Argentina Will Not Join BRICS under Milei

Argentina will not join BRICS under newly elected President Javier Milei. The country was previously set 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 January 1, 2024, along with Saudi Arabia, Iran, the United Arab Emirates, Ethiopia, and Egypt. However, the country will now not join, mainly due to libertarian Miliei’s antipathy toward China, a country he labels as “communist.”

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.

Before new members joined, BRICS countries' total 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.

Regardless of Argentina's proposed BRICS accession and plans for replacing the Peso, president-elect Mileiwill likely face economic contraction as he implements much-needed austerity measures.

The problems in Argentina have become so deep and complex that they are not easily solvable, even if they're easily identifiable.

Argentina is experiencing a 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.