Falklands truce? Philip Hammond vows to return to era when Britain was Argentina's main trading partner

Chancellor Philip Hammond (left) as he meets with Argentine president Mauricio Macr
Chancellor Philip Hammond (left) as he meets with Argentine president Mauricio Macr Credit: PA

Philip Hammond has signalled a truce with Argentina over the Falklands as he vowed to "recapture the spirit of the age" when Britain was the South American nation's main trading partner.

The disputed islands weren't mentioned once during talks between the Chancellor and Argentinian President Mauricio Macri, according to reports in the country's media.  

Instead the two leaders focused on future trade and investment deals between the two countries.

Argentina's Foreign Minister Jorge Faurie and Philip Hammond talk as they pose for photographers at San Martin Palace in Buenos Aires
Argentina's Foreign Minister Jorge Faurie and Philip Hammond talk as they pose for photographers at San Martin Palace in Buenos Aires Credit: REUTERS/MARCOS BRINDICCI

Speaking during a press conference on Thursday, Mr Hammond said: "We can recapture the spirit of the age when the UK was Argentina's primary trading partner."

"The evidence of that time is still all around us: in your schools, in your railways, in your universities, in your football teams. There, I said it."

"Argentina offers several opportunities in different sectors like infrastructure, energy, communications, technology and other services. We expect the UK to expand its shares of investment and trade."

It comes after ministers in Argentina were put under pressure to use the rare visit of a British minister to make fresh demands for talks on the territory's future.

Relations between Britain and Argentina have historically been dominated by the issue of the Falklands, which has been a British overseas territory since 1833.

Mr Hammond was in Buenos Aires to discuss the agenda for next year's G20 summit, which will be hosted in the Argentinian capital.

A joint press conference between the Minister of Foreign Affairs of Argentina, Jorge Faurie and Philip Hammond
A joint press conference between the Minister of Foreign Affairs of Argentina, Jorge Faurie and Philip Hammond Credit: EPA

He led a trade delegation including representatives of the London Stock Exchange and the Bank of England.

Tensions flared in 2015 when Mr Hammond, who was then foreign secretary, accused the then president Cristina Fernandez de Kirchner of the "bullying and harassment" of Falkland Islanders.

Mr Macri has been less outspoken than his predecessor over the Falklands, but the islands remain a hot topic among Argentinian voters.

License this content