Brazilian President Lula Welcomes EU-Mercosur Trade Agreement

UNITED NATIONS (Reuters) – Brazilian President Luiz Inacio Lula da Silva expressed readiness to sign a trade agreement between the European Union and the South American Mercosur bloc, contingent on the EU concluding negotiations.

During a press conference at the U.N. General Assembly, Lula highlighted Brazil’s unexpectedly strong economic growth and newly achieved stability following tax reform in Congress, surprising investors and credit agencies.

“If the EU is ready, we can sign the trade agreement during the G20 meeting in Brazil,” Lula mentioned, referring to the upcoming Group of 20 summit in Rio de Janeiro in November. He noted, “I have never been so optimistic about the EU-Mercosur accord.”

A European diplomatic source indicated that progress had been made in addressing differences during recent negotiator meetings in Brasilia on September 5-6. While the goal is to finalize negotiations quickly, a remaining gap persists.

Brazilian diplomats have reported advancements in resolving issues related to environmental safeguards and government procurement that had previously hindered negotiations.

Mercosur includes Brazil, Argentina, Uruguay, Paraguay, and Bolivia. The bloc is attractive for EU manufacturers, though European farmers, particularly from France, are concerned about potential competition.