Mulino Defends EU-Mercosur Agreement and Criticizes Extreme Trade Regulations
Panama’s leader assured that Panama, which recently joined Mercosur as an associate state, has a “great interest” in “contributing” with its geographical position.
Panamanian President José Mulino defended the Mercosur – European Union (EU) association agreement in Paraguay on Saturday, asserting that it promotes economic freedom over “interventionism” and “extreme regulations.” “I want to congratulate both the Mercosur team and the European Union team for signing this agreement, which is in favor of economic freedom and the exchange of goods, without so much interventionism that has been detrimental to the global economy,” said the Panamanian president, who participated as a guest of honor at the signing ceremony of this pact in Asunción. The president, who arrived in Paraguay on Friday, stated that “extreme regulations” on trade “are made overnight”, but that agreements like the one signed today “take years and years”.
“There is an explanation for this,” the president added. “Economic policy is more inclined towards protectionism and fear of free trade, which implies both productive and tax competitiveness.” In that regard, he stressed that the signing, which took place at the headquarters of the Central Bank of Paraguay (BCP), “is not the end of anything, but the beginning of something great for the benefit of all.” “Panama is a fervent believer in multilateralism, open world trade, and economic freedom,” he emphasized. Mulino argued that Mercosur, made up of Paraguay, Argentina, Brazil and Uruguay, is “a giant producing bloc that makes quality products, with good practices, in a competitive manner,” alluding to the concerns of European trade associations that have questioned South American production.
The ruler assured that Panama, which recently joined Mercosur as an associate state, has a “great interest” in “contributing” with its geographical position and logistical strength around its canal and seaports. “I want to be clear, we are not a competitor, we are a complement to all of you so that your products reach the most diverse markets, increasing the competitiveness of the countries’ foreign trade,” said the president, who stressed that his country is “proud” to be part of Mercosur. Mercosur and the EU signed a historic agreement this past Saturday.
