Story perspectives

Paraguay Leads Mercosur Summit, Opens Japan Talks, Secures $100M Fund

7/2/2026

Summary

Paraguay Hosts Summit

Paraguay hosted the Mercosur summit and opened talks on a deal with Japan.
President Santiago Peña said EU left a taste, demanding 25 % duty-free quotas for Paraguay.
President Yamandú Orsi assumed the presidency, pledged reforms and highlighted cooperation.
President Luiz Inácio Lula da Silva pledged $100 million for ten years to Mercosur Structural Convergence Fund.
Leaders expressed solidarity with Venezuela, backed Bolivia after blockades and called for a architecture against crime.

Summary

Mercosur Secures Deal

Mercosur-Japan trade reached $13.7 billion (12 billion euros) in 2025, showing the deal’s economic relevance.
The EPA builds on a strategic partnership signed on 20 December 2025 after meetings in January and March.
Japanese industry expects a surge in South American automobile imports, a key focus of the negotiations.
U.S. President Donald Trump’s era tariffs have pushed Mercosur to accelerate deals with Japan, Canada and China.

History

Historical Context

In 1991 Argentina, Brazil, Paraguay and Uruguay signed the Treaty of Asunción, creating Mercosur and eliminating internal tariffs. Intra-regional merchandise trade grew from $10 billion at its start to $88 billion by 2010, covering about 180 million people. At the 2025 Paraguay summit, leaders are extending that legacy by negotiating a Japan Economic Partnership Agreement to expand Mercosur’s $13.7 billion trade.

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Paraguay Hosts Summit

Paraguay hosted the Mercosur summit and opened talks on a deal with Japan.
President Santiago Peña said EU left a taste, demanding 25 % duty-free quotas for Paraguay.
President Yamandú Orsi assumed the presidency, pledged reforms and highlighted cooperation.
President Luiz Inácio Lula da Silva pledged $100 million for ten years to Mercosur Structural Convergence Fund.
Leaders expressed solidarity with Venezuela, backed Bolivia after blockades and called for a architecture against crime.

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