In early February, Argentina’s Javier Milei announced the signing of a reciprocal trade and investment agreement with Donald Trump’s United States, marking another step in the geopolitical reconciliation between the two countries. Will this agreement restore Buenos Aires to its former glory?
This deal, sealed under the motto “Make Argentina and America Great Again” (MAGA), formalizes the deepening partnership that the Argentine president, elected in December 2023 with over 55% of the votes, aims to strengthen with his American counterpart. This agreement sets the stage for a more distant goal of a broader free trade agreement with Washington.
The context of this agreement is unique as, in January, after half a century of negotiations, the Mercosur regional bloc to which Argentina belongs, concluded another free trade agreement, this time with the European Union. Since taking office, Javier Milei has been in favor of this increased opening of the Argentine economy and building closer ties with an America that aims to reshape power dynamics across the Latin American continent.
Looking back, the slogan “MAGA” was popularized by Javier Milei during his presidential campaign but goes beyond mere electoral rhetoric. It symbolizes a triple political, economic, and symbolic strategy aimed at reshaping Argentina’s national trajectory after decades of recurring crises.
Institutionally, ‘MAGA’ continues to represent the rejection of traditional elites and a certain ‘caste’ that Milei, a convinced libertarian, has vehemently denounced since the beginning of his political rise. According to him and his ultraliberal camp, this political class is to blame for the country’s continuous socioeconomic decay. The failure of the peso-dollar convertibility regime collapse, the sovereign default, and the devaluation of the early 2000s still resonate vividly in everyone’s minds.
From an international perspective, ‘MAGA’ serves as a powerful tool for legitimizing the current government, irrespective of its controversial ideological alignment and external pressures. At the regional level, ‘MAGA’ has brought Argentina closer to right-wing governments and neoliberal movements, while distancing it from progressive trends in Latin America. Buenos Aires is now less inclined to support regional solidarity mechanisms and more focused on serving its national interests.
Written by Myriam Benraad, Honorary Professor at the University of Exeter.
