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Argentina withdraws plan to join BRICS

December 31, 2023
in Business
Argentina withdraws plan to join BRICS
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Argentina’s newly-elected President, Javier Milei, has made a pivotal decision to withdraw the country’s planned entry into the BRICS Club of Nations, signalling a significant shift in foreign policy.

In a letter addressed to the leaders of Brazil, Russia, India, China, and South Africa, President Milei highlighted revisions in decisions made by the previous government.

This move retracts Argentina’s participation in the Brics, an alliance often seen as a counterbalance to the Western-led global order.

The country was slated to join the Brics alongside Egypt, Iran, Ethiopia, Saudi Arabia, and the United Arab Emirates on January 1st, marking a momentous step for Argentina’s global positioning.

However, the change in leadership following President Milei’s unexpected victory in November altered the trajectory.

Expressing divergence from his predecessor’s approach, President Milei deemed full Brics membership unsuitable for Argentina. Despite this, he affirmed his commitment to bolstering bilateral relations, especially to enhance trade and investment.

The BRICS alliance, predominantly led by China, encompasses more than 70 percent of its GDP. Argentina, under the previous administration, sought membership with Beijing’s support.

However, President Milei’s outspoken criticisms of China during his campaign, labelling the Chinese government as ‘assassins’ and expressing a refusal to collaborate with communists, underscored a stark divergence in ideology.

Argentina’s evolving stance reflects the nation’s dire economic situation—a struggle to reverse long-standing economic mismanagement.

Rampant inflation, dwindling cash reserves, soaring government debt, and a significant portion of the population living below the poverty line underscore the challenges faced.

President Milei’s administration has initiated drastic economic measures, including a substantial devaluation of the country’s currency, reflecting a shock therapy approach.

Amidst this transformation, maintaining relationships with key trade partners becomes crucial. Brazil and China stand as Argentina’s primary trade partners, while the United States closely follows.

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Copyright for syndicated content belongs to the linked Source : Businessday.ng – https://businessday.ng/world/article/argentina-withdraws-plan-to-join-brics/

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