Peña says the Milei-Lula crisis has not affected how Mercosur functions

Paraguayan President Santiago Peña stated on Friday that the ongoing crisis between Argentine President Javier Milei and Brazilian President Luiz Inácio Lula da Silva has not impacted Mercosur's functioning. Despite the diplomatic tensions, Peña emphasized their efforts to prevent conflicts between heads of state from affecting the bloc.

He described Lula and Milei as having "irreconcilable differences," but acknowledged that their countries' relationship extends beyond their personal disputes. The conflict began on July 25 when Milei participated in a Brazilian Liberal Party convention, where he insulted Lula and criticized Brazil's judiciary and a former Brazilian president.

Brazil recalled its ambassador to Buenos Aires in response, followed by a downgrade of relations and a request for the Argentine ambassador's departure. This is the lowest point in relations since the return of democracy to both nations. Both countries maintain diplomatic titles, allowing for a potential restoration of full relations.

Brazilian Foreign Minister Mauro Vieira called the incident an unprecedented provocation, while Argentina's Foreign Minister Pablo Quirno ruled out a rupture and labeled the episode as ideological differences. The situation has raised concerns within Mercosur, with Uruguayan Foreign Minister Mario Lubetkin warning that it does not benefit anyone.

Diplomatic ties between the nations are expected to remain strained until after Brazil's October 4 elections, where Lula is seeking a fourth non-consecutive term. Mercosur consists of Argentina, Brazil, Paraguay, and Uruguay, with Bolivia in the process of full accession.