Mexico, Argentina Celebrate 137 Years of Diplomatic Ties

Mexico and Argentina mark 137 years of diplomatic relations. Since the official establishment of ties in 1888, both nations have cultivated economic, political, and cultural linkages that continue to shape their regional influence and shared agendas.

Strong Bilateral Frameworks and Economic Integration

The commercial relationship is anchored by the Economic Complementation Agreement No. 6 (ACE 6), originally signed in 1986 and updated in 2006. It covers around 35% of traded goods and is complemented by ACE 55, which specifically regulates automotive trade. These agreements provide preferential tariff conditions and form the legal backbone of the bilateral trade relationship, says the Mexican-Argentine Chamber of Commerce (CCMA).

In addition to trade, the Strategic Association Agreement (AAE), in force since 2008, has deepened cooperation through presidential summits, ministerial councils, and technical committees addressing political, economic, cultural, and scientific cooperation.

Trade Snapshot: Growing Potential, Room for Balance

According to Mexico’s Ministry of Economy, although bilateral trade peaked in previous years, it has faced a downward trend since 2014. In 2024, Argentina accounted for 0.13% of Mexico’s exports (US$812 million) and 0.18% of its imports (US$1.14 billion), resulting in a trade deficit of US$330 million for Mexico.

Key exports from Mexico to Argentina included motor vehicles, with shipments totaling US$120 million, mainly originating from the State of Mexico, Mexico City, and Nuevo Leon. On the import side, pharmaceuticals dominated, with Mexico purchasing US$124 million in therapeutic products from Argentina, particularly to destinations like Mexico City and the State of Mexico.

States with the highest net commercial exchange with Argentina in 2024 were Puebla (US$50.3 million), State of Mexico (US$15.2 million), and Morelos (US$14.4 million).

Investment on the Rise: FDI, Innovation, and Strategic Interests

Argentina has emerged as a significant investor in Mexico, contributing US$1.06 billion in FDI in 2024, making up 12% of all foreign investment announcements in the country. Major recipients included Mexico City (US$537 million), Nuevo Leon (US$346 million), and Veracruz (US$60.7 million). Between 1999 and 2024, Argentina’s total FDI into Mexico reached US$15.2 billion, largely through reinvestment of earnings.

One of the most notable investment moves came in March 2025, when Mercado Libre announced a US$3.4 billion investment in Mexico, its largest ever, aimed at strengthening its logistics, fintech, and technological ecosystem.

Meanwhile, Mexico has grown as a trade and investment partner for Argentina as well, now ranking as Argentina’s seventh-largest source of imports and 11th-largest foreign investor, according to the Rosario Board of Trade.

Industry Connections and Opportunities in Lithium

Cooperation has expanded beyond traditional sectors. In 2025, the governments of Buenos Aires and Mexico signed an agreement to collaborate on lithium value chain development, a strategic sector for both countries. The accord, supported by LitioMx and the CAF, aims to accelerate lithium extraction and technological innovation, particularly in Mexico’s clay-rich deposits, MBN reports.

Argentina’s Economic Outlook: Recovery and Reform

Argentina has a population of 45.7 million and a GDP in 2024 of US$633.3 billion, making it the third-largest economy in Latin America. Despite a 1.7% contraction in 2024, Argentina’s economy is showing signs of recovery following structural reforms led by President Javier Milei, who took office in December 2023. Through fiscal discipline, monetary tightening, and international support, including a US$12 billion IMF package and US$1.5 billion from the World Bank, the government has reduced inflation dramatically and stabilized financial indicators. The GDP is projected to grow by 5.5% in 2025, driven by macroeconomic normalization, rising energy investment, and a rebound in the agroindustrial sector, says the World Bank.

According to Argentina’s Ministry of Economy, its exports remain strongly agro-industrial. In 2024, its top export sectors included:

• Soy complex (24.6% of exports, US$19.6 billion)

• Oil and petrochemical complex (13%, US$10.4 billion)

• Automotive (11.3%, US$9 billion)

• Corn (9.1% US$ 7.26 billion)

• Gold and Silver (4.8%, US$ 3.82 billion)

• Beef (4.8%, US$3.79 billion)

• Wheat (3.5%, US$2.76 billion)

• Fishing (2.5%, US$2 billion)

• Sunflower (1.8%, US$1.44 billion)

• Dairy products (1.6%, US$ 1.27 billion)

According Laura Trejo Fuentes, General Manager, CCMA there are approximately 2,000 Argentine companies currently offering their services in Mexican territory

Political Tensions Versus Institutional Continuity

Last year, diplomatic relations were affected by public tensions between the heads of state. Former President Andrés Manuel López Obrador and Argentine President Javier Milei exchanged sharp criticisms, culminating in public remarks about each other’s leadership and policies. However, both governments have denied any rupture in diplomatic ties, reaffirming that the relationship is robust and built on longstanding cooperation.

The Mexican Embassy in Buenos Aires and President Milei himself rejected media speculation about possible diplomatic expulsions or retaliatory actions. Despite not meeting during Milei’s visit to Mexico for the CPAC Conference on Aug. 24, 2024, formal channels of cooperation remain intact.