Deal signed in February is being rewritten and sent to Argentina's Congress, where the votes are not there yet
Argentina and the United States signed the Agreement on Reciprocal Trade and Investment on February 5, 2026. It cuts tariffs on 1,675 Argentine products and 221 categories of American goods. It also raises Argentina's preferential beef quota from 20,000 tons to 100,000 tons.
The legal ground moved within weeks, when the US Supreme Court struck down the emergency-powers tariffs the deal relied on. On October 14, Foreign Minister Pablo Quirno and US Trade Representative Jamieson Greer signed a protocol that replaces the 'reciprocal' rates with tariff treatment listed in the agreement's annexes. Milei's advisers say they lack the votes to ratify, and Argentina's legislative year ends in November.
Why it matters
Ratification would hand US exporters and investors a tariff edge in Argentina's beef, lithium and auto markets, and test whether Milei can undo decades of protectionism.
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Javier Milei February 2025 (3x4 close cropped)
Javier Milei en el Salón Blanco 2 (cropped)
Javier Milei en el Salón Blanco 2 (cropped) (2)
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Curated perspectives — historical figures and your fellow readers.
Fictional AI pastiche — not real quote.
"How charming—after eighty years of sulking behind tariffs, Argentina has discovered that beef pays better than pride. One can only admire a nation that finally grasps what any good butcher knew all along: the customer with the fattest wallet gets the tenderloin."
The executive agency responsible for developing and coordinating US international trade policy and negotiations.
Argentina's ministry responsible for foreign relations and international trade policy.
November 2023 October 2026
Foreign Minister Pablo Quirno and US Trade Representative Jamieson Greer signed a protocol that removed references to the reciprocal tariff rates struck down by the Supreme Court and replaced them with the tariff treatment set out in the agreement's annexes. The amended text takes effect 60 days after both countries certify their legal procedures are complete.
The national patent institute revoked 2012 rules that restricted its ability to assess pharmaceutical patent applications on its own, one of the regulatory commitments in the trade agreement. Argentina also eased some import restrictions.
Foreign Minister Quirno and USTR Greer signed the Agreement on Reciprocal Trade and Investment in Washington on February 5, eliminating tariffs on over 1,800 products between the countries.
The Court ruled that the International Emergency Economic Powers Act does not authorize Trump's global tariffs, removing the legal basis the February agreement had cited for its tariff rates.
El Salvador becomes first country to sign an agreement under the November framework, removing non-tariff barriers for US agricultural products.
White House unveils bilateral trade frameworks with Argentina, Ecuador, El Salvador, and Guatemala, promising tariff relief in exchange for market access.
Justices hear oral arguments on whether the International Emergency Economic Powers Act authorizes presidential tariffs—the legal basis for Trump's trade frameworks.
La Libertad Avanza strengthens its legislative position, validating Milei's economic reforms and enabling further liberalization.
Finance secretary promoted to lead foreign ministry with explicit mandate to secure US trade access and promote free-market ideology.
Treasury Secretary Scott Bessent finalizes currency swap framework with Argentina—the first large-scale US rescue since the 1995 Mexico bailout.
International Monetary Fund finalizes four-year assistance program requiring Argentina to transition to a market-determined exchange rate.
Trump administration eliminates all country-level exemptions from Section 232 duties, subjecting Argentine steel and aluminum to 50% tariffs.
Senate confirms Greer 56-43 to lead trade negotiations, including new bilateral frameworks with Latin American allies.
The European Union and Mercosur countries including Argentina finalize a political agreement on a comprehensive partnership, creating the world's largest free trade zone.
Milei travels to Mar-a-Lago for the Conservative Political Action Conference, meeting with President-elect Trump and discussing a potential free trade agreement.
Javier Milei defeats economy minister Sergio Massa in runoff election, winning on a platform of radical economic liberalization and trade opening.
