President Luiz Inácio Lula da Silva said on Monday that the Mercosur trade agreement with the European Union has not yet been concluded because the European bloc has not managed to resolve its internal issues.
“We only failed to conclude the agreement with the European Union because the Europeans have not yet managed to resolve their own internal contradictions,” Lula told the Mercosur heads of state summit in Asunción, when speaking about the South American bloc’s achievements during Brazil’s presidency last year.
The agreement between the EU and Mercosur has been under negotiation for over 20 years. In 2019, the blocs signed a version, which was not ratified amid the difficult relationship between the Jair Bolsonaro government and the Europeans, the increase in deforestation and Brazil's failure to comply with environmental rules.
Negotiations were reopened in March 2023, but they generated new clashes. On the one hand, President Luiz Inácio Lula da Silva began to criticize the European bloc for its environmental demands.
Tensions in Mercosur: Challenges and resistance
On the other hand, French President Emmanuel Macron has become an increasingly vocal voice against the deal, amid protests by local farmers who oppose the entry of South American agricultural products into France.
At Monday's summit, Lula commented and Uruguayan President Luis Alberto Lacalle Pou criticized the desire of some European leaders to restart negotiations with Mercosur from scratch.
“It doesn’t seem logical after 25 years,” said the man whose country takes over the rotating presidency of the South American bloc from Monday.
“I don’t know if it’s the European elections, current changes, governments, or pressure groups that are hindering progress,” he added.
Since the beginning of the Paraguayan presidency of Mercosur in December, negotiations for the agreement have been at a standstill.
Following the European Parliament elections in June, there has been a rise in far-right parties in Germany, France and Italy. Far-right parties in Europe advocate protectionism and support for farmers in the face of the cost of living crisis.
Warning to Democrats
In his speech at the summit, Lula also warned that the bloc's members need to be "vigilant" in the face of threats to democratic institutions in the region's countries, mentioning the attempted coup d'état in Bolivia on June 26 and the attack on the headquarters of the Three Powers in Brasília last year.
“The reaction to June 26 in Bolivia and January 8 in Brazil shows that there are no shortcuts to democracy in the region. But we must remain vigilant. False democrats are trying to undermine institutions and put them at the service of reactionary interests,” said Lula.
The president highlighted that the bloc faces regional and global challenges, questioning whether members will opt for unity or division. Furthermore, Lula also praised Bolivia's full membership in the bloc for its “enormous strategic value.”
He describes Mercosur as a platform for Brazil's international insertion, criticizing ultra-liberal strategies and isolationist nationalism.
Monday's summit was not attended by Javier Milei, who has been exchanging barbs with Lula since taking office in December. The ultra-liberal Argentine president was in Brazil over the weekend for a conservative event and met with Bolsonaro.
Source: Fernando Cardoso and Daniela Desantis | Notícias Agrícolas
