G20 Argentina: Setting the Stage for Multilateralism
The day before the highly anticipated 2018 Argentina G20 Summit kicks off, Argentine Chief of Cabinet Marcos Pena stressed the importance of trade relations, multilateralism and the impact the relationship with the U.S. has had on lemon and beef exports to American markets.
“Over the last three years, we have strengthened our friendship with the United States, first with President Obama and, later, with President Trump. This helped us advance on several specific issues, such as trade,” Pena said. “The same goes for our investment plan: the agreements we have signed will help create several tools to finance investments in energy and infrastructure, among other areas. We also share an agenda to fight drug trafficking and terror, with considerable results.”
Between reducing the chances of increased tariffs to expanding import and export markets, there are a range of reasons multilateralism in the trade industry is essential to successful business operations. Additionally, combined efforts create a lower overall cost for exports while standardizing regulations between countries and expand trade negotiations without limitations one a singular market (The Balance).
Similar to the joint venture business model, markets engaging in multilateral negotiations and trade deals can utilize and share resources, trade routes as well as assist with regulatory measures and market tips. Although both examples come with their own set of issues to work through, the advantages outweigh the risks and disadvantages by a long shot and provide opportunities for increased unification and reaching common goals.
“The more integrated we are, the more employment and development opportunities there will be, especially for countries such as our own, which still has a long way to go in terms of job creation and poverty reduction,” Pena said.