Argentina withdraws plan to join BRICS

The withdrawal of Argentina's planned membership in the BRICS Club of Nations, by recently elected President Javier Milei, signals a dramatic change in the country's foreign policy.

President Milei outlined changes to the previous administration's decisions in a letter to the leaders of Brazil, Russia, India, China, and South Africa.

Through this action, Argentina has withdrawn from the Brics, an alliance that is frequently viewed as a counterweight to the international system headed by the West.

Argentina was set to become a member of the Brics on January 1st, joining Egypt, Iran, Ethiopia, Saudi Arabia, and the United Arab Emirates. This was a significant development for Argentina's international standing.

But the course was changed by the shift in power that followed President Milei's surprise triumph in November.

President Milei declared that Argentina was not a good fit for full Brics participation, departing from the strategy of his predecessor. In spite of this, he reaffirmed his dedication to strengthening bilateral ties, particularly to increase investment and commerce.

Beijing supported Argentina's bid for membership in the BRICS alliance, which accounts for over 70% of the country's GDP. During the campaign, President Milei publicly criticized China, calling the Chinese government "assassins" and declaring that he would never work with communists. These remarks highlighted the sharp ideological differences between the two countries.

Argentina's changing position is a reflection of the country's severe economic circumstances and its ongoing fight against economic mismanagement.

The difficulties are highlighted by high rates of inflation, depleting currency reserves, skyrocketing public debt, and a sizable section of the populace living in poverty.

The administration of President Milei has implemented significant economic measures, such as a significant devaluation of the nation's currency, which is indicative of a shock treatment strategy.

It becomes essential to keep up ties with important trading partners during this shift. Argentina's main trading partners are Brazil, China, and the United States, in that order.