MercoPress. South Atlantic News Agency

Brazilian trade secretary praises Bolsonaro for the Mercosur/EU trade deal

The determinant factor was what happened with Brazil. President Bolsonaro and Economy Minister Paulo Guedes, with coordinated support from Itamaraty

Brazil's Foreign Trade Secretary Marcos Troyjo says that Jair Bolsonaro's government was decisive in pulling off the free trade agreement between Mercosur and the European Union.

Troyjo joined the Brazilian team in Brussels that closed the last points of the agreement, announced last Friday He was quoted by Folha de Sao Paulo saying that the “unity“ of Bolsonaro administration was instrumental in the success of the negotiations.

But Secretary Troyjo also warned the Mercosur-European Union agreement will only succeed if Brazil completes its internal reforms, including the tax and social security reforms. ”The big trade agreement that Brazil has to make is with itself,“ he said.

There is trade tension in the world: US relations with China are in a difficult phase, and Brexit, could have a domino effect on the European Union, which many fear. There is also the unity and common position challenge, and this seems to have prevailed this time in the EU. And Argentina, which has always been refractory, has changed its position.

”But all this is important, not decisive. The determinant factor was what happened with Brazil. President Bolsonaro and Economy Minister Paulo Guedes, with coordinated support from Itamaraty and trade negotiators reached the deal. Trade policy is at the heart of economic policy“.

If you take different moments of public administration in Brazil, there was always a lot of dissent. Here, now with the Bolsonaro government, there is a lot of cohesion, explained minister Troyjo..

”The (former president Michel) Temer government advanced the negotiations with the European Union, but the chapters of manufactured goods, services, government procurement, agriculture, and technology transfer were still open. There was still a lot to do”.

Finally, this is an association agreement, not just a commercial one. One of the main things we are going to see is the DNA change in foreign direct investment in Brazil, emphasized Foreign Trade Secretary Marcos Troyjo.