At a time when Europe is looking for new allies to complete the green transition, Argentina, with its rich mining and energy resources, is moving to position itself as a strategic partner. "There is great interest, Argentina can develop its productive potential and be a reliable and stable partner in energy and mining matters for the EU," says its Foreign Minister, Santiago Cafiero, who last week visited Brussels and met with various vice presidents. of the European Commission to talk about energy, mining and trade. Bearer of a historical Peronist surname, Cafiero (San Isidro, 1979), a member of the sector most loyal to President Alberto Fernández, defends his government's commitment to developing strategic sectors and not just exporting resources.
What responses have you had?
The meetings were very constructive. There is a geopolitical issue that leads to a different look at Latin America. The European Union seeks its strategic autonomy and that implies modifying its supply chains, which is why they are exploring possibilities. They see that Latin America is a zone of peace, safe, with its own natural and technological resources and knowledge base.
What exactly can Argentina offer in mining?
The EU today does not have diversified its supply structures. Argentina – and that is why we are making progress in signing a memorandum – has lithium, copper and rare earths useful for technology and the defense industry, the so-called strategic minerals. 66% of the world's lithium reserves are in Bolivia, Chile and Argentina. Argentina today has two major companies producing lithium and seven advanced production projects in salt flats. In a few years, we will be the second largest producer in the world.
They are also seeking more participation from European companies.
Yes of course. Argentina is a market economy, a diverse and open country. German Chancellor Olaf Scholz has been visiting us with businessmen interested in our strategic minerals. What Argentina wants is that resources are not prioritized, that value is added to the territory. This implies generating the entire lithium value added chain, which does not come out as a raw material but is processed in the country. Argentina can do it, also with the rest of the strategic mining. We have a whole network of knowledge around mining production. And, of course, we need to generate work in our country.
And in the energy chapter?
Argentina has the second largest unconventional gas reserve in the world at Vaca Muerta. We are exporting gas to Chile and in July we will finish a gas pipeline that will allow us not to have to import more liquefied natural gas in winter. This gas pipeline continues to Brazil and will allow us to export gas to them in 12 months. We also have a very advanced project with Malaysian capital to build a liquefied gas plant and be able to export gas by ship, for example to Europe.
During his visit to Madrid, President Alberto Fernández offered Pedro Sánchez to send gas to Spain. Any advance?
Spain continues to lead the EU in terms of LNG storage capacity and has the largest regasification capacity in Europe thanks to its multiple plants. Argentina can, from Vaca Muerta, attract investments in liquefied gas plants and carry out a joint venture to, in a strategic association between both countries, supply gas to Europe.
What is your government doing to respond to the reluctance that some companies may have to go to Argentina?
No company today that produces on sectors of the real economy has had difficulties. There are no expropriations. What happened in the 1990s was that European companies were in charge of public services in Argentina that were very deficient and which passed into the hands of the State. But that was almost 20 years ago. In Argentina there are a large number of companies that do business without problems. What happened, and that mark remained, has to do with privatized public services. There shouldn't be any fear.
Another big bilateral issue is the Mercosur-EU agreement. Argentina has just assumed the Rotary presidency of this group of countries and is going to act as an interlocutor with Brussels. The pact was closed in 2019 but it has not been ratified and both parties are requesting adjustments. Spain cherishes the prospect of agreeing it in the second half of this year, during its semester of European presidency. Is it feasible?
There is a lot of will but I don't know what the calendar will be, I would not like to take risks on that. I have seen a lot of willingness on the part of Europe to discuss the issues we raise. Brazil has specific requests on government purchases. Argentina, we demand that what affects soy biodiesel be reviewed by the Green Pact directives approved since 2019. A new agreement is not needed, but rather to modify some issues that were badly negotiated at the time, but they are very specific things. The generation of European regulations was very dynamic and we want the same dynamism to offset its consequences for our producers and farmers.
