ARGENTINA: G20 Summit & more – 21st Nov 2024

¡Buenos días from Greenway Parks! This is the Rorshok Argentina Update from the 21st of November twenty twenty-four. A quick summary of what's going down in Argentina.

The G20 Summit in Brazil took place this week and we’ve got updates. On Tuesday the 19th, President Milei met with Kristalina Georgieva, the Managing Director of the International Monetary Fund (or IMF), to discuss the country’s economic program and the possibility of new funding. Georgieva acknowledged Argentina’s strides toward economic stabilization and market-oriented reforms, expressing the IMF’s readiness to support further progress. However, she also criticized certain policies, such as slow peso devaluation and currency controls, which Milei aims to lift with additional IMF support.

The IMF’s inflation projections remain higher than Argentina’s government estimates, forecasting 140% for twenty twenty-four and 45% for twenty twenty-five.

Also, the IMF will be glad to hear that the government has introduced a policy easing restrictions on personal and occasional imports. Starting next month, individuals will be able to import up to 400 dollars worth of items for personal use without paying tariffs, and occasional exporters will be able to ship up to 3,000 dollars worth of goods tax-free, up from the previous $1,000 cap.

Officials say this change will enable people to buy items like clothing and appliances at lower costs. The initiative is part of Milei’s broader push to normalize foreign trade and open up the country’s economy. Businesses will also benefit from streamlined import processes for critical parts and supplies, with further updates to the mail-order system expected soon.

On a related note, the Economy Ministry announced its ninth consecutive monthly financial surplus. This achievement stems from stringent austerity measures, including cuts to structural expenditures and pension adjustments tied to inflation. Analysts called the surplus a significant political advantage but noted the need for tax and social security reforms to ensure long-term sustainability.

Also important to know, there’s a new 20,000 peso banknote. This one features Juan Bautista Alberdi, the political theorist who influenced the content of the Constitution of Argentina of eighteen fifty-three. The government decided to print the new bills in China to reduce costs, which marks a shift from previous production at the state-owned Mint.

The 20,000 peso banknote is the country’s highest denomination, valued at approximately twenty dollars at the official exchange rate. Among other benefits, the higher-denomination bills lower transportation and operational expenses.

It’s surprising that the government reached a deal with China to print the new bills, as Milei was openly critical of the Chinese government, going as far as calling them “murderers” and saying he would not trade with nations like China or Brazil because of their political systems. However, this week, he had his first formal meeting with Xi Jinping, the Chinese President. The leaders discussed strengthening trade and financial ties, reaffirming existing agreements, and exploring joint projects. Both sides expressed a commitment to constructive cooperation and exchanged mutual invitations for official visits.

Speaking of tense relationships, Argentina joined the Global Alliance against Hunger and Poverty, an initiative led by Luiz Inácio Lula da Silva, the Brazilian President. This is especially surprising considering Milei’s relationship with Lula, whom he has criticized in the past, as well as the recent foreign policy shifts, including rejecting resolutions on climate change, Indigenous rights, and gender equality.

This alliance aims to tackle global hunger and poverty through programs like cash transfers, improved school meals, and multilateral funding. Initially, there was speculation that Argentina might abstain, but the country ultimately signed the pact, albeit with a dissenting letter emphasizing free-market capitalism as the path to end poverty.

On the topic of Brazil, the countries have finalized a deal to export natural gas from Argentina’s Vaca Muerta shale formation to Brazil. Luis Caputo, the Economy Minister, and Alexandre Silveira, the Brazilian Mining and Energy Minister, signed the agreement during the G20 summit. Starting in twenty twenty-five, Argentina will send two million cubic meters per day, with gradual increases expected.

The gas will flow through repurposed infrastructure, including the Bolivia-Argentina pipeline and the Gasbol pipeline.

