First bilateral deal between the countries marks Milei's turn from decades of protectionism
February 6th, 2026: Argentina Signs Trade Agreement with United StatesNew here? Follow stories to track developments over time. Create a free account to get updates when stories you care about change.
Argentina has protected its domestic industries with tariffs and import controls since the 1940s. On February 6, 2026, Buenos Aires signed its first bilateral trade agreement with the United States—eliminating barriers on over 200 categories of American goods and securing tariff relief on 1,675 Argentine products in return.
The deal quadruples Argentine beef imports to the United States at reduced rates, potentially doubling the $345 million in annual beef export revenue. For Washington, it opens a historically closed market to machinery, vehicles, and medical devices. The agreement marks the first of four Latin American trade frameworks the Trump administration announced in November 2025 to reach implementation.
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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"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."
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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.
Foreign Minister Quirno and USTR Greer sign the Agreement on Reciprocal Trade and Investment in Washington, eliminating tariffs on over 1,800 products between the countries.
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.
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.