“The political leadership, the personal commitment, and the passion that you have shown in recent weeks and months, my dear President Lula, have been truly enormous,” said the President of the European Commission, Ursula von der Leyen, during a meeting with Lula in Rio de Janeiro on Friday (Jan. 16). The encounter took place one day before the signing of the agreement in Paraguay, which is holding the temporary presidency of Mercosur.

The two met at the Ministry of Foreign Affairs palace to discuss the agreement, which will create one of the world’s largest trading areas, home to approximately 720 million people. The European Union’s approval of the agreement was announced last week, after more than 25 years of negotiations.

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Lula emphasized that “trade liberalization and openness only make sense if they are capable of promoting sustainable development and reducing inequalities,” recalling that trade and investment result in new jobs and opportunities.

“Political dialogue and cooperation will guarantee high standards of respect for labor rights and environmental protection,” Lula said.

Added Value

Lula added that, unlike in the past, Brazil will not restrict itself to supplying commodities - especially agricultural products - to the European Union.

“We will not limit ourselves to the eternal role of commodity exporter. We want to produce and sell industrial goods with higher added value,” he stated, adding that the agreement provides incentives for investments by European companies in Mercosur, which includes strategic value chains for the energy transition and digital transmission.

“The best is yet to come”

European Commission President Ursula von der Leyen said that all members of the bloc should benefit from new jobs and that many opportunities will arise for the business sector on both sides.

“I know that, between our regions and our peoples, the best is yet to come. This is how we create true prosperity, which is shared prosperity. We agree that international trade is not a zero-sum game,” she noted.

“The whole story will only be successfully told when companies begin to feel the benefits of our agreement. Something that should happen quickly,” von der Leyen added.

She went on to say that the agreement will multiply opportunities, with clear and predictable rules, as well as standards and supply chains that, according to her, “will serve as highways for investment.”

“This agreement now concluded is the achievement of an entire generation,” the European leader highlighted, as she thanked Lula for his commitment to consolidating the agreement.

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