In a move that has raised eyebrows in the political arena, Argentine President Javier Milei chose to attend a far-right convention in Brazil, rather than a presidential summit focused on regional trade policy.
The libertarian leader's decision to headline the Brazilian version of CPAC, the conservative political action conference, alongside former President Javier Bolsonaro, has been seen as a direct snub to the Mercosur trade bloc summit in Paraguay.
According to The Associated Press, Milei's choice to align with Bolsonaro, who was recently indicted by federal police in a scheme to embezzle Saudi diamonds, is a clear rebuke to Brazils left-wing President Luiz Inacio Lula da Silva. This move escalates an already tense feud with Argentina's largest trading partner. Milei's unconventional foreign policy approach, which involves courting hard-right allies instead of adhering to diplomatic norms, has been a subject of controversy.
Bolsonaro kicked off the Brazilian CPAC with a passionate speech expressing his wish to see former U.S. President Donald Trump return to the White House in the coming year. Milei and Bolsonaro were later seen together, watching Uruguay defeat Brazil in the 2024 Copa America.
Milei, who came to power last December with a pledge to resolve Argentinas worst economic crisis in two decades, has seen relations with Brazil, a long-time ally and commodity powerhouse, rapidly deteriorate. Milei has labeled Lula a communist and refused to engage with him, leading to a frosty response from Lula, who has demanded an apology.
The ideological adversaries first crossed paths at the Group of Seven summit in Italy last month, where their efforts to avoid each other became a local headline. Experts suggest that Milei missed a chance to ease tensions with Brazil at the South American trade bloc meeting. Brazil is a significant trading partner for Argentina, buying nearly a sixth of Argentinas exports, supplying most of Argentinas auto industry, and supporting Argentina's efforts to secure much-needed aid from the International Monetary Fund.
However, Milei has chosen to double down on a foreign policy gamble that experts have criticized as misguided. Michael Shifter, a scholar of Latin America at the Inter-American Dialogue in Washington, commented on Milei's approach, stating, He seems to be shooting himself in the foot. Its shocking and counterproductive for him to thumb his nose at Lula in this way because there could be a lot of cost for Argentina, that could affect his ability to carry out his policies.
Milei's ideologically driven strategy has already caused a political storm in Spain, the second-largest foreign investor in Argentina. After Milei avoided meetings with the socialist government of Prime Minister Pedro Snchez and instead spoke against socialism at a far-right rally, Spain withdrew its ambassador from Buenos Aires.
Despite making five trips to the United States since taking office, Milei has yet to visit the White House. However, he has met with former President Trump at CPAC in Washington, bonded with billionaire Tesla executive Elon Musk over free markets in Texas, and met with top tech CEOs in Silicon Valley.
Fabio Rodriguez, director at Buenos Aires-based consultancy M&R Asociados, commented on Milei's approach, stating, He wants to present himself as a rockstar of international politics which does generate admiration in some sectors of Argentina. But already polls indicate that this may be changing, that people are seeing this as a liability, feeling abandoned in the sense that their president spends his time on tour while things are not improving on a daily basis.
With Brazil Latin Americas largest economy the stakes are even higher. Argentina is under increasing pressure, with the local currency recently hitting a historic low of 1,430 pesos per dollar on the black market, where Argentines sell their depreciating pesos. Milei's unconventional approach to foreign policy, while appealing to some, may prove to be a liability in the face of these mounting economic challenges.
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