France raises reservations on environmental and phytosanitary standards and deforestation in the Amazon that many interpret as protectionist excuses
I am not saying that the spirit of the rule is not noble, but the practical effects of these approaches end up being a protectionist barrier. Argentina can attest that its agricultural production is not in the conditions that are thought about deforestation. We ask for scientific rigor and for there to be interaction, there they will realize that Argentine agricultural production is not what many think. It has nothing to do with what happened with Bolsonaro and the Amazon. We have our own regulations (and even before it existed, only one million hectares of the 65 million that the Gran Chaco Americano has had been deforested) and it is a subject that represents a lot to us, but that requires a lot of educational work to be understand that in Argentina there is regenerative livestock and sustainable agriculture processes... Is it all like that? No, of course, but you don't have to be generalists with this topic because it will generate a lot of arbitrariness.
What do you expect from the next summit of the leaders of the EU and CELAC, the Community of Latin American and Caribbean States scheduled for July this year in Brussels?
Argentina held the presidency of CELAC during 2022 and, although we do not all think alike or are in the same situation, we defended that it is important to find meeting spaces for multilateralism. It fell to us to activate the bilateral cooperation mechanism, which had been inactive for five years. There was a meeting of foreign ministers, with good discussions, and it was agreed to hold the meeting of leaders in 2023. In these times, being able to meet is essential. Europe and Latin America can draw an axis to sustain an essential multilateralism when the global inertia is towards polarization. Let's hope there's an agenda and it's not a photo meeting but the start of a job that shouldn't stop.
What is currently Argentina's position on the war in Ukraine? It is known that in her government there are different sensitivities on foreign policy and at first they did not condemn the Russian invasion. How do you see the conflict now?
That was not exactly so. Russia's hostilities against Ukraine began on February 24, and that same day we condemned the use of force. But it was a policy of escalation and the invasion is after February 24. On February 25, the president spoke about the territorial integrity of Ukraine. And already on February 28, at the UN Human Rights Council, which Argentina presided over, we took the opportunity to condemn the invasion. That was one more issue from the Argentine press linked to the opposition than to a real issue. Argentina always had a concrete and determined position and it pronounces itself as events occur. From there, as a peaceful and friendly country, we always try to ensure that conflicts between countries are resolved diplomatically and that there is no escalation of war.
Twenty days before the start of the war, when the drums of war were already thundering, at least from here, President Alberto Fernández traveled to Moscow and asked Putin that Argentina be "Russia's gateway to Latin America." Has it happened in Argentina, as in Europe, that the Russian aggression has opened the eyes of some politicians to the true nature of the Putin regime, as has been the case in Germany and, to a lesser extent, France?
Around that time Macron also went to Moscow...
Yes, but to try to stop the war...
The president's conversations with Putin went in the same direction, part of which had to do with escalation and trying to ensure that there was no military solution like the one that Russia ended up proposing. The entrance he was talking about is a commercial entrance. We do not have any echo interdependence with Russia, what happens is that in the mentality of countries that are warriors when they talk about ties they think of military ties, but for us it is something else. For us it means generating investments to create jobs in our countries and fight inequality. There was also a great misrepresentation, Latin America is always the object of suspicion for the dominant press and the thought of the European elites, always thinking that we are the ones that pollute the most or those that are open to authoritarian regimes. However, this is the most densely populated peace zone in the world and although we have problems there is dialogue between countries and we do not invade. The prejudiced look at Latin American countries also has a paternalistic look that has nothing to do with what Latin America and the Caribbean is today. That is why it is good that countries respect each other and understand the dynamics of each country. The war in Ukraine violates the UN bill of rights and international law, that was the principle of Argentina to condemn the invasion. All the countries of Latin America and the Caribbean do not think alike about this but they all want peace, they all want it to end now because they are suffering the negative externalities of this conflict such as the increase in the price of fuel, food, fertilizers...
The EU admits that it is having trouble finding allies for its vision of the conflict in the countries of what is now called the 'Global South', for example when it comes to voting on UN resolutions or expanding sanctions. To what do you attribute it?
Europe has its vision and its strategies. (Sanctions) in Argentina would have little effect because it has practically no commercial ties with Russia (it used to sell pears and apples, and now not even that) and neither do most of the South American countries. Russia's trade relations were with Europe or Asia, not with us. Regarding the United Nations, Argentina there always voted in favor and set up a commission to investigate the violation of human rights in Ukraine.
