Lula highlights confidence in Mercosur–EU Agreement during diplomatic meeting with EU Council President

On Sunday, June 8, in Monaco, President Luiz Inácio Lula da Silva held a working lunch with the President of the European Council, Portuguese leader António Costa. During the meeting, the Brazilian President reaffirmed his conviction that the Mercosur–European Union Agreement can be signed by the end of the year, during Brazil’s presidency of the bloc, which begins in July.

“As I emphasized during my recent State visit to France, we must make a concerted effort to clarify the full compatibility of this agreement with the interests of both parties — from environmental, commercial, and strategic perspectives. In a context of resurgent protectionism, we both agreed on the fundamental role this agreement plays in supporting multilateralism,” the Brazilian President stated in a post on his social media channels.

According to President Lula, in the coming weeks, Brazil will seek to highlight the existing convergences and complementarities between Brazilian and European agriculture — one of the points of divergence highlighted by the French — as well as the document's compatibility with the Paris Agreement.

We must make a concerted effort to clarify the full compatibility of this agreement with the interests of both parties — from environmental, commercial, and strategic perspectives. In a context of resurgent protectionism, we both agreed on the fundamental role this agreement plays in supporting multilateralism.”

Luiz Inácio Lula da Silva, President of the Republic of Brazil

BACKGROUND – Comprising 20 chapters, plus annexes and additional documents, the Mercosur–European Union Agreement was finalized during the Mercosur Summit in Montevideo on December 6. The partnership represents the largest trade deal ever made by the South American bloc. Its entry into force depends on the legal review and translation process, signing, and final ratification by the bodies of both blocs.

SCOPE –  The European Union is Brazil’s second-largest trading partner, with a trade volume of USD 92 billion in 2023. The agreement diversifies Brazil’s trade partnerships while fostering the modernization of the Brazilian industrial sector through integration into the European Union’s production chains. The treaty is also expected to boost investment flows, which should strengthen the EU’s current position as the holder of nearly half of the stock of foreign direct investment in Brazil.

COP30 – The conversation with António Costa also covered the synergies between Brazil and the European Union in combating climate change. Brazil will host COP30 in November, with one of the key challenges being to turn into reality the funding promised by wealthy countries to ensure global warming does not exceed the 1.5 degrees Celsius threshold.

OPPORTUNITIES – “Europe is an essential partner for the success of COP30 in Belém. We are all actors who share the certainty that a just energy transition represents opportunities to establish a new agenda for inclusive economic development that will preserve the health of the planet,” stated President Lula. Also attending the working lunch were Ministers Marina Silva (Environment and Climate Change), Alexandre Silveira (Mines and Energy), Luciana Santos (Science and Technology), and Mauro Vieira (Foreign Affairs), as well as the President of COP30, Ambassador André Corrêa do Lago.