Sao Paulo [Brazil], July 2 (ANI): Leaders of the Southern Common Market (Mercosur) reaffirmed their commitment to regional unity, economic integration and expanding global trade partnerships during the 68th Mercosur Summit in Asuncion, Paraguay, as the bloc marked its 35th anniversary and transferred its rotating presidency from Paraguay to Uruguay.

According to Brasil 247, the summit focused on deepening regional integration, opening new export markets, reducing development disparities among member states and strengthening regional security. Leaders also reviewed tariff quotas under the Mercosur-European Union trade agreement and discussed the bloc's future trade strategy. Argentine President Javier Milei was absent from the meeting.

Opening the summit, Paraguayan President Santiago Pena described the anniversary as a milestone in regional friendship and cooperation, while calling for a more ambitious Mercosur capable of delivering equitable growth for all members. He urged reforms to the Mercosur-European Union agreement, arguing that its current framework does not adequately address the challenges faced by landlocked countries such as Paraguay, as reported by Brasil 247.

Pena also announced the launch of free trade agreement negotiations with Japan and said discussions with the United Arab Emirates and Canada were progressing, while cooperation with India would be further expanded. He noted Uzbekistan's interest in using Paraguay as a gateway to the Mercosur market and called for stronger physical integration through unified border controls.

Addressing the changing global landscape, Brazilian President Luiz Inacio Lula da Silva said geopolitical tensions, rising protectionism and economic fragmentation underscored the need for stronger regional cooperation. He confirmed that Mercosur had formally begun trade negotiations with Japan and would also seek to launch negotiations with China, stressing that regional integration should remain above ideological differences.

Lula advocated closer cooperation in energy, critical minerals and digital payments, proposing that Brazil's Pix instant payment system could serve as the foundation for a Mercosur-wide payment network. He also announced Brazilian support for strengthening regional security cooperation through Interpol.

Incoming Mercosur President Yamandu Orsi of Uruguay pledged to prioritise implementation of recently concluded agreements with the European Union and the European Free Trade Association (EFTA), while expanding negotiations with Japan, Canada, Vietnam and India.

Bolivian President Rodrigo Paz called for regional solidarity amid domestic unrest, warning that democracies across the region face increasing threats from organised crime and illicit economies.

Ahead of the summit, Mercosur foreign ministers signed agreements on mutual recognition of electronic identification systems, updated travel documentation and cross-border cargo transport between Brazil and Paraguay.

Leaders also highlighted Mercosur's economic achievements over the past 35 years, noting that intra-bloc trade has increased by 500 per cent while exports to external markets have grown by more than 800 per cent.

They also welcomed Brazil's announcement of a USD 100 million contribution to the Mercosur Structural Convergence Fund (FOCEM) to help reduce development disparities among member states. (ANI)