MercoPress. South Atlantic News Agency

Brazilian official says Mercosur-EU deal may be closed this year

None of the obstacles is insurmountable, Elias explained

Márcio Elias, executive secretary of Brazil's Ministry of Development, Industry, Trade, and Services, said Sunday that the federal government intends to close the free trade agreement between Mercosur and the European Union this year.

In an interview in Lisbon, where he is accompanying President Luiz Inácio Lula da Silva's entourage, Elias said that Brazil still intends to close the agreement in the first semester of 2023.

“The expectation is that the agreement will be closed this year, as soon as possible. If possible, we would close it this semester, as is our wish,” Elias said.

According to the secretary, the Brazilian government remains in contact with European authorities to unlock the requirements that must be met by the country and the other members of the block.

He also said that the obstacles are related to environmental requirements and labor legislation, which are already fulfilled by Brazil, but need the approval of other countries to count in the clauses of the trade agreement.

“We are very close, but for this, we need to think globally. We have several issues that need to be addressed. None of them is insurmountable. That is why President Lula has been saying that we will close the agreement”, he added.

Green hydrogen

The head of State has expressed his belief that Brazil has the potential to become a global leader in renewable energy. In a recent tweet, Lula outlined his vision for Brazil's future as a major player in the fields of wind energy and green hydrogen.

President Lula called on Monday for partnerships with countries around the world to help develop these industries, emphasizing the importance of cooperation and collaboration in achieving this goal. He rejected a unilateral approach, instead advocating for relationships of partnership rather than hegemony.

Podemos estabelecer parceria com o mundo inteiro para energia eólica, hidrogênio verde. O Brasil está preparado para voltar a ser um país grande. E vamos construir relações de parceria, não de hegemonia.

— Lula (@LulaOficial) April 24, 2023

The President's vision is based on Brazil's abundant natural resources and existing infrastructure, which he believes could help the country become a major player in the renewable energy sector. This, in turn, could help boost Brazil's economy and global standing while promoting sustainable development and reducing the country's carbon footprint.

Lula da Silva's comments come at a time when many countries around the world are looking to transition to renewable energy sources in an effort to combat climate change. Brazil's vast wind and solar resources, as well as its potential for green hydrogen production, could position the country as a major player in this global shift. However, it remains to be seen whether Brazil will take the necessary steps to develop these industries and establish partnerships with other countries to achieve its vision for a more sustainable future.