TL:DR – Paraguay’s President Peña urges swift EU implementation of Mercosur trade deal
• Paraguay’s President Santiago Peña advocates for immediate implementation of the EU-Mercosur free trade agreement, stating that delaying it would be a “mistake.”
• The free trade pact was signed last month by the EU and Mercosur members Brazil, Argentina, Paraguay, and Uruguay.
• The agreement’s ratification by the EU is currently frozen due to referral to the Court of Justice in Luxembourg.
• Peña presented the agreement to Paraguay’s Congress last week, urging the EU to implement it temporarily.
• The European Commission can provisionally apply the deal if one or more Mercosur countries ratify it nationally.
Paraguay President tells Euronews ‘Mercosur must be applied without delay’
On Tuesday, 3 October 2023, Paraguay’s President Santiago Peña urged for the immediate implementation of the free trade agreement between the European Union and Mercosur countries, warning that delaying the agreement would be a “mistake” in the context of rising geopolitical tensions. The agreement, signed last month by the EU and Mercosur members Brazil, Argentina, Paraguay, and Uruguay, currently awaits full ratification by the EU, which has been stalled due to a referral to the Court of Justice in Luxembourg by Members of the European Parliament (MEPs).
Peña stated, “We already presented the agreement to the Congress of the Paraguayan Nation last week, and we understand that the European Union has the legal tools to implement it temporarily.” He emphasised Paraguay’s desire to be the first country to implement the agreement, as it holds the rotating pro tempore presidency of Mercosur.
European Commission Can Provisionally Apply Agreement
Despite the judicial review, the European Commission possesses the authority to provisionally apply the deal if one or more Mercosur countries complete national ratification, although a decision on this matter has yet to be made. Germany, Spain, Portugal, and the Nordic countries are advocating for this next phase of the agreement.
Peña described the European opposition to the deal as rooted in “ignorance” and an outdated perception of Latin America, asserting, “Our countries have changed tremendously. They have developed. Human capital has grown.” He cautioned that turning down the agreement would constitute a strategic misstep, citing that Europe can no longer depend solely on the United States due to the unpredictable policies of former President Donald Trump.
Potential of the Agreement to Counter China’s Influence
Peña acknowledged Trump for providing the deal with “the final push” after 25 years of negotiations, stating, “He came to challenge what we thought was stable, and that pushed us to leave our comfort zone.” He further pointed out that the EU-Mercosur agreement offers a significant opportunity to counter China’s escalating presence and dominance in the region’s rare earth supplies.
According to Peña, Latin America holds vital resources necessary for technological advancement, claiming, “We have young talent, a predominantly young population, a population (of people who are) already digital natives.” He concluded that the region possesses “everything that Europe and the world need” in terms of natural resources and food production.
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