Milei set to attend Mercosur summit amid EU trade deal uncertainty

President Javier Milei is now weighing up whether to attend the Mercosur Summit to be held on December 20 in Foz do Iguaçu, Brazil, according to government sources.

However, figures close to the libertarian leader still voiced doubts on the possibility of achieving the long-awaited agreement between the regional trade bloc and the European Union (EU).

“The President has it on his agenda and it is very likely that he will go,” said an official familiar with the agenda.

The report comes days after local media reported Milei would skip the summit and send Foreign Ministry officials in his place.

Ties between Argentina and the Mercosur bloc, particularly with Brazilian President, Luiz Inácio Lula da Silva have been strained since Milei took office.

Despite this, officials in the Casa Rosada note that Lula has since reached out to United States President Donald Trump to put their own disputes aside. Sources maintain that the relationship between Argentina and Brazil remains “institutional.” 

Figures close to the president assert that Mercosur "requires changes" to its rules in order to allow greater openness to trade with other member countries outside the bloc, especially following the Milei administration’s recent agreement with the United States. 

This is not the first time the issue has been raised. On several occasions, the La Libertad Avanza leader has proposed eliminating a rule that prohibits member states from negotiating other free-trade agreements with third parties without the approval of the partners. 

"We will embark on the path to freedom, and we will do so together or alone, because Argentina cannot wait. We urgently need more trade, more economic activity, more investment, and more jobs," Milei emphasised during the last Mercosur Leaders' Summit in June.

According to Noticias Argentinas, the government is sceptical about the chances of the long-awaited agreement between Mercosur and the European Union, which has been pending for at least 20 years, being closed, due to opposition from countries such as France and Italy.

“I’m not optimistic. Not because we’re against it – obviously we want to be able to trade freely – but we’re encountering resistance in France and Italy,” said a source with access to the presidential office.

French President Emmanuel Macron has anticipated that the agreement between the two regional blocs will receive "a resounding no from France" as officials argue that "it does not protect the interests of farmers." 

A similar stance was voiced by Italy's Minister for European Affairs, Tommaso Foti, who advocates for maintaining continental food sovereignty over South American imports.

"Although it contains benefits, the EU-Mercosur agreement does not sufficiently protect European farmers against the risks of market disruptions and does not sustainably ensure the continent's food sovereignty," he said in a press release.