Paraguay has officially ratified the trade agreement between the European Union and Mercosur, becoming the last member of the South American bloc to take this historic step. The ratification completes the process that will allow the largest treaty ever negotiated by both regions to enter into force.
The agreement covers trade in goods, services, investments, and public procurement, and is expected to especially benefit Paraguay agricultural and livestock sectors, which will gain preferential access to the European market.
However, local industrial sectors express concern about competition from European products, while environmental organizations warn about potential impacts on deforestation in the Chaco region.
Our Take
The ratification is a diplomatic milestone, but the real challenge begins now. Paraguay must prepare its economy to compete on equal terms and ensure that benefits reach all sectors of society.
Key Takeaways
- Paraguay is the last Mercosur member to ratify the EU agreement
- The treaty will especially benefit agricultural and livestock sectors
- Concerns persist about industrial competition and environmental impact