President Luiz Inácio Lula da Silva (PT) said at the G20 Summit in New Delhi, India, that the European Union needs to decide whether it wants to close a free trade agreement with Mercosur.
“In the next few months we have to reach an agreement: Either yes, or no. Or stop discussing the deal because, after 23 years [de negociações]no one believes anymore [na possibilidade de aprovação]”, said the president.
“I am willing to make the agreement while I am the president of Mercosur,” he said. Brazil holds the rotating presidency of the South American trade bloc until the end of this year.
The blocs closed the foundations of the free trade agreement in 2019, after more than 20 years of negotiations.
See also: Brazil receives symbolic command of the G20 from India
In March of this year, however, the European Union sent a “side letter”, a kind of addendum to the original text, to Mercosur placing new environmental conditions for the ratification of the treaty.
The new European demands include the application of sanctions and restrictions on trade between the blocs in the case of deforestation and disrespect for the environment.
Lula met with several European leaders at the G20 Summit, including the president of the European Commission, Ursula von der Leyen, and the president of France, Emmanuel Macron.
A CNN found that the Brazilian president told Macron during the bilateral meeting that the European demands were “offensive” and “unacceptable”.
The French president had already told Lula, in a previous meeting, that the agreement would only pass in his country’s National Assembly if it had broad support from right-wing and extreme-right parties – something considered unlikely at the moment.
To come into force, the agreement must be ratified by all member countries of the two blocs, the four from Mercosur and the 27 from the European Union.
Asked in New Delhi if he believed in the possibility of the agreement actually being approved, Lula said yes. But she argued that political negotiation needs to be done for this.
“I think it is possible. I always say that when we want to find a solution for an agreement, we don’t send an emissary. We go in person. The European Union has its trade negotiators. But those who really negotiate are the governments. I want to sit down in person with Macron, with the [primeiro-ministro alemão Olaf] Scholz to decide things”, said the Brazilian president.
In addition to the environmental issue, the Brazilian government also resists a topic in the negotiated agreement that would allow companies from countries in both blocs to participate in tenders for government purchases on equal terms.
The government, however, defends a market reserve for Brazilian companies on this topic.
“We do not accept threats of sanctions [ambientais] and does not accept the idea of government purchases. They are an instrument of industrial policy for each country. It was like that in the United States, it was like that in Germany and it will be like that in Brazil,” he stated.
Source: CNN Brasil
Bruce Belcher is a seasoned author with over 5 years of experience in world news. He writes for online news websites and provides in-depth analysis on the world stock market. Bruce is known for his insightful perspectives and commitment to keeping the public informed.
