With 135 years of diplomatic relations, Argentina has an important commercial exchange with Mexico, a country in which the official candidate won the presidency this Sunday. Claudia Sheinbaum. Despite having an ideology opposed to the president Javier Mileiwould have intentions of strengthening the bond.
The bilateral exchange of goods between Argentina and Mexico increased 428% between 1993 and 2023, which translates into an average growth rate of 5.7% annually. The expansion of trade was led by the dynamism shown by Mexican exports, with a contribution of 68.1%, according to Infobae the Argentine Chamber of Commerce (CAC)
In this way, imports increased 563%, at an annual rate of 6.5% in said period. For their part, exports to Mexico explained 31.9% of the increase in bilateral trade, advancing 284%, which represents an average growth rate of 4.6% annually.
Specifically, during 2023 the trade exchange between Argentina and Mexico was USD 2,403 million, marking a drop of 14.4% compared to 2022. The balance was in deficit since exports reached USD 842 million, while imports totaled USD 1,562.
The CAC highlighted that between 2021 and 2023 the average bilateral trade was around USD 2,430 million, well below that registered between the period 2008-2013, when the average was USD 2,967 million.
According to the Rosario Stock Exchange (BCR), the main Argentine exports to Mexico consist of fuels, soybean oil, sunflower oil, wines and aluminum alloys. In particular, among all the districts, the province of Buenos Aires is Mexico’s main trading partner, being the origin of more than half of the sales to that country, mainly due to its sunflower production and its steel industry.
In recent years, the export growth of soybean and sunflower oils strongly boosted foreign trade between both countries, in addition to adding weight to agro complexes in the export basket.
According to the Argentine Investment and International Trade Agency, Argentina supplies 46% of Mexico’s sunflower seeds, 42% of glycerol and 37% of soybean oil consumed in that country.
On the other hand, the most important imports from Mexico to Argentina come essentially from the automotive industry (vehicles and supplies), in addition to natural gas and telephone parts.
The Mexican automotive industry is the sixth in the world in the number of vehicles produced and the fourth globally in terms of exports.
“The sustained trade deficit in the Argentina-Mexico relationship is fundamentally explained by the structural trade deficit that the automotive complex has in Argentine foreign trade. In this sense, only in 2023 the trade deficit with Mexico exceeded USD 1,200 million, with an accumulated loss of almost USD 13,500 million in the last ten years,” they noted from the BCR. Guido D’Angelo and Emilce Terre.
For their part, the CAC highlighted that although the trade balance is in deficit for Argentina, in the last five years the red has been much lower than that registered between 2011 and 2018.
“It would be necessary to deepen foreign trade in industrialized products that add value, not only oils but also foods or beverages, although for this a deeper work by governments is necessary, so that these products can be known and demanded,” they considered from the entity.
Regarding diplomatic relations, the link between the president of Mexico, Andrés Manuel López Obradorand Milei became tense in March due to a verbal exchange between the two: the head of state called the first Mexican president “ignorant,” after he called him a “conservative facho” last November.
Faced with this situation, Sheinbaum, now the first elected female president of Mexico with almost 60% of the votes and a member of the same party as AMLO (National Regeneration Movement), said: “Of course we ask that there be respect for the president, but what is in the background are the projects. Therefore, it is what must be claimed beyond anything. They consider a project and we have another project and there has to be respect.”
Now, despite Sheinbaum’s electoral victory, Milei did not make any statement, while the Foreign Ministry extended its congratulations and indicated in a statement: “On the 135th anniversary of the establishment of diplomatic relations between both countries, the Argentine Government renews its willingness to continue developing the bilateral work agenda.”
Carolina Zaccato, doctoral candidate in International Relations and professor at the University of St Andrews (United Kingdom), where she is also a researcher at the Center for Global Law and Governance; she said to Infobae: “Ideologically, the new Mexican president is the opposite of the Argentine president, she represents the political left today and is a continuation of AMLO.”
José Joel Peña Llanes, specialist in International Relations at the Faculty of Political and Social Sciences of the National Autonomous University of Mexico (UNAM), stated: “Despite some unfortunate comments by both leaders, I believe that the relationship remains solid. “Both countries have made continuous efforts since the beginning of the 21st century to strengthen their relationship in areas such as politics, economy, culture and cooperation.”
“So, although the victory of Milei, a politician with a clearly right-wing ideology, could represent a distancing with the transitional government led by López Obrador and then with the management of Sheinbaum, which will begin in October and which, as she has noted, will give continuity to all the policies designed and implemented; “I trust that the traditional relationship of mutual respect and cooperation with Argentina will prevent any disagreements that may exist between the leaders from affecting a beneficial collaboration for both nations,” she considered.
Furthermore, he noted: “I understand that after the unfortunate statements both foreign ministries came into contact to keep these problems low profile and prevent them from endangering the bilateral relationship, especially in a context in which Mexico had important problems with Ecuador. to the extent that they broke diplomatic relations, just as at the time there were tensions between Colombia and Argentina. That is to say, the intention of both governments is not to further deepen the instability in the region because we know that this has consequences.”
“I would dare to think that Sheinbaum is likely to maintain a harmonious relationship with Argentina, which has also been declared a regional strategic partner. In recent bilateral meetings, within the framework of the celebration of 135 years of diplomatic relations, the potential of both economies in food security and knowledge-based services has been highlighted. In fact, agreements were signed to promote initiatives with a view to simplifying bilateral trade and encouraging the expansion and diversification of trade opportunities,” he added.
For his part, Zaccato said: “It is important to emphasize that in November of this year the G20 summit will be held in Rio de Janeiro, under the Brazilian presidency of the bloc. It will be a moment of utmost importance, in which Milei must negotiate and build bridges with Argentina’s two main political and commercial partners in the region, that is, Brazil and Mexico. Indeed, I believe that this summit will represent not only an opportunity to carry and promote the Latin American agenda in the block of the main 20 world economies, but also for Milei to mend relations with two leaders of parties ideologically opposed to La Libertad Avanza but who are fundamental and unavoidable partners for economic recovery.”
