Lula hopes to conclude Mercosur-EU agreement this year
During his visit to Spain, President Lula will focus on various topics, including the finalization of the terms of the Mercosur-European Union trade agreement and the expansion of bilateral trade. Today (April 26), Lula is scheduled to meet with the Spanish Prime Minister, Pedro Sánchez, and King Felipe VI. An agreement signing ceremony is also planned.
During a meeting with Spanish investors in Madrid yesterday (Apr. 25), President Lula shared his optimism about the officialization of the trade agreement by the member countries of the Mercosur-European Union bloc before the end of 2023. "Brazil and the Mercosur partners are engaged in dialogue to conclude the negotiations with the European Union, and we hope to have good news still this year. It is a very important agreement for all parties involved, and we want it to be balanced and contribute to the reindustrialization of Brazil," he said.
Although approved in 2019 after two decades of negotiations, the Mercosur-EU agreement requires signatures from all member countries in both blocks and subsequent ratification by their respective parliaments in order to be implemented. This process involves a total of 31 nations.
During his meeting with Spanish investors, the president urged them to consider investing in the Brazilian market, specifically in the renewable energy sector, which includes green hydrogen, wind and biomass power plants, and solar energy.
Commercial relations
Spain holds the second-largest foreign investment position in Brazil, with a total investment of $63 billion dollars, surpassed only by the United States. Over a thousand Spanish companies currently operate in Brazil, with a strong presence in the financial and communications sectors. Notable Spanish companies in Brazil include Telefonica and Banco Santander.
In 2022, Brazilian exports to the Spanish market doubled, reaching 9 billion euros, driven by crude oil, soybeans, and corn. In the same year, imports from Spain grew 38 percent, led by oil products, auto parts, and fertilizers.
Spain marks the final destination of President Lula's European tour, which began in Portugal. Today (26) the President will have lunch with King Felipe VI at the Royal Palace before returning to Brazil accompanied by his entourage.
