Argentine President Javier Milei gestures emphatically at the Mercosur summit podium with Iguazu Falls backdrop and Paraguayan President Peña nearby.
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Milei Criticizes Mercosur, Backs U.S. on Venezuela, Invites Peña After Summit

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At the Mercosur summit in Foz do Iguaçu—where the EU trade deal was delayed without signing, as previously reported—Argentine President Javier Milei sharply criticized the bloc's bureaucracy, endorsed U.S. pressure on Venezuela, and invited Paraguayan President Santiago Peña for a state visit to strengthen bilateral ties.

Arriving with Chancellor Pablo Quirno, Milei met Brazilian President Luiz Inácio Lula da Silva before delivering a speech lambasting Mercosur: "The Mercosur was born with a clear mission to promote trade, increase prosperity, integrate markets and raise the competitiveness of our societies, and none of those central objectives were fulfilled." He decried the lack of a common market, free movement, global openness, and an "oversized and ineffective bureaucracy," while calling for flexibility on the EU deal and a competitive tariff.

Milei also supported U.S. President-elect Donald Trump's stance: "Argentina welcomes the pressure from the United States and Donald Trump to free the Venezuelan people. The time for a timid approach on this matter has run out." He demanded the release of Argentine gendarme Nahuel Gallo and democratic restoration.

Milei, along with presidents Santiago Peña (Paraguay), José Raúl Mulino (Panama), and representatives from Bolivia, Ecuador, and Peru, signed a declaration urging peaceful restoration of democracy in Venezuela and respect for human rights. Brazil and Uruguay did not join. Lula cautioned that armed intervention would cause a "humanitarian catastrophe."

Post-summit, Milei invited Peña for a state visit, confirmed by Quirno and Paraguay's Foreign Ministry. Peña replied on X: "Thank you very much, President and friend Javier Milei for the invitation to a State Visit... Argentina and Paraguay are sister nations, united by history and a shared destiny."

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Reactions on X to Milei's Mercosur summit speech are polarized. Supporters praise his criticism of the bloc's bureaucracy and calls for commercial openness as bold and realistic. Many applaud his condemnation of Maduro's regime and backing of U.S. pressure, seeing it as a stand for democracy. Critics decry his alignment with U.S. interventionism as reckless and unpatriotic, highlighting tensions with Lula.

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Javier Milei passionately defends trade openness at Davos WEF, with trade surplus graph and EU-Mercosur halt symbols in background.
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Javier Milei defends trade openness in Davos despite EU-Mercosur halt

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Argentine President Javier Milei reaffirmed in Davos World Economic Forum his strategy of structural trade openness, regardless of the judicial halt to the EU-Mercosur agreement. He highlighted a record trade surplus of US$ 11.286 million in 2025 and criticized socialism in his speech. Critics like Jorge Asís and Roberto Cachanosky questioned the clarity and originality of his intervention.

Following the EU's announced delay—as previously reported—the Mercosur summit in Foz do Iguaçu concluded on December 20 without signing the trade pact. Brazil handed the pro tempore presidency to Paraguay amid Lula's frustration, while leaders eye alternatives with China, Canada, and others. Chancellors including Argentina's Pablo Quirno remain hopeful for a near-term EU signing.

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The Mercosur summit in Foz do Iguaçu ended in disappointment after the EU confirmed a delay in signing the long-negotiated trade agreement with the bloc, originally set for Saturday (20). As covered earlier from the EU side, Italy's reservations prompted the postponement; Brazilian officials expressed frustration but see signing possible in January 2026.

European Commission President Ursula von der Leyen confirmed the postponement of the EU-Mercosur free trade agreement signing to January, canceling her trip to Foz de Iguazú. The move stems from opposition by France and Italy, fueled by farmer protests in Brussels fearing South American competition. Brazilian President Lula da Silva accepted the delay following talks with European leaders.

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Argentine President Javier Milei plans to launch an international alliance of right-wing leaders, backed by more than ten countries. He aims to convene a summit in Buenos Aires to confront 21st-century socialism and 'woke' ideology. This initiative stems from his opposition to progressive ideologies.

Chancellor Friedrich Merz announced at the Deutsche Börse New Year's reception in Eschborn that the EU free trade agreement with Mercosur states will enter provisional force before the completion of an EuGH review. He views it as a path to greater European independence in an uncertain world order. The agreement was signed at the start of the year after more than 25 years of negotiations.

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Following the US military capture of Venezuelan leader Nicolás Maduro and his wife Cilia Flores on January 3, Argentine ambassador Francisco Tropepi voiced support at a UN Security Council emergency session. He urged the release of detained Argentine gendarme Nahuel Gallo, while Brazil, Mexico, and others condemned the action as a sovereignty breach, sparking protests in Argentina and market movements.

 

 

 

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