Milei’s meeting with Emmanuel Macron was not as successful, though. The French president visited Milei at Casa Rosada, marking his first official visit to Argentina since Milei took office. The presidents didn’t share many details about their discussion, but Macron reiterated that France will not sign the EU-Mercosur Free Trade Agreement in its current form. His main concerns have to do with potential competition from Latin American meat products that don’t meet Europe’s stringent environmental and sanitary standards.

The two also discussed the possibility of France selling submarines to Argentina, but financial and political obstacles have stalled progress on the deal. Macron’s visit also included paying tribute to French victims of Argentina’s last dictatorship.

Meanwhile the president is pursuing a free trade agreement with the US. In an interview, Milei described his positive relationship with Trump and outlined shared goals to bolster trade ties and promote economic growth. Analysts remain skeptical, citing Trump’s protectionist tendencies and a lack of interest in new trade deals.

In other news, a federal appeals court upheld a six-year prison sentence for Cristina Fernández de Kirchner, the former Argentine President, over fraudulent administration in the Vialidad Nacional case. This case involved irregular public works contracts awarded in the Santa Cruz province.

While Fernández de Kirchner’s lifetime ban from public office remains, the court did not convict her on illicit association charges, though prosecutors plan to appeal. The case also confirmed convictions for others involved, including businessman Lázaro Báez and former officials.

Authorities have also revoked Fernández de Kirchner’s two pensions, one for her tenure as president and the other as the widow of former President Néstor Kirchner.

Another thing that was widely talked about this week is the decision by football club Deportivo Riestra to field an influencer known as Spreen in a top-flight match against Vélez Sarsfield. Despite having no professional football experience, Spreen started the game, stayed on the pitch for just seventy-eight seconds without touching the ball, and was quickly substituted. The move sparked outrage from players and officials, with critics calling it disrespectful and a bad example for aspiring athletes.

Riestra said the stunt was a marketing effort to attract new audiences, but suspicions arose about potential ties to betting promotions. The Argentine Football Association and a gambling watchdog have launched investigations into the incident.

For art lovers, Eduardo Costantini, founder of the MALBA in Buenos Aires, recently bought Leonora Carrington’s sculpture La Grande Dame for eleven million dollars at a Sotheby’s auction in New York. This marks a significant addition to the MALBA’s collection, which previously lacked the British-Mexican surrealist's work.

A few other recommendations before we go. The British literary magazine, The London Review of Books, put out a six-part podcast series about the sinking of the General Belgrano ship, the bloodiest and most controversial military action of the Malvinas/Falklands War. For context, in nineteen eighty-two, a British submarine torpedoed the General Belgrano outside the official exclusion zone established by the UK, a point of controversy.

The series is based on a diary written onboard the British submarine that fired the torpedoes, the diary that proved Thatcher’s government hadn’t told the truth about what happened.

Check it out with the link in the show notes!

Also, Eater, the online publication that covers food, drink and dining culture worldwide, published a piece titled An Eater’s Guide to Argentina’s Mendoza Wine Region. This in-depth feature dives into the culinary and wine tourism highlights of Mendoza, Argentina’s renowned wine-producing area, emphasizing a growing culinary scene that has transformed Mendoza into a gastronomic destination.

Link in the show notes!

And to wrap up this edition, four Argentine towns made it to the list of the world’s best in the UN’s Best Tourism Villages twenty twenty-four competition. Organized by the World Tourism Organization, the initiative highlights rural destinations that excel in sustainability, cultural preservation, and biodiversity. The winners? Caviahue-Copahue in Neuquén, Gaiman and Trevelin in Chubut, and Villa Tulumba in Córdoba.

Aaand that’s it for this week! Thank you for joining us!

Before we leave, did you know that if you are listening to us on Spotify you can leave comments or questions in the episode? There's a comment box right there. The comments are private by default, and we won’t publish them. If you want us to get back to you, share your email so we can contact you back! We'd love to hear from you! Put something in there, go crazy.

¡Nos vemos la próxima semana!