Argentina decides not to join the Brics bloc

Argentina's new President, Javier Milei, has decided to withdraw the country from its planned entry into the Brics club of nations. In a letter to the leaders of Brazil, Russia, India, China, and South Africa, Milei stated that decisions made by the previous government had been revised. The Brics countries are often seen as a counterbalance to the Western-led world. Argentina had been among six countries set to join the grouping in January, alongside Egypt, Iran, Ethiopia, Saudi Arabia, and the United Arab Emirates. However, Milei, a populist right-wing politician, won a surprise election victory in November with radical promises to revamp Argentina's struggling economy. He highlighted that his government's foreign policy differs from the previous administration and stated that while it was not suitable for Argentina to become a full Brics member, he remains committed to strengthening bilateral ties, particularly focused on increasing trade and investment flows. The Brics alliance is mainly dominated by China, accounting for over 70% of the bloc's combined GDP. Milei has publicly criticized China, describing its government as assassins and expressing his unwillingness to work with communists. Argentina's changing attitudes toward joining Brics highlight its delicate economic and political position as it strives to reverse decades of mismanagement. The country is grappling with soaring inflation, low cash reserves, high government debt, and a significant portion of the population living below the poverty line. Milei's administration has already devalued the currency by more than 50% as part of his economic shock therapy plans. With Brazil and China being Argentina's largest trading partners, and the US closely behind, maintaining positive relations with all three countries is crucial. Milei has shown signs of leaning more towards Washington than Beijing, even considering replacing the Argentine peso with the US dollar in the future.