Peña says Paraguay will gain most from Mercosur–EU deal

Santiago Peña argues that the Mercosur–EU trade deal is a key opportunity and positions Paraguay as one of its main regional beneficiaries.

President Santiago Peña defended the trade agreement between Mercosur and the European Union and stated that Paraguay is on track to become one of its main beneficiaries.

The President of the Republic, Santiago Peña, said that the trade agreement between Mercosur and the European Union represents a key opportunity for Paraguay’s economic development. According to the head of state, the country is emerging as one of the main beneficiaries within the regional bloc, both because of its domestic conditions and the changes the deal will bring to the way Mercosur operates.

His remarks were made during the latest episode of the podcast Paraguay Adelante, released on Sunday. In that space, Peña argued that the agreement should be analysed not only in terms of trade relations with Europe, but also in light of its impact on Mercosur’s internal functioning.

The president recalled that the regional bloc was created more than 30 years ago with the intention of functioning as a customs union. However, he explained that although tariffs between member countries were eliminated, non-tariff barriers remained in place. These ultimately affected the smaller economies in particular, such as Paraguay and Uruguay.