Cameron promises to strengthen Argentina ties to stop Milei 'pressing Falklands button' (Image: Getty)
For nearly two decades, diplomatic relations between Britain and Argentina have been strained, after a succession of left wing Peronist governments sought to apply more pressure over the Falklands issue. But now London is preparing to offer Buenos Aires more favourable trade terms, as a new right-wing government under the populist President Javier Milei heralds the start of a fresh era.
In 2013, former PM David Cameron endured a heated exchange with Argentine President Cristina Fernández de Kirchner, when the pair crossed paths in the corridors of the G20 Summit in Mexico.
Last week, Foreign Secretary Lord Cameron and President Milei embraced the chance for a photo op at the annual meeting of the World Economic Forum at Davos, Switzerland.
Trending
Argentina's Milei was elected on December 10, 2023 (Image: Getty)
The “warm and cordial” meeting set out mutual support for a more constructive relationship between both countries, said an FCDO source.
Powered By
00:00/00:46
10
10
Iraola reflects on Bournemouth's defeat at Tottenham
Share
Next
Stay
And there are very good reasons why this is in the UK’s interests.
Milei’s surprise election success in December was seen as a hammer blow to the “pink tide” which covers most of South America’s left wing governments.
Crucially, Milei is no supporter of China, withdrawing Argentina from negotiations to join Brics, the intergovernmental organization which includes China, Brazil, Russia, India, and Iran, and vowing during his campaign that Argentina would “not align itself with Communists'.
To that end. Britain sees Milei’s fledgling government as one of the continent’s main bulwarks against Chinese influence.
But tensions over the Falklands are also at play, sources say.
While both Cameron and Milei publicly “agreed to disagree” over the islands, privately the Argentine president is expected to leave the matter simmering on low heat while he tackles painful economic challenges.
Become an Express Premium member Support fearless journalism Read The Daily Express online, advert free Get super-fast page loading
Start 30-day
FREE trial
Argentina is currently sitting on 200 percent inflation and ￡370bn of debt - incurred by previous socialist governments delivering an over generous social welfare programme - of which ￡100bn is owed to the International Monetary Fund.
The IMFs’ recent and surprise loan of a further ￡4.3bn was dependent on drastic action being taken to rectify the economy,
Severe austerity measures - said to be inspired, in part, by Lord Cameron’s 2010 legacy - have already been rolled out, resulting in mass protests which threaten to paralyse Buenos Aires.
The aim now , Whitehall sources say, is for Britain to do what it can to help Milei reach his economic targets, giving him less reason to “press the Falklands button”.
UK-Argentina trade was worth a record ￡2.2bn last year - a 22 per cent hike over the year before.
Around ￡900 million of that was exports to Argentina such as mechanical power generators and refined oil, while ￡1.3 billion was imports like animal feed, beverages and tobacco.
With Argentina remaining the UK’s 66th largest trading partner, there is scope to gamble, and Whitehall is keen to open markets , reduce trade barriers and find new opportunities.
A meeting at ministerial level between both countries is expected soon to thrash out details.
Speaking last night regional expert Dr Alasdair Pinkerton, of Royal Holloway, University of London, said: "I suspect both men are walking into talks with eyes open, when it comes to the Falklands.
DON'T MISS
Powered by
Hunt's upcoming Budget tax cut will be your last. Enjoy it while you can
21 Comments
Next PM to endure the 'bleakest financial backdrops since the 1950s', warn economists
153 Comments
No10 fails to confirm more funds to stop water firms 'profiting from environmental damage'
55 Comments
Rishi Sunak slams proposed cut to three-day Royal Mail delivery service
47 Comments
Chancellor Jeremy Hunt told to stop ‘dithering' and ditch ‘unfair' taxi tax by campaigners
31 Comments
Sadiq Khan's 'Remoaner' report on Brexit was full of misinformation, says Patrick Minford
16 Comments
Sunak promises more tax cuts in pre-election move
104 Comments
Tax cuts likely with Jeremy Hunt's ￡14bn budget headroom
149 Comments
Plea to rip up council tax bands as ￡150k Hartlepool home paying more than ￡8m London home
87 Comments
Xi Jinping plots $280billion intervention in desperate bid to save China's economy
21 Comments
National debt could leave general election winners with 'empty war chest'
159 Comments
Savers encouraged to lock in fixed rates now as interest rates fall
1 Comments
China builds ￡2.7bn mega-port in country 10,000 miles away as Xi Jinping wants trade boost
58 Comments
Boehly triggers release clause, ￡50m sale - Chelsea's dream end to January transfer window
Comments
Kemi Badenoch blames Joe Biden for scuppering UK-US free trade deal
862 Comments
Eurozone chief red-faced as staff turn against her: 'Nobody listens to Christine Lagarde!'
