Paraguayan President Santiago Peña has announced a strategic shift in focus for the upcoming Mercosur presidency.
Paraguay, set to lead the Southern Common Market (Mercosur), will prioritize exploring new markets over continuing negotiations with the European Union (EU).
This decision reflects a change in the country’s international trade strategy. Peña emphasized that Mercosur members divide negotiation responsibilities.
Paraguay has been engaging with Singapore, while Argentina and Brazil are handling discussions with the United Arab Emirates and the EU.
However, Peña noted the lack of interest from the EU side in finalizing a deal with Mercosur, despite Brazil’s President Luiz Inácio Lula da Silva’s extraordinary efforts.
The Paraguayan president highlighted that of all Mercosur’s ongoing negotiations, the only one showing substantial progress is Paraguay’s talks with Singapore.
An official agreement with Singapore is set to be signed at the Mercosur summit in Rio de Janeiro.
Furthermore, Peña plans to take the lead in negotiations with the United Arab Emirates during Paraguay’s pro tempore presidency.
The Mercosur-EU agreement, which has been under discussion for nearly two decades, reached a preliminary understanding in 2019.
However, it has faced hurdles and hesitations since environmental standards were a significant point of contention for the EU.
Peña’s decision to redirect Paraguay’s focus reflects a pragmatic approach to international trade, adapting to the evolving global economic landscape.
This move also underscores the complexities of international trade agreements, where political and economic interests must align for successful outcomes.
Paraguay’s leadership in Mercosur could thus mark a new chapter in the bloc’s trade strategy, potentially opening doors to alternative markets and partnerships.