Asunción, Agencia IP.- The Executive Branch held a meeting with representatives of the private sector to outline the scope and growth potential that the agreement signed between Mercosur and the European Union offers to the different sectors of the Paraguayan economy.
The meeting was led by the President of the Republic, Santiago Peña, and was attended by around one hundred business leaders from the industrial, agricultural, livestock, services, and other sectors.
The Minister of Industry, Javier Giménez, delivered a presentation highlighting the agreement’s development potential across many areas of the Paraguayan economy, as it opens the European market to Mercosur countries.
He emphasized that several sectors in which Paraguay already stands out, such as textiles, electrical cables, wood products, pork, pasta, aluminum products, and processed meats, now have strong potential to increase their market share in Europe.
For example, he noted that the EU will open a quota for Mercosur of 180,000 tons of poultry carcasses, with and without bones, and that if Paraguay manages to negotiate an equal distribution of this quota among the four Mercosur countries, Paraguay would obtain a share of 45,000 tons.
«This would represent an additional revenue margin of between 50 and 100 million dollars for Paraguay in this sector,» he stressed, adding that many other industries also face a similarly favorable growth outlook.
Preferential access to the European market
In this regard, Foreign Minister Rubén Ramírez explained that the agreement consolidates preferential, stable, and predictable access to the European market and that Paraguay has benefited from the Generalized System of Preferences.
«It is estimated that at least 95% of Paraguay’s current exports will enter the European market in a much more competitive manner, as they will benefit from preferential treatment compared to other products,» he said.
He indicated that these exclusive benefits for Paraguay, including additional quotas, cover sectors such as auto parts, organic sugar, pork, and biodiesel.
Support for sustainable production and adaptation
For her part, the European Union Ambassador to Paraguay, Katja Afheldt, reported that the European Commission will mobilize €1.8 billion to support sustainable growth initiatives and help Mercosur countries adapt to the new economic and trade environment that will emerge with the creation of the future free trade area.
These initiatives, which may come from either the public or private sector, aim to promote regulatory harmonization with European Union standards and to support projects that strengthen SME productivity and improve critical infrastructure, she explained.
Specifically for Paraguay, she added, the European Union has financed two studies to identify key needs that will enable the country to fully leverage the opportunities offered by the agreement and promote diversification, innovation, and job creation.
«From the EU delegation, we reaffirm our firm commitment to accompany the implementation process of the agreement, and we are fully available to provide information, establish contacts, and promote events that help turn this agreement into a true partnership of mutual benefit,» the representative stated.
Compliance with standards
When responding to questions from attendees, the Minister of Industry and Commerce stated that in order to take advantage of the opportunities provided by the agreement, the Paraguayan private sector must invest in complying with EU standards, whether phytosanitary, environmental or others, add increasing value to production and exports, seek partnerships with European companies, increase production and innovation, and adopt a long-term vision.
«We have a scenario in which the political approval process is key, but once ratified by one of the parties, it is not an obstacle for the agreement to benefit the country that approves it,» Foreign Minister Rubén Ramírez added while answering questions.