Lula expresses optimism about concluding Mercosur-European Union agreement

President Luiz Inácio Lula da Silva expressed confidence this Thursday, June 5, in Paris, that the agreement between the Mercosur and the European Union will be ratified during Brazil’s presidency of the regional bloc in the second half of 2025. Lula voiced this optimism after a bilateral meeting with French President Emmanuel Macron, on the first day of the Brazilian leader’s state visit to France.

“I do not think it is difficult to make it happen. And I will repeat to my dear friend Macron: I have six months in charge of Mercosur. I want to say that I will leave the presidency of Mercosur with the European Union–Mercosur agreement signed. And with my friend Macron taking part in the signing, so we can have a nice picture,” said the Brazilian leader. “Open your heart to the possibility of making this agreement with our dear Mercosur. It is the best response our regions can give in a scenario of uncertainty brought about by the return of unilateralism and tariff protectionism,” he added.

AGRICULTURE — According to Lula, one of the key elements for the agreement to be signed involves coordination between French and South American farmers to find common ground that would allow the blocs to expand trade relations. “If Brazilian and French farmers understand what we can sell and what we can buy, there is no reason to reject the agreement. We want this deal because it involves trillions of dollars in negotiations and affects 700 million people. That is no small matter,” he argued.

I intend to leave the presidency of Mercosur with the EU–Mercosur agreement signed. It would be the best response our regions could offer in the face of uncertainty caused by the resurgence of unilateralism and tariff protectionism”

Luiz Inácio Lula da Silva, presidente de la República

COMPLEMENTARITY — Lula argued that Brazilian and French agriculture are complementary. “Shall we get them to talk? Cooperatives talking to French cooperatives? Let's create a negotiation channel,” he suggested. “Let’s sit down at the table and talk. I am sure we can make this agreement happen.”

DISCREPANCY — Macron also acknowledged the strategic importance of the agreement, but raised concerns over the use of pesticides in Mercosur countries that are banned in France. “France supports free and fair trade. We are in favor of negotiation. The disagreement is not about competitiveness or quality — it is about regulatory standards. We need to improve the text. It must include safeguard measures,” said the French President.

BACKGROUND – The Mercosur–EU agreement, which includes 20 chapters, annexes and additional documents, was finalized during the Mercosur Summit in Montevideo on December 6. It represents the largest trade deal Mercosur has ever reached. Together, the two blocs encompass approximately 718 million people and economies totaling around USD 22 trillion. Before the agreement can take effect, it must undergo legal review, translation, formal signing, and final ratification by the appropriate bodies on both sides.

SCOPE — The European Union is Brazil’s second-largest trading partner, with bilateral trade reaching USD 92 billion in 2023. The agreement is expected to support the diversification of Brazil’s trade partnerships — a strategic priority for the country — and contribute to the modernization of its industrial base through integration with EU production chains. It is also projected to boost investment flows, reinforcing the EU’s position as the source of nearly half of all foreign direct investment stock in Brazil.

AGENDA — Earlier in the day, President Luiz Inácio Lula da Silva was officially welcomed by French President Emmanuel Macron at the Esplanade des Invalides during a formal ceremony. At the Élysée Palace, the two leaders exchanged gifts, including a Paris Saint-Germain jersey with Lula’s name on the back — the team having just won the UEFA Champions League last weekend.  Later on Thursday, the president is scheduled to receive an honorary award from the French Academy, meet with Paris Mayor Anne Hidalgo, speak with members of the Brazilian community in France, and attend a state dinner hosted by the French government.