Trudeau seeks to mend ties with investment-hungry Argentina
BUENOS AIRES, ARGENTINA — Justin Trudeau took his first steps in South America as prime minister Thursday, landing in Argentina for a two-day stopover in a country that is rapidly opening up its foreign investment rules.
After years of populist, nationalistic governments, Argentina is moving toward the political centre as President Mauricio Macri makes changes to currency rules, the tax code and the central statistics office to rebuild credibility and investor interest.
But Macri’s moves have been problematic for Argentines: their currency fell in value by 30 per cent after controls were removed, some 200,000 jobs have been lost based on estimates from the Argentina Centre of Political Economy, and the cost of electricity has shot up by about 300 per cent after the government cut energy subsidies.
Before leaving Cuba on Wednesday, Trudeau described Argentina as a country with challenges, but also opportunities for growth. For Macri, those opportunities come in the form of direct foreign investment that his cash-strapped country desperately needs.
Ambassador Marcelo Suarez Salvia said his country wants international financial help to deliver major infrastructure projects and hopes the pitch will entice Canada’s public and private sectors.
He said Argentines also want Canadian expertise to help bring 3,000 Syrian refugees to the South American country.
Canadian companies already have a foothold in Argentina, mainly in the mining sector, which receives the bulk of the attention in Canada.