Lula advocates closer ties between Mercosur and Southeast Asia
Brazilian President Luiz Inácio Lula da Silva said Wednesday (Jul. 9) that closer ties between the Southern Cone and Southeast Asian countries would be beneficial for global trade. He welcomed Indonesian President Prabowo Subianto on an official state visit.
The visit reinforces the priority given to Asia in Brazilian foreign policy and the interests in closer relations with the Association of Southeast Asian Nations (ASEAN), Brazil’s Foreign Ministry stated.
The Southern Cone is the southernmost area of the American continent, which includes Chile and the Mercosur countries, including Brazil. Southeast Asia is the region south of China, including populous countries such as the Philippines, Vietnam, and Indonesia.
The meeting took place at the Planalto presidential palace in Brasília, following President Subianto’s participation in the 17th BRICS Summit, held Sunday (6) and Monday (7) in Rio de Janeiro. Announced this year, Indonesia was one of the last full members to join the bloc.
“ASEAN is a bloc of 680 million people and has experienced accelerated economic growth and technological evolution. Its aggregate GDP is $4 trillion, which represents the fourth largest economy in the world—behind the US, China, and Japan. I hope to consolidate these ties at the group’s next summit, to be held in Malaysia in October,” President Lula said.
The Indonesian head of state invited his Brazilian counterpart to pay a state visit to the country in the same period. The two countries have maintained a strategic partnership since 2008 and cooperate in agriculture, finance, education, energy, and mining, as well as poverty eradication and the promotion of trade and investment.
As president of Mercosur this half-year, Brazil will work towards the conclusion of an agreement between the South American bloc and Indonesia—the fourth most populous Asian country in the world, home to 280 million people. President Lula also spoke about efforts to diversify and expand Brazil’s commerce with Indonesia, especially in the beef sector and defense.
“Last year, we achieved the largest bilateral trade flow in our history. Indonesia is already the fifth largest destination for Brazilian agribusiness products. We want to facilitate trade in Brazilian beef, which can contribute to the food security of the Indonesian people. We talked about diversifying our commercial exchange, including in civil aviation and defense products,” he noted.
In 2024, bilateral trade between Brazil and Indonesia added up to $6.34 billion. Brazilian exports totaled $4.46 billion, while imports stood at $1.87 billion.
On the Brazilian side, there is interest in deepening the dialogue on minerals used in the energy transition. “Brazil can draw inspiration from the Indonesian example, especially in terms of incentives for these resources to be processed locally,” said the Brazilian leader.
Indonesia, in turn, seeks to learn from Brazil’s experience in biofuels and agriculture. “President Lula has accepted the request to send teams of experts for study, from the point of view of innovation, modernization, and agricultural technologies,” said President Prabowo Subianto, also expressing interest in cooperation for technological exchange in defense, including missiles and submarines, and for military training.
