Bilateral relations between Argentina and the United States are currently at an unprecedented juncture in their history, propelled by a significant geopolitical alignment between the government of Javier Milei and the administration of Donald Trump. That alignment could deepen on the trade front through the Agreement on Reciprocal Trade and Investment, signed by the two countries earlier this year. The agreement has the potential to create new business opportunities for American companies aiming to invest in Argentina, while also benefiting Argentine firms that are looking to penetrate the U.S. market. One method to capitalise on these opportunities is through friendshoring-the practice of shifting or developing key components of a nation’s supply chains in countries that are its geopolitical allies.
This approach has gained particular prominence since the commencement of Donald Trump’s second term, during which his administration intensified its tariff conflict with China. For this to become a reality, however, one crucial step remains: approval by the Argentine Congress, the final hurdle before the agreement can take effect. Several speakers at the AmCham’s Trade & Conference on Wednesday, attended by the Herald, reached that main conclusion. AmCham Argentina CEO Alejandro Díaz emphasised the “unique” moment in diplomatic relations between the two countries while addressing over 300 attendees, which included representatives from European and Brazilian companies operating in Argentina. He argued that the two presidents have not only “found a personal ideological dynamic through which to interact,” but that both governments are also “predisposed to establishing a strategic relationship on a scale that puts geopolitics clearly clearly ahead of trade.” He stated that trade flows from a geopolitical alignment that positions Argentina in a pivotal role within the Southern Cone.
Díaz also emphasised the opportunity for friendshoring with the United States, noting that the two countries could leverage their political ties to enhance bilateral trade and investment. For Argentine companies aiming to penetrate the U.S. market, he elucidated that the initial step involves enhancing competitiveness, which is contingent upon the conditions that Argentina provides to businesses aspiring to access that market. “What we need here is not so much productivity, which is clearly a factor companies can manage themselves, but rather competitiveness, which depends on other factors,” he said. These factors encompass the tax burden, logistics costs, infrastructure constraints, and the capacity to optimise the economics for products, especially manufactured goods, to penetrate the United States market. Joel Reynoso said Argentina “has a great deal to offer” in terms of natural resources, “particularly in energy, minerals, and agriculture.” He also highlighted the country’s “highly skilled workforce and dynamic technology sector.” He stated that the embassy was “very interested” in observing the Senate’s approval of the Patent Cooperation Treaty, which is part of the agreement, this week.
The international framework facilitates patent protection in 159 countries, an issue that has generated tensions between local pharmaceutical companies and their American counterparts. “I’m being informed that the process will require additional time, yet we remain highly motivated to finalise the PCT.” And “Hopefully, it will be approved tomorrow,” Reynoso added. Reynoso also stated that the embassy was aiming to “expand investment and financing opportunities” for Argentine companies. He noted that the Export-Import Bank of the United States had reinstated coverage for Argentina in February 2026. “That is important because it can facilitate financing for projects that use American equipment, technology, and services,” he stressed. He stated that a “energy mission” organised by the embassy and the Business Council for International Understanding is set to visit Argentina in December. Meanwhile, the embassy is organizing a security and defense event for February 2027 “to showcase innovative technologies from the United States and facilitate contact between American companies and Argentine authorities.”
Despite the optimism among the other speakers, not everyone concurred with the overall approach. Daniel Novoa told that “all anyone has talked about is extraction [of natural resources].” And “No one has talked about supporting the domestic market, including through financing. No one is talking about supporting small and micro businesses, which are the ones that create jobs and drive growth,” he said. He also argued that the boom in mining, energy, and agricultural exports benefits a “very small number of businesspeople,” but not the rest of the country. “The problems Argentina is facing today, with low profitability and weak consumption, are also affecting the United States.” Novoa stated that an HRCOC survey of member businesses in Florida and California revealed a decline in profitability ranging from 15% to 30% compared to the previous year. He ascribed the downturn to the tariffs implemented by Trump. “When we were consulted as a chamber of commerce, I drew on my experience in Argentina and said this does not work. It is a terrible idea to do this because, ultimately, the cost will be passed on to the end consumer.”
