Discurso completo de la Canciller Diana Mondino en la Cumbre del Mercosur
Foreign Minister Mondino participated today in the Presidential Summit of MERCOSUR, hosted in Asunción, together with presidents and high-level authorities of the region. At the plenary session, during which the Republic of Paraguay handed over the Pro Tempore Presidency of the bloc to the Oriental Republic of Uruguay, the Foreign Minister ratified Argentina's commitment to the bloc and made clear the country’s position on Mercosur’s current situation.
First, she regretted that "it was not possible to reach a final consensus to adopt the draft joint statement by the Member and Associate States, to which all the delegations devoted many hours and efforts so as to reflect the positions held by each and every one of us. It has been a pragmatic and constructive exercise, and we were close to reaching a consensus when most of the text was practically agreed upon. Everyone must be heard." She further stated that "the added value of these meetings lies in the exchange of perspectives, which, far from being a problem, needs to be accepted as good practice, for the benefit of all members."
Mondino appreciated and thanked the work done by Paraguayan authorities during the past six months and said: "We are living in a troubled world. Yet, 300 trade agreements have been reached worldwide. We firmly believe that promoting the ideas of freedom is the best way to face global challenges. For Argentina, ambiguities are over. We believe in respecting and safeguarding the life projects of others, based on the principle of non-aggression, and in defence of the right to life, freedom and private property. This means that the respect for the popular will is non-negotiable. No coup or attack to democracy can ever be accepted."
"An economic system based on free enterprise is the only tool we have to end hunger, poverty and extreme poverty. It is everybody's goal. We believe that the market is a process of social cooperation, where voluntary exchanges take place," she added.
In this regard, the Foreign Minister highlighted that "MERCOSUR is excessively regulated and closed in on itself, and by arguing that it serves as a 'protection barrier' from imports from other markets, it only limits its own exports, affecting the general equilibrium underlying trade exchange. We went from 'creating' trade to 'diverting' it. What is worse, our union is a rather imperfect customs union."
In addition, she stated that "MERCOSUR is no longer an outlet. Instead, it has become a corset that immobilizes us and magnifies domestic problems. As President Santiago Peña said, we need perseverance and flexibility."
"I am aware that Argentina's situation is particular and that we did not have the moral authority to be critical of a closed MERCOSUR because we, as a country, were extremely closed. In a few days it will be seven months since we took office. Argentina had created a harmful system of import controls, which led us to an annual inflation rate of 17,000%. The latest monthly inflation rate was 3.5%, which amounts to 50% annually. Not to mention how poorly the Central Bank was managed."
After offering an overview of the economic situation Argentina was in when President Milei took office and the new administration's political and economic achievements, the Foreign Minister stated: "Argentina has begun a process of State reform. We have achieved financial balance and increased the aid provided to those in need. We have never ignored our debts. I share this with you because our goal is to open to the world, and we believe that MERCOSUR may be the path to do it."
"We must put an end to tariff barriers. Our government has undertaken a detailed study, almost like a census, of all those barriers within Mercosur that must be removed or modified in order to improve intra-regional trade flows, so that we can integrate as a region and with the rest of the world,” said the Minister.
In terms of energy integration, Mondino emphasized the need to “advance the exchange of conventional and unconventional hydrocarbon resources, both through the construction of a gas pipeline network and the execution of Liquefied Natural Gas projects; and to advance mining projects, particularly for lithium, copper, and rare earth elements.” She also highlighted “the importance of border integration and the promotion of private sector investments in maritime and river transportation in our region, as well as the ‘open skies’ policy for air transportation, both for passengers and cargo, with a view to reducing logistics costs.”
Furthermore, she stressed that if the regional bloc “looks ahead to the future, it must integrate into a technological process, and we currently face barriers among ourselves. Our integration framework must be a dynamic and agile platform for international integration. To this end, we have presented a comprehensive proposal to our partners, which we have called the ‘modernization of MERCOSUR’.”
She stated that this proposal has three pillars: “First, an institutional modernization of MERCOSUR to adapt its decision-making processes and organize the various funds, groups, and committees for greater agility and consistency. Second, a financial modernization to ensure the rational and prudent use of Member States’ resources, with a comprehensive reform of MERCOSUR’s institutional structure. Decision-making on expenditures cannot be left adrift; it must involve collegial decision-making and audits. And third, a modernization of MERCOSUR’s foreign relations. There is a direct link between peace, trade, and prosperity. We all know that economic prosperity requires free trade, and free trade requires peace.”
In line with this, she explained that “so far, MERCOSUR has not succeeded in becoming an instrument for accessing major foreign markets. We have not been able—sometimes due to the stance of third parties, sometimes due to our own decisions—to reach preferential agreements with countries or blocs that are currently part of the most dynamic global trade flows. We are conducting negotiations with the EU, but also with EFTA, Singapore, many of the countries present here, Asia, and countries that have approached us: Japan, Malaysia, Indonesia, the United Arab Emirates. Therefore, we propose a new and faster negotiation approach.”
The Minister also called for a “voracious MERCOSUR, on steroids; these 30 years of limited progress must come to an end,” and cited as an example “sending a clear signal of our commitment to conclude the negotiation with the European Union. Let us not bring our contradictions to the other party. We have already demonstrated our firm decision to achieve a fair and mutually beneficial agreement.”
Finally, Mondino cited the Argentine Constitution, which in its preamble sets forth “the firm decision to guarantee the benefits of freedom for ourselves, our posterity, and all the people of the world who wish to inhabit Argentine soil. These same ideas are reflected in the Constitutions of the other Member States. Therefore, we believe that these ideas of freedom should be our roadmap to transform MERCOSUR from a small, protected, fearful body into, paraphrasing our next Pro Tempore President, my esteemed Lacalle Pou, a more flexible and modern MERCOSUR.”
