Argentina and the United States inked a bilateral trade pact on February 5 that removes duties on hundreds of products, with Buenos Aires becoming the first country from a group of four in the region to bring such negotiations to completion as President Javier Milei advances his economic liberalisation agenda.

Foreign Minister Pablo Quirno and US Trade Representative Jamieson Greer signed the accord in Washington, as Argentine officials hailed it as a significant step in the nation's bid to restore credibility with international partners following years of economic isolation and repeated sovereign defaults.

Washington will axe tariffs on 1,675 Argentine products, which the foreign ministry stated could add over $1bn to export earnings. The US will also expand the quota for Argentine beef admitted at preferential rates to 100,000 tonnes annually from the current 20,000 tonnes, a modification the ministry said would boost beef sales by approximately $800mn.

Buenos Aires will eliminate trade barriers on 221 product categories including machinery, chemicals and medical devices, whilst cutting tariffs to 2% on 20 additional items. Politically sensitive imports such as vehicles, live cattle and dairy products will be admitted through government-established quotas.

The White House characterised the agreement as part of a "strategic alliance based on shared democratic values and a common vision of free enterprise, private initiative and open markets", designed to foster long-term growth and establish a transparent framework.

Argentina recorded a trade surplus with the United States in 2025, exporting $8.34bn in goods whilst importing $6.70bn, according to official figures.

However, the accord has drawn criticism from some quarters as asymmetrical. Speaking to Tiempo Argentino, Economist Martín Redrado described it as "unbalanced", arguing that Argentina is making concessions on 12 out of 16 points whilst lowering tariffs on chemical, pharmaceutical and automotive products, even as the US offers what he termed limited concessions such as meat quotas. He noted the productivity gap between US and Argentine industry could significantly affect final production values.

Critics also raised concerns about sovereignty implications. Industry groups described the pact as a "legal shield" that constrains economic self-determination, with mechanisms clearing the path for costly international lawsuits against the Argentine state similar to those under the Large Investment Incentive Regime (RIGI).

The pact builds on the ideological bromance between Milei, a self-styled radical libertarian, and Donald Trump, despite Argentina offering Washington limited geopolitical influence or economic advantages. Both nations are major exporters of commodities including soy, maize, wheat, beef and petroleum, placing them in direct competition across international markets.

Since assuming office in December 2023, Milei has made at least a dozen trips to the US, reorienting Argentina's foreign policy to match Washington's positions and supporting Trump's increasingly assertive approach in the Western Hemisphere. This alignment proved beneficial last year when financial turbulence risked depleting Argentina's foreign currency reserves before crucial midterm elections, leading Trump to extend a $20bn credit facility to his right-wing ally.

The livestock sector stands to benefit substantially. Federico Bernini, an economist at the Interdisciplinary Institute of Political Economy at the University of Buenos Aires, told Ambito that "the biggest gain for Argentina is undoubtedly in the meat sector", noting that neighbouring Brazil still faces 50% punitive tariffs whilst US cattle inventories remain at historic lows. He also pointed to favourable terms secured for lemon essential oils.

Yet Bernini highlighted concerns about "shortages in steel and aluminium" and questioned the removal of wine tariffs. Washington committed to reviewing its 50% levies on Argentine steel and aluminium imports but stopped short of immediate elimination, potentially dealing a blow to manufacturers, particularly given that aluminium constitutes 8.2% of exports to the US and 54% of Argentine aluminium sales are destined for the American market.

According to AP, the prospect of increased Argentine beef entering the American market may revive objections from US cattle ranchers and Republican members of Congress, who reacted angrily in October when Trump initially suggested boosting imports to reduce consumer prices.

In Argentina, domestic industries that have long enjoyed protection through high tariffs worry about their capacity to compete with American manufacturers, especially as local producers have already experienced declining sales following Milei's decision to permit greater entry of lower-priced Chinese goods.

The deal also advances cooperation on critical minerals, a strategic priority for the Trump administration. Under a companion framework accord concluded on February 4, Washington and Buenos Aires committed to providing financial support including grants and loans for mining development, whilst removing bureaucratic obstacles to project approval. According to US Secretary of State Marco Rubio, Argentina is well-positioned to develop rare earth mineral production.

The mining sector has emerged as a growth area for Argentina, with 2025 exports from the industry totaling $6.04bn—marking an annual expansion of approximately 30%. Officials in Buenos Aires have set a target of $20bn in yearly mining revenues within seven years, contributing to an overall export goal of $100bn. Investment projects focused on lithium and copper will be eligible for benefits under Milei's flagship Large Investment Incentive Regime.

The agreement includes provisions on digital trade that have raised concerns about regulatory authority. Argentina will recognise the US as an appropriate jurisdiction for data transfers and commit not to discriminate against American digital services and products. Some analysts warned this could restrict Argentina's ability to regulate large technology companies such as Amazon, Google, Microsoft and Apple.

Beyond tariff cuts, the agreement encompasses substantial commitments on labour standards, environmental safeguards and economic security. Argentina will conform to International Labour Organisation frameworks, implement rigorous prohibitions on importing goods made with forced labour, and develop a six-month programme to eliminate child labour in sectors such as brick-making, cotton cultivation and textile manufacturing.

The prohibition on importing goods produced through forced or compulsory labour echoes language Washington frequently employs regarding China, particularly concerning the situation in Xinjiang province.

Regarding environmental obligations, Argentina pledged to combat illegal timber harvesting and wildlife smuggling, accept the World Trade Organisation's Agreement on Fisheries Subsidies, and advance the recovery of critical minerals including recycling lithium-ion batteries.

The accord further requires Argentina to coordinate on economic security matters to address non-market policies of third countries, align approaches to export controls and investment screening, and avoid procuring nuclear reactors or enriched uranium from countries outside the Western alliance.

Argentina must also tackle distortions created by state-owned enterprises, ensuring they function according to commercial principles and do not discriminate against American goods or services. The government may offer non-commercial support to state enterprises manufacturing goods only whilst privatisation is underway.

On intellectual property, Argentina committed to enhanced protections and must submit the Patent Cooperation Treaty to Congress for ratification before April 30. The country will also accept approvals from the US Food and Drug Administration as adequate grounds to permit the sale of medical devices and pharmaceuticals produced in America.

"Today Argentina sent a clear signal to the world," Quirno wrote on social media. "We are a reliable partner, open to trade and committed to clear rules, predictability and strategic cooperation."

The agreement must still go through Congress for approval. The foreign ministry stated the deal "positions Argentina as the first South American country to sign an agreement of this magnitude among a select group of countries with preferential access to the US market".

Argentina became the first of four Trump-friendly nations to finalise such an accord after framework deals were struck with Washington in November. That group also includes Ecuador, Guatemala and El Salvador.