Firm in his role as an unconditional ally Donald Trumpthe president Javier Milei He made it clear last Saturday when, under the watchful eyes of his Mercosur colleagues, he supported the North American “pressure” on Chavista Venezuela. But he also left a clear warning in Foz de Iguazú, especially to the president. Luiz Inacio Lula da SilvaMain defender of Mercosurwhen he spoke of “a comprehensive institutional reform that reduces the economic costs” of the bloc.
The Offensive against the “bureaucracy” of the Common Market has several axes: the “flexibility” of the Common External Tariff, which is seen as detrimental to trade agreements outside the zone, the need to allow agreements outside the zone without the consent of all partners, and a direct fight against the “costs” caused by Mercosurfrom its secretariats in Montevideo to Parlasur and institutes that it considers “anachronistic” and that are defended by both Brazil and the Kirchnerist opposition Advances in freedom.
“Milei spoke about the Common External Tariff, which today is 35 percent in many cases, while in other blocs it is 6 percent,” government sources said. And they gave that as an example “Today, producing a car in Mercosur is much more expensive than in the rest of the world”a fact that, according to official sources, makes it difficult to access various and potential markets such as Mexico.
At this point, Milei has the support of the President of Paraguay, Santiago Penaand that of Uruguay, Yamandu Orsiwhich is ideologically in line with Lula, but is in favor of a general reduction in tariffs on foreign products.
Milei also has his sights set on the Mercosur structure, with a total of 62 employees and a headquarters in the Uruguayan capital for its secretariat and trade commission, although its annual contribution is around the modest figure of $1 million a year. The government has already cut its contributions to the regional bloc, as evidenced by the decision to combine its embassy in Uruguay with Argentina’s representation in Mercosur, both of which were taken over by the ambassador Alan Beraud in Montevideo.
“It made no sense to have two ambassadors there”they explain from the Casa Rosada and the Palacio San Martín. He also drastically reduced his contributions Mercosur Human Rights Institute that works on the premises of the former ESMAwhich was increased from a budget of $2 million per year to $200,000, a figure that human rights organizations and Kirchnerist leaders consider “insufficient.”
Milei and subsequent foreign ministers also made allocations less and less funding for Parlasurarguing that “it was founded then by progressive governments, but now they no longer meet and their decisions are not binding.”
According to the retrieved data THE NATIONThrough its contributions to Parlasur, Argentina accumulates a debt of slightly more than $3 millionDebt that started in 2021, like Paraguay. Uruguay owes almost $2 million, but Brazil is in the loop. “Today Parlasur is supported by Brazil”says an Argentine lawmaker from that legislature.
Lula’s decisions such as the promotion and award of the so-called entity also fall into the same critical package Mercosur “Social Forum”.consisting of civil society organizations with a progressive orientation, which, after a meeting via Zoom, sent a statement rejecting the signing of the agreement Agreement with the EU (which Lula himself propagated to the point of final rejection) and his opposition to the “United States-sponsored attacks against Venezuela in the Caribbean Sea.”
The initiative described as “insane” by government sources was supported at the Orsi summitbut rejected by the remaining countries and ultimately excluded in the final summit documents agreed by the member countries.
The fight with Lula goes beyond the ideological question. The government complains because agreements are in the middle of negotiations for the bloc, such as the United Arab Emirates or Vietnamare “blocked” by Itamaraty, which favors national interests over those of Mercosur. “You limit petrochemicals or household appliances, that’s not free trade.”complains the government.
“Mercosur has been very benevolent towards the government. It supported increasing the products it can negotiate with third countries from 100 to 150,” the former Kirchnerist ambassador and lawmaker from Parlasur told LA NACION. Gabriel Fuks.
“When there is political tension, Forums or committees like Parlasur serve to resolve these conflicts. Integration needs these forums, and there is no bloc in the world that does without alternative structures to the commercial ones,” concluded the former ambassador.
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