Trump trying to destroy a regional alliance in order to further US direct power is unfortunately very aligned with his America First ideology, and Milei being an enabler is tragically on topic for him
This would be a very bad thing for trade in south America
Xeynon on
Argentina’s comparative advantage is in products (soybeans, wheat, beef, etc.) that the US also produces cheaply and in abundance. I’m not saying we shouldn’t have a free trade agreement with them, but there is little to be gained from one, and being in Mercosur is a better deal for the Argentinians since the other countries in it don’t produce the same products they do.
This seems like a pretty dumb thing for an economist like Milei to do.
Icy-Magician-8085 on
Giving up trade with all of their neighbors and the entire European Union just for Trump.
Trump’s tariffs, especially if they face massive public blowback, are only going to last a relatively limited time too. Why do this?
Sea-Newt-554 on
is mercosur still a thing?
Nautalax on
Except insofar as that’s a rhetorical prop to curry favor with Trump this seems like it would be a bad move? Brazil alone does significantly more trade with Argentina than the US does leaving aside all the other neighboring countries that make up good chunks and established Mercosur trade deals with other blocks that that would throw into chaos.
It would be awesome if we trade more with countries in Latin America though. Ecuador is particularly sad bc it even uses American dollars as its own currency and all its neighbors have a trade deal with the US, they just had the misfortune of being ruled by a giga succ while the US was in its free trade phase and only returning to liberal politicians when we’d turned protectionist. Free the shrimp!!
6 Comments
Why not just have 2 free trade deals
Trump trying to destroy a regional alliance in order to further US direct power is unfortunately very aligned with his America First ideology, and Milei being an enabler is tragically on topic for him
This would be a very bad thing for trade in south America
Argentina’s comparative advantage is in products (soybeans, wheat, beef, etc.) that the US also produces cheaply and in abundance. I’m not saying we shouldn’t have a free trade agreement with them, but there is little to be gained from one, and being in Mercosur is a better deal for the Argentinians since the other countries in it don’t produce the same products they do.
This seems like a pretty dumb thing for an economist like Milei to do.
Giving up trade with all of their neighbors and the entire European Union just for Trump.
Trump’s tariffs, especially if they face massive public blowback, are only going to last a relatively limited time too. Why do this?
is mercosur still a thing?
Except insofar as that’s a rhetorical prop to curry favor with Trump this seems like it would be a bad move? Brazil alone does significantly more trade with Argentina than the US does leaving aside all the other neighboring countries that make up good chunks and established Mercosur trade deals with other blocks that that would throw into chaos.
It would be awesome if we trade more with countries in Latin America though. Ecuador is particularly sad bc it even uses American dollars as its own currency and all its neighbors have a trade deal with the US, they just had the misfortune of being ruled by a giga succ while the US was in its free trade phase and only returning to liberal politicians when we’d turned protectionist. Free the shrimp!!