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Paraguay has little to lose if Mercosur-EU quota deal fails, says Senacsa
🇵🇾 Paraguay /Economy & Trade

Paraguay has little to lose if Mercosur-EU quota deal fails, says Senacsa

From ABC Color · () Spanish

Translated from Spanish, summarized and contextualized by DistantNews.

At a glance

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  • Paraguay's animal health authority supports President Santiago Peña's stance on equitable export quotas to the EU within Mercosur.
  • The head of Senacsa stated Paraguay has little to lose if no agreement is reached, as it never had preferential tariff access to the EU market.
  • Disagreements within Mercosur could negatively impact the bloc's image, though the meat sector's reliance on EU access is not critical.

Paraguay's animal health authority, Senacsa, has backed President Santiago Peña's push for a fair distribution of Mercosur export quotas to the European Union. José Carlos Martin, the president of Senacsa, described Peña's position as "excellent," emphasizing that Paraguay has minimal to lose if Mercosur partners fail to reach an agreement.

In case of a non-negotiation of a new agreement, what remains is first come, first served. The worst position in the worst scenario is not that it dissatisfies us. We are seeking a negotiation that pleases everyone. In this, we have little to lose because we never had tariff access to the EU.

— José Carlos MartinThe president of Senacsa explained Paraguay's position on Mercosur export quotas to the EU and its limited downside risk.

Martin explained that Paraguay seeks a 25% share of export quotas for all products covered by the EU-Mercosur deal. This contrasts with proposals from other Mercosur members, which he claims offer Paraguay only a 10% share at best. He asserted that even in the worst-case scenario of no new agreement, Paraguay would not be significantly disadvantaged because it has never had preferential tariff access to the EU market.

He further noted that before the trade agreement negotiations, exporting outside of tariff quotas was prohibitively expensive due to high duties. Last year, Mercosur exported approximately 4.5 million tons of meat globally, with less than 5% destined for the EU. "This is not a matter of life or death," Martin stated, adding that the national livestock sector would not change drastically with or without this access.

This is not a matter of life or death. It is not that livestock farming or the animal husbandry activity will change overnight by having or not having this access.

— José Carlos MartinThe head of Senacsa downplayed the immediate impact of the EU-Mercosur trade deal on Paraguay's livestock sector.

However, Martin cautioned that internal disagreements within Mercosur could send a negative signal to the EU and other potential markets like Japan. He also suggested that Brazil's potential suspension for phytosanitary reasons might indirectly benefit Paraguay.

We are not sending good signals that could leave positive precedents.

— José Carlos MartinThe Senacsa president warned that Mercosur's internal discrepancies could harm its international image.
DistantNews Editorial

Originally published by ABC Color in Spanish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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