Paraguay president seeks Mercosur flexibility on EU export quotas

Paraguay's President Santiago Peña is demanding greater flexibility from his Mercosur partners, Argentina, Brazil, and Uruguay, regarding the distribution of export quotas to the European Union. Peña argues that Paraguay, as a landlocked nation, incurs higher shipping costs and therefore requires an "equitable participation" in the quotas established by the recent EU trade agreement.

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Every container that leaves Paraguay travels hundreds of kilometers and incurs a surcharge that no other country pays. This asymmetry must be recognized in the distribution of quotas.

Speaking at the Expo Paraguay 2026, Peña stressed that this fair distribution is not a mere request but a "right." He recalled that Paraguay supported the conclusion of the EU trade deal after 25 years of negotiations, implying that its partners should now reciprocate with flexibility.

"Every container that leaves Paraguay travels hundreds of kilometers and incurs a surcharge that no other country pays. This asymmetry must be recognized in the distribution of quotas," Peña stated. He also noted that Paraguay's support for the deal was not intended for the "bloc to win" while his country "stands by watching."

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Flexibility we had when we put our shoulder to closing the agreement (with the EU) after 25 years. What we ask for now is their flexibility.

This call for equitable quotas echoes a similar plea made by Peña during the Mercosur summit on June 30, where he addressed the leaders of Brazil, Uruguay, and Bolivia. The Mercosur-EU pact aims to create one of the world's largest free trade areas, encompassing over 700 million consumers and approximately a quarter of global GDP.

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Equitable participation is not a whim or a privilege, much less a caprice, but a right.