The Minister of Economy, Serge Massaand the main advisers to the president Joe Biden, Jake Sullivan, mike pike Y John Gonzalezanalyzed the effects of the war in Ukraine on the Argentine economy, exchanged ideas on how to face the challenges of global food and energy security and made progress on the possibility of launching initiatives in the area of bilateral trade and investment.
The meeting took place in the White House and the presence of the three close advisers to Biden determined a significant reinforcement in the security measures in the West Wing of the residence, which was filled with police and secret service personnel.
Massa was accompanied by the ambassador Jorge Arguello; the secretary of economic policy, Gabriel Rubenstein; Y Gustavo Martinez Pandianicareer diplomat and adviser to the head of the Palacio de Hacienda on international affairs.
The US ambassador to Argentina also participated in the meeting, Marc Stanley.
The presence of the National Security Adviser, Jake Sullivanwhich was not initially planned, shows the great interest of the United States in the issues that were under analysis.
What topics were discussed at the meeting?
In particular, the US is seeking the possibility of implementing mechanisms to help Europe overcome the looming food and energy crisis in the coming boreal winter, following the Russian invasion of Ukraine.
???? Next to @GabyRubinsteinLeonardo Madcur, and the ambassadors @JorArguello and Marc Stantley, we met at the White House with top advisers to President Joe Biden: Jake Sullivan, Mike Pyle, and Juan Sebastián González. pic.twitter.com/PfOvXGepRH
– Sergio Massa (@SergioMassa) September 7, 2022
“Were analyzed The effects of the war on the Argentine economy and exchange ideas on how to cooperatively address the challenges of global food and energy security. They also referred to initiatives aimed at increase bilateral trade and investments“pointed out sources from the delegation that accompanies Minister Massa when giving an account of the issues addressed at the meeting.
Among the ideas that emerged at the meeting, there was talk of seeing how to move forward in putting together a kind of gas futures marketwhere producers can sell the essential fuel to the Old Continent, in order to guarantee supply in the coming years.
Argentina is not in a position to immediately export gasbut the Vaca Muerta project and the new “energy plan” that Massa will present with details of incentives to the sector on September 14 – one day before entering Parliament on Budget 2023– predict a promising development for the sector, beyond the objective of having the Nestor Kirchner gas pipeline in mid-2023.
Massa promised to study the “idea” slipped by White House officials and exchange consultations with the private sector.
During the meeting, White House officials showed the willingness of the US government to collaborate with the country in the IMF.
Massa, after thanking the gesture of support for the ongoing negotiations, considered that it was not the time to accept any similar offer, because “technical negotiations went very well”referring to ongoing talks for the second review of the program with the multilateral organization.
An auspicious week with an intense agenda in Washington
With the technical negotiations advanced this week, Massa will meet next Monday with Kristalina Georgievthe head of the IMF, and with David Liptonfrom the United States Treasury.
The air that is breathed in the economic equipment is that the Argentina would be in a position to approve the second review and go further and meet the goals.
Positive work meeting at the White House??@WhiteHouse
With Minister of Economy??, @SergioMassa, Jake Sullivan, National Security Advisor??; Juan Gonzalez, Special Assistant to @POTUS; Mike Pyle, Economic Counselor of @POTUS Y @USAmbassadorARGMark Stanley pic.twitter.com/zrPA9dBsid
– Jorge Arguello (@JorArguello) September 7, 2022
In this climate, the support given by the Inter-American Development Bank (IDB) with the contribution of 3,000 million dollars in credits for the current year, of which 1,200 million may be used to reinforce the reserves of the Central Bank.
It is that in the IMF, which had been formally requesting months ago a greater commitment of the other organizations with the countrywere “impressed” this Wednesday with the concrete support that Argentina achieved from the entity that leads Mauricio Claver Carone.
With the World Bank, the same was achievedalthough there the exchange needs Argentina to contribute 50% of the total amount planned for each project, in order to receive in the next six months the 900 million dollars committed this Wednesday by the multilateral organization.
Massa is aware that changing expectations does not happen overnight and repeats to anyone who wants to listen that “we are still rowing it in dulce de leche”due to the delicate situation facing the country due to the energy crisis.
What was discussed in Washington is a follow-up of steps on how to stabilize the macroeconomy, amid a renewed interest in energy investments in the country that can help prop up the economy.
In fact, the meetings this Wednesday with the mining Rio Tinto Y Liventfrom the lithium sector, Investments were guaranteed to expand production in the medium and long term.
There was also concern from some exporting companies about the exchange rate, but Massa argues that “there is no magic” in this matter and that a series of requirements and measures must be met to stabilize the economy.
