According to Argentina's president, Mercosur's tariffs are too high and the bloc has only "two paths."

Argentine President Javier Milei proposed on Friday that Mercosur should be less rigid so that each member can have the autonomy to seek agreements that are "convenient" for its interests.

The president spoke in Montevideo during the 65th Mercosur summit, assuming the pro tempore presidency of the bloc until the middle of next year.

"Our presidency will explore a regime of greater flexibility and commercial autonomy for the members of the bloc, so that each one can enter into trade agreements that are convenient for them," he said.

"Each country can decide to what extent it will and will not, taking into account the needs of its own population, understanding that the bloc benefits from the benefit of its members," he stressed.

Tariffs are very high, according to Milei

Milei, who in an earlier speech had warned that Mercosur "ended up becoming a prison" for its partners, announced that he wants to "review the common external tariff, which is excessively high."

"We are the only trade bloc that has not lowered tariffs in the last decade. Do not think that there is no relationship between this figure and our poor trade results," he said. Argentina will propose "adjusting it" to ensure "a more competitive insertion in global markets."

Mercosur has "two paths"

For Milei, the group has two options. "The reality is that we have two paths. Either we accept that Mercosur does not work and we dissolve it, which is not the will of the Argentine government. Or we adapt it so that it is functional to the current needs of its members," he said.

Mercosur does not allow its members to seek trade agreements with third countries without the approval of the other members. During his mandate, which ends in March, Uruguayan President Luis Lacalle Pou unsuccessfully advocated for making the bloc more flexible, in line with his predecessors.