Brazil and EU praise EU-Mercosur agreement as victory for multilateralism

O and the President of the European Commission, welcomed, this Friday (16),

After more than 20 years of negotiations, the treaty that will create one of the largest free trade zones in the world will be signed on Saturday (17) in Asunción, capital of Paraguay.

The two blocs together represent 30% of world GDP and a market of more than 700 million people.

Lula stated, in a joint statement to the press, that the pact “is good” for both blocs, but it is “very good, above all, for the democratic world and for multilateralism”.

For Von der Leyen, the agreement “sends a strong message: this is the power of cooperation and openness”.

“This is how we create true prosperity,” added the senior European official, who made a stop in Rio de Janeiro to meet with Lula before continuing on to Asunción.

The conclusion of the agreement comes amid global uncertainty due to the protectionist policies of American President Donald Trump, who threatened this Friday to impose tariffs on countries that do not support his plans to annex Greenland.

In this context, Lula said that cooperation with the European Union goes “beyond the economic dimension”.

“The European Union and Mercosur share values ​​such as respect for democracy, the rule of law and human rights”, highlighted President Lula.

European resistance

The host president, Santiago Peña, and his Uruguayan counterpart, Yamandú Orsi, will be present at the signing of the treaty in Asunción. The presence of Argentine Javier Milei is also expected, although it has not yet been confirmed.

Lula will not participate in the meeting. According to the government, the signing was planned as a ministerial-level event, and Assunção invited the presidents at the last minute.

Von der Leyen argued that the agreement “will multiply opportunities like never before, with mutual access to strategic markets, clear and predictable rules, common standards and supply chains that will become highways for investment”.

For Brazil, it represents an opportunity to expand its exports of meat, soy, rice, coffee and other products to Europe, in exchange for opening its market to European vehicles, machinery, cheeses and wines, among others.

European sectors view with fear the arrival of Mercosur products, which are more competitive due to production standards considered less strict. Farmers and ranchers from some European countries mobilized in strong protests against the pact.

Despite this resistance, represented by the no votes from France, Poland, Austria, Ireland and Hungary, the European Union approved the agreement on January 9th.

The European Council, which brings together the governments of the Member States, authorized the European Commission by vote to move forward with the treaty. Approval in this instance was the last step prior to signing the agreement in Paraguay.

Geopolitical message

Thus, the two blocs send “a very strong message at a time when international law is under threat. Where countries like China are competing unfairly in international trade. Where countries like the United States are raising their tariffs”, said the president of the Council, the Portuguese António Costa, at a later press conference in Rio.

Von der Leyen, in turn, was full of praise for Lula, whom she called “the leadership we need in today’s world”.

“You are a leader deeply committed to the values ​​we cherish: democracy, an international order based on norms and respect. Respect for our planet, respect for communities and respect for sister nations,” he declared.

In addition to the EU-Mercosur agreement, Von der Leyen said that Europe and Brazil are advancing a “very important” pact on critical minerals, with joint investment projects in lithium, nickel and rare earths.

“This is crucial for our digital and clean transition, as well as for our strategic independence in a world where minerals tend to become an instrument of coercion,” he said.

*With AFP