PISM Spotlight: Argentina’s G20 Presidency

01.12.2017
On 30 November, Argentina inaugurated its first year-long presidency of the G20. The function will strengthen the country’s international position, mainly through its open-economy policy, which President Mauricio Macri’s government have been following for almost two years. For the Polish government, this will be a chance to strengthen cooperation with Argentina, which is Poland’s second-largest trade partner in South America.

What will be the main topics of the Argentine presidency?

Argentina’s government has defined three topics based on principles of fair and sustainable development. The first is the future of jobs, including employee protection, in the context of the dynamism of technological progress (e.g., automation). Next, is financing infrastructure as crucial for the development of countries. The third topic is food security, mostly access to food. Climate protection issues will also be important given the U.S. declaration of withdrawal from the Paris Agreement (the rest of the G20 support its implementation). The Argentine presidency also is interested in discussing trade liberalisation, contrary to the protectionist tendencies of current U.S. policies, and the importance of the World Trade Organisation (WTO) in backing that process.

What is known about the organisation of this presidency?

The G20 presidency enjoys the privilege of shaping the agenda and inviting non-G20 guest-countries. Argentina has invited Chile, the Netherlands, and Jamaica, as well as Spain (a permanent invitee according to unwritten rules of the group). A singular representative of the presidency is Argentine G20 sherpa, career diplomat Pedro Villagra Delgado (former vice-minister of foreign affairs). The main event will be the G20 leaders’ summit in Buenos Aires, scheduled for November 2018. It will be preceded by more than 50 meetings at various levels. Finance ministers and central bank heads will meet frequently. There also will be thematic summits of representatives of national academies of science (the Science 20), civil society (C20), think-tanks (T20), and business (B20).

What does the presidency mean for Argentina?

It fits into the Argentine government’s quest to strengthen the country’s international position by engaging in global forums and economic institutions. In 2016, Argentina applied for membership of the OECD. In April, it hosted the World Economic Forum, and on 10-13 December, it will host a WTO summit. The presidency will be an opportunity to present the results of changes since the times of populist-leftist governments led by presidents Néstor Kirchner (2003-2007) and Cristina Fernández de Kirchner (2007-2015). Macri’s government has been pursuing reforms aimed at liberalising and improving the competitiveness of the Argentine economy. In 2016, the state settled a longstanding row with creditors. Another goal has been to normalise price levels by lifting restrictions on the foreign exchange market, as well as withdrawing export taxes and subsidies.

What does Argentina’s G20 presidency mean for Poland?

The presidency will coincide with Poland’s term as a non-permanent member of the UN Security Council and preparations for the COP24 global climate conference in Katowice in December 2018. A global compromise on climate protection could be the focal point for both countries to closely cooperate in the coming year. Argentina’s increasing international presence will make it attractive to Poland as its leading partner in Latin America. The country is the third-largest market in the region (after Brazil and Mexico) for Polish trade. Bilateral commercial cooperation may be facilitated by an eventual trade agreement between the EU and Mercosur (Argentina is a member). Both blocs look forward to concluding the negotiations promptly, but this will happen only next year at the earliest.