Organization to seek further border liberalization on goods and services. Macri also expressed hope for Canadian investment in Argentine infrastructure and plans to reduce taxes on the operations of mining firms.

While fear of future protectionism on the part of North American and European nations is rampant among Latin American nations at the moment, Argentina and Canada continue to commit themselves to a course of economic liberalization, free trade, and globalization through bilateral and multilateral agreements regardless of the actions of other Western nations.