"Milei in Power: Commercial Opportunities and the Argentine Lithium Value Chain"
The recent electoral victory of Javier Milei as the president of Argentina has sparked reflections on the future of the country's commercial relations, particularly with the European Union. Contrary to some initial concerns, there are positive aspects that could strengthen the connection between Argentina and the "center of the free world."
Milei, known for his ultra-liberal stances, demonstrates a willingness to open Argentina's doors to international business, and his preference for Europe over China could be a favorable point in future trade negotiations. Considering Europe as a benchmark for the free world, Milei might find common ground to promote mutually beneficial agreements.
His criticism of MERCOSUR, in particular, does not seem an immediate threat to MERCOSUR-European Union relations. The new European legislation prohibiting the purchase of agricultural products from deforested lands might have complicated a MERCOSUR-EU agreement, but Milei's election could act as a neutralizing factor, given the pre-existing insurmountable obstacles.
It is crucial to acknowledge that while the European regulation is positive from an environmental perspective, it may not be acceptable for MERCOSUR countries, which have their own regulatory frameworks adapted to their reality. The imposition of European laws could have led to a standstill, so Milei's election might open new opportunities for more flexible negotiations.
On another front, Milei's victory could also bring good news for the Argentine lithium value chain. Argentina, as the third country with the highest lithium reserves globally, holds a strategic position in this market. Milei's presidency could ensure a more entrepreneurial and market-oriented approach to the development of this key industry, benefiting the Argentine economy.
In a more light-hearted tone, we cannot overlook the fact that the other major winner in this contest is the party of former President Macri. With the necessary votes to support Milei, the possibility of passing legislation is guaranteed. However, it is worth mentioning that without active participation from Macri, President Milei could face a "legislative paralysis," leading to unexpected political situations.
In conclusion, Milei's victory poses opportunities to strengthen Argentina's position on the international stage. The openness to international business and the prospect of more flexible regulation could mark the beginning of a new phase for the Argentine economy and its commercial relations with the European Union.
