Argentina’s President Due in D.C. as Competition With Beijing Over Regional Influence Escalates

The hospitalization of Brazil’s president with a case of pneumonia will give a bit of room to America as it maneuvers with China over influence in the hemisphere. President da Silva was forced to cancel a trip to Beijing, while Argentina’s Alberto Fernandez visits the White House this week.Reversing Communist China’s deepening penetration of Latin America will be difficult for President Biden, who is battling economic woes at home. Mr. da Silva, after all, could presumably reschedule with Chairman Xi a meeting to re-establish ties between the two countries and to take up negotiations over new investment opportunities. The visit to the White House scheduled Wednesday by the Argentine leader will be different — a chance to commiserate over the economic challenges hitting the two countries. Both Argentina and America are facing inflationary pressures, though Argentina is now running at an inflation rate in the triple digits.In Washington, the Fed is struggling to rein in inflation and Congress keeps expanding the national debt, leaving America far from a strong position in which to advise other countries on economic policy. According to a statement released by the Biden administration, the Wednesday meeting will celebrate 200 years of bilateral relations between the countries.The leaders are expected to discuss climate change, access to critical minerals, and technology. Mostly, they will discuss “economic cooperation, as well as their shared values of inclusion, democracy, and the protection of human rights,” the statement said. Fitch Ratings reported late last week that a default process has begun in Argentina after the rating of its currency was lowered to “C” from “CCC” on the credit scale. The announcement came one day after Mr. Fernandez ordered public sector organizations to sell dollar-based bonds holdings as the country faces soaring inflation.Mr. Fernandez will travel to Washington with the minister of economy, Sergio Massa, who met Mr. Biden’s special advisor for Latin America, Christopher Dodd, the former senator, last week. They discussed the global financial landscape and the rise of interest rates in their countries, as well as “the importance of working together to address the regional situation,” Mr. Massa tweeted. Yet, Argentinians don’t see their economic problems ending any time soon. Mr. Massa is the third minister of economy since July, and Mr. Fernandez’s left-wing coalition is having internal disagreements, including over the conviction of the vice president, Cristina Kirchner. According to Argentina’s National Institute of Statistics and Census, the country’s interannual inflation reached 102 percent in February, one of the highest levels in the world. The price of a tablet computer on Mercado Libre, the national online marketplace, increased by 80 percent in 48 hours last week. Food prices are also climbing. The price of supermarket produce has risen by up to 30 percent. A bag of cereal that cost 799 pesos in January fetches 976 pesos now.Currently 380 pesos are worth $1, whereas a year ago it took but 180 pesos to buy a greenback. Most purchases in Argentina — houses, land, cars — are done in American dollars. Persons keep their dollars hidden under floorboards, in coat pockets, or in their underwear — all safer than banks.Yet, Argentina is not a stranger to hyperinflation. According to the Argentina Chamber of Commerce and Services, the average inflation annual rate of the country has been 105 percent during the last 100 years, the maximum being 3,079 percent in 1989, under the presidency of Raul Alfonsin. Mr. Fernandez’s trip to Washington, originally scheduled for last July, was canceled after Mr. Biden tested positive for Covid-19. The Argentine president met with Chairman Xi last November at Bali during the G20 summit, deepening the economic ties between the countries.Reversing Beijing’s influence over Latin America will be a difficult task for Mr. Biden, even with the postponement of Mr. da Silva’s meeting with Mr. Xi.

Argentina’s President Due in D.C. as Competition With Beijing Over Regional Influence Escalates

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