On Tuesday, Brazilian President Luiz Inácio Lula da Silva enacted the trade agreement between Mercosur and the European Union, thereby overcoming the last domestic obstacle prior to the phased implementation of the pact starting May 1. The decree, executed at the Planalto Palace in Brasília, officially integrates the treaty into Brazil’s legal framework. The ceremony saw participation from high-ranking officials and legislators. The accord, finalized in January following 26 years of negotiations between the two entities, is set to be executed in a phased manner.
The agreement encompasses more than 90% of bilateral trade, with tariff reductions implemented gradually. It is anticipated to establish one of the largest free-trade areas globally, linking a market of over 700 million individuals by connecting Mercosur, which includes Brazil, Argentina, Paraguay, and Uruguay, along with Bolivia in the process of full accession, to 27 European nations. Lula characterized the agreement as a triumph attained through steadfastness in the face of opposition from rival stakeholders. “This agreement was forged through iron, sweat, and blood, because there are many interests trying to prevent Brazil from growing and competing for space,” he stated.
One of the primary sources of opposition to the treaty stemmed from the European agricultural lobbies, notably French farmers, who contended that the influx of cheaper agricultural imports from South America would adversely affect EU producers. The Brazilian president emphasized that the agreement arrives “at a very important moment” as it strengthens “the established idea of multilateralism” in the context of a global environment characterized by protectionism and nationalist politics.
Lula also scrutinized the trade policies implemented by United States President Donald Trump. “After [Trump] implemented unilateral tariffs globally, the responses from the European Union and Brazil emphasized the superiority of believing in democracy, multilateralism, and fostering cordial relations among nations,” he stated. The provisional launch of the commercial pillar of the treaty is set for May 1, featuring a virtual meeting that will include the presidents of the four Mercosur member states alongside European representatives.