Paraguay criticizes the environmental conditions of the agreement with the EU – 05/16/2023 – Market

The president-elect of Paraguay, Santiago Peña, stated that he shares the Brazilian government’s view that the additional instrument of the European Union-Mercosur agreement, focused on the environmental issue, contains “very tough” restrictions for developing countries.

Luiz Inácio Lula da Silva (PT) and Peña met for about an hour this Tuesday (16) at the Planalto Palace, in Brasília. The Paraguayan was elected in April this year and will take office in August.

After the meeting, Lula wrote on his social networks that he had a great conversation with the Paraguayan and that he was invited to his inauguration, in August.

“Excellent conversation with the president-elect of Paraguay, @SantiPenap. I am grateful for the invitation to take office in August and we are going to work hard together to strengthen relations between our countries,” he wrote.

Peña told Brazilian journalists that he is in favor of the free trade agreement between the European Union and Mercosur. However, he also disagrees with the terms of the so-called “site letter”, an additional instrument to the agreement, which focuses mainly on environmental issues, imposing new restrictions

“We are in favor of this agreement and we also share Brazil’s view that some restrictions, mainly in environmental terms, are very tough for a region of the world that needs to develop. And it needs to develop while being careful with the environment,” he said. the president.

“I am very aware of the challenge that Paraguay has in this regard. Paraguay is a very large country, which is developing. But we have to do it in line with the interests of Paraguay, Paraguayans and all Mercosur countries “, he completed.

The Paraguayan president-elect said that, for now, he is not discussing the revision of any particular aspect of the free trade agreement.

Peña also stated that he was in favor of revising the treaty regarding the Itaipu plant. The next representative stated that Paraguay does not want to be just a “rentier State” in terms of taking advantage of the plant, meaning that it is not only interested in selling the energy surplus to Brazil.

“Paraguay has the great challenge of generating jobs. And we set the objective of generating 500,000 jobs in the next five years. We have to improve human capital, education and health. Our vision is how to develop Paraguay, not with a policy rentier, selling energy, but using energy. Paraguay has the challenge of using energy”, stated the future Paraguayan president.

“But, in addition to using energy, Itaipu can be a source of development. 50 years ago, the objective of the treaty was to build and pay for a hydroelectric plant. 50 years later, this objective has been fulfilled. Now the question is what do we want for the next 50 years. And Paraguay’s proposal is that Itaipu be a source of development in the integration process. Investments that allow the development of hydroelectric plants, that allow job opportunities for Paraguayans and Brazilians alike”, he added.

Peña stated that the revision of the treaty will not only be restricted to financial matters, related to the sale of energy. These terms are present in the so-called Annex C.

“Nothing prevents us from discussing all the treaties, annex A, annex B. We are not only limited to revising the financial conditions, but we also have to establish what is the role that this great binational undertaking will play”, he stated.

The president-elect also added that he will restore relations with Venezuela, as he had promised during the election campaign. And that there will be no conditions imposed for this to be done.

The conservative Santiago Peña, 44, overcame the liberal Efraín Alegre, 60, and was elected president of Paraguay this Sunday (30). Contrary to expectations of a close election, the Colorado party achieves its most comfortable victory against the opposition in 25 years.

The right-wing economist takes over the government in August and guarantees five more years of hegemony to the party, which has already ruled the country for almost 70 years. The exception was the management of former left-wing bishop Fernando Lugo, from 2008 to 2012, who was impeached months before completing his term.