Argentina's domestic woes dictate diplomatic prudence

Significance

Fernandez is currently focusing diplomatic efforts on garnering support for a major debt restructuring proposal which is to be launched next month and requires the backing of the IMF and creditors. With debt and investment areas of key concern, the foreign ministry has recovered considerable influence over economic relations and foreign trade.

Impacts

• Failure to show results on debt and investment could undermine efforts to pursue a pragmatic foreign policy.
• Debt talks are likely to advance but investment will be slow to follow.
• The international context will be largely unfavourable to Argentina in the near term at least.