MercoPress. South Atlantic News Agency

Lula foresees Mercosur-EU agreement will be signed on Dec. 20

The EU and Mercosur completed negotiations on the agreement last December

Brazilian President Luiz Inácio Lula da Silva said on Sunday at the G20 Summit in South Africa that the Free Trade Agreement (FTA) between the Southern Common Market (Mercosur) and the European Union (EU) would be signed on December 20. Lula, who holds the South American bloc's rotating presidency, has made the deal a priority.

”It is an agreement that involves nearly 722 million inhabitants and US$22 trillion in gross domestic product (GDP). It is extremely important, possibly the largest trade agreement in the world. And then, after signing the agreement, there will still be a lot of work for us to do before we can begin to enjoy the benefits of this agreement, but it will be signed,“ Lula argued during a press interview in Johannesburg.

The European Union and the bloc formed by Argentina, Brazil, Paraguay, and Uruguay completed negotiations on the agreement last December, about 25 years after talks began. Two texts will be signed: the first of an economic-commercial nature, which is provisional, and a complete agreement.

In September, they were formally submitted by the European Commission to the European Parliament and the member states of the European bloc. The European Parliament needs to approve the agreement with favorable votes from 50% of its members plus one, which may face resistance from countries such as France, where objections have been raised.

In addition, at least 15 of the 27 countries must ratify the text, representing at least 65% of the total population of the European Union, which could take several years. When the full agreement enters into force, it will replace the provisional trade agreement.

The Mercosur countries must do the same and submit the final document to their parliaments, but entry into force is individual, meaning that it is not necessary to wait for approval by the parliaments of the four member states.

France, the EU's largest beef producer, has described the agreement as ”unacceptable,“ saying it does not take into account environmental requirements in agricultural and industrial production. President Lula responded by saying that France is protectionist about its agricultural interests.

European farmers have protested several times, saying that the agreement would lead to cheap imports of South American commodities, mainly beef, that do not meet EU food safety and ecological standards. The European Commission has denied that this is the case.

Brazil argues that any safeguard regulations adopted internally by the European Union must be fully compliant with the spirit and terms agreed upon in the agreement.

The Commission and proponents, such as Germany and Spain, say the agreement offers a way to offset trade losses due to tariffs imposed by Donald Trump and reduce dependence on China, particularly for essential minerals.

Supporters of the agreement in the European Union see Mercosur as a growing market for European cars, machinery, and chemicals, as well as a reliable source of minerals essential to its green transition, such as lithium metal for batteries, for which Europe currently depends on China. They also point to agricultural benefits, as the agreement would offer greater access and lower tariffs for EU cheese, ham, and wine.

During the press conference, Lula also clarified that the agreement is expected to be signed in Brasília during the Mercosur Leaders' Summit on December 20 in Foz do Iguaçu.

According to him, the president of Paraguay will not be able to attend on that date, so the high-level meeting should be held in early January in Foz do Iguaçu, in the triple border region between Brazil, Paraguay, and Argentina. ”We will possibly schedule the Mercosur meeting for early January and sign [the agreement] on December 20,“ he said.

Regarding his predecessor Jair Bolsonaro's incarceration during the weekend, Lula said that ”everyone knows what he did.” However, he declined to comment on specific Supreme Federal Court (STF) rulings. “I do not comment on an STF decision. The court made a decision, he was tried, he had every right to the presumption of innocence, there were practically two and a half years of investigation, plea bargaining, and trial. In other words, the court decided, it is decided, he will serve the sentence that the court determined, and everyone knows what he did,” Lula underlined.

Asked whether this measure would affect his relationship with US President Donald Trump, Lula replied that “Trump needs to know that we are a sovereign country, that our courts decide, and what is decided here is decided.” (Source: Agencia Brasil)