2023-08-25 15:09:00
yesterday the BRICS decision to incorporate Argentina as a member of the bloc starting next year, and the opposition presidential candidates, both Patricia Bullrich as Javier Milei, They went out to blow up the idea. In the case of the Juntos por el Cambio candidate, he promised that if she came to power “Argentina under our government will not be in BRICS.” Meanwhile, the libertarian candidate added intensity to his position and added: “We are not going to align ourselves with communists.”
And it is that, while the government insists on positioning the idea of multilateralism to promote business in Argentina in a global world, positions of those who do not see integration favorably begin to appear, because they point out that it’s not so much regarding “business” as it is regarding “geopolitics.”
Marcelo Elizondo: “A more structural and non-cyclical perspective will encourage access to new markets”
Such is the case of Marcelo Elizondo, a specialist in international trade, who reasoned from a simple point of view: “The BRICS are not a trade integration agreement.” In the consultant’s view, “they are not a free trade agreement, does not reduce tariffs among its members or generate benefits by reducing costs at the border or regulatory adaptation for confluences that lower costs of passage of a product from one country to another; therefore initial economic benefits in terms of a better condition to invest or trade, there is no,” assured the consultant in dialogue with PROFILE.
And he remembered thate in the world there are different types of agreements: some to integrate economies -qwhat are basically the free trade agreementsor-, and others, which are agreements for political confluences between governments –geopolitics – where he placed the BRICS: “It is more a space for countries to make political decisions among themselves”, assured.
Therefore, in this new alternative that is open to the country to join this bloc, Elizondo analyzed: “I see the possibility that Argentina sits at a table to participate in geopolitical decisions with its partners in terms of governments, and government actions, but not in terms of benefits for commercial economic action, because there are no instruments for that,” commented.
A bank that finances governments
In this regard, the consultant cited the BRICS bank as its true economic leg.
“The only thing that the IDB has as its main tool is the bank, which might perhaps give us some financing for some infrastructure works,” he said, because according to his understanding “the BRICS bank does not lend to companies, but lends to governments, so it seems to me that It is in line with a more statist position and seeking financing for public government action and not for economic integration.“said the expert.
Fear for what some of the member countries represent and others that are going to be
For Elizondo, an important issue gravitates and that is that among the members of the BRICS There are countries that are not capitalist democracies with the autonomy of companies.
“China is a capitalist country but it is not democratic and capitalism is quite protected there”, he mentioned and recalled thatAt the same time that Argentina would be entering “countries like Saudi Arabia or Iran would be added, which are not democraticsy what They also have a deep interference from the government in the economy, hence It seems to me, I insist, that it is more an agreement for public policies than for direct improvements in terms of investment or trade”, mentioned PROFILE
Argentina and its current relationship with member countries
What kind of trade does Argentina have today with the member countries of the BRICS group? Can links be improved? In this regard, Elizondo recalled that our country already has an important commercial relationship with members of the BRICS, in fact he pointed out that Brazil is our main commercial partner in the world and the main destination of our exports.
“The truth is that with Brazil we already have the Mercosur agreement, which is much more important than being in the BRICS in commercial terms,” he said, adding: “Then, India is one of the top 5 destinations for our exportsthis year is the fifth that we do not have grains to sell them, but under normal conditions it is the third,” he said.
Regarding the rest, he commented that there is little relationship because -in part- they are not so important in commerce.”The truth is that Russia is not such an economically relevant country in the world and neither is South Africa,” he mentioned.
What are the BRICS and how their incorporation benefits Argentina
Regarding the ideological background, he was more categorical: “I think that there is an ideological manifestation here, there is an ideological position. The mThe world is being divided between countries of capitalist, autonomist democracy, quite liberal in terms of economic agents. There is the United States, Canada, the European Union, the United Kingdom, the EFTA countries, Japan, Australia, New Zealand. And then, there are other countries that are autocratic, whether or not they are capitalists and if they are, they propose managerial capitalism, that is, with less autonomy from the companies”, commented the consultant. He pointed out that according to his perspective, the BRICS are positioned there.
“BRICS is not a pact for trade, investment, it is a pact for governments and there I think it is inconvenient for Argentina to appear allied with countries that are today quite objected to in the world,” Elizondo said. And he contextualized: “let’s think regarding Russia for its invasion of Ukraine, let’s think regarding China that is being challenged for its human rights policy or for its violations of intellectual property rights. Canada has expelled Chinese companies, due to its doubts regarding the confusion between private activity and geostrategic interests, so there is a moment of tension between the West and China, not to mention if -in addition- it enters Iran at this confluence”, commented.
And along these lines, he assured that, in the midst of this ideological dispute, “we are opting for a set of countries that are not the ones that contribute to the highest reputation; They are not the ones behind the promotion of political democracy,” he said.
In addition, it was questioned why this government has always been allied with countries that are not politically democratic. “The same happened with the defense of Nicaragua or Venezuela and well, here we are also allying ourselves with countries that are autocratic or with low-quality democracy, it must also be said that we are entering into an alliance that includes Iran, a country with which Argentina is seriously controversial following the terrorist attacks in the 1990s,” he added.
Finally, he was emphatic: “If we want commercial and economic integration, it is better to celebrate a free trade agreement“concluded the international trade consultant
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