R48303 — Argentina: Overview and U.S. Relations

Located on the Atlantic coast of South America, Argentina is the third-largest economy (after Brazil and Mexico) and has the fourth-largest population (after Brazil, Mexico, and Colombia) in Latin America. The country has maintained a robust democratic tradition since its return to democracy in 1983, after seven years of governance under a repressive military dictatorship. Argentina possesses abundant natural resources and a high level of socioeconomic development compared with its regional peers. However, recurring economic crises and sovereign debt defaults have hindered Argentina’s economy and, at times, its role on the international stage. Key developments in Argentina and U.S.-Argentina relations include the following: Economic Crisis and New Leadership. An economic crisis under the administration of President Alberto Fernández (2019-2023) contributed to the election of economist and political outsider Javier Milei, of the socially conservative and economically libertarian La Libertad Avanza political coalition. Since taking office in December 2023, the Milei administration has initiated an economic adjustment plan to drastically reduce public sector spending and ease the country’s regulatory environment, despite limited representation in the Argentine congress. Other aspects of President Milei’s policy agenda include improving public security and modernizing Argentina’s armed forces. Foreign Affairs Under the Milei Administration. Since its return to democracy in the 1980s, Argentina’s international relations generally have been characterized by active participation in international and regional multilateral fora. The Milei administration has stated its desire to prioritize its relationship with the West, based on perceived shared cultural and economic values, while de-emphasizing relations with regional partners and the People’s Republic of China. Argentina remains a key member of the Mercado Común del Sur (Common Market of the South; Mercosur), a common market trade arrangement and regional integration bloc, which is seeking to finalize a free-trade agreement signed with the European Union in December 2024. Relations with the United States. Milei has made several changes that have increased Argentina’s foreign policy alignment with that of the United States. For example, Milei requested that NATO recognize Argentina as a NATO Global Partner in April 2024; declared Hamas an international terrorist organization in July 2024, after its October 2023 terrorist attack on Israel; and made several acquisitions of U.S.-made defense materiel. The Biden Administration has engaged the Milei administration through various bilateral mechanisms that seek to strengthen U.S.-Argentine security cooperation and deepen commercial and investment ties, especially related to the development of critical mineral supply chains. Congress may decide whether to shape U.S.-Argentina relations through various legislative and oversight efforts, including through foreign assistance appropriations, legislation to facilitate increased trade and investment ties, and oversight of the executive branch’s implementation of U.S. policy. In terms of foreign assistance appropriations, the report (H.Rept. 118-554) accompanying the FY2025 State, Foreign Operations, and Related Appropriations (SFOPS) bill (H.R. 8771) passed in the House of Representatives calls for $8.05 million in budget authority for International Narcotics Control and Law Enforcement (INCLE) security assistance in the Southern Cone, which includes Argentina. The report (S.Rept. 118-200) accompanying the Senate version of the FY2025 SFOPS bill (S. 4797) recommends not less than $5 million in INCLE funding for Southern Cone Cooperation programming. To strengthen commercial ties, some Members of Congress have advocated for Argentina’s inclusion in the Americas Partnership for Economic Prosperity, a U.S.-led regional investment initiative; other Members have promoted the reauthorization of the Generalized System of Preferences, which provides nonreciprocal, duty-free treatment for certain U.S. imports from Argentina and other developing countries. Some Members of Congress have introduced resolutions in the 118th Congress to support ongoing efforts to bring to justice those suspected of perpetrating two terrorist bombings in Buenos Aires in the 1990s on the Israeli Embassy and a Jewish community center (e.g., S.Res. 758, H.Res. 1266.)

Curated by CRS — every bill listed in this report's relatedMaterials. Edge type cited_in_report, gold confidence.

• HR 8771 — Department of State, Foreign Operations, and Related Programs Appropriations Act, 2025 · 118th Cong
• HR 7571 — Americas Act · 118th Cong
• S 4797 — Department of State, Foreign Operations, and Related Programs Appropriations Act, 2025 · 118th Cong
• S 3878 — Americas Act · 118th Cong
• HRES 1266 — Condemning the attack on the Argentine Jewish Mutual Association Jewish Community Center in Buenos A · 118th Cong
• SRES 758 — A resolution remembering the 32nd anniversary of the bombing of the Embassy of Israel in Buenos Aire · 118th Cong