MercoPress. South Atlantic News Agency

Milei pushes for trade flexibility at Mercosur Summit, eyes U.S. agreement

Milei’s push for individual trade autonomy aligns with Lacalle Pou’s vision

Argentine President Javier Milei will attend the Mercosur summit in Montevideo on December 5-6, advocating for the bloc’s members to gain the freedom to sign independent trade agreements. This marks a departure from Mercosur’s traditional collective bargaining stance but stops short of proposing an exit from the bloc.

According to La Nación, sources close to Milei described his approach as pragmatic. “He adheres to general definitions but clearly outlines areas where he disagrees,” they said, referencing his recent stance at the G-20 in Brazil. Milei’s goal includes pursuing a free trade agreement (FTA) with the United States, leveraging his strong relationship with U.S. President-elect Donald Trump.

Uruguayan President Luis Lacalle Pou, who shares Milei’s liberalized trade vision, will host the summit, his last before transferring power to Yamandú Orsi on March 1, 2025. Orsi, Uruguay’s president-elect, is expected to attend the meeting, raising the possibility of his first diplomatic interaction with Milei.

The summit will also tackle ongoing negotiations with the European Union, the European Free Trade Association (EFTA), and the United Arab Emirates. However, the EU agreement remains stalled, prompting Mercosur to explore alternative trade partnerships, including a Comprehensive Economic Partnership Agreement (CEPA) with the UAE, led by Paraguay.

Adding to the summit's agenda, Panama is set to formalize its entry as an associate member of Mercosur, signaling growing interest in the bloc amid global trade uncertainties.

Milei’s push for individual trade autonomy aligns with Lacalle Pou’s vision, setting the stage for significant discussions about Mercosur’s future direction. As one observer noted, “This summit could redefine how Mercosur balances unity with flexibility in a rapidly changing global economy.”