U.S. Treasury Secretary Bessent Backs Milei's Economic Reforms in Argentina, Cites 'Economic Miracle'
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U.S. Treasury Secretary Scott Bessent met with Argentine President Javier Milei in Buenos Aires to express the Trump administration's full support for Argentina's economic reforms. The visit comes after Argentina secured a $20 billion loan from the International Monetary Fund (IMF), and additional financial support from the World Bank and the Inter-American Development Bank. Accompanying Bessent were Matt Schlapp, president of the Conservative Political Action Conference (CPAC), Soledad Cedro, CEO of CPAC Argentina, and Rod Citrone, a significant investor and owner of the Pittsburgh Steelers, who is considering a $5 billion investment in Argentina.
Bessent praised Milei's efforts to bring Argentina 'back from the precipice' through his economic policies, which include fiscal adjustments, monetary tightening, and currency liberalization. The U.S. Treasury Secretary also commended Argentina for quickly negotiating with the U.S. on a package of reciprocal trade measures. The meeting included Luis Caputo, Argentina's Economy Minister, Santiago Bausili, president of the Banco Central, José Luis Daza, Vice Minister of Economy, and Pablo Quirno, Secretary of Finance. Also present were U.S. officials Lydia Barraza, Michael Kaplan, and Dan Katz.
The meeting took place on the same day Argentina lifted its currency controls, marking a significant step in its economic reform agenda. Bessent's visit is seen as a strong endorsement of Milei's administration, which aims to strengthen economic ties with the U.S. and reduce reliance on China. Milei described the day as the 'Day of Liberation,' emphasizing the removal of currency restrictions after 15 years.
Bessent emphasized the U.S. interest in preventing a 'China in Africa' scenario in Latin America, where countries might trade mineral rights for financial aid, leading to significant debt burdens. He noted that while Argentina has a $18 billion swap line with China, the U.S. is not considering a similar credit line. Bessent highlighted that Milei's reforms over the past 16 months have been 'absolutely commendable,' and he expressed confidence that Argentina could return to its 'golden era' with continued economic policies.
The visit included discussions on potential reductions in U.S. tariffs on Argentine products, with Bessent indicating that negotiations would be rigorous but open to all countries. Argentina's economic team is working on a list of 10 products that could be exempt from U.S. tariffs. Milei expressed Argentina's intention to become a firm ally of the U.S. in the region and to pursue a reciprocal tariff agreement. Bessent noted the enthusiasm of U.S. companies to invest long-term capital in what he described as Argentina's 'economic miracle,' and he affirmed the U.S. commitment to supporting Argentina's 'historic transformation' against the 'socialism virus' in the region.
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