EU-Mercosur agreement to be finalized this year, says Lula

President Lula said on Monday (30) that the Mercosur-European Union trade agreement will be finalized this year. The agreement has been under negotiation for over 20 years, and despite recent progress, environmental issues still hinder its signing.

“I want to tell my Mexican business colleagues that if God wills it, we will close the Mercosur and European Union agreement this year. It’s ready. And Brazil is prepared to sign this agreement,” Mr. Lula said during the Brazil-Mexico Business Forum hosted by APEX (Brazilian Trade and Investment Promotion Agency).

“We don’t want anyone saying that South America is the one holding back,” the president added.

For Mr. Lula, the trade pact could be extended to Latin America. “This agreement between the European Union and South America [Mercosur] can be expanded to an agreement between the EU and Latin America. The world needs this. The economy is somewhat stagnated globally. And we have the market for it,” he said.

Relations with Mexico

Mr. Lula emphasized the need to revive trade relations between Brazil and Mexico. “A good trade relation is a two-way street. There must be a balanced trade relationship [between Brazil and Mexico].” He added, “No one can endure a trade deficit. I need to bring [the trade relationship] back to civility.”

The Brazilian president noted that there must be a greater “brotherhood” between the two nations. “We need to generate greater brotherhood between Brazil and Mexico, without one economic sector exporting more than another.”

Mr. Lula also remarked that “Brazil wasn’t visiting anyone” during the Bolsonaro administration. He advocated for both countries to become “developed economies” based on technology and to invest in artificial intelligence for mutual benefit.

“Let’s sit down and discuss what we can do for the economies of Brazil and Mexico to transform us into a $5 trillion to $6 trillion economy. I don’t want to fight with the U.S., China, or anyone; I want to do business and grow,” Mr. Lula added. “Our trade agreements need to be reviewed and redone as soon as possible to improve the lives of both Mexico and Brazil.”

President Lula also took the opportunity to reinforce his support for Mexico’s President-elect Claudia Sheinbaum, who is forming a “plural government,” he said. Ms. Sheinbaum takes office this Tuesday. President Lula also expressed support for Mexico’s new minister of Economy, Marcelo Ebrard.

“I’m happy that you [Mexicans] elected a woman, Claudia Sheinbaum. Let’s see if Claudia and I have the wisdom to lead the [trade] changes,” Mr. Lula pointed out. “Claudia knows she has to do more and do better than [Andrés Manuel] López Obrador”, the former leader of Mexico.

Source: Valor International

Original reporting: https://valorinternational.globo.com/economy/news/2024/10/01/eu-mercosur-agreement-to-be-finalized-this-year-says-lula.ghtml

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