Brazil and Argentina have agreed on a US$600 million export deal to finance Brazilian exports to Argentina, which is currently facing an economic crisis.
Sergio Massa, Argentine Economy Minister and presidential candidate, met with Brazilian President Luiz Inácio Lula da Silva and Finance Minister Fernando Haddad to discuss trade financing mechanisms.
The funding, aimed at restoring bilateral trade, particularly in the automotive sector, will be provided by the Latin American Development Bank (CAF), the Bank of Brazil, and the National Bank for Economic and Social Development (BNDES).
Haddad had previously proposed guaranteeing Brazilian exports in Chinese yuan, exchanged for Brazilian real by the Bank of Brazil.
Although Argentina prefers CAF operations, the yuan guarantee offer remains available.
The meeting is part of Brazil’s support for Argentine President Alberto Fernández to retain political power.
Both countries have adopted a joint development plan, including infrastructure, defense, export financing, and other cooperation areas.
Argentina faces political unrest and economic difficulties, characterized by declining purchasing power and Argentine peso devaluation.
Brazil is committed to assisting Argentina without taking any irresponsible actions.
Argentina has been invited to join BRICS in 2024, primarily due to Brazilian efforts at the 15th BRICS Summit in South Africa.
In the Argentine primary elections on August 13, economic liberal and right-wing candidate Javier Milei won with 30.4% of the votes.
Massa, representing the left-wing Unión por la Patria coalition, came second with 21.4%, followed by right-wing candidate Patricia Bullrich with 16.98%.
Despite Milei leading in the polls, a University of Buenos Aires survey indicates that the new Argentine leader will likely be decided in a potential second round on November 19.