Panama's President Defends Mercosur-EU Agreement

The president of Panama, José Mulino, defended this Saturday in Paraguay the association agreement between Mercosur and the European Union (EU) by ensuring that it favors economic freedom over "interventionism" and "extreme regulations." "Panama is a fervent believer in multilateralism, open world trade, and economic freedom," he emphasized. "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 foreign trade of the countries," stated the ruler who stressed that his country is "proud" to integrate Mercosur. Mulino defended that Mercosur, made up of Paraguay, Argentina, Brazil, and Uruguay, is "a giant producing block that makes quality products, with good practices, in a competitive way," alluding to the concerns of European guilds that have questioned South American production. "I want to congratulate both the Mercosur team and the EU 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. "This has an explanation, " added the president, "economic policy is more inclined towards protectionism and fear of free trade, which implies both productive and tax competitiveness." Mercosur and the EU signed this Saturday a historic free trade agreement that will lead to one of the largest integrated zones in the world, with 720 million people, after 26 years of negotiations. The ruler assured that Panama, which recently joined Mercosur as an associated state, has a "great interest" in "contributing" with its geographical position and logistical strength around its canal and maritime ports. The head of state, who arrived in Paraguay on Friday, stated that "extreme regulations" on trade "are made from one day to another," but agreements like the one signed on this day "take years and years." In this sense, he highlighted 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 big for the benefit of all."