Milei to travel to Paraguay for signing of EU-Mercosur trade deal

President Javier Milei will travel to the Paraguayan capital of Asunción for Saturday's signing of the free-trade agreement between Mercosur and the European Union, according to government sources.

The EU gave a long-delayed go-ahead on January 9 to the sweeping trade pact with the South American bloc – overriding opposition led by key power France.

More than 25 years in the making, supporters see the deal as crucial to boost exports, support the continent's ailing economy and foster diplomatic ties at a time of global uncertainty. It creates a potential marketplace of more than 700 million consumers.

Major Mercosur exports to the EU include agricultural products and minerals, while the EU would export machinery, chemicals, and pharmaceuticals with lowered tariffs applied.

But the agreement has drawn protests from farmers who fear being undercut by an influx of cheap beef and other products from South America.

President Milei’s government says the agreement will permit increased exports and the arrival of new investment.

Despite its initial lack of enthusiasm for the deal, the La Libertad Avanza administration has taken the signature of the agreement as an achievement of its own. Foreign Minister Pablo Quirno said this week that “Argentina, led by President Javier Milei, is deciding to compete, produce and grow with clear rules and in liberty.”

Quirno said that the European Union “will eliminate tariffs on 92 percent of our exports and grant preferential access to a further 7.5 percent.”

“In this way, 99 percent of Mercosur’s farm exports will stand to benefit,” he added.

“Argentina and Mercosur countries will have preferential access to the EU, the world’s third-largest economy, a market of 450 million people representing around 15 percent of global output,” said Quirno in a post on social media

Ex-president Mauricio Macri, who had pushed hard for the agreement during his administration, celebrated the “opening up an optimal phase for the region.”

The agreement was backed by the European Union and must now be ratified by Mercosur and the parliaments of every country belonging to each regional bloc.

Milei will travel to Asunción accompanied by Quirno. 

Paraguayan leader Santiago Peña will host the ceremony, which comes on the day his country takes over the pro-tempore presidency of the regional bloc.

According to reports, the agreement will be signed by the foreign ministers of each country, rather than the presidents. 

Yamandú Orsi, the president of Uruguay, has also confirmed his attendance, leaving only Brazilian President Luiz Inácio Lula Da Silva's confirmation pending. 

Milei and Lula have a broken relationship. Tensions have soared further following the removal of Venezuela’s Nicolás Maduro from power by the United States.

– TIMES/NA/PERFIL