Although he explicitly supports Javier Milei's management, he avoids an uncomfortable comparison for the domestic policy of the United States. Kevin K. Sullivan prefers to ignore the game of similarities between the Argentine president and Donald Trump. In the midst of the presidential campaign, with Joe Biden's administration beginning to ingratiate itself with the Milei government, any reference to Trump is a guarantee of internal conflicts.
Sullivan is an experienced career diplomat who knows Argentina firsthand. Throughout his more than 30 years working at the State Department, he accumulated several assignments in Latin America. He was ambassador in Nicaragua and Chargé d'Affaires in Buenos Aires. He is now Deputy Assistant Secretary for the Southern Cone of Western Hemisphere Affairs.
During his visit to Miami to participate in the "Perspectives for Latin America" Conference, on the Americas Partnership for Economic Prosperity (APEP), and the Strategic Planning Meeting of the Association of American Chambers of Commerce in Latin America and the Caribbean (AACCLA), Sullivan speaks exclusively with LPO. He reveals that the United States government supports the agenda of libertarian reforms that the libertarian Argentine president is testing and anticipates that the endorsement will be used in the policy of the International Monetary Fund towards Argentina. He does so a few days before the Assistant Secretary of State for Western Hemisphere Affairs of the State Department, Brian Nichols, travels to Buenos Aires to meet Milei. During his time in Argentina, Nichols will meet the president and ministers Luis Caputo, Diana Mondino and Patricia Bullrich.
Deputy Assistant Secretary Sullivan shares his point of view on the advance of drug trafficking in Ecuador, the return of US sanctions on the Chavista government of Nicolás Maduro and the possibility of expanding the new APEP promoted by Biden to Argentina and Brazil.
"Los peronistas pueden tratar de derrocar a Milei como hicieron con De la Rúa"
What do you think of the direction Javier Milei's government is taking in these first two months?
We agree with President Milei that, in order to achieve its potential and leave behind periods of recurrent crises, Argentina has to carry out a reform process. And President Milei has a very ambitious agenda of reforms that he has proposed through legislation and also decrees. The judicial and congressional authorities in Argentina are looking at the proposals and evaluating them. We fully trust that the authorities there will do their job and the agenda will progress.
What is the position of the United States government regarding Milei's agenda?
We are very willing to continue working with President Milei and his government. They, too, will need support from the international community, particularly international financial institutions, including the International Monetary Fund. And we are going to be very attentive to that process as well.
Is the Biden administration's main channel of support for the Milei government through the IMF, or are there other options?
The Inter-American Development Bank, the IDB, is also there to support this process and I imagine that the World Bank and other institutions are also there. The IDB is a very important partner for the APEP countries, providing them with capabilities and support to carry out their agenda.
Aid from multilateral organizations is usually helpful in times of crisis, but Milei's market-friendly agenda must show private investments. Is it possible?
For both national and international investment, you have to gain trust and I think that is what the president Milei is trying to do, both by controlling fiscal spending a little, so that it is more sustainable over time, and also by seeking to improve the atmosphere of investments in the country, slightly reducing the regulatory burden of any investment project. These are changes that many observers have pointed out and that would be necessary to truly promote investment and create a sustainable economic recovery. Argentina has enormous potential. I have a lot of experience with the country and I know the enormous capacity of the Argentine people to start businesses and develop resources.
Do you think the comparison between Milei and Donald Trump is accurate?
I'll leave it to other people who make more detailed comparisons in that regard. President Milei has managed to communicate his agenda in a way that has inspired confidence in a majority of voters. He is leading that ambitious agenda, we have to give him credit for that. Political styles belong to each person.
What is your assessment of the functioning of APEP, an initiative launched by Biden last year to strengthen commercial ties with allied countries in Latin America?
We are here in Miami to have meetings with our counterparts within APEP, which for us represents an affirmative and positive economic agenda with the region, something that we have been seeking for a long time. President Biden strongly supports it. He convened the leaders of APEP member countries at the White House last November. And he shared his vision: that the region had all the necessary ingredients to be more prosperous, more stable and dynamic. That it had the potential to organize new value chains to fully participate in the 21st century economy. That's what APEP is about. It means working with 12 countries that share many values and, in many cases, free trade agreements to seek to improve the competitiveness, sustainability and inclusion of their economies.
Argentina and Brazil do not have free trade agreements with the US. Could they join anyway?
Yes, having a free trade agreement with the United States is not a requirement to participate. And the initiative has an open architecture, so that other countries can join at the right time. This year we are focusing on achieving achievements within the initiative, giving it form and substance. It is planned, during this year, to develop a mechanism and some criteria to eventually incorporate new countries that want to join. I understand that in Argentina there is interest, there may also be in other countries.
Does being part of the BRICS exclude the possibility of integrating the APEP?
Yes, it has nothing to do with BRICS. It is really a group of countries that share a common vision of market economies, public and social policies that promote cutting-edge, sustainable economies and seek to create jobs for all. An inclusive vision.
