Mercosur-EU Trade Summit Could Take Place Jan/Feb: Politico

Late on 2 Jan, Politico reportedthat according to its sources within the South American trade bloc Mercosur, there is some hope that a summit between senior officials from the group and from the European Union could take place in late Jan or early Feb either before or after the 31 Jan internal Mercosur meeting. The article claims the talks would be seen as a 'last chance' opportunity to reach an agreement, after the previous prospects of an agreement being reached in Dec 2023 were scuppered by both French objections and a last-minute U-turn from outgoing Argentinian President Alberto Fernandez, who previously had backed a deal.

• The stance of new Argentinian President Javier Milei could prove crucial. Prior to his election, libertarian Milei had called Mercosur 'defective' and threatened to see the body dissolved. However, given the geopolitical leaning of his gov't away from China and towards the US and Europe, a trade deal with the EU could prove an attractive prospect for the new administration.
• The Paraguayan gov't of President Santiago Peña currently holds the Mercosur presidency, but Politico reports that the administration in Asuncion is content to allow the 2023 president pro tempore, Brazilian President Luiz Inacio Lula da Silva, to continue to lead talks with the EU. It is unclear whether Milei would be content with such a scenario, given his criticism of Lula's leftist gov't.