Bolivian President Rodrigo Paz Gains Mercosur Backing Amid Judicial Standoff and Protests

Bolivian President Rodrigo Paz received strong support from Mercosur members during the summit in Asunción, where leaders condemned recent violence in Bolivia and pledged solidarity with his government. At the same meeting, the bloc discussed the pending trade agreement with the European Union, the start of negotiations with Japan, and uneven implementation of EU quotas among members.

Domestically, Paz faced a new challenge as the country's judicial branch threatened a staged strike demanding a larger budget and pending reforms. The president linked the threat to the legacy of the former MAS governments and insisted that any changes must come through parliamentary debate, not decrees. Both the Senate president and the head of the Supreme Court emphasized dialogue and warned that the strike would be “out of place” under the 90‑day state of emergency.

Meanwhile, Bolivia’s private sector convened a business summit, urging the government for a rescue plan, legal certainty, financing and liquidity to mitigate the economic fallout from over 50 days of road blockades that sparked the largest protests in two decades. The protests, driven by opposition to a controversial agrarian reform law and soaring prices, have forced the administration to declare a nationwide state of exception and have drawn condemnation from regional partners.

In parallel, bilateral talks between Bolivia and Paraguay produced agreements on the Paraguay‑Paraná waterway and the bio‑ceanic corridor, aiming to boost regional connectivity and trade. The summit also featured remarks from Panama’s foreign minister promoting digital modernization and democratic cooperation across Mercosur, underscoring the bloc’s broader agenda beyond the immediate Bolivian crisis.