Paraguay Hosts High-Level Meeting to Advance Implementation of EU–Mercosur Trade Deal

The Government of Paraguay convened a high-level meeting to accelerate the implementation of the EU–Mercosur trade agreement, bringing together senior government officials, European Union representatives, private-sector leaders and the Inter-American Development Bank Group (IDB Group).

The meeting, hosted by Paraguayan President Santiago Peña, focused on translating the landmark trade deal—signed in January 2026—into concrete economic opportunities across Latin America and Europe.

Landmark Trade Deal to Transform Regional Trade

The EU–Mercosur agreement is widely regarded as the largest expansion of market access for Mercosur since the bloc's creation, opening new opportunities for trade, investment and economic cooperation between the two regions.

Mercosur members—Argentina, Brazil, Paraguay and Uruguay—stand to benefit from improved access to the European Union market across multiple sectors, including:

• Agribusiness and food exports

• Energy and renewable resources

• Manufacturing and industrial goods

• Critical minerals and natural resources

• Knowledge-based and digital services

The agreement is also expected to strengthen the integration of small and medium-sized enterprises (SMEs) into global value chains, enabling companies across the region to participate more effectively in international markets.

IDB Group Supporting Implementation

The meeting highlighted the role of the Inter-American Development Bank Group, which is working with governments to ensure the agreement's benefits translate into tangible economic growth.

The IDB Group is uniquely positioned to support the implementation process, as it is the only regional development bank whose membership includes all Mercosur countries as well as most European Union states and other key trading partners.

As with other international trade agreements, the bank assists countries in transitioning from negotiation to effective implementation, providing technical expertise, investment support and policy guidance.

Public and Private Sector Collaboration

The event also underscored the importance of close cooperation between governments, financial institutions and the private sector to maximize the agreement's impact.

Private-sector participation highlighted opportunities for businesses to expand trade, investment and logistics networks between Europe and Latin America.

Companies operating across key sectors such as sustainable manufacturing, agribusiness, infrastructure and logistics are expected to play a crucial role in driving the next phase of economic integration.

High-Level Participants

The meeting brought together prominent leaders from across the region and Europe, including:

• Santiago Peña, President of Paraguay• Carlos Fernández Valdovinos, Minister of Economy and Finance of Paraguay and IDB Governor for Paraguay• Ilan Goldfajn, President of the IDB Group• Maroš Šefčovič, European Commissioner for Trade and Economic Security• Ana María Ibáñez, Vice President for Sectors and Knowledge at the IDB• Rubén Ramírez Lezcano, Minister of Foreign Affairs of Paraguay• Mario Lubetkin, Minister of Foreign Affairs of Uruguay• Mauro Vieira, Minister of Foreign Affairs of Brazil• Pablo Lavigne, Secretary for Production Coordination, Argentina's Ministry of Economy• José Fernando Romero Pinto, Bolivia's Minister of Development Planning and Environment and IDB Governor for Bolivia• Katja Afheldt, Ambassador of the European Union to Paraguay

Private sector participants included Flávio Deganutti, CEO of Paracel, and Roger Libby, Vice President and Head of Corporate Public Affairs for the Americas at DHL.

Strengthening Economic Integration

Participants emphasized that the agreement has the potential to boost trade flows, attract new investment and strengthen economic integration between Latin America and Europe, while supporting sustainable growth and innovation.

With implementation now underway, governments and institutions are focusing on ensuring the deal delivers practical benefits for businesses, workers and communities across Mercosur countries.

The meeting in Paraguay marks an important step toward translating the historic EU–Mercosur agreement into real economic opportunities and deeper transatlantic cooperation.