The most popular news today is the bizarre gift from Milei to Musk: a chainsaw, how could it be otherwise. However, like any media show, a background related to energy resources and possible commercial opening with the United States is being hidden.
In situation. Yesterday, February 20, the Conservative Political Action Conference (CPAC) that the Republican party is celebrating near Washington, where Musk and Milei were. There, the president of Argentina gave a chainsaw to the owner of Tesla, who called her as The “Bureaucracy chainsaw”.
First of all this show, the question is: What is Milei doing? On the one hand, after controversial support for cryptocurrency $ librathe Argentine president has chosen to get away from all that storm and travel to his place on Earth: United States. On the other hand, Javier Milei He has gathered With Kristalina Georgieva, managing director of the International Monetary Fund (IMF), To discuss the economic situation from Argentina. In addition, the United States Chamber of Commerce in Argentina The nation has announced for the environment that Argentina has “serious possibilities” of accessing a free trade agreement with the United States.
Milei and Musk’s relationship. This friendship between Javier and Elon is not new, and unites a very important and necessary energy resource for the second: lithium. Argentina has historically been very rich in natural resources and has become a fundamental actor for the new technology, especially because it shares the “Lithium triangle” next to Chile and Bolivia. In that aspect, Milei has undertaken A reformist agenda that seeks to eliminate all environmental and social regulation to attract foreign investors, and lithium has become an essential pillar in its economic strategic. Hence his relationship with the tycoon of Tesla, who has shown great interest in the exploitation of lithium.
An example of this boom is The Centennial Mouse projectlocated in the province of Salta, where lithium is being extracted. Operated by the French company ERAMET, this site is expected to produce 24,000 tons of lithium lithium carbonate battery, sufficient to supply 600,000 electric vehicles a year.
Opening with the United States. “Who wants something, something costs him,” but sometimes this phrase must be rethink and ask: but what cost? The fact is that while Musk approaches Milei, he is finding out how to get one more loan for Argentina. The Argentine president not only went to take refuge to the American country and feel the heat of his “friends”, but also to talk to the IMF and discuss a new financial agreement within the framework of his economic adjustment plan.
During the meeting, Georgieva The country’s “progress” has highlightedincluding deficit reduction, low inflation and economic growth. However, one thing is the numbers and another reality: everything has been achieved based on a severe tax adjustment, eliminating subsidies and reducing ministrieswhich has generated a strong social impact and discontent in broad sectors of the population. In addition, economists have explained to the CNN That Georgieva’s subsequent statement was not “very constructive”, since he did not offer concrete details about additional financial support or changes in the exchange scheme. Despite the praise, the new agreement has not yet been specified, and doubts persist about the amounts and conditions that the IMF could demand.
Commercial Opening. While Donald Trump has begun to put tariffs on all countries it seems that he will make an exception with Argentina. In fact, the United States Chamber of Commerce in Argentina (Amcham) He has affirmed that the country has “serious possibilities” of accessing a Free Trade Agreement (FTA) with the US, with Uruguay and Ecuador as the countries of the region with the most likely to achieve this agreement. According to Amcham, Argentina is key in sectors such as critical minerals and energy, which reinforces its position in negotiations. In addition, they stressed that a recent FTA between the United States and South Korea took place in just 11 months, suggesting that Argentina could follow a similar path. However, they warned that factors such as the lack of designations in key positions of the US government and internal differences could delay the implementation of these measures in the short term.
In this context. The Economic Community and the Argentine Society remain expectant to advances in the negotiations and implications they will have in the country’s economy and social welfare. Everything remains to be seen in country with great reservations of minerals and oil.
Image | President’s office
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