Milei: Mercosur has ‘ended up becoming a prison’ for members

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Argentina's President Javier Milei warned Friday that Mercosur – the regional trade bloc his nation founded more than three decades ago with Brazil, Paraguay and Uruguay – has “ended up becoming a prison” for its member states.

Describing the bloc’s restrictions on trade negotiations as “a stumbling block to the progress of Argentines,” the La Libertad Avanza leader said the bloc had failed in its purpose and called for “a new formula.”

Milei, 54, made his remarks as he attended his first summit of Mercosur leaders in Montevideo. Argentina’s leader is due to receive the pro-tempore presidency of the bloc later today.

“Mercosur, which was born with the idea of deepening our trade ties, has ended up becoming a prison that does not allow its member countries to take advantage of either their comparative advantages or their export potential,” said Milei, a fierce free-trade advocate, during the South American bloc’s 65th summit.

Mercosur does not currently allow free-trade agreements with third parties without the consent of its partners, a rule that Milei and Uruguayan President Luis Lacalle Pou both want changed.

“‘Let us gain autonomy while respecting the agreements that unite us, and if that means trading freely among ourselves, I propose that we loosen the ties that today stifle us instead of strengthening us,” said Milei.

“This bloc cannot continue to be a straitjacket that limits our countries,” he complained. “‘If the bloc is not a dynamic engine that facilitates trade, boosts investment and improves the quality of life of all the citizens of our region, what is the point of it?”

Milei has been far from enthusiastic about the Mercosur bloc since taking office almost one year ago. He skipped the last Mercosur summit held last July in Asunción, Paraguay, sending then-foreign minister Diana Mondino in his stead.

With Economy Minister Luis Caputo seated beside him, Milei called for the end of the “common external tariff” (CET) system, stating it made import, as well as local production, more expensive, closing off “countless trade routes.”

He claimed that, from the mid-1990s until now, Mercosur’s share of world trade had fallen from 1.8 percent to 1.6 percent.

In addition to Argentina’s head of state, the presidents of Brazil, Luiz Inacio Lula Da Silva, and Paraguay, Santiago Peña, have also travelled to Montevideo.

Lacalle Pou, who will hand over power to Yamandú Orsi next March, is hosting and will hand over the pro-tempore presidency of the bloc later today to Argentina and Milei.

The LXV Ordinary Meeting of the Common Market Council (CMC) and the Summit of Heads of Mercosur and Associated States began Thursday in Montevideo with a meeting of regional foreign ministers.

Topping the agenda is the long-stalled free-trade agreement with the European Union, which could have profound implications for the relationship between the member countries of the bloc and Europe.