Argentina is considering withdrawing from the 2025 World Exposition in Osaka, sources close to the matter said Thursday, as the South American country is struggling to secure funding for the construction of its pavilion.
If Argentina withdraws, it will be the fourth country to do so after Mexico, Estonia, and Russia.
The Argentinian economy has faced a long period of extremely high inflation, leading President Javier Milei to cut government spending after taking office in December in addition to a raft of other measures.
The country planned to build a so-called Type A pavilion, in which participating nations design and build their own installations. Such pavilions are considered a key attraction at the event.
The Japan Association for the 2025 World Exposition has suggested Argentina shift to less costly options, such as the Type C pavilion, which will be built by the organizer and shared among participants, or the Type X pavilion, built by the organizer and rented out to participants who can make their own interior and exterior arrangements.
But its negotiations with Argentina have stalled due to the country's financial problems, according to the sources.
Facing rising construction material costs and a labor shortage in Japan's construction sector, the number of countries planning to build Type A pavilions has decreased to 53 from the initial 60 as of May 23, with 14 yet to secure contractors.
The World Expo will run from April 13 to Oct. 13, 2025, on Yumeshima, a man-made island in Osaka Bay, centered on the theme of "Designing Future Society for Our Lives."
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