How Argentina benefits from joining the BRICS

How Argentina benefits from joining the BRICS

Argentina entered the select group of emerging countries that make up the BRICS. Although several nations expressed their interest in joining, for the country it means the possibility of expanding its commercial destinations, exports and with it, the income of foreign currency in a complex context given the scarcity of reserves of the Central Bank (BCRA) and the agreement with the IMF.

As a full member, you will be able to access immediate loans from the BRICS New Development Bank (NDB), based in the city of Shanghai. The Minister of Economy, Sergio Massa, He was in May with the head of the entity, Dilma Rousseff to discuss the incorporation of the country to the financial institution.

access opportunities to credits at affordable ratesfor infrastructure, health and education, have prompted the Argentine government to take a favorable position regarding the group and its role on the geopolitical tableau.

How Argentina entered the BRICS

Since May of this year, Lula Da Silva as President of Brazil has been promoting the entry of Argentina to help the country given its dedicated situation due to the debt crisis and the hard impact of the drought. Lula met with President Xi Jinping, in Beijing and extended the request for help this year. “I told him that he should help Argentina, that Argentina is a very important partner for Brazil,” he said.

Immediately afterwards, he said that he spoke with Rousseff by phone before the meeting with Fernández and that the former president told him that Xi sent the foreign minister from China to Shanghai to talk with her.

Exports from Argentina to the BRICS recorded a record

Brazil occupies a decisive role for the foreign trade Argentina, being the main destination of its exports and at the same time the main supplier of intermediate goods. So far in 2023, with the latest report on the export and import balance of July, sales to the neighboring country reach US$6.746 billion, led by manufacturing shipments of industrial origin- US$4,000 million. -followed by manufactures of primary origin- u$s1,000 million- and primary products- u$s883 million. At the same time, it represents more than 77% of the dispatches in the MERCOSUR bloc. The products that lead the ranking are those of the automotive industry, where vehicles for transporting goods and people stand out.

With China, the second most important trading partner, in 2023, a flow of shipments of merchandise is maintained for US$3,159 million, headed by manufacturing of agricultural origin- US$1,521 million- and primary products- US$1,307-. The products that concentrate shipments are the bovine meat; he crude soybean oil, whether or not gummed; and the barley grain excluding brewing.

On the other hand, the commercial exchange with the India It is characterized mainly by manufacturing shipments of agricultural origin, led by the crude soybean oil, sunflower soybean oil, non-monetary gold, hides and tanned bovine hides. These products reach values ​​of US$1,786 million. The Asian country is a strategic ally for Argentine agricultural products, and is positioned behind Beijing in volume of shipments.


Courtesy RT

The business relationship with Russia, despite the war, remains at stable levels. Moscow is not a strategic ally on the commercial front, in quantitative terms. But some Argentine products have a good insertion in said market. The main products exported to that country are led by fresh pears-28 million- shrimp and prawns– 16 million– lemons-15 million- and bovine livers-14 million.

If we analyze the BRICS countries exports they reach 12,000 million, 33.5% of the total sent in 2023. Thus, the block is constituted as a primary actor for the entry of genuine currencies and to strengthen the reserves of the Central Bank.

Source: Ambito

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