Two presidents, one from Argentina and the other from the United States, although they share ideological similarities, differ in their trade policies according to an article from the influential The Wall Street Journal. The Argentine leader, a libertarian named Milei, has implemented a series of reforms since he took office in December 2023, aiming to open the Argentine market to the world. These reforms include the elimination of tariffs and import restrictions, which have led to a significant increase in foreign products in the local market.
One of the positive effects of these reforms has been the reduction of inflation in Argentina from 56%, compared to the dramatic 200% recorded at the beginning of his term. The costs of foreign products have decreased, positively impacting the cost of living for Argentines. The opening of the market has allowed for beneficial trade agreements, such as the import of medicines from India at half the price and a 30% reduction in fertilizer costs due to the decrease in tariffs.
Despite these achievements, there are critical voices warning of potential negative consequences. There is concern that the protectionist moves of the U.S. president, Trump, may jeopardize the economic recovery driven by Milei and increase the risk of a global recession. Although both leaders share certain ideological similarities, their trade approaches show considerable disparity.
The newspaper article highlights that while Trump and Milei have certain similarities in their economic policies, they differ in their approach to international trade. While Trump imposes tariffs on allies and enemies alike, Milei seeks to open the Argentine economy and promote imports by removing trade barriers. Despite the differences, both international and local, Milei's reforms have attracted international interest and have been praised by figures such as U.S. Treasury Secretary Scott Bessent.
In summary, the reforms of Argentine President Milei have succeeded in reducing inflation, lowering the costs of foreign products, and opening the local market to a variety of international products. Despite the differences in trade policies between Milei and Trump, their ideological similarity has caught the attention of international media and sparked debates about Argentina's economic future in the context of a changing global economy.
