Argentina will not join BRICS under newly elected President Javier Milei, a close advisor to the president-elect confirmed last week.
Diana Mondino, Milei's pick for foreign minister, released a succinct statement on X (formerly Twitter): "We aren't joining BRICS."
This partially reverses plans made under the previous Peronist administration to join the inter-governmental economic organization comprising China, Russia, Brazil, India and South Africa. Argentina received a formal invitation to join the group on Jan. 1, 2024, along with Saudi Arabia, Iran, the United Arab Emirates, Ethiopia and Egypt.
Sergio Massa, current finance minister and losing candidate in Argentina's November runoff election, helped negotiate Argentina's proposed BRICS accession and was expected to continue the process of joining if elected.
Prior to new members joining, BRICS countries cumulative GDP was more than $27 trillion, equivalent to 26% of global GDP. The six countries invited to join in August stand to add over $3 trillion to this total—Argentina's GDP in 2022 was $630 billion, according to the International Monetary Fund (IMF).
Milei's Foreign Policy Impact
While President-elect Milei's key policy promises have shifted over time, his condemnation of the Chinese government was a consistent staple of his campaign rhetoric. "We will not make deals with communists," Milei said in an interview with Bloomberg in August.
China has been Argentina's largest trading partner since 2020, thanks to surging Argentine exports of agricultural products to China and heightened Chinese investment in key sectors like mining and transportation over recent decades.
"If the BRICS are already our primary trading partners, what's the difference?" Mondino said at a conference in Buenos Aires in late November.
Regardless of Argentina's proposed BRICS accession and plans for replacing the Peso, president-elect Milei will likely face economic contraction as he implements much needed austerity measures.
Mondino's comments confirm expert analysis that while Milei's public comments may appear hawkish towards China, his administration is unlikely to substantively alter the deep economic ties that exist between the two countries.
Milei's election may also mark a new period of frosty relations between Argentina and its neighbor, BRICS member Brazil—President Lula announced Tuesday that he would reject Milei's invitation to attend his inauguration in person.
Milei visited the U.S. last week ahead of his inauguration on Dec.10, meeting with multiple top Biden Administration officials including National Security Advisor Jake Sullivan and Assistant Secretary of State for Western Hemisphere Affairs Brian Nichols after an introductory negotiation with the IMF in Washington.
Argentina is experiencing a period of prolonged economic crisis defined by inflation above 100% and a scarcity of foreign currency. The country owed $31.1 billion to the IMF at the beginning of November, equal to 28% of the organization's total outstanding credit.
"The problems [in Argentina] have become so deep and complex and intertwined that they're not easily solvable, even if they're easily identifiable," Benjamin Gedan, former South America Director for the White House's National Security Council, said after the election in November.
