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Jaishankar Backs Argentina’s Bid to Join BRICS, Discusses Malvinas, UNSC Reform, Trade

India is currently Argentina’s fourth-largest trade partner, with trade levels expected to hit $7 billion in the near future.

August 29, 2022
Jaishankar Backs Argentina’s Bid to Join BRICS, Discusses Malvinas, UNSC Reform, Trade
Argentine Foreign Minister Santiago Cafiero (R) with his Indian counterpart S. Jaishankar, who concluded his three-nation South American tour in Buenos Aires.
IMAGE SOURCE: SANTIAGO CAFIERO/TWITTER

On the last leg of his Latin American tour, Indian External Affairs Minister (EAM) S. Jaishankar met with his Argentine counterpart Santiago Cafiero in Buenos Aires on Friday and reaffirmed India’s support for Argentina’s bid to join BRICS. The duo also jointly called for a comprehensive reform of the United Nations Security Council (UNSC), referring to India’s ambition of securing a permanent seat in the organisation.

The Argentine Foreign Ministry lauded their bilateral cooperation in multilateral fora, stating that it contributes to “expanding the voice in defence of the interests of the developing world and the global south, in a context of global uncertainty and polarisation.” This sentiment was echoed by Jaishankar, who said that “countries that have independent points of view, such as India and Argentina, could strengthen their relations and make the world more multipolar.” 

To this end, Friday’s meeting concluded with Argentina backing India’s bid for a permanent seat at the UNSC, while New Delhi reciprocated with calls to resolve the “sovereignty issue” relating to the Malvinas/Falkland Islands dispute between Argentina and the United Kingdom as per the mandate of the UN General Assembly and the Special Committee on Decolonization. In fact, Cafiero also inaugurated the Commission for the Dialogue on the Question of the Malvinas Islands in India back in April.

The two nations also share strong diplomatic ties in multilateral groupings such as the Nuclear Suppliers Group, G-77, G-20, and Human Rights Council.  

In a joint statement, the two ministers celebrated the renewed momentum in bilateral relations and reiterated their commitment to strengthening cooperation in trade and investment, defence, health, climate change, renewable energy, security, international and regional peace, space, artificial intelligence, cybersecurity, and people-to-people ties.  

In this respect, Jaishankar committed to boosting defence exports, with a particular focus on the TEJAS fighter aircraft. To this end, he also met with Argentine Defence Minister Jorge Taiana to discuss further defence cooperation and vowed to increase joint military drills, training, and exchanges between the two countries’ armed forces.

Cafiero and Jaishankar also pledged to expedite the development of a payment mechanism in local currencies, with the aim of “providing companies with an instrument to facilitate bilateral trade.” In fact, India is Argentina’s fourth biggest trade partner and bilateral trade is expected to touch $7 billion this year. 

Ever since the Russian invasion of Ukraine, New Delhi has consistently pushed for trade in local currencies, and even instated rupee-rial and rupee-ruble trade to bypass Western sanctions on Tehran and Moscow. Friday’s announcement of rupee-peso trade could also help tackle Argentina’s ongoing economic meltdown, with inflation touching 60%.

Furthermore, Jaishankar proposed increasing trade and investment in the mineral resources sector in Argentina and signed a Memorandum of Understanding (MOU) to import lithium to support India’s e-mobility programs. The MOU builds upon India’s 2019 KABIL Initiative, which seeks to source lithium and cobalt from mineral-rich countries in South America, Africa, and Oceania. They also agreed to strengthen collaboration in the oil and gas sector.

Cafiero also called on his Indian counterpart to promote closer cooperation under the India-MERCOSUR (Southern Common Market) Preferential Trade Agreement and build on a development agenda with the Community of Latin American and Caribbean States (CELAC), whose pro-tempore presidency is currently held by Argentina. In this regard, Jaishankar also held talks with Argentine Economy Minister Sergio Massa to expand economic cooperation.  

Mercosur’s common external market principle means that bilateral agreements signed with one member are available to all other members, as a result of which a deal with Argentina could open the floodgates for greater region-wide cooperation.

Jaishankar’s meeting with Cafiero followed his meeting with President Alberto Fernández, with whom he discussed south-south cooperation on food and energy security and affordable healthcare. To this end, India offered collaboration in COVID-19 vaccine production with Argentina operating as a regional base.

According to a press release by the Argentine foreign ministry, Jaishankar’s visit builds upon the “new momentum that bilateral relations have taken” since Indian Prime Minister Narendra Modi’s meeting with Fernández two months ago in Munich along the sidelines of the G7 Summit. Cafiero also visited New Delhi in April to discuss bilateral trade.

Jaishankar’s trip comes at a time when China, Argentina’s second-largest trading partner, continues to expand its influence over the Latin American region through its flagship Belt and Road Initiative. Like India, China has also expressed its “fundamental support” for Argentina’s membership in BRICS.

India is only Argentina’s fourth largest trade and investment partner after Brazil, China, and the United States. To this end, Jaishankar reiterated his country’s commitment to aiding infrastructural projects of transmission lines, roads & highways, railways, and renewable energy (including solar, wind, hydroelectric, and biogas).

Argentina was the third and final stop for Jaishankar on his three-nation South American tour, during which he also visited Brazil and Paraguay.