As president, Cristina Fernandez will likely continue Argentina’s dependence on socialist Venezuela rather than embrace free market reforms

The … ascension of Senator Cristina Fernandez de Kirchner to the Argentine presidency …succeeding her husband, Nestor Kirchner, is unlikely to improve relations between Argentina and the United States. Although her campaign pronouncements convey an image of moderation in foreign policy matters, Cristina Fernandez would most likely continue the leftward drift of Argentina and its cozy relationship with Venezuelan dictator-;President Hugo Chávez. Chávez has sent billions of dollars of Venezuela’s oil wealth to bail out Argentina’s debts; Argentina’s credit rating has yet to recover from the major default the government declared in 2002.

Barring an unexpected shift in Fernandez’s thinking or tactics, there is little hope for the economic liberalization so desperately needed in the Argentine economy. Once the showcase of Latin America, the economy has fallen further and further behind as a result of bad policies. The Bush Administration, with few good options for direct engagement, will need to rely on building strong relations with Argentina’s neighbors and other Latin American countries that are still resistant to Chavista populist appeal. As an important step, Congress should approve pending free trade agreements with Peru, Colombia, and Panama.”*

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