Overview
- At the Foz de Iguaçu summit, Javier Milei called Mercosur an “oversized, ineffective bureaucracy” and pressed for a comprehensive overhaul to cut costs, lower the Common External Tariff and permit bilateral agreements outside the bloc.
- The EU–Mercosur trade pact’s signing was reprogrammed for January 12, 2026 in Paraguay after internal EU objections, particularly from France and Italy, blocked a December conclusion.
- Milei endorsed U.S. pressure led by President Donald Trump on Nicolás Maduro’s government, labeled it a dictatorship and demanded the release of political prisoners, including Argentine national Nahuel Gallo.
- Argentine officials told local media that a trade accord with the United States is “practically closed,” a government claim reported without a signed text as EU talks slow.
- Domestically, Milei said he will not veto the 2026 budget and will reassign spending to maintain a zero‑deficit goal, with Senate allies preparing to pass the bill without changes.