President Milei to attend first Mercosur Summit in Montevideo

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President Javier Milei will attend his first Mercosur Leaders’ Summit in Montevideo on Monday since snubbing the bloc’s leaders last July.

Milei, 53, refused to participate in the previous South American summit in Asunción, sending then-foreign minister Diana Mondino in his place.

The La Libertad Avanza leader will join next week’s summit in Montevideo, hosted by outgoing President Luis Lacalle Pou, with key discussions focused on the long-stalled free-trade deal between Mercosur and the European Union.

Milei is set to receive the pro-tempore presidency from Lacalle Pou, whose centre-right coalition lost Sunday’s presidential run-off to the leftist Frente Amplio.

The Mercosur summit, scheduled for December 4-5, will be dominated by talks about the EU trade deal. EU negotiators are keen to reach an agreement, but several member states, most notably France and Poland, are strongly opposed.

Milei’s attendance at the summit is seen as an opportunity to address Mercosur’s challenges directly. A central topic will be the long-delayed free-trade agreement with the EU, which could significantly affect the bloc’s relationship with Europe.

The region is adjusting to a new political and geopolitical balance, with Uruguay’s incoming president Yamandú Orsi signalling a return to centre-left governance, backed by Brazilian President Luiz Inácio Lula da Silva. This shift poses a challenge for Milei, a figure of the global new right and a vocal critic of Lula.

Paraguay’s Santiago Peña, though keen to maintain good relations with Milei, has a strong partnership with Lula and views Mercosur as crucial for regional development. Peña recently criticised Milei for making "offensive" remarks about Lula.

Milei’s approach to this summit is eagerly anticipated. At last week’s G20 Leaders’ Summit in Rio, he appeared more pragmatic, meeting with Chinese Premier Xi Jinping and signing up to Lula’s global pact against poverty. He did, however, highlight his dissent on key issues.

In Montevideo, Argentina’s leader is expected to criticise the functioning of Mercosur and reaffirm his geopolitical alignment with the United States and Israel

With former US president Donald Trump set to return to the White House, his push for stronger ties with Washington and Jerusalem could complicate ties with Mercosur.

His push for a free-trade agreement with Washington will conflict with the bloc's rules, which require bilateral deals to be negotiated together. Some view Milei’s pivot to Washington as part of a broader strategy to align Argentina with US interests in the region.

EU deal

The most pressing issue for the five leaders meeting in Montevideo — Lacalle Pou, Lula, Peña, Milei, and Bolivia’s Luis Arce (now a formal member of Mercosur) — is the stalled free-trade agreement with the European Union.

Talks between the 27-country EU and Mercosur began in 1999, with some progress made in 2004, but negotiations ultimately stalled. In 2019, the contours of a deal were agreed, but some European states blocked its ratification, citing environmental concerns.

Some senior EU officials now say a deal could be reached before the end of the year, but its detractors, led by France, are intensifying their opposition.

Milei’s position on the pact remains unclear, although he discussed it with Emmanuel Macron during the French President's recent visit to Buenos Aires.

France, which opposes the deal, has made its concerns clear, particularly regarding the impact on its farmers.

Spain, Germany, and Italy support the agreement, though opposition is rising within Italy. Prime Minister Giorgia Meloni — who was also in Argentina last week — and Agriculture Minister Francesco Lollobrigida have voiced concerns about its potential impact on local producers.

Russia’s invasion of Ukraine in 2022 renewed interest in fast-tracking the deal, but significant political and commercial disagreements remain on both sides of the Atlantic.