Paraguayan President Santiago Peña has issued a direct appeal to the European Union, urging it to implement the landmark trade agreement with the Mercosur bloc without further delay. In an interview with Euronews, Peña warned that postponing the hard-won pact would be a significant strategic mistake, particularly amid heightened global geopolitical tensions.
A Deal in Legal Limbo
The comprehensive free trade agreement between the EU and the Mercosur nations—Brazil, Argentina, Paraguay, and Uruguay—was formally signed last month. However, its final ratification by the EU is currently frozen. Members of the European Parliament have referred the text to the Court of Justice of the European Union in Luxembourg for a legal review, a move that has stalled the process.
"We already presented the agreement to the Congress of the Paraguayan Nation last week, and we understand that the European Union has the legal tools to implement it temporarily," Peña stated on Euronews's The Europe Conversation. Paraguay currently holds the rotating presidency of Mercosur, and Peña emphasised his country's ambition: "We are working to make this happen, and we want Paraguay to be the first country to implement it."
Despite the judicial review, the European Commission retains the prerogative to provisionally apply the deal once one or more Mercosur members complete their national ratification. While member states like Germany, Spain, Portugal, and the Nordic countries are advocating for moving forward, the Commission has stated that no decision on provisional application has yet been taken.
European Resistance and a Changing Latin America
The agreement promises to create one of the world's largest free-trade zones, significantly reducing tariffs on a wide range of goods and services. Yet resistance within Europe remains formidable. Farmers' unions and several national capitals, notably Paris, have voiced strong concerns about unfair competition from South American agricultural imports.
President Peña contends that this opposition is fundamentally misguided. He argued that it stems from "ignorance" and a stereotypical, outdated view of Latin America. "Our countries have changed tremendously. They have developed. Human capital has grown," he said. "Europe has to rediscover Latin America."
Peña framed the decision as a critical geopolitical choice for Europe. He suggested the continent can no longer rely on the United States as a default, stable partner, citing the unpredictable trade policies of former President Donald Trump. "If (MEPs) ultimately prefer not to integrate themselves into (new) markets and instead choose to retain their old alliances that today no longer work, it would certainly be a mistake," he warned. Paradoxically, Peña credited Trump's disruptive approach with giving the negotiations "the final push" after a quarter-century of talks, saying it forced all parties out of their "comfort zone."
Strategic Resources and Global Competition
A central pillar of Peña's argument is the deal's potential to bolster Europe's strategic autonomy, particularly in countering China's expanding economic and political footprint in Latin America and its dominance in critical raw materials. "Europe is losing an enormous opportunity there," Peña stated, highlighting the region's competitive advantages.
"We have young talent, a predominantly young population, a population (of people who are) already digital natives," he explained. "We have that tremendous abundance of natural resources, not only food that grows above the ground, but also minerals that are below the earth, which are so critical to this new technological wave. Our region has absolutely everything that Europe and the world need."
The call for stronger European partnerships comes as other global powers are actively deepening ties. This dynamic is reminiscent of recent diplomatic shifts elsewhere, such as the Syrian President's Gulf tour advancing economic ties and regional reintegration. Furthermore, the debate over strategic autonomy extends beyond trade, echoing calls from within the EU itself, like the Estonian President's urging of an EU defence buildup to reduce reliance on external security guarantees.
The fate of the EU-Mercosur deal now hinges on political will in European capitals and the legal findings in Luxembourg. As President Peña's remarks make clear, the Mercosur bloc views the agreement not merely as an economic document, but as a foundational element for a renewed political and strategic partnership between the two continents.
