Milei seeks support from the IMF and aims to secure a trade agreement with Trump. On Thursday, President Javier Milei engaged in a significant outreach effort, seeking vital backing from US President Donald Trump during an event held in Florida. During a brief visit to the United States, lasting under 24 hours, the head of state made a notable stop at Trump’s Mar-a-Lago resort to accept an award. He also planned to hold a brief unscheduled meeting with the Republican leader; however, as of the latest update, there has been no confirmation regarding their meeting.
Amid the celebrations, the primary objective of Milei’s visit was to bolster backing for Argentina’s pursuit of a new financing program with the International Monetary Fund, while also emphasizing his administration’s commitment to securing a free-trade agreement with Washington. The trip followed Trump’s announcement of extensive tariffs affecting nearly all countries, a decision he referred to as “Liberation Day.” Argentina, in a surprising turn of events, will see all exports to the United States subjected to a 10-percent tariff, despite Milei’s perceived alignment with Trump.
Milei’s recent journey to Florida aboard the ARG-01 presidential plane marks his tenth visit to the United States since assuming office in December 2023. Accompanying him on the flight were Presidential Chief-of-Staff Karina Milei and Economy Minister Luis Caputo, while Foreign Minister Gerardo Werthein joined the team in Florida. At the “American Patriots Gala” held at Mar-a-Lago on Thursday, Milei received the prestigious “Lion of Liberty” award from the We Fund The Blue Foundation. This accolade acknowledges his steadfast commitment to freedom, market economics, and conservative principles.
Prior to the trip, confirmation regarding a FaceTime call with Trump was not received. However, it was anticipated that Milei would engage in “an informal meeting” with the US leader, as stated by Presidential Spokesperson Manuel Adorni. The individual indicated that the trip was originally scheduled for a different date; however, it required rescheduling due to what were described as “agenda issues.” “The official announced at a press conference that, alongside receiving an award recognizing his contributions to combating terrorism, illegal immigration, and enhancing the partnership between Argentina and the United States, he is scheduled to engage with prominent international figures in the realms of security and US policy.”
In recent days, Werthein has actively engaged with senior US officials to advocate for Argentina’s interests. On Tuesday, discussions were held between US Secretary of State Marco Rubio and representatives from Argentina, focusing on the nation’s accomplishments under the leadership of Milei. He also engaged with two senior US officials responsible for tariff matters – a detail that Milei suggested on social media highlighted his administration’s connections with Washington. Support from Trump may bolster Argentina’s stance in negotiations with the IMF, particularly as Milei seeks crucial endorsement for his economic agenda in the lead-up to pivotal midterm elections in October.
In a notable development for Argentina, the World Bank announced on Wednesday its commitment to provide a substantial support package over the next three years, signaling strong international backing for the nation. World Bank President Ajay Banga announced that the institution is collaborating closely with President Milei and his team to bolster his ambitious reform agenda, following a meeting in Buenos Aires, as stated in an official release. The unspecified amount of assistance will complement the new agreement that Argentina is pursuing with the IMF.
Buenos Aires is seeking an additional US$20 billion in new funding to enhance Central Bank reserves and support Milei’s reform agenda. This additional commitment follows the US$44-billion agreement established with the IMF in 2018, marking the largest loan ever awarded by the multilateral organization. Negotiators and IMF staff continue to engage in discussions regarding the upfront disbursement amount for Argentina, as well as the degree to which the government may relax currency restrictions. These restrictions are perceived by investors as barriers to foreign investment and contributors to the overvaluation of the peso.
The United States holds the largest voting power on the IMF’s board, accounting for 16 percent. This positions Trump’s endorsement of Argentina’s program as vital for its successful implementation, particularly in addressing potential opposition from other board members regarding the upfront allocation of funds. Argentina is aiming to secure over 40 percent of the program, amounting to US$8 billion, in the initial disbursement, as stated by Economy Minister Luis Caputo. On Monday, IMF Managing Director Kristalina Georgieva described Caputo’s 40-percent request as “reasonable,” asserting, “They earned it.” The following day, Representative Maria Elvira Salazar, a Republican from Florida, escalated the conversation by urging the US Treasury to back an initial disbursement of US$15 billion.
The President of Argentina is actively pursuing a free-trade agreement with Washington, a proposition that has garnered a positive response from the Republican leader. “I’m open to all options,” Trump stated to the press at the White House in March. Milei and Trump held a meeting in February during the Conservative Political Action Conference’s (CPAC) annual gathering in Washington. The parties have convened on four occasions following Trump’s electoral triumph in November. The two presidents frequently commend one another. In March, Trump expressed strong support for Milei, stating, “I think he’s a great leader, he’s doing a fantastic job.” The Argentine has referred to his US counterpart as “the president of the most important country on the planet.”