The announcements made by the US Mission in Argentina on November 13th are not an agreement between Argentina and the United States, but rather an unconditional surrender, befitting an Argentine defeat on the military front. This agreement will negatively impact Argentina's autonomy, economy, development, and healthcare, among other things. This is comparable to the economic conditions imposed by the United Kingdom on Argentina through the Madrid Agreement (1989/90) and Law 24,184 on the protection and promotion of British investments (1992), remnants of the Malvinas War. In fact, this Agreement—whether incidentally or intentionally—will benefit British businesses in Argentina.

Some compare this agreement to the infamous Roca-Runciman Treaty, signed in 1933, which complemented the treacherous "Treaty of Friendship, Commerce, and Navigation" signed in Buenos Aires in 1825, despite which the British invaded the Malvina Islands in 1833. However, this treaty, though still exploitative, focused on meat, grain, coal, and benefits for British-owned public companies, and import tariffs between the United Kingdom and Argentina remained relatively stable. Although it may seem a mere formality, the Roca-Runciman Treaty was signed in both Spanish and English, while the current US order was only issued in English, and the US delegation clarified that it is the only valid document. There could be no further proof of imposition. There is no opinion on this matter—nor will there be, for obvious reasons—from the Argentine diplomatic corps.

Conversely, the so-called “Agreement” with the United States, founded on “ open markets” and within the framework of a “stronger and more balanced economic partnership,” fails to mention that Argentina has a trade deficit with the United States of approximately $2 billion, a figure that will increase with the “preferential access” that Argentina will be required to grant “to U.S. exports, including certain medicines, chemicals, machinery, information technology products, medical devices, motor vehicles, and a wide range of agricultural products,” without specifying any limits or conditions. Meanwhile, the United States will eliminate reciprocal tariffs “on certain unavailable natural resources” and unpatented products for pharmaceutical applications. The imbalance in terms of obligations and rights is evident.

Likewise, both countries have committed to improving reciprocal conditions of bilateral market access for meat; knowing that the type of meat that the United States markets could modify the consumption habits of quality Argentine meats, the consequences of which could be significant economically and in terms of health for Argentinians.

Furthermore, the United States could use, under the pretext of “national security,” including the protection of the country’s national economy against external threats, the adoption of trade, methodological, and political measures—adjustments and prohibitions on imports and/or increased tariffs and the imposition of quotas, or any other action that the President deems appropriate. Under Section 232 of the Trade Expansion Act of 1962, as amended (19 USC 1862); initiate investigations into the importation of any article, using the procedures it deems appropriate for the required determination; for example, as already occurred in the United States with the prohibition of the importation of Argentine meats under the pretext of transmission of foot-and-mouth disease, even though this disease is not a Zoonosis, that is, it is not transmitted to people according to the WOAH (ex OIE) and the FAO either by consumption of meat (raw, cooked or processed) or by contact with infected animals.

On the contrary, Argentina is required to “dismantle non-tariff barriers that restrict access to its market, including import licenses, thus guaranteeing more equitable conditions and a commitment not to require consular formalities for US exports to Argentina.” Furthermore, it is required to phase out the statistical fee for US products, allowing, in turn, “the entry (into Argentina) of US products that comply with applicable US or international standards, US technical regulations, or US or international conformity assessment procedures, without requiring additional evaluation requirements.” This, in the area of food (meat, plant products, additives, etc., including facilities), violates Argentine Law 3,959 on Animal Health and its Decree 4238/68 and amendments regarding the Inspection of Products, By-products, and Derivatives of Animal Origin. In addition to the Argentine Food Code (Law 18.289) and all regulations concerning control and quarantines to prevent the entry of zoonotic and/or exotic diseases, which endanger the health of the Argentine population, it is important to consider that more than 350 diseases are transmitted to humans through food consumption. Furthermore, changes in the eating and dietary habits of Argentinians, as a consequence of this uncontrolled importation, could cause negative health and nutritional effects and, very importantly, incalculable economic damage to the country, including the collapse of the Argentine productive and industrial sector and the resulting unemployment.

Furthermore, the execution of this Agreement with the United States will automatically enable the United Kingdom of Great Britain, by application of Law 24.184, which allows it to adhere to the best conditions granted by Argentina to third countries.

Furthermore, the Agreement is not limited to the parties involved, but also affects trade between Argentina and third countries when it states that it will "strengthen cooperation with the United States to combat non-market-oriented policies and practices by other countries," which could impact Argentine trade with the BRICS member countries, including MERCOSUR and eventually its agreement with the European Union; including a mention of "the prohibition of importing goods produced through forced or compulsory labor"; which, beyond the fact that Argentina must avoid trade with countries that do not have labor standards agreed upon with labor unions, is clearly a global problem that also affects the United States, and no reference is made to it. 

The Agreement also refers to Argentina's obligations regarding "environmental" issues without making any mention of the United States, despite the fact that, according to data from specific organizations, this country leads the world in cumulative historical greenhouse gas (GHG) emissions (1850-2021), especially CO2, with ₂₅ %, and, according to the International Energy Agency (IEA) and EDGAR (EU), is second only to China with 14%. Meanwhile, Argentina ranks 28th out of 35 globally and 2nd in Latin America for livestock production. Argentina does not subsidize fishing, while the United States, with $3.9 billion, ranks 3rd globally in fishing subsidies, behind China (1st) and the European Union (2nd). In terms of subsidies considered harmful, the US ranks 6th, behind China, Japan, the EU, South Korea, and Russia. It seems absurd that the polluter should impose conditions on the polluted.

Finally, and without going into detail about the numerous products that would have preferential access to Argentina; investments in strategic minerals; the recognition of the United States as a suitable jurisdiction for the cross-border transfer of data, including personal data; and the numerous demands placed on our country regarding patents; industrial subsidies; distorting actions by state-owned enterprises (i.e., privatizations); various goods; designations of origin, etc.; this preliminary document seems less like an agreement and more like a mandate from the national government to the United States to manage national trade, which the US then regulates through a regulatory decree that Argentina must comply with.

An inadmissible delegation of the powers of an independent and sovereign country.

Published in Perfil, on Sunday, November 16.

César Augusto Lerena

Expert on the South Atlantic, Food and Fisheries – Former Secretary of State

President of the Agustina Lerena Foundation

President of the Center for Latin American Fisheries Studies

www.cesarlerena.com.ar