International
Investment and technology, keys to the economic relationship between Argentina and Germany
The relationship between Argentina and Germany – a country to which President Javier Milei will make a working visit this weekend – is based on foreign investment, cooperation in natural resources and trade exchange, supported by bilateral agreements and joint projects to promote economic and technological development in both countries.
Milei is scheduled to travel tomorrow, Saturday, to Germany, where he will be awarded in Hamburg (north) the Hayek medal that the homonymous society awarded him due to his achievements as a “reformer”.
The next day, the Argentine president and the German Chancellor, Olaf Scholz, will hold a meeting in Berlin at the head of their respective delegations.
Germany has shown interest in cooperating with Argentina in the exploration and production of critical minerals such as lithium and copper, essential for the energy transition and the manufacture of batteries. This aligns with Germany’s efforts to diversify its sources of supply and reduce dependence on China.
In 2023, the stock of total Foreign Direct Investment (FDI) in Argentina ammounted to 128,855 million dollars (about 120,382.7 million euros), which represents 10.4% more than the previous year and 26.4% of the Gross Domestic Product (GDP), according to data from the Ministry of Foreign Affairs.
The upward trend of FDI continues in 2024, with various sectors such as lithium extraction, hydrocarbons and financial technology attracting a considerable amount of foreign investment.
Germany – an important investor in the automotive, technology and manufacturing industry – is in eighth place in FDI in Argentina, after the United States, Spain, Brazil, the Netherlands, Chile, China and Italy.
In 2023, German companies in Argentina made a significant investment in various sectors.
A survey by the Argentine-German Chamber of Industry and Commerce (AHK) and the consultancy EY Argentina revealed that 74% of German companies planned to invest more than one hundred million dollars (about 93.42 million euros) in the South American country. These investments were mainly used for fixed assets and the incorporation of technology.
Germany’s FDI stock in Argentina is mainly focused on the manufacturing (35%), mineral and oil extraction (22.3%), and retail and wholesale sectors (10.9%).
German companies such as Siemens, Volkswagen and Bayer have a strong presence in Argentina, promoting innovation and technology transfer in various industries.
Projects and cooperation in critical minerals are another key point of the economic relationship between the two countries, since Argentina is one of the main producers of lithium, essential for the manufacture of batteries, and that in 2022 exports of this element increased by 234%.
In February 2024, representatives of Germany and Argentina discussed cooperation in the supply chain of critical minerals, such as copper and lithium, with the aim of reducing dependence on China.
Regarding Argentine investment in Germany, which is less significant, companies from the South American country are beginning to explore opportunities in high-tech and renewable energy sectors.
In terms of cooperation and strategic alliances, both countries have signed bilateral agreements to encourage investment and facilitate trade. Argentina and Germany collaborate in infrastructure and technological development projects, taking advantage of the German experience in these fields.
Trade between Argentina and Germany includes Argentine exports of agricultural and mineral products, and imports of German machinery and industrial products. This exchange is fundamental for the Argentine economy and benefits both countries by diversifying their markets.
In 2022, total trade between Germany and Argentina exceeded $3.6 billion, with a growth of 8% compared to 2021.
In March 2024, Germany exported products worth 169 million euros (181 million dollars) to Argentina and imported goods for 104 million euros, resulting in a positive trade balance of 65.3 million euros (70 million dollars) for Germany.
Exports from Germany to Argentina include machinery, vehicles, chemicals and pharmaceuticals. The European nation is a key supplier of advanced technologies and industrial equipment necessary for various sectors of the Argentine economy.
Meanwhile, imports from Germany from Argentina focus on agricultural products and food, such as soybeans, wine and meat, as well as minerals.
The commercial relationship benefits from the complementarity between the economies, where Argentina provides raw materials and food, and Germany provides technology and manufactured products.
Both countries are working on closing a free trade agreement between the European Union (EU) and Mercosur, which could further enhance trade exchange and open up new business opportunities.
This agreement has been the subject of long negotiations and currently faces significant opposition from several EU member countries, especially France and Austria.
In contrast, countries such as Germany, Spain and Portugal are in favor of moving forward with the agreement, highlighting the economic benefits and the need to strengthen trade relations with Latin America.
International
Mexico and U.S. Launch New Bilateral Security Group to Combat Fentanyl and Organized Crime
The governments of Mexico and the United States officially launched the Bilateral Implementation Group (BIG) on Friday, a new initiative aimed at strengthening cooperation on security issues and enhancing joint efforts against transnational crime.
In a statement, U.S. Ambassador to Mexico Ronald Johnson announced that he and Deputy Foreign Minister Roberto Velasco addressed officials from both countries who will lead what he described as a “new phase of bilateral cooperation.” The initiative seeks to curb the flow of fentanyl and other illicit drugs, illegal firearms, and human trafficking across the shared border.
