In recent news, Argentina’s right-wing populist president Javier Milei has caused a diplomatic crisis with Spain by making derogatory remarks about the Spanish Prime Minister Pedro Sanchez and accusing Sanchez’s wife of corruption. This incident has strained relations between the two countries, with Spain recalling its ambassador from Buenos Aires.
The Mercosur free trade area, established in 1991 by Brazil, Argentina, Paraguay, and Uruguay, with Bolivia joining as a full member in 2023, is another topic of controversy. Negotiations between the EU and Mercosur began in 1999 and have faced setbacks due to outstanding issues like environmental criteria that are yet to be resolved. The agreement aims to eliminate import duties on over 90 percent of products exported to the Mercosur region. However, concerns about protectionism and high import duties have presented challenges for Finnish companies looking to expand their exports to the region.
Finland sees potential export opportunities to the Mercosur region, particularly in digital solutions, the energy sector, and other green transition solutions. Despite these challenges, there is hope that negotiations for the Mercosur agreement could come into force during the EU’s five-year period by 2025. Trade policy experts like Timo Vuori are cautiously optimistic about the prospects of this agreement for Finnish companies looking to expand their exports globally.
