MercoPress. South Atlantic News Agency

Brazil formally handed over Mercosur's rotating presidency

Lula hopes to have the Free Trade Agreement (FTA) with the EU before the end of the year

Argentine President Javier Milei formally transferred the pro tempore presidency of the Southern Common Market (Mercosur) to his Brazilian colleague Luiz Inácio Lula da Silva at the close of the bloc's summit in Buenos Aires.

During his acceptance speech, Lula outlined Brazil's objectives for its six-month term, which include advancing policies against climate change and energy transition, promoting regional technological development, and combating transnational organized crime. He specifically committed to studying Milei's proposal for an agency dedicated to fighting transnational organized crime.

A key priority for Lula's presidency will be to finalize and sign the Free Trade Agreement (FTA) with the European Union (EU) before the end of the year. This deal has been under negotiation for over 25 years. Lula was confident he would achieve this despite resistance from some EU countries like France.

The Workers' Party (PT) leader also welcomed the recent conclusion of negotiations for a Free Trade Agreement between Mercosur and the European Free Trade Association (EFTA), which includes Iceland, Liechtenstein, Norway, and Switzerland, and expressed intentions to pursue similar agreements with Canada and other countries.

“As I take on the presidency of Mercosur, I would like to tell you that I listened very carefully to the concerns of each president when they spoke, the lack of speed in our decisions, and the rapid execution of what we decide,” Lula underlined. “One looks for places where one feels safe, and, for Brazil, that place is Mercosur,” he added. Furthermore, he urged Mercosur to adopt “a payment system in local currencies that facilitates digital transactions” to expand regional trade.“

”It is not surprising that more and more countries and blocs are interested in getting closer to us. I have personally witnessed this interest in my contacts with leaders from various regions. We will face the challenge of protecting our space of autonomy in an increasingly polarized context,” he also pointed out.

While the handover was amicable, underlying ideological differences between Lula and Milei were evident, after his derogatory campaign remarks against the Brazilian head of State, who is still waiting for a formal apology. Hence, their face-to-face encounter upon Lula's arrival drew special attention. In the end, everything went strictly according to protocol.

Later Thursday, Lula was to visit former Argentine President Cristina Fernández de Kirchner (CFK) at the apartment where she is serving a six-year prison sentence for corruption under the house arrest modality.

 

MERCOSUR by Sebastian Astorga on Scribd