Discussed by: Trade lawyers at Clark Hill, Greenberg Traurig, and the Council on Foreign Relations
The Supreme Court rules that IEEPA grants presidential authority to impose and reduce tariffs under declared emergencies. The Argentina agreement remains in force, and the Trump administration accelerates bilateral deals with Ecuador and Guatemala. This outcome would validate a new model for executive trade policy outside traditional congressional frameworks.
Discussed by: Peterson Institute for International Economics, SCOTUSblog, and the Cato Institute
The Court rules IEEPA does not authorize tariffs, potentially invalidating both the punitive tariffs (over $200 billion collected) and the bilateral relief agreements. Importers may be entitled to refunds while Argentina's preferential access evaporates. Congress would need to pass new legislation to preserve the frameworks.
Discussed by: Argentine manufacturing associations and trade analysts at Americas Quarterly
Following the trade agreement, the US reviews and reduces Section 232 duties on Argentine steel and aluminum, which currently face 50% tariffs. This would unlock Argentina's manufacturing exports and deepen the economic partnership, though it requires a separate determination by the Commerce Department.
Discussed by: Atlantic Council, Council on Foreign Relations, and AS/COA analysts
Argentina's deal creates pressure on other Latin American countries to pursue similar bilateral agreements with Washington. Brazil, currently the largest Mercosur economy, faces a choice between deepening EU ties or pivoting toward US frameworks. The regional trading bloc's coherence weakens as members pursue separate arrangements.
Discussed by: Bloomberg, citing people familiar with the talks; Buenos Aires Times
Milei's advisers told the Trump administration they did not have the votes to ratify the February agreement, and the legislative year ends in November. Without approval, the tariff preferences in the annexes stay unapplied.
Discussed by: US Trade Representative and Argentina's foreign ministry, in the amended text
The protocol sets entry into force 60 days after Washington and Buenos Aires exchange notifications that their domestic legal steps are done. Argentina's congressional approval is the step still missing.
3 moments from history that rhyme with this story — and how they unfolded.
The United States signed its first free trade agreement with a South American country when President George W. Bush concluded a comprehensive deal with Chile. Negotiations began in 2000 and produced an agreement eliminating tariffs on 90% of bilateral trade immediately, with full implementation by 2015.
US-Chile trade more than tripled in the first decade, with Chile becoming a testing ground for labor and environmental provisions in trade deals.
The agreement served as a template for subsequent US deals across Latin America, including agreements with Peru and Colombia, and influenced the structure of the Trans-Pacific Partnership negotiations.
The Chile agreement proved bilateral deals with reformist Latin American governments could succeed—but it took three years of negotiations and congressional approval. The Argentina framework attempts similar outcomes through executive action alone.
Mexico's peso collapsed after the government could no longer maintain its fixed exchange rate, triggering capital flight that threatened a sovereign default. President Bill Clinton bypassed a resistant Congress by using the Treasury's Exchange Stabilization Fund to provide $20 billion in emergency credit—the same mechanism used for Argentina in 2025.
Mexico avoided default and repaid the loans ahead of schedule with $600 million in profit to the US Treasury, though the economy contracted 6% in 1995.
The rescue established a precedent for US-led financial interventions in allied economies and demonstrated the Exchange Stabilization Fund's utility as an executive tool for foreign financial support.
The $20 billion swap line provided to Argentina in October 2025 explicitly mirrors the Mexico rescue—the first such intervention in 30 years. Both used presidential discretion to support ideologically aligned reformers facing market pressure.
Under Juan Perón and subsequent governments, Argentina pursued import substitution industrialization—raising tariffs above 100% on many goods, nationalizing industries, and restricting foreign investment. The policy aimed to build domestic manufacturing capacity but insulated Argentine industry from global competition.
Industrial employment expanded and domestic manufacturers grew behind protective barriers, though agricultural exports—Argentina's comparative advantage—declined.
Decades of protection created an industrial base dependent on trade barriers. By the 1980s, Argentina's share of global exports had fallen from 3% to under 0.5%, and productivity lagged global competitors.
The February 2026 agreement represents a structural break from 80 years of Argentine trade policy. Milei is dismantling the protectionist architecture that defined the country's economic identity since World War II.