Milei to host Mercosur presidents amid tensions with Lula

President Javier Milei will host the heads of state of the Mercosur in Buenos Aires this week as he again pushes for a liberalisation of the regional trade bloc’s rules.

Milei, 54, will lead the event at the Palacio San Martín, the headquarters of Argentina’s Foreign Ministry, on July 2 and 3.

The gathering will bring together the leaders of the bloc’s member states – Argentina, Brazil, Paraguay and Uruguay – as well as representatives from associated states and regional and international organisations.

The heads of state are expected to fly in to attend the summit’s second day. Confirmed or expected attendees include Luiz Inácio Lula da Silva (Brazil), Yamandú Orsi (Uruguay), Santiago Peña (Paraguay), Luis Arce (Bolivia) and possibly Gabriel Boric (Chile).

The agenda is expected to focus on strengthening the bloc’s ties, deepening regional integration, reducing asymmetries and negotiating trade agreements with other economic groupings.

Milei, however, is expected to again voice his desire for the bloc to allow nations to seal free-trade deals with third parties without the agreement of its fellow members.

Milei will lead the summit at a challenging time, given long-running ongoing tensions with his Brazilian counterpart Lula. 

There is speculation over a possible visit by the Brazilian leftist to the home of former president Cristina Fernández de Kirchner, who is under house arrest while serving a six-year jail term for corruption offences at her residence in Buenos Aires.

Since taking office, the Mercosur bloc has generally proven to be an uncomfortable sphere for Milei, not least given his difficult relationship with Lula, whom he has publicly branded a "Communist" and "corrupt.”

Holding the bloc’s rotating presidency, Argentina’s President is pushing for regulatory flexibility within Mercosur in order to unblock trade agreements – including one Argentina is seeking with the United States.

– TIMES/NA