Foz do Iguaçu, December 20, 2025 — Argentine President Javier Milei delivered a sharp and politically charged speech at the Mercosur summit in Foz do Iguaçu on Saturday, openly criticizing the bloc’s structure as bloated and ineffective while endorsing U.S. President Donald Trump’s hardline approach toward Venezuela.
Arriving in Brazil with a clear political and economic agenda, Milei called for sweeping reforms within Mercosur to allow greater trade flexibility and bilateral agreements outside the bloc. He argued that the regional alliance has failed to meet its founding goals and warned that South America faces a decisive moment.
“Mercosur was created to promote trade, integrate markets, and increase competitiveness. Today, there is no common market, no effective free movement of goods, and no macroeconomic coordination,” Milei said. “What we do have is an oversized bureaucracy that has expanded upon itself.”
Call for Reform and Trade Openness
Milei urged member states to modernize Mercosur’s institutional framework, reduce costs, and remove internal barriers that, in his view, hinder economic growth. He stressed that flexibility does not mean abandoning the bloc, but rather adapting it to a rapidly changing global economy.
The Argentine government reiterated its push to allow member countries to pursue bilateral trade agreements without breaking Mercosur rules—an idea previously championed by Uruguay and resisted by Argentina under former president Alberto Fernández. Now, with a changed political landscape, Milei’s libertarian administration believes there is renewed space to revisit the proposal.
Foreign Minister Pablo Quirno has echoed this stance in earlier regional meetings, arguing that decades-long negotiations—such as the stalled Mercosur–European Union agreement—demonstrate the need for faster and more pragmatic trade mechanisms.
Support for Trump and Tough Stance on Venezuela
One of the most sensitive moments of Milei’s speech came when he openly backed Washington’s pressure campaign against Venezuelan President Nicolás Maduro. “Argentina welcomes the pressure from the United States and President Donald Trump to liberate the Venezuelan people. The time for timid overtures is over,” Milei declared.
He also demanded the release of Argentine gendarme Nahuel Gallo and called on Mercosur to take a firm position in support of restoring democratic order in Venezuela. His remarks highlighted tensions within the bloc, particularly with Brazil, whose government maintains a more cautious approach toward Caracas.
Summit Overshadowed by EU Deal Delay
The summit, hosted by Brazil under its pro tempore presidency, was initially expected to culminate in the long-awaited signing of a free trade agreement between Mercosur and the European Union. Those expectations faded after the European Commission, led by Ursula von der Leyen, announced another postponement, pushing a tentative signing date to January 12.
As a result, the meeting took on a more political than substantive tone, exposing internal divisions over Mercosur’s future direction.
Diplomatic Balancing Act with Brazil
Despite ideological differences with Brazilian President Luiz Inácio Lula da Silva, Milei chose to attend the summit as a gesture toward Argentina’s main trading partner. The two leaders met privately, along with the presidents of Paraguay, Uruguay, and Bolivia, signaling a cautious effort to maintain dialogue and avoid open confrontation.
While Lula emphasized that “the world is eager for agreements with Mercosur,” Milei’s intervention underscored a contrasting vision: one focused on deregulation, free markets, and accelerated global integration.
A Strategic Signal
Argentina’s presence at the summit reinforced the government’s broader message that Mercosur must modernize or risk irrelevance. Milei has made clear that his administration will continue pushing for flexibility, faster trade talks with partners such as Canada, Japan, and the United Arab Emirates, and a tougher regional stance on democratic backsliding.
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