The Falklands dispute threatens Argentina’s bid to join the trans-Pacific trade pact

The possibility was raised in the House of Commons by Conservative MP Wendy Morton, who urged the government to prepare to oppose Argentina’s application if threats over the islands continue

The escalating dispute between Argentina and the United Kingdom over the Sea Lion oil project north of the Falklands has spilled into trade: London, a member of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, has not ruled out using its position to stall Argentina’s bid to join the pact, which requires the consensus of all its members. The British government says Buenos Aires’s conduct raises “very serious questions about its reliability as a partner”.

The possibility was raised in the House of Commons by Conservative MP Wendy Morton, who urged the government to prepare to oppose Argentina’s application if threats over the islands continue. Overseas Territories Minister Uma Kumaran replied that the UK does not comment publicly on accession discussions and does not speculate on possible sanctions, though it will continue to consider “all appropriate measures”. She added that Argentine attempts to obstruct economic activity in the archipelago “damage legal certainty”.

Argentina submitted its accession request on June 2. The pact brings together Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam and the United Kingdom, the only country to have joined since its creation. Opening accession talks and issuing the final invitation both require the consensus of all members, so any one of them can block the process. Uruguay, which applied in December 2022, has been in formal negotiations since November 2025 in a working group chaired by Chile.

According to Argentina’s foreign ministry, the country’s exports to the bloc’s members reached US$16.329 billion in 2025, with a surplus of US$8.93 billion. Staying out would not halt that trade but would deprive exporters of the pact’s tariff preferences and common rules. The separate bids by Argentina and Uruguay have also caused friction in Mercosur, where Brazil has questioned their departure from joint negotiations with third countries.

The warning caps a week of escalation. On Tuesday, Argentina asked the International Tribunal for the Law of the Sea to order a halt to Sea Lion, after the United Kingdom on October 11 rejected its claims and refused to adopt the measures it had demanded. The tribunal has yet to set a hearing date. The same day, London announced it would use its protection of trading interests legislation to prevent British companies and citizens from having to comply with Argentine sanctions; according to the British press, the measures would be in force before the end of the year. Navitas Petroleum, the project’s operator, welcomed the British backing and has said it is replacing two contractors that withdrew under Argentine pressure.

The Argentine government rejects the reliability argument. “Reliability is shown by honouring the international commitments one has undertaken,” Foreign Minister Pablo Quirno said earlier this month, arguing that the United Kingdom is exploiting disputed resources in breach of UN resolutions calling on both countries to negotiate.