Asuncion, Paraguay - As the current pro tempore president of Mercosur, the Southern Common Market, Paraguay is taking on the mantle of spearheading a new round of trade talks with the European Union. The goal is to boost the economy of the South American trading bloc which includes Argentina, Brazil, Paraguay, Uruguay, and Venezuela.
These negotiations are happening amid an evolving global trade landscape, with countries and blocs seeking to establish new alliances and trade agreements. Paraguay's proactive role in these talks illustrates the country's international trade ambitions and its commitment to the Mercosur bloc.
Paraguay’s Foreign Minister Euclides Acevedo recently stated that the country aims to promote a 'fast and flexible' Mercosur, capable of adapting to the changing global trade dynamics. This ambition is demonstrated by the country's push for a comprehensive trade agreement with the EU, a deal which has been under negotiation for more than two decades.
The EU is Mercosur’s biggest trading partner, with trade in goods totaling €88 billion ($105 billion) in 2020. However, the trade talks have been met with several roadblocks over the years, including environmental concerns and agricultural disputes. Paraguay’s leadership role in the negotiations is expected to bring renewed vigor and focus to the talks, potentially overcoming these hurdles.
Paraguay's economy, heavily dependent on agriculture and hydroelectric power, stands to gain significantly from a successful negotiation. Eased trade restrictions could open up new markets for Paraguayan beef, soybeans, and other products. Additionally, increased foreign investment could help modernize the country's infrastructure and industries.
While the outcome of these negotiations is not yet certain, the implications for Paraguay and the Mercosur bloc could be substantial. At a time when the global economy is still grappling with the fallout of the COVID-19 pandemic, this potential trade agreement could provide a much-needed economic boost, strengthening Mercosur's position in the global trade landscape.