Asunción – Pedro Sánchez, the president of the Government, has emphasized the necessity of establishing a European fund to support companies impacted by potential tariffs from the United States if the EU fails to negotiate a resolution with the Trump Administration.
This remark was made during the conclusion of a Spain-Paraguay business forum as part of his official visit to Asunción. Echoing his statements from Montevideo the previous day, he underscored the urgency of finalizing the EU-Mercosur agreement amidst the trade tensions instigated by Trump.
Sánchez asserted that governments are responsible for protecting their companies. He pointed out that the EU has implemented “trade defense instruments to maintain a level playing field,” citing regulations on subsidies and the anti-coercion mechanism as examples.
With the threat of a 30% tariff set to begin on August 1, which he described as “unfounded and unfair,” Sánchez urged that Europeans should not remain passive and must respond collectively.
The president reiterated the aim of “avoiding a trade war,” stressing that if such a conflict arises, Europe must meet the needs of its businesses. He proposed that “revenues from any countermeasures” agreed upon by the EU should fund the creation of a new European fund to aid the sectors most affected by these trade disputes, aligning with the views of Economy Minister Carlos Cuerpo.
Support for the Mercosur Agreement
Additionally, Sánchez highlighted the necessity for the EU to collaborate with “strategic and reliable partners” to counter protectionism. He characterized the ratification of the EU-Mercosur agreement, still pending, as a “critical milestone” and a “political message” of cooperation and shared goals.
“We must defend the multilateral rules-based order more than ever, enhance international cooperation, and strengthen regional partnerships,” he elaborated, acknowledging the efforts of the Paraguayan president to create favorable conditions for the agreement’s realization.
Sánchez also praised the “excellent economic and commercial ties” between Spain and Paraguay, which facilitated Peña’s visit to Spain last February, and expressed hope that his current visit, accompanied by numerous business leaders, will further this momentum.
Paraguayan President Peña also commented on the Mercosur agreement, expressing his “eagerness and fervent desire” for its completion, noting that it represents “much more than a trade agreement.”
He stated, “It is far more than just creating opportunities for economic exchange; it serves as a message in a polarized, divided world where the drums of conflict, whether through warfare or tariffs, threaten to drown out the calls for peace. We believe that the future lies in collaboration among nations, approached with respect,” he asserted. (July 23)
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