Argentine President Javier Milei has introduced a proposal that would reduce national taxation by 90%

Argentine President Javier Milei has announced plans to eliminate capital and currency controls next year and pursue a free trade agreement with the United States once Donald Trump assumes office.

International investors have been closely watching Milei’s efforts to dismantle restrictive controls that have deterred foreign investment, even amid one of the most robust bond rallies in emerging markets. Recent reductions in the gap between Argentina’s parallel and official exchange rates have brought the government closer to lifting these controls.

To address the central bank’s mounting debt, Milei revealed that Argentina will either enter a new agreement with the International Monetary Fund (IMF) to replace its existing $44 billion deal or negotiate a separate arrangement with private investors.

“This brings us closer each day to the definitive end of capital controls—an aberration that should never have existed and will end next year, permanently,” Milei declared during a nationally televised address marking his first year in office, flanked by cabinet members.

As part of his vision for a “competition of currencies,” Argentines will now have the freedom to conduct transactions, earn, and save in any currency they choose, though taxes will continue to be paid in pesos. Earlier in the day, Milei reiterated his campaign promise to shutter the central bank, estimating it would take four years to complete the process.

Milei pledged significant economic reforms, including eliminating capital controls, reducing taxes, and cutting regulatory red tape, measures he says will lead to strong economic growth. Despite a severe recession this year, he predicted productivity gains across all sectors of the economy. Fiscal austerity, the foundation of his economic plan, will remain steadfast even as midterm elections approach next year.

The president highlighted over $11.8 billion in approved investments spanning infrastructure, mining, automotive, and energy sectors. Additionally, Milei’s economic team is preparing a plan to abolish more than 90% of taxes.

“We are heading into a period of low inflation, strong economic growth, and a steady rise in Argentines’ purchasing power,” Milei said. “Argentina is emerging from the pit into which politicians had plunged us. For the first time in decades, the light of hope is breaking through.”

Milei also committed to initiating a free trade agreement with the Trump administration, aiming to reduce Argentina’s reliance on Mercosur, the South American trade bloc he recently criticized as a “prison” following its preliminary deal with the European Union.

“Our ultimate goal within Mercosur is to increase the autonomy of its member nations on the global stage,” Milei stated. “In line with that vision, our first step will be to begin negotiating a free trade agreement with the United States next year.”