Lula upholds changes in EU-Mercosur agreement
In a meeting with German Chancellor Olaf Scholz at the Planalto presidential palace Monday (Jan. 30), President Luiz Inácio Lula da Silva advocated changes in some points of the free trade agreement between Mercosur and the European Union (EU). Afterwards, the two heads of state held a press conference and addressed several issues on the bilateral agenda.
"We are going to work very hard. Something has to be changed. It can't be done as it is there," pointed out Lula, when asked about the progress of the agreement.
"One thing that is very valuable for us is [government] procurement. In a developing country like Brazil, government purchases are a way for small and medium-sized companies to grow. If we give that up, we are throwing away the opportunity for our small and medium-sized companies to grow. Obviously, we will sit at the table as openly as possible. The middle ground means to improve something for those who [feel] harmed," the president said. Even so, Lula promised to close the deal in about six months. "Until the end of this semester, it is our plan to try to forward and discuss other issues," he explained.
On the German side, Scholz also defended a rapid advancement of the agreement and praised the "energy of president" Lula to try to conclude the terms in a few months. The German leader mentioned the presence of over 1,000 German companies in Brazil and said he intends to make that number grow even more.
"President Lula and I agree that the EU-Mercosur agreement is in the interest of both regions and we both want there to be a quick definition on this issue. The agreement should pave the way for the transformation of our economies, strengthen technological, environmental and climate cooperation and raise the standard in labor and social terms," Scholz said.
The EU-Mercosur agreement has been negotiated for over 20 years. A general conclusion was announced in 2019, but there is still a long road ahead for its effective entry into force. The treaty needs to be ratified and internalized by each of the member states of both economic blocs. In practice, this means the agreement will have to be approved by the national parliaments and governments of the 31 countries involved, a process that will take years and may face resistance.
OECD
Lula was also asked about maintaining the country's interest in joining the Organization for Economic Cooperation and Development (OECD), since Brazil's access to this international organ had been articulated in the previous government.
"What we want to know is what would be Brazil's role in the OECD. You can't participate in an international organization as a minor citizen, inferior, as if you were an observer," the president said. Lula admitted having been against Brazil joining the OECD during his previous governments, but he affirmed he is willing to discuss the country’s membership now.
Created in 1961, and headquartered in Paris, the OECD is an international organization currently made up of 37 countries, including some of the world's leading economies, such as the United States, Japan, and European Union countries. It is seen as a "club of the rich", but it also has among its members emerging Latin American economies such as Mexico, Chile, and Colombia.