How do you imagine APEP would work with Donald Trump in the White House?
We are focusing on this year, 2024, which will be key for this initiative to really take to the skies. And we have a lot of work to do to achieve it. We are already seeing concrete activities, such as a seminar on semiconductors organized by the Government of Costa Rica. It is an example of what this initiative can do. Within our political system, the concept of APEP brings together elements that congressmen from both parties have long demanded. Many of us want a concrete positive agenda in the economic area with our partners in the region. And we always stayed in contact with legislators from both parties to participate in the construction. Our mission is to deploy a project that represents the values of both parties. And that reflects the visions of the countries.
Does APEP contemplate mechanisms for Latin American countries to exit their role as suppliers of raw materials and add value to their exports?
Yes, totally. This is about developing value chains throughout the hemisphere from Canada to Uruguay, with each country seeking its own path using best practices and attracting investments from all parts of the hemisphere. We have already seen success stories in Costa Rica, with a fairly developed semiconductor industry, despite being a relatively small country. Uruguay is exporting more and more technological services to the United States. There are also many possibilities for countries that export lithium or copper and can develop products with greater added value. APEP offers connections, best practices and visibility to attract investment.
For 25 years now, the US has been talking about Latin America's "potential" to achieve sustained growth with political stability. What difficulties do you detect in achieving this?
It is a challenge, I think competitiveness is key. The region needs to improve its competitiveness to attract investments and develop more constantly and at greater speed. APEP offers possibilities in that sense. The focus is first to promote solid public policies that lead to developing investments. That is the most important thing, even more than market access and tariffs, which were the focus of the conversation for many years. The possibility of offering a qualified workforce, plus public and private institutions that can support the development of an industry for a period of time, are really key to being successful in that field. Many countries have made progress, they have achieved sustained economic growth over time.
What are those successful countries?
The Dominican Republic, for example, has an excellent record of promoting economic development and poverty reduction. Chile too. Peru, Mexico and of course Canada. The group of countries is quite successful, but they still have a lot to share with each other, so that everyone moves faster.
The border crisis is an example of the enormous asymmetry that exists between the US and Latin America. Is there a definitive solution to the immigration problem?
People migrate looking for better opportunities, and it is almost always because they do not find them at home. Making progress in creating cutting-edge economies in the region and building value chains in our hemisphere can help a lot in creating opportunities not only in the US or Mexico, but throughout the region. That will surely give reasons to an Ecuadorian to stay in Ecuador and develop their business. Or a Colombian to work in the new renewable energy industry, because it pays well and he is proud of what he does.
Regarding Ecuador, how much have drug gangs in the territory and institutions progressed?
In recent years in Ecuador we have seen the growth of illicit activity promoted by criminal organizations. It's not new, but it has increased quite a bit. The United States was working with the government of Ecuador. Now they have the new president Daniel Noboa, who has a very strong commitment to reversing these trends. And in the United States government we work closely with him. His government is making firm and difficult decisions to better confront these criminal organizations. We are sharing information and intelligence, trying to improve the capabilities of security forces. There are a whole series of high-level visits taking place to advise and support President Daniel Noboa. I'll go myself next week.
In Venezuela, the government of Nicolás Maduro ratified the disqualification against the opposition member MarÃa Corina Machado. At what stage are the US negotiations?
Since last year we have been working to support the negotiation process between the unitary platform of the opposition and representatives of Nicolás Maduro. An agreement was signed in Barbados on an electoral road map that, if implemented, could create conditions for competitive elections in Venezuela this year. That's what we're focused on. But unfortunately Maduro made the decision not to allow two opposition candidates to participate in the political process. That decision goes against the spirit of the roadmap and that is why we made the decision to reverse the lifting of sanctions.
Maduro adelantó las elecciones en Venezuela alertado por una posible vuelta de Trump
What are the times for this negotiation and the return of sanctions?
If there is no progress in the participation of the candidates before April, we will not be in a position to renew the license granted for activities in the oil and gas sector, which are key for Venezuela. We remain committed to this process. We want Venezuelans to have the opportunity to vote in competitive elections.
Are you optimistic, despite the continuous setbacks in the dialogue with Maduro?
We always knew it was going to be difficult. We will continue with our commitment, in contact with all actors to promote a good result. Other governments in the international community are supporting the full implementation of this road map, Latin American countries and the European Union. We all want to see a peaceful and democratic solution in Venezuela.
Anthony Blinken said the leading cause of death among Americans ages 18 to 49 is fentanyl. What is the status of cooperation with China to stop the export of chemical precursors used to produce fentanyl?
For our government it is a priority issue due to the social impact it has in the United States. We are knocking on every door around the world to more effectively combat that threat. In China, but also in Mexico and other countries in the region. Furthermore, it is important that other governments realize the danger it represents. Because today it is the United States that suffers from this epidemic, but it is a very dangerous drug that could infiltrate other cities and countries. In fact, it is happening. It is in all of our interest to collaborate to confront it.
Translator: Bibiana Ruiz.
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