President Lula expects Mercosur–EU trade deal still this year
Brazil’s President Lula and European Commission President Ursula von der Leyen said on Monday (Jul. 17) that closer ties between the European Union (EU), Mercosur, and the Caribbean countries will prove crucial in tackling the “great challenges of our time.”
These challenges, she said, have become more evident after the pandemic, the war between Russia and Ukraine, and the realization of how “monumental” a challenge climate change is.
“That is why I welcome and salute Brazil’s re-emergence as a major actor on the global stage. It is timely, and it is already giving positive momentum to the strategic partnership between our two regions,” said the president of the European Commission.
Mercosur–EU
The European leader also pointed out that a rapprochement should help Europe diversify its supply chains and become less dependent on Russia and China.
“We want to discuss today how to connect further our people, how to connect further our businesses, how to de-risk, strengthen and diversify our supply chains, and how to modernize our economies in ways that reduce inequalities and benefit all. All of this is within reach if both sides get the EU–Mercosur agreement across the finish line. Our ambition is to settle any remaining differences as soon as possible,” she said in her address.
President Lula, in turn, said he hopes to conclude the deal between the blocs still in 2023.
“A balanced Mercosur–EU agreement, which we intend to conclude this year, will open new horizons. We want an agreement that preserves the parties’ capacity to respond to both present and future challenges,” the Brazilian president declared.
Spain’s Prime Minister Pedro Sánchez also expects the blocs to finalize an accord later this year.
South America and the Caribbean
President Lula argued that South American and Caribbean countries can only grow if planning is based on sustainability and regional integration. At the last meeting of leaders of the two regions in May, the president noted, a proposal was made to broaden the projects of the South American Council for Infrastructure and Planning and prioritize high-impact action for both physical and digital integration.
“By building the bi-oceanic corridor linking the Brazilian Central-West to the ports of northern Chile, we can lower the costs of our exports to Asian markets and also bring jobs and income deeper into our continent,” the Brazilian president stated.
Investment for Brazil
Brazil will soon launch a new Investment Plan to boost employment, fight poverty, and increase family income, Lula went on to say.
“We’ll step up our logistics infrastructure with investments in highways, railroads, waterways, ports, and airports,” he said, pointing out that the country boasts one of the world’s cleanest energy grids and should prioritize the generation of renewable energy, with “enormous potential” for green hydrogen production.
He reiterated the government’s commitment to curbing inflation and balancing public accounts, and recalled that Brazil’s international reserves add up to “some $343 billion.”
Lula landed in Brussels on Sunday (16) to attend the Summit Meeting of the Community of Latin American and Caribbean States (CELAC) and the EU on Monday and Tuesday. The assembly brings together around 60 leaders from the blocs’ member nations.
