Buenos Aires and London have agreed to extend flights between the Falkland Islands and Argentina and to explore the possibility of joint hydrocarbon exploration in the south Atlantic.
The moves – indicative of a steady thaw in relations after changes to the Argentinian government – were announced in the wake of meetings in Buenos Aires this week between the Foreign Office minister Sir Alan Duncan and the Argentinian foreign minister, Susana Malcorra.
Duncan is the first FCO minister to visit Argentina since 2009 and his visit may be a precursor to a meeting between Theresa May and the Argentinian president, Mauricio Macri, on the margins of the UN general assembly in New York next week.
Macri is on a mission to increase foreign direct investment in Argentina, promoting his country as more stable than Brazil or Venezuela.
The Argentinian foreign ministry said the discussions with Duncan had been held in a positive spirit and it “was agreed to take the appropriate measures to remove all obstacles limiting the economic growth and sustainable development of the Falkland Islands, including in trade, fishing, shipping and hydrocarbons”.
The two countries agreed to increase direct flights from the Falklands, including “two additional stops per month in mainland Argentina, one in each direction”.
Efforts will be made to speed up the DNA identification process for unknown Argentinian soldiers killed during the Falklands war in 1982.
The FCO stressed that the discussions did not affect the sovereignty issue and Britain remained clear in its support of the islanders, the majority of whom want the islands to remain under British control.
An institutional mechanism for dialogue and strategic reflection is to be set up looking at issues such as chemical weapons, organised crime drug trafficking and corruption.
The Falkland Islands government welcomed the agreement, saying “it looked forward to tangible improvements and removal of sanctions on hydrocarbons, fisheries, shipping and tourism”.
It pointed out it had been “exploring the possibility of additional flights to the Falklands from a third country in South America for some time. An agreement to progress this … is helpful”.
Malcorra said last week that the issue of the Falklands represented only 20% of relations between the UK and Argentina and there was agreement and desire to cooperate on 80% of issues.
Probably the most contentious issue will be the possibility of joint ventures to explore the oil-rich waters around the Falklands. The Argentinian economy, heavily dependent on Brazil, has been shrinking in recent months and the new government is keen to attract private investors from across the globe.
Since he took office in December, Macri has emphasised investment and a business-friendly climate as key to securing economic growth and achieving his goal of “zero poverty”.
A business forum in Buenos Aires attended by Duncan and as many as 2,000 businesses was hailed by the Argentinian government as marking the country’s return to international markets.