Earlier this week, Mexico’s Ministry of Foreign Affairs had confirmed that senior security officials from both nations would meet in Mexico City on June 12 to review and advance existing cooperation agreements.
Through social media, Ambassador Johnson explained that the new bilateral group is designed to improve coordination between the two governments by placing greater emphasis on implementation, accountability, and measurable results. The effort will also focus on combating transnational criminal organizations operating across North America.
“The participation of 15 U.S. government agencies, working alongside their Mexican counterparts, reflects the seriousness of this effort and our shared commitment to delivering measurable results,” Johnson said.
The ambassador also highlighted several achievements that he attributed to ongoing bilateral cooperation. According to Johnson, maritime drug trafficking into the United States has declined by more than 95 percent, while overdose deaths have fallen by 35 percent.
He further noted that Mexican authorities have seized more than 400 metric tons of illegal drugs and dismantled over 2,300 clandestine laboratories as part of their efforts to combat organized crime and narcotics production.
The launch of the Bilateral Implementation Group marks the latest step in the security partnership between Mexico and the United States, as both countries seek to address shared challenges related to drug trafficking, arms smuggling, human trafficking, and the activities of criminal networks operating across the region.
International
‘El Chapo’ Guzmán again asks Mexican president to seek his return from U.S. prison
Convicted drug trafficker Joaquín “El Chapo” Guzmán has once again appealed to Mexican President Claudia Sheinbaum to intervene on his behalf and seek his transfer from the United States to Mexico, where he hopes to serve the remainder of his prison sentence.
Guzmán, the former leader of the Sinaloa Cartel, is currently serving a sentence of more than 50 years in the United States after being convicted in 2019 on multiple charges, including drug trafficking and money laundering.
According to reports, the latest request was made in a letter dated June 2, one of several messages that Guzmán has reportedly sent to Sheinbaum in recent months in an effort to secure his repatriation. In the letter, he expresses hope that the Mexican government can support the efforts of his legal team.
Written in English and by hand, the letter asks that he be allowed to complete his sentence in Mexico, arguing that such a transfer would enable him to receive visits from family members more easily.
Guzmán is currently being held at the United States Penitentiary Administrative Maximum Facility in Florence, Colorado, commonly known as the “Alcatraz of the Rockies,” one of the most secure prisons in the United States.
As in previous communications, the former cartel leader complained about his prison conditions, stating that he remains in near-total isolation and has little to no contact with other inmates.
He also reiterated his long-standing claim that he did not receive a fair trial in the United States and argued that the Mexican government bears responsibility for much of the violence associated with organized crime in the country.
In the letter, Guzmán maintains that his actions were motivated by a desire to protect himself and his family amid the violence linked to criminal organizations in Mexico.
Mexican authorities have not publicly indicated whether they plan to respond to the request. Guzmán remains one of the most notorious figures in the history of international drug trafficking and is serving his sentence under some of the strictest security measures in the U.S. prison system.
Central America
U.S. Authorities Accuse Guatemalan Nationals of Using False Information to Sponsor Migrant Minors
Senior officials from the U.S. Department of Justice and the Department of Homeland Security announced Thursday criminal charges against three Guatemalan citizens accused of using false information to sponsor migrant children who crossed the U.S.-Mexico border without a parent or guardian.
According to an indictment filed in Ohio, Maritza Cahuec Coc allegedly submitted at least 12 sponsorship applications, several of which were filed under aliases or contained materially false statements intended to secure custody of the minors.
Under U.S. procedures, unaccompanied migrant children apprehended at the southern border are placed in the custody of the Department of Health and Human Services, which is responsible for their care until they can be released to a qualified sponsor, such as a parent or relative living in the United States.
Prosecutors allege that Cahuec Coc, who reportedly entered the United States illegally in 2018, received payments between late 2020 and 2023 for helping bring 12 migrant minors into the country. Authorities claim she submitted fraudulent documents and misleading information to obtain approval for the sponsorship requests.
The case was announced during a joint press conference led by Acting Deputy Attorney General Todd Blanche and Homeland Security Secretary Markwayne Mullin. However, officials provided limited details about the investigation and instead focused much of their remarks on criticizing immigration policies implemented under the previous administration.
Republican lawmakers and Trump administration officials have frequently pointed to the increase in unaccompanied migrant children arriving at the U.S.-Mexico border during President Joe Biden’s term, arguing that the government failed to adequately oversee their care and placement.
During Thursday’s briefing, A. Tysen Duva, Assistant Attorney General for the Justice Department’s Criminal Division, alleged that Cahuec Coc used the identities of other individuals and falsely claimed family relationships in order to obtain custody of the children.
“Maritza submitted sponsorship applications using other people’s identities and falsely represented that the minors were the children of close relatives in order to secure their release,” Duva said.
The case remains under investigation, and federal authorities have not yet disclosed additional information regarding the other two Guatemalan nationals charged in connection with the alleged scheme.
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