In the midst of global economic turbulence, Paraguay is proving instrumental in advancing the long-awaited trade agreement between the Southern Common Market (Mercosur) and the European Union (EU). As the current pro-tempore president of Mercosur, Paraguay's role is crucial in steering negotiations that have spanned over two decades.
With trade relations between the EU and Mercosur amounting to €88 billion in 2019, the agreement is set to create one of the world's largest free-trade areas. For Paraguay, this could mean an increase in its exports, securing its position as an economic powerhouse in the region.
Paraguay's Foreign Minister, Euclides Acevedo, has been vocal about the country's commitment to the negotiations. 'Paraguay is willing to put forth the necessary efforts to achieve a balanced and ambitious agreement that respects the interests of both regions', he stated in a recent press conference.
Despite the challenges brought on by the pandemic, Paraguay has managed to maintain a positive economic outlook. The World Bank predicts a robust growth rate of 4.5% for the nation in 2021, a stark contrast to the predicted global average of 4%.
This trade agreement also presents a unique opportunity for Paraguay to diversify its export portfolio. Currently, the country's leading exports include soybeans, beef, and electricity. The deal with the EU could open doors to more sectors, further bolstering the nation's economy.
However, the road to finalizing the agreement is not without hurdles. Major concerns include environmental preservation and market access issues. Both sides will need to find common ground on these issues to achieve a successful resolution.
Paraguay's proactive role in these negotiations is indicative of its growth as a diplomatic player on the international stage. If successful, this agreement could see the nation carving out a stronger role within Mercosur and securing a brighter economic future.