Argentina’s trade policy under Milei
Winter 2024 Carla Junqueira
President Javier Milei was elected with the highest percentage of votes in Argentine history. His government campaign was entirely disruptive, promising changes that hadn't occurred in the last 100 years in the country.
With an ultra-liberal agenda, Milei and his team, once elected, implemented exactly what they had promised during the campaign. They initiated highly unpopular but deemed necessary austerity measures, such as cutting social welfare programs and amending rental laws.
Javier Milei often keeps the public informed about the country's reserves, which remain negative. Despite structuring a government plan, he secured a new loan from the IMF. However, he disappointed by not repealing export taxes; instead, he imposed export taxes on industrial goods, contrary to his liberal rhetoric, though aligning with the government's financial needs.
The "BUS LAW," encompassing virtually all sectors of the economy, is being debated in Congress and has faced opposition from opposition lawmakers. The law is poised to pass but with the exclusion of its main chapter, specifically the fiscal reform.
Concerning popular protests, there's little to worry about, as they have not been significant, given the diminished political capital of unions compared to the golden era of Kirchnerism.
As announced by the government itself, the country is undergoing the so-called "estagflation" process – a combination of recession and inflation. Inflation surpassed 250% in 2023 with no improvement in sight. According to Javier Milei, Argentina will go through its worst inflation in history before transforming into the Latin American Switzerland. Let's see.