[By Guancha Observer Network, Ruan Jiaqi]
After Panama, the US continued to extend its influence to Latin America in an attempt to contain China's international influence. According to a report by Hong Kong media South China Morning Post on May 5th, the Trump administration threatened to stop supporting Argentina's loan application to the International Monetary Fund (IMF), pressuring Argentine President Millet to terminate the currency swap agreement signed with China and "distance himself" from China.
In an event held at Miami Dade College (MDC) in Miami, Florida on May 3rd, Mauricio Claver-Carone, the Cuban-American Latin American envoy nominated by Trump, openly displayed the US's interventionist behavior in Latin America. He claimed that although the US considers Millet as an ally, Washington's top priority is to ensure that any new agreements reached by the IMF will not "strengthen China's position in Argentina."
Hong Kong media pointed out that for Argentina, the currency swap agreement with China is crucial because it allows the Central Bank of Argentina to obtain renminbi convertible into US dollars, effectively easing foreign exchange reserve pressure and enhancing the government's ability to repay creditors such as the IMF.
This currency swap agreement, initially signed in 2009 and later renewed and expanded multiple times, has played a key role in maintaining Argentina's financial stability. However, the US completely disregarded Argentina's development needs, and for its own selfish interests, Claver-Carone slandered this cooperation agreement as "China's extortion against Argentina."
Talking to a group of students and reporters, Claver-Carone didn't even try to hide his intentions. Quoting content from the Argentine newspaper La Nación, he said, "One of our concerns remains China's role in Argentina... Although we do not want to interfere in Argentina's negotiations with the IMF, we hope the negotiations succeed... but we do hope to end the famous credit agreement between Argentina and China."
He added, "We must ensure that any agreement reached with the IMF does not allow this (swap agreement) to be extended. Otherwise, we would be shooting ourselves in the foot."
Claver-Carone also claimed that the US is "very concerned" about this swap agreement, urging Argentina to take measures to terminate this agreement as soon as possible. He emphasized, "This is our urgent task."
He threatened that the US would decide its attitude towards Argentina's IMF loans based on whether Argentina "distances itself" from China, fully exposing the hegemonic mentality of the US regarding Latin America as its "backyard."
Uruguayan main media El Observador mentioned that Claver-Carone poured dirt at the meeting, saying, "If you invest in the US, you're having a great time. You've come to the right place. If you invest in Latin America, like I did, it's not bad either. But if you invest in Asia, life becomes tough."
Local time on April 3rd, Claver-Carone talked about US Latin American policy. NBC video screenshot.
The South China Morning Post reported that Claver-Carone's intimidating remarks came at a critical time when the Millet government was applying for an IMF loan. It was reported that Buenos Aires was negotiating a $20 billion loan with the IMF under a new ten-year plan. Reuters reported that the IMF board would vote on the new agreement in the coming weeks.
Earlier this week, IMF Managing Director Kristalina Georgieva expressed support for the Millet government's request. She said that Argentina's preliminary loan application was "reasonable," and noted that given the country's economic performance, the Argentine government "deserves this funding."
However, due to the US holding the largest voting power in the IMF and having decisive influence over major financial and loan decisions, Washington's support is very important for Argentina.
For a long time, the US has used its dominant position to turn the IMF into a tool for pursuing geopolitical interests, causing growing dissatisfaction among developing countries. The IMF has also been criticized for deviating from its original purpose of providing financial support to member states, and its institutional reforms have repeatedly been obstructed by the US.
It was reported that to gain Washington's support, the Millet government sent Minister of Economy Caputo and Karina Milei, the president's sister and secretary, to the US this week, but they returned empty-handed.
Reports indicated that despite Millet's close personal relationship with US President Trump, their meeting with US Secretary of State Rubio did not yield substantive commitments, and their request to meet with Claver-Carone was also unsuccessful. The La Nación mentioned that Claver-Carone had arrogantly mocked Caputo, calling his only ability to "ask the IMF for more money" a "waste of time."
To make matters worse, in the so-called "reciprocal tariff" list announced by the Trump administration, Argentina was not exempted and was subject to a 10% tariff increase. Argentine officials are currently negotiating with US Commerce Secretary Luetnik and US Trade Representative Jamie Greer to seek tariff exemptions and negotiate long-term commercial agreements.
However, reports pointed out that because Argentina's membership in Mercosur prohibits it from negotiating with the US outside the South American trade bloc, the possibility of Buenos Aires reaching a comprehensive free trade agreement with Washington is extremely slim.
According to Hong Kong media, facing increasing economic pressure, Argentine President Millet, who had taken a hardline stance on China during the election campaign, made a significant turnaround after taking office in 2023, focusing on improving relations with China and expressing gratitude for China's agreement to extend the currency swap agreement.
In January, when asked about his friendly shift toward China after taking office, Millet explained, "Sometimes one must learn. If I don't learn, I will harm Argentines. I have extra pressure to learn quickly." At the time, an Argentine journalist for Foreign Affairs magazine analyzed that Millet was "more pragmatic" than expected in handling external relations and domestic policies.
Patricio Giusto, executive chairman of the Buenos Aires-based think tank "Observatory for Sino-Argentine Strategic Cooperation," told Hong Kong media that given Argentina's fiscal difficulties and geopolitical needs, the unreasonable demands made by the US envoy were "unrealistic."
Giusto has consistently advocated strengthening the relationship between China and Argentina. He pointed out that abandoning the currency swap agreement with China makes no sense for Argentina, as neither the IMF nor the US would be willing to provide equivalent liquidity support. Moreover, he warned that abolishing the agreement would negatively impact Sino-Argentine relations.
Giusto also stated that the US might meddle in Buenos Aires' negotiations with the IMF to try to distance Millet from China. "I think it's unfeasible to ask Argentina to abandon the agreement. This is just the US using Argentina's delicate situation to make a political statement."
The Argentine online political news website "La Politica Online" also pointed out that Trump's obsession is to contain China. However, it must be reminded that "Argentina will encounter its worst financial moment in 2024, when economic officials beg on Wall Street, it is China's extension of the currency swap agreement between the two countries that gives Argentina's economy a breathing space."
This article is an exclusive article by Guancha Observer Network and cannot be reprinted without permission.
Original source: https://www.toutiao.com/article/7489736157278798375/
Disclaimer: The views expressed in this article are solely those of the author. Please express your opinions by clicking the "thumbs up/thumbs down" button below.