210 Comments
Canary Islands tourists facing new airport charge as holiday hotspot under threat
56 Comments
Argentine President Javier Milei claims Falklands future 'could be discussed' with UK
39 Comments
Kemi Badenoch pulls rug from under Justin Trudeau to stand up for UK in trade deal row
1179 Comments
Eurozone 'black hole' has trapped its members forever in EU crisis, warns currency expert
1291 Comments
Hunt's upcoming Budget tax cut will be your last. Enjoy it while you can
21 Comments
Next PM to endure the 'bleakest financial backdrops since the 1950s', warn economists
153 Comments
No10 fails to confirm more funds to stop water firms 'profiting from environmental damage'
55 Comments
Rishi Sunak slams proposed cut to three-day Royal Mail delivery service
47 Comments
Chancellor Jeremy Hunt told to stop ‘dithering' and ditch ‘unfair' taxi tax by campaigners
31 Comments
Sadiq Khan's 'Remoaner' report on Brexit was full of misinformation, says Patrick Minford
16 Comments
Sunak promises more tax cuts in pre-election move
104 Comments
Tax cuts likely with Jeremy Hunt's ￡14bn budget headroom
149 Comments
Plea to rip up council tax bands as ￡150k Hartlepool home paying more than ￡8m London home
87 Comments
Xi Jinping plots $280billion intervention in desperate bid to save China's economy
21 Comments
National debt could leave general election winners with 'empty war chest'
159 Comments
Savers encouraged to lock in fixed rates now as interest rates fall
1 Comments
China builds ￡2.7bn mega-port in country 10,000 miles away as Xi Jinping wants trade boost
58 Comments
Boehly triggers release clause, ￡50m sale - Chelsea's dream end to January transfer window
Comments
Kemi Badenoch blames Joe Biden for scuppering UK-US free trade deal
862 Comments
Eurozone chief red-faced as staff turn against her: 'Nobody listens to Christine Lagarde!'
210 Comments
Canary Islands tourists facing new airport charge as holiday hotspot under threat
56 Comments
Argentine President Javier Milei claims Falklands future 'could be discussed' with UK
39 Comments
Kemi Badenoch pulls rug from under Justin Trudeau to stand up for UK in trade deal row
1179 Comments
Eurozone 'black hole' has trapped its members forever in EU crisis, warns currency expert
1291 Comments
Hunt's upcoming Budget tax cut will be your last. Enjoy it while you can
21 Comments
Next PM to endure the 'bleakest financial backdrops since the 1950s', warn economists
153 Comments
No10 fails to confirm more funds to stop water firms 'profiting from environmental damage'
55 Comments
Rishi Sunak slams proposed cut to three-day Royal Mail delivery service
47 Comments
Chancellor Jeremy Hunt told to stop ‘dithering' and ditch ‘unfair' taxi tax by campaigners
31 Comments
Sadiq Khan's 'Remoaner' report on Brexit was full of misinformation, says Patrick Minford
16 Comments
Sunak promises more tax cuts in pre-election move
104 Comments
"Helping Argentina economically may translate to a Milei's voters lulung upon the UK more favorability.And it could also help to grease the wheels within Mercosur (the South American trading bloc) where the UK seks more opportunities for trade deals."
He added: "Argentina claims over the Falklands have either come under Kirchner administrations, or when governments have used the issue to distract the populace from economic difficulties. British efforts to normalize relations with Argentina and to try to ensure that its economy does no worse will certainly help to mitigate this."
Sydney Stewart, lead Americas analyst for the Sibylline strategic risk group, said: "If Milei fails to deliver economic reforms, he is going to need to look for another issue , and there is no doubt that he is keeping the Falklands in his back pocket.
"But while UK trade inducements would amount to a drop in the bucket given the scale of Argentina's economic crisis, showing that he can negotiate good trade terms from the UK may play well for MIlei among Argentine voters. "
Related articles Cam Norrie gives British tennis a huge consolation despite Australian Open loss Alexander Zverev forgets dad's birthday at Australian Open and offers apology Lord Cameron urges Lords to back Rwanda asylum plan Penny Mordaunt may be the troubled Tories' ticket to success Ex-MI6 boss voices fears over British intelligence blind spot with Beijing