2024-11-13 06:18:00
Paraguay is tired and does not fail to show it. As early as September 2023, the country’s president, Santiago Peña (right), assured that after twenty-five years of negotiations between Mercosur and the European Union (EU) with a view to a free trade agreement, he was ready to throw in the towel. “I will not continue to negotiate next semester”he said, as his country prepared to take over the rotating presidency of Mercosur. According to the head of state elected in April 2023, it was time to “make a decision”: “Either we conclude (…), or we do not conclude. » Asuncion, a supporter of free trade, said it was looking towards other regions of the world: Singapore, the United Arab Emirates, etc.
More than a year later, Paraguay has not left the negotiating table. But Mr. Peña continues to express the same bitterness. “We want to integrate [économiquement], but we do not encounter the same dynamic in Europe”he thus regretted to from the Spanish daily The CountryOctober 18. Moreover, if Brazil says it is ready to sign, the Paraguayan president is, for his part, not frankly “not optimistic”.
It is not only the delays in the negotiations that are causing Paraguay’s annoyance but also the conditions set by the EU. Mr. Peña finds “unacceptable” that the EU “does not recognize health certification institutions” of his country, which is, according to him, the “prejudice”he complains toThe Country.
In 2023, already, he castigated “certain restrictions, especially environmental”, “very hard for a region of the world seeking to develop”. “We think that integration is the path to take, but not at any cost”summed up the head of state again in June.
Mercosur, a “burden” for Uruguay
In this country of 7 million inhabitants, ravaged by corruption and poverty, without access to the sea, exports are very concentrated. Nearly 70% concerns soya and its derivatives, beef and electricity, mainly intended for countries in the region, according to the World Bank. A January report from the Ministry of Economy and Finance notes that only 1.5% of Paraguayan exports go to the EU.
The other “small country” of Mercosur, Uruguay, is taking a further step. Wishing to develop free trade agreements and noting the uncertain outcome of negotiations with the EU, Montevideo is seeking to free itself from the Southern market by negotiating bilaterally with other countries, China in particular.
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**Interview with Dr. Maria Espinosa, International Relations Expert**
**Editor:** Good morning, Dr. Espinosa. Thank you for joining us today to discuss recent developments regarding Paraguay and its position within Mercosur and its negotiations with the European Union.
**Dr. Espinosa:** Good morning! It’s a pleasure to be here.
**Editor:** Paraguay’s President, Santiago Peña, has expressed frustration regarding the long-standing negotiations for a trade agreement with the EU. Why do you think he feels the need to convey this dissatisfaction so publicly?
**Dr. Espinosa:** President Peña’s public remarks highlight both the complexity and the urgency of the situation. After twenty-five years of negotiations, Paraguay feels that progress is stagnating. By vocalizing his frustrations, Peña is likely aiming to galvanize support domestically and to apply pressure on European counterparts to expedite the negotiations. It reflects a broader sentiment in Latin America about the need for equitable trade partnerships.
**Editor:** Peña mentioned looking towards other regions, such as Singapore and the UAE. What implications might this have for Paraguay’s economic strategy?
**Dr. Espinosa:** Shifting focus to other regions indicates Paraguay’s desire to diversify its trade relationships. By seeking ties with emerging economies, Peña hopes to reduce reliance on traditional partners in Europe. This strategy can help foster economic resilience, but it also underscores discontent with current negotiations. Maintaining a broad perspective can enhance Paraguay’s bargaining power when dealing with the EU as well.
**Editor:** Even though he has expressed a willingness to conclude negotiations, Paraguay continues to remain at the negotiating table. What does this suggest about the country’s position and strategy?
**Dr. Espinosa:** It shows a nuanced approach; while Peña is tired of the drawn-out discussions, he’s not ready to abandon the EU market altogether. This suggests that Paraguay understands the long-term benefits of being part of a larger economic bloc. By staying engaged, they can still advocate for their interests while remaining open to potential outcomes that could be beneficial in the long run.
**Editor:** Peña’s sentiment that Paraguay wants integration but does not find the same dynamic in Europe is telling. What do you think needs to change for these negotiations to move forward?
**Dr. Espinosa:** For effective progress, both sides need to find common ground and mutual benefits. Europe must better align its expectations with the realities and needs of Mercosur countries, while Paraguay needs to articulate its priorities clearly. A willingness on both sides to compromise and innovate will be essential. Additionally, maintaining trust and communication will help facilitate a more constructive dialogue.
**Editor:** Thank you, Dr. Espinosa, for your insights on this complex issue. It’s clear that Paraguay’s economic future is a balancing act between longstanding negotiations and seeking new alliances.
**Dr. Espinosa:** Thank you for having me. It’s an important topic, and I look forward to seeing how these dynamics evolve in the coming months.