February 6th, 2026
1. Special sessions began with a focus on labor reform
This week, Congress began its extraordinary session with a busy legislative agenda and intense negotiations. Labor reform, amendments to the Juvenile Criminal Justice System, and the Glacier Law were established as the main items on the government’s agenda, in a context of uncertain votes and narrow majorities. Added to these issues are the trade agreement between Argentina and the United States and the Mercosur-European Union agreement. In the Senate, the ruling party seeks to move forward with labor reform, considered a central piece of the executive branch’s economic program. The bill proposes changes to the hiring system, severance pay, reduction of employer contributions, and collective bargaining, and will be discussed in a key session scheduled for February 11, while negotiations continue with dialogue-oriented blocs to gather support. However, provinces continue to have reservations about the reduction in income tax due to its impact on revenue sharing. At the same time, the Chamber of Deputies will debate the reform of the Juvenile Criminal Justice System, which proposes lowering the age of criminal responsibility to 14. The debate is scheduled for February 12 and is generating strong political and social divisions, with conflicting positions between those who advocate a more punitive approach and those who call for comprehensive prevention and rights protection policies. With an ambitious agenda and narrow majorities, the extraordinary sessions are seen as a key test of the government’s ability to build parliamentary consensus and move forward with its structural reform agenda, as well as to send signals of predictability to international markets.
Ámbito: Reforma laboral: el Senado confirmó la sesión para tratar el proyecto el próximo miércoles
2. Argentina and the United States signed a framework agreement on trade and investment
Argentina and the United States signed a trade and investment framework agreement with the aim of deepening bilateral economic relations. The agreement is an initial step toward greater trade integration, although it does not constitute a traditional free trade agreement. The agreement provides for the reduction and elimination of tariffs on a wide range of products, improvements in market access, regulatory cooperation, customs facilitation, and disciplines on subsidies, state-owned enterprises, digital trade, and intellectual property. It also includes commitments to reduce non-tariff barriers, modernize technical standards, and strengthen the protection of intellectual property rights. The government has indicated that the agreement seeks to increase trade flows and attract investment in strategic sectors, and it has already been confirmed that it will be sent to Congress for legislative consideration in an extraordinary session. At the sectoral level, the agreement provides benefits for agribusiness, the automotive industry, energy, the pharmaceutical industry, technology, and services, with the aim of integrating value chains and improving the competitiveness of Argentine exports in the US market. In particular, the government highlights that the expansion of quotas and the reduction of tariffs on agri-food products, especially beef, could significantly boost exports. Washington, for its part, emphasized that the agreement is part of its strategy to strengthen economic ties with Latin America and cooperation in strategic supply chains. At the same time, Argentina and the United States signed an agreement to strengthen cooperation on critical minerals such as lithium, cobalt, copper, and rare earths, considered key inputs for advanced technology industries, with a focus on attracting investment.
La Nacion: Los puntos clave del acuerdo comercial entre Estados Unidos y la Argentina
3. Lavagna’s departure and tensions over official inflation figures
Marco Lavagna’s resignation as head of INDEC sparked a controversy surrounding inflation measurements and reignited questions about the credibility of official statistics. The government’s decision to postpone the update of the Consumer Price Index (CPI), scheduled for January, caused tension with economists, markets, and international organizations. The new index was to incorporate a consumption basket based on the 2017-2018 National Household Expenditure Survey, with greater weight given to services, and had been recommended by the International Monetary Fund (IMF) as part of its program with Argentina. The postponement of the methodological change implies a breach of that technical commitment made to the multilateral organization. Lavagna’s departure came after disagreements with the economic team over the timing of implementing the new measurement formula. While the government argued that the change could distort the reading of disinflation, analysts and market players maintain that the new index could reflect higher inflation, which increased financial uncertainty. In this context, private consulting firms estimate that January inflation will be between 2.4% and 2.6%, in line with a moderation from the 2.8% recorded in December, although with persistent pressures on food and services. The controversy surrounding INDEC became a source of noise for the market and economic policy, as the credibility of official data is key for financial markets, inflation expectations, and the program with the IMF.
Infobae: Cuál fue el pedido del FMI sobre la medición del IPC que el Gobierno incumplió
4. Foreign trade gap: imports triple the pace of exports
In 2025, Argentine foreign trade recorded strong growth in imports, which increased at a rate three times higher than exports in terms of volume, according to INDEC data. The official report shows a 30.5% increase in import volumes, compared to a rise of around 10% in export volumes, in a context of recovering domestic demand and greater openness in the import regime. In terms of value, imports grew 24.7% year-on-year, while exports rose 9.3%. The dynamism of imports was mainly driven by consumer goods, capital goods, and motor vehicles, which recorded significant increases in quantities, while exports grew due to higher volumes of primary products and fuels, with weaker performance in agricultural and industrial manufacturing. The report also shows a drop in foreign trade prices during 2025: the import price index fell more than the export price index, which contributed to improving the terms of trade on average for the year, although with a deterioration towards the last quarter. Overall, the data reflects a change in the composition of trade, with greater penetration of imported goods and more moderate growth in exports, reopening the debate on the impact of trade liberalization, the competitiveness of local industry, and the sustainability of the external surplus.
5. The government sent the Mercosur–EU agreement to Congress for ratification
President Javier Milei sent the trade agreement between Mercosur and the European Union to Congress, formally initiating the parliamentary ratification process for the treaty. The initiative was submitted by the Chamber of Deputies and is part of the agenda for the extraordinary sessions promoted by the ruling party, although no date has yet been set for its debate in the chamber. The Casa Rosada indicated that the text was reviewed by the Foreign Ministry and validated by the Legal and Technical Secretariat, following administrative delays related to the translation of the final document, which exceeds 5,000 pages. The ruling party considers ratification a political priority and maintains that it seeks to make Argentina the first Mercosur country to approve the treaty. The executive branch also frames the submission of the agreement as part of a broader strategy of international integration and trade liberalization. In its presentation to Congress, the government highlighted that the pact could boost Argentine exports, especially of meat, fish products, fruit, honey, biodiesel, and wine. It will also facilitate access to industrial inputs and expand opportunities for the internationalization of local companies. At the same time, the treaty’s entry has reignited the internal political debate. Some sectors of the opposition are considering supporting the initiative, while others have expressed concerns about its potential impact on industry, agriculture, and employment. The government, meanwhile, seeks to accelerate legislative proceedings as a sign of economic predictability and commitment to international integration.
MinutoUno: El acuerdo Mercosur – Unión Europea fue ingresado a Diputados: cómo será su tratamiento