Brazil and Portugal push to advance EU-Mercosur trade deal

President Lula said on Wednesday (19) that the trade agreement between Mercosur and the European Union would strengthen commercial ties between Brazil and Portugal.

Mr. Lula made the remarks alongside Portuguese Prime Minister Luís Montenegro, who is on a state visit to Brazil. The two leaders addressed the press after signing a series of agreements between the two countries at the Planalto Palace.

The Portuguese prime minister emphasized his commitment to using all “necessary arguments” to ensure that the European Union implements the free trade agreement with Mercosur. He warned that if the deal is not finalized, Europe should not complain if South America pursues trade deals with other countries and blocs.

“If the Mercosur-EU agreement is not implemented, the door will be open for other agreements,” he said. “If Europeans are unable to move forward, they cannot complain about competition. I will not tire of using the necessary arguments to push for the EU to implement the agreement.”

Competitive pressure

Mr. Montenegro’s state visit to Brazil underscores the strategic importance of strengthening ties between the two nations. His remarks, although not explicitly stated, hinted at the growing influence of China, which has been deepening its relations with South American countries.

The announcement of the Mercosur-EU agreement was made in December by Uruguayan President Lacalle Pou and European Commission President Ursula von der Leyen during the latest summit of Mercosur heads of state in Montevideo.

Negotiations between the two blocs have been ongoing since 1999, spanning 25 years. The agreement was nearly finalized in 2019 but has yet to be ratified by either side. Since beginning his third term, Mr. Lula has prioritized this negotiation as a way to boost South America’s economy.

“Receiving the Prime Minister of Portugal is the best way to celebrate 200 years of partnership. We signed about 20 agreements to benefit our societies,” President Lula said.

“Trade with Portugal is becoming more diversified, which supports the export of Brazilian products with higher added value. The expectation is that this will deepen further with the Mercosur-EU agreement. There is no doubt that the deal will benefit both blocs. At a time when trade protectionism is gaining ground worldwide, we are showing the potential of integration. Seizing the opportunities from this new phase will be the primary task of the Apex (Brazilian Trade and Investment Promotion Agency) office in Lisbon.”

Mr. Lula also emphasized potential collaborations between Brazil and Portugal on climate issues and regulating big tech companies. “We discussed aspects of the climate crisis, and our countries have much to contribute to the energy transition. Advancing the fight against extremism is an urgent shared priority. Portugal and Brazil share similar views on regulating major tech companies and combating disinformation,” he said.

President Lula reiterated his stance on the conflicts in Ukraine and Gaza. “While some choose competition and war, our countries advocate dialogue and peace. In Gaza or Ukraine, violence must cease to create space for lasting peace. I reaffirmed to the Prime Minister Brazil’s commitment to the Community of Portuguese-Speaking Countries (CPLP),” he said.

“My hope is that our community continues to inspire practices of good governance and respect for human rights and that our brotherly countries persevere on the path to peace, democracy, and development. I am confident that we will continue to walk together towards building a fairer, freer, and more prosperous world,” Mr. Lula concluded.

By Renan Truffi e Fabio Murakawa

Source: Valor International

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