Brazil's Lula hopes for Mercosur-EU trade deal by year-end
Adds details, background, Argentina view in paragraphs 6-11
By Lisandra Paraguassu
BRASILIA, Nov 27 (Reuters) -Brazilian President Luiz Inacio Lula da Silva said on Wednesday he hoped a trade deal between the European Union and the South American Mercosur bloc would be finalized by the end of this year, even as it faced opposition, mainly from France.
"We will get it done," Lula told an event hosted by industry group CNI in Brasilia, shrugging off French opposition.
The deal was being negotiated directly with European Commission President Ursula von der Leyen, he said.
"Von der Leyen has the mandate to make this agreement, and I intend to sign it this year," Lula said.
Mercosur joins Brazil, Argentina, Uruguay, Paraguay and Bolivia in a market that is a sought-after destination for EU manufacturing exporters, though European farmers, especially in France, fear the competition it will bring.
A deal between the EU and Mercosur has been in the works for some 25 years. The parties had announced an agreement in 2019, but it was never formally ratified due to EU demands for commitments on Amazonian deforestation and climate change.
European negotiators arrived in Brazil on Tuesday for a new round of talks ahead of a Mercosur summit in Uruguay's capital Montevideo next week. A source familiar with the matter said there was "good will" from both parties to clinch an agreement.
Despite the opposition from France and Poland, other EU countries such as Germany and Spain favor the deal.
Argentina, whose President Javier Milei has said in the past that the South American common market served no purpose, on Wednesday also voiced support for the deal.
"We support trade agreements, whether the one you refer to or any other that can benefit Argentines," presidential spokesman Manuel Adorni told a press conference when asked about the Mercosur-EU deal.
Both Milei and Lula met with French President Emmanuel Macron earlier this month in South America.
Macron reiterated France's opposition to a deal due to concerns over agricultural imports that do not meet European standards and said Milei had expressed dissatisfaction to him with the current terms of the trade accord.
Reporting by Lisandra Paraguassu and Gabriel Araujo; Editing by Bernadette Baum and Angus MacSwan
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
