Asuncion: Argentine President Javier Milei expressed that the trade agreement between the Southern Common Market (Mercosur) and the European Union (EU) represents a strategic starting point within a broader economic engagement plan with international partners for Argentina.

According to Namibia Press Agency, Milei participated in the signing ceremony held in Paraguay's capital, Asuncion, alongside leaders and officials from both Mercosur and the EU. The agreement, reached after more than 25 years of negotiations, aims to reduce tariffs and promote trade between the two blocs. It still requires approval by the European Parliament and ratification by the legislatures of Mercosur member states, which include Argentina, Brazil, Paraguay, and Uruguay. The agreement impacts a combined population exceeding 700 million people.

Milei emphasized the detrimental effects of isolation and protectionism, attributing them to economic stagnation and increased poverty. He underscored Argentina's commitment to openness, competition, and global integration. The agreement is viewed as a step towards creating a more prosperous Argentina and positioning Mercosur as a significant entity on the global stage, as stated by the Argentine presidency.

The Argentine government is prepared to act swiftly to ratify the agreement. However, Milei cautioned against implementing mechanisms like quotas or safeguards, which could diminish the agreement's economic benefits and compromise its main objectives.

Argentina's foreign ministry hailed the agreement as a historic milestone for the country's economic policy. It projects that exports to the EU will grow by approximately 76 percent within the first five years of the agreement's implementation and by up to 122 percent over a decade. In monetary terms, exports to the EU are expected to more than double their 2025 level, reaching nearly 8.64 billion U.S. dollars within ten years.