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ARGENTINA

Mercosur: Milei seeks to advance with extra-bloc trade flexibilization

Argentina will organize key meetings before handing over the pro tempore presidency in July.

Since December 6, 2024, Javier Milei has held the Pro Tempore Presidency (PPT) of the Mercosur, which involves organizing meetings among member countries during the first half of 2025. In this context, Buenos Aires will host key meetings in the coming weeks, including a meeting of Foreign Ministers at the end of April or May and a presidential summit before July, when Milei will hand over the PPT.

The Argentine president has been an outspoken critic of the Mercosur, which he considers an obstacle to trade expansion and to the  signing of a free trade agreement with the United States. His geopolitical alignment with Washington and Israel marks a break with the regional bloc, which has caused tensions, especially with Brazil, Argentina's main trading partner.

Tensions with Brazil and Milei's diplomatic strategy

The differences between Milei and Luiz Inácio Lula da Silva have impacted the bilateral relationship. Meanwhile, Brazil and Uruguay seek to maintain the current Mercosur framework, Argentina insists on modernizing and flexibilizing its operation.

Two men in suits are participating in a conference, one of them is speaking into a microphone with an Argentine flag on the table.
Mercosur: Milei seeks to advance with extra-bloc trade flexibility | La Derecha Diario

On the other hand, Yamandú Orsi, the new president of Uruguay,  has shown affinity with Lula, further complicating the scenario for Milei. In this context, the Argentine leader seeks support from Paraguayan President Santiago Peña to balance the political landscape within the bloc.

Milei argues that Mercosur has been inefficient in improving access to major markets and criticizes barriers such as the common external tariff, which limits competitiveness. His administration is working on an update proposal that would allow member countries to negotiate trade agreements independently.

Reforms in the Foreign Ministry and strategic changes

Parallel to the discussions in Mercosur, the Government is carrying out a restructuring of the Ministry of Foreign Affairs. Decree 169/2025 established a new organizational chart, headed by Foreign Minister Gerardo Werthein.

A person at a press conference with a microphone in front of a MERCOSUR sign and an Argentine flag.
Mercosur: Milei seeks to advance with extra-bloc trade flexibilization | La Derecha Diario

One of the key changes is the appointment of Luis María Krecler as head of the Secretariat of International Economic Relations, who will be responsible for negotiations within Mercosur. Additionally, new strategic areas were created, such as the Secretariat of Malvinas, Antarctica, Oceanic Policy, and South Atlantic.

These modifications reflect Milei's government's intention to prioritize market opening and greater autonomy in trade policy.

The future of Mercosur in debate

Milei's stance and differences with his partners create uncertainty about the future of Mercosur. While Argentina and Paraguay support greater flexibility in the bloc's rules, Brazil and Uruguay defend the current framework, which requires consensus for signing international agreements.

The meetings in Buenos Aires will be key to defining the bloc's direction. With the PPT in Milei's hands until July, Argentina will have the opportunity to push its modernization proposal, although the lack of consensus and ideological differences could hinder significant progress.

➡️ Argentina

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