Argentine President Criticizes Mercosur for Hindering Economic Growth
Milley Calls for New Trade Model at 65th Mercosur Summit
Argentine President Javier Milley delivered a scathing assessment of Mercosur, the South American trade bloc, at the 65th Mercosur Summit. Milley argued that Mercosur has stalled Argentina’s economic progress over the last two decades.
During the summit in Montevideo, Uruguay, Milley contrasted Argentina’s situation with its neighbors, who have embraced free trade agreements with global powers. "We missed our chance in life, we turned against the world," Milley declared, lamenting Argentina’s missed opportunities.
Milley also expressed skepticism about the long-awaited agreement between Mercosur and the European Union. Though the agreement signifies "one of the world’s largest free trade zones" and was hailed as a "historic milestone" by European Commission President Ursula von der Leyen, Milley cautioned that it is "far from becoming a reality".
Milley highlighted that while neighboring countries have forged trade deals with more than 20 countries, Mercosur has focused on limited agreements with South America, Egypt, and Israel. He suggested this narrow focus explains why neighboring countries’ economic growth surpasses that of EU member states.
He proposed Mercosur should embrace a new approach, urging fellow leaders to abandon ideological barriers. "The model has been exhausted," he pleaded.
Milley emphasized free trade as the only viable approach to safeguard national interests and foster prosperity.
Omitting any mention of specific origin, he stressed, "We need to open our eyes" and recognize that the current model hampers their ability to leverage regional strengths and tap into international markets.
He concluded with a warning: "If we continue to ignore reality, the problem will only become bigger.”
A `New Calculation`: The Reality of the EU-Mercosur Agreement
Despite the optimism surrounding the establishment of one of the world’s largest free trade zones, the deal still faces a long ratification process. It requires approval by all 27 EU member states, the European Parliament, and respective national parliaments.
Strong opposition, particularly from France, has delayed final ratification. The agreement, first unveiled in 2019, reveals significant economic and political challenges facing Mercosur members.
Mercosur, comprising Brazil, Argentina, Paraguay, Uruguay, and Bolivia, is a bloc seeking to expand its trade horizons.
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Premier of Mercosur Leaders
What are the potential economic consequences for Argentina if Mercosur fails to address the concerns raised by President Milei regarding its trade policies?
## Interview with [Alex Reed name], Expert on South American Trade
**Interviewer**: Thank you for joining us today to discuss Argentine President Javier Milei’s harsh criticism of Mercosur at the 65th Mercosur Summit. Mr. Milei called the bloc a hindrance to Argentina’s economic growth and called for a significant shift in its trade strategy. What are your thoughts on his comments?
**Alex Reed**: Certainly, it’s been a dramatic development at the Summit. President Milei’s remarks reflect a growing frustration within Argentina regarding Mercosur’s slow progress and perceived limitations in terms of trade deals. His comparison with neighboring countries forging deals with over 20 countries while Mercosur focuses on a smaller pool - mainly South America, Egypt, and Israel – highlights the potential economic disadvantage Argentina feels it is facing [[1](https://qpaso.ar/noticias/cronista/economia-politica/milei-terminara-de-firmar-el-acuerdo-mercosur-union-europea-y-pedira-mayores-facilidades-para-tlc)].
**Interviewer**: He also expressed skepticism about the Mercosur-EU trade deal, calling it “far from becoming a reality.” Do you share his concerns?
**Alex Reed**:
The Mercosur-EU agreement has indeed been a long and winding road. While hailed as a major achievement – and undeniably a significant free trade zone – there are still many hurdles to overcome before it becomes fully operational. President Milei’s skepticism likely stems from the complex intricacies and potential political roadblocks that could delay or even derail its implementation.
**Interviewer**: What impact do you think Mr. Milei’s stance will have on Mercosur’s future?
**Alex Reed**: It remains to be seen. President Milei’s strong words will likely spark debate within the bloc, possibly leading to a re-evaluation of Mercosur’s policies and objectives. His call to abandon ideological barriers and embrace a more open and diverse trade strategy might gain traction, especially from countries seeking to boost their economies through expanded partnerships. However, ingrained political and ideological differences might present significant challenges to achieving significant and immediate changes [[1](https://qpaso.ar/noticias/cronista/economia-politica/milei-terminara-de-firmar-el-acuerdo-mercosur-union-europea-y-pedira-mayores-facilidades-para-tlc)].
**Interviewer**: Thanks for sharing your insights with us today. This is indeed a pivotal moment for Mercosur, and we will be closely following any developments.
**Alex Reed**: You’re most welcome.
