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Significance

At the anniversary summit, Uruguayan President Luis Lacalle Pou proposed making the bloc's rules more flexible to allow member states to negotiate free trade agreements (FTAs) with countries outside Mercosur. The response was negative, and the summit ended without any consensus on a final declaration.

Impacts

Mercosur is failing to advance bilateral deals as a bloc, including the long-mooted association agreement with the EU.

Given the current economic and health crises and deteriorating social conditions, Mercosur will face an ongoing phase of stagnation.

Lack of ideological agreement among member states’ governments will impede advances.

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