South American nation Argentina has formally withdrawn from the anticipated expansion of the BRICS bloc.
In adherence to a campaign vow, the recently inaugurated far-right President, Javier Milei, has dispatched letters to BRICS leaders, solidifying the decision to retract Argentina’s planned entry into the alliance of major emerging economies.
In correspondence to Brazilian President Luiz Inacio Lula da Silva, Milei expressed that the present juncture was not “opportune” for Argentina to ascend as a full member.
As reported earlier by Financial Express Online, the membership commencement for six nations, including Argentina, Iran, UAE, Saudi Arabia, Ethiopia, and Egypt, was slated to be started last month.
The BRICS consortium, comprising G20 nations Brazil, Russia, India, China, and South Africa, had disclosed in August its inclusion of six new members.
The initiation of Argentina, Ethiopia, Iran, Saudi Arabia, Egypt, and the United Arab Emirates into the bloc was earmarked for January 1, 2024.
Presently, the BRICS nations collectively represent approximately 40 percent of the world’s populace and over a quarter of the global GDP, attracting attention from 14 nations, predominantly from Asia, Africa, and the Middle East, keen on joining the consortium.
The consideration of Argentina was rooted in its stature as one of South America’s largest nations, second only to Brazil, and its endurance through a myriad of challenges, encompassing political volatility and economic downturns.
However, the recent political transformation in Argentina post-presidential elections has cast uncertainty on the trajectory of this inclusion.
President Milei’s public declarations underscore his dissent towards China and its political framework.
Specifically, he cited China’s communist ideology as a pivotal factor in Argentina’s decision to disengage from BRICS.
Milei has also vocalized his disapproval of Brazilian premier Lula.
Letters penned by President Milei available in the public domain states that Argentina’s membership is presently deemed “inappropriate.”
Nonetheless, Milei has demonstrated a readiness to engage in dialogues with each of the five BRICS leaders.
The newly instated libertarian President Milei assumed office this month following a resounding victory over Argentina’s traditional political parties.
During his electoral campaign, he pledged steadfastly against joining BRICS and articulated a foreign policy aligned with the United States and Israel.
This marks a stark departure from the stance of his predecessor, Alberto Fernandez, who viewed BRICS membership as a strategic avenue to explore new markets.
While initially expressing intentions to sever ties with major trading partners China and Brazil, President Milei’s tone has shifted towards conciliation since taking office.
Identifying as an “anarcho-capitalist,” Milei has instituted a series of measures aimed at economic deregulation, countering the prevalent trend of state interventionism in recent decades.
Shortly after assuming office, Milei underscored the imperative nature of austerity, proclaiming it as the sole alternative to address the country’s fiscal challenges.
He laid blame on his predecessors for leaving Argentina bereft of funds and on a trajectory towards hyperinflation.
This nuanced transformation in Argentina’s foreign policy under President Milei underscores the dynamic shifts that can transpire in global alliances, even as the world collectively navigates the complexities of emerging economies and geopolitical realignments.
Sharing his views with Financial Express Online, Ambassador R Viswanathan, expert on Latin America says: “It is a sensible decision. Leaving the membership of BRICS is not a loss for Argentina. The country is now more dependent on the US, whose dominance BRICS wants to bring it down.”
Adding, “If inside BRICS, Milei might make outrageous statements, embarrass the members, attack other members and sabotage it from within since he sincerely dislikes and opposes the ideology of some members.”
“As a truly independent emerging power without historical baggage or inherent insecurities Brazil can speak its mind freely without bothering about the US.
But Argentina does not have the luxury of being on the wrong side of the US at this time.”
Why?
“For the debt, dollar and other issues Argentina is over dependent on US mercy and of course it is voluntary.
Previously Cristina Fernández de Kirchner, Former President of Argentina, and Néstor Kirchner Former President of Argentina, took a gamble against US help.
They survived and also paid a price: Argentina was isolated and ex-communicated by the western financial market during their time. President Macri took the opposite position and reconnected with Wall Street.
He and his party, which provides critical support, is taking Argentina to the Wall Street back with the enthusiastic and more committed Milei…so the country has no choice but to sing the US song.”
