Paraguay President-elect: EU's environmental demands in trade talks 'unacceptable'

Record ID: 1736941

  • Title: Paraguay President-elect: EU's environmental demands in trade talks 'unacceptable'
  • Date: 8th August 2023
  • Summary: ASUNCION, PARAGUAY (AUGUST 7, 2023) (REUTERS) (SOUNDBITE) (Spanish) PARAGUAY’S PRESIDENT-ELECT, SANTIAGO PENA, SAYING: “I told her (Ing-Wen) this friendship bond is not only nostalgia and friendship but also, a conviction that Paraguay’s development path towards an industrialised economy, the small and medium-sized industries’ development model that Taiwan has developed, can be a great teaching for us. And, of course, I thanked her for all they did historically for Paraguay.” PENA DURING INTERVIEW (SOUNDBITE) (Spanish) PARAGUAY’S PRESIDENT-ELECT, SANTIAGO PENA, SAYING: “I believe Paraguay has to consolidate the model it has today with low taxes in a practical sense – to attract investment and create employment. Probably, in the future, with a more formal economy, more job professionalization, and better worker productivity, we can then think of some sort of progressive taxes. But this is a discussion that considering today’s development in the country, it has no place.”
  • Embargoed: 22nd August 2023 15:05
  • Keywords: European Union Free trade Paraguay President-elect Santiago Pena Taiwan
  • Location: ASUNCION, PARAGUAY & TAIPEI, TAIWAN
  • City: ASUNCION, PARAGUAY & TAIPEI, TAIWAN
  • Country: Paraguay
  • Topics: South America / Central America,Government/Politics
  • Reuters ID: LVA003296807082023RP1
  • Aspect Ratio: 16:9
  • Story Text: South America's Mercosur trade bloc and the European Union should shelve talks over a free trade agreement, with current environmental demands from the EU "unacceptable," Paraguay's President-elect Santiago Pena told Reuters on Monday (August 7).
    Pena, who takes office next week, said that the European bloc's proposals would hinder major soy exporter Paraguay's economic development. Paraguay is one of the four Mercosur member states along with Brazil, Argentina and Uruguay.
    The comments, Pena's strongest on the trade talks since winning election in April, underscore rising tensions as the European and South American blocs race to finalize a deal, long delayed due to doubts over Brazil's climate action commitments.
    The South American countries, home to huge swathes of the Amazon, the Chaco forest and key wetlands, are major exporters of soy, corn, and beef. They have increasingly pushed back against environmental demands from the EU, saying they amount to European protectionism and would hurt local production.
    Mercosur officials are working on a counter-proposal before meeting with EU negotiators. There are some hopes of reaching an agreement later this year on the trade deal.
    During the interview, Pena, who has always pledged to stand by diplomatic ally Taiwan, a self-governed island claimed by China, doubled down on his supportive position. His government is also hoping for more investment from Taipei.
    (Production: Cesar Olmedo, Juan Bustamante, Anna Portella, Gloria Lopez)
  • Copyright Holder: REUTERS
  • Copyright Notice: (c) Copyright Thomson Reuters 2023. Open For Restrictions - http://about.reuters.com/fulllegal.asp
  • Usage Terms/Restrictions: None
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