President Javier Milei clashed with Brazilian President Luiz Inácio Lula da Silva on Saturday at the regional Mercosur summit about the fate of Venezuela, as US President Donald Trump ratcheted up the pressure on Caracas.
Sparring comments from Lula and Milei came at a meeting of the South American bloc, at which a future trade deal with the European Union was on the agenda.
But the tensions over Venezuela – once a member of Mercosur but suspended in 2016 – exploded in the open, with Lula warning that armed conflict could spark a "humanitarian catastrophe," and Milei praising Trump's sabre-rattling approach to the crisis.
The US military has beefed up its presence in the Caribbean in recent months and carried out air strikes against alleged drug boats in the region and in the Pacific, claiming that it is combatting narcotics trafficking.
But Venezuelan strongman Nicolás Maduro says the campaign is part of a wider effort to carry out regime change in Caracas, and Trump said this week he could not rule out the possibility of war.
"An armed intervention in Venezuela would be a humanitarian catastrophe for the hemisphere and a dangerous precedent for the world," Lula said to open the Mercosur summit in the southern city of Foz do Iguaçu.
But Milei – a fierce ally of Trump – followed with his own take on the situation, saying, "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."
The US government has accused Maduro of leading the "Cartel of the Suns" ("Cartel de los Soles") alleged narco-trafficking group – a charge he denies. Trump has also announced a blockade on oil tankers under sanctions that are leaving or arriving in Venezuela.
Lula asks EU for 'courage' on trade
Argentina, Brazil, Paraguay and Uruguay had hoped they would on Saturday finally seal a deal with the EU to create the world's largest free trade zone, as did EU Chief Ursula von der Leyen and most of the European bloc's member states.
However, the deal met with fierce opposition from farmers, notably in France and Italy, and has now been postponed to January.
"Without political will and courage on the part of leaders, it will not be possible to conclude negotiations that have dragged on for 26 years," Lula said in his opening speech.
"We have in our hands the opportunity to send the world an important message in defense of multilateralism, and to reinforce our strategic position in a global environment that is more and more competitive," Lula told attendees. "But, unfortunately, Europe has not yet made its decision."
The leftist leader said he had received a letter from EU leaders expressing confidence that the deal would be approved in January.
One source in the European Commission and two diplomats who asked not to be named said the new expected signing date was set for January 12 in Paraguay.
Negotiations first began over a deal in 1999 and many fear this is the last-chance saloon.
Paraguayan Foreign Minister Rubén Ramírez said neither he nor his Brazilian counterpart Mauro Vieira was aware of any "official communication" on the matter.
The agreement would help the European Union export more vehicles, machinery, wines and spirits to Latin America. In return, it would facilitate the entry into Europe of South American meat, sugar, rice, honey and soybeans.
Some EU nations, such as Germany and Spain, are excited about a pact that could help boost exports at a time of global trade tensions.
But the proposed deal has provoked anxiety among farmers who fear they will be undercut by a flow of cheaper goods from agricultural giant Brazil and its neighbors.
Aside from Lula and Milei, Uruguayan President Yamandú Orsii and Paraguay's Santiago Peña were attending the summit in Foz do Iguaçu, home to one of the world's largest waterfall systems on the border with Argentina.
Bolivia is the newest full member of Mercosur, but is not part of the trade deal.
Milei pushes for flexibility
Milei used his speech at the Mercosur to call for "comprehensive institutional reform."
Argued that "flexibility is an asset, not a threat," the La Libertad Avanza leader once again called for liberalisation of the bloc's rules.
"It is up to this bloc to decide whether to move with this tailwind or cling to the mast of the past to fight against the change that our countries need and demand," the head of state said, referencing the recent victory of his far-right ally in Chile, José Antonio Kast, who won this month's run-off election and will take office next March.
Milei complained that "there is no common market, no effective free movement, no macroeconomic coordination," nor "sufficient openness to the world" with the Mercosur.
Argentina's leader advocated for "comprehensive institutional reform," which should "reduce the economic cost" of the bloc, stating: "Integration should serve free trade, not bureaucracy."
According to the president, when Mercosur "tries to move forward in a monolithic manner, opportunities are lost," citing the example of the stalling EU deal.
"After decades of negotiations, we were unable to reach a trade agreement. The time that has passed does not respond to the needs of our nations," he said, referring directly to the deal,
– TIMES/AFP/NA
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