Brazilian President Luiz Inácio Lula da Silva said Saturday (Dec. 20) that the signing of the long-awaited free trade agreement between the European Union (EU) and Mercosur – a bloc formed by Argentina, Brazil, Bolivia, Paraguay, and Uruguay – which was scheduled to take place today, has been tentatively postponed until January.

The statement was made during the opening speech of the Mercosur Summit in Foz do Iguaçu, South Brazil. The meeting marks the end of Brazil’s presidency of the bloc, which will now pass to Paraguay for the next six months.

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• Lula calls for South American cooperation against organized crime.

Saturday’s meeting was also the date chosen by European leaders for the signing of the agreement to be finalized.

“We had the opportunity to send a key message to the world in defense of multilateralism and to strengthen our strategic position in an increasingly competitive global scenario. But, unfortunately, Europe has not yet made up its mind. European leaders have asked for more time to discuss additional agricultural protection measures,” Lula reported.

The agreement is now expected to be signed in January, he said.

“Yesterday, I received a letter from the presidents of the European Commission [Ursula von der Leyen] and the European Council [António Costa] in which they both express their expectation that the agreement will be approved in January,” the president stated.

Both Ursula von der Leyen and António Costa requested that the Mercosur Summit take place this Saturday, when they would be present, according to Lula, even in face of France’s well-known opposition to the trade agreement, due to fears of a loss of competitiveness in the agricultural sector.

The president reiterated that the postponement, however, was due to a problem with the Italian government, because of internal European Union issues regarding the distribution of funds for agriculture – and not opposition to the agreement itself.

Lula spoke about a telephone conversation he had with Italian Prime Minister Giorgia Meloni on this issue and said that Europeans are committed to the agreement even though France is opposed to it.

“I had a telephone conversation with her [Giorgia Meloni]. She said verbatim that she will be ready to sign in early January. If she is ready to sign and only France is missing, according to Ursula von der Leyen and António Costa, there will be no possibility for France, alone, to block the agreement. The agreement will be finalized, and I hope it will be signed, perhaps in the first month of Paraguay’s presidency, by my colleague Santiago Peña [Paraguayan president],” Lula declared.

Background

Negotiated for 26 years, the EU–Mercosur agreement involves a market of 722 million people and a GDP of USD 22 trillion. When signed, it should be one of the most comprehensive free trade agreements on the planet.

In 2019, the general terms of the agreement, which began in 1999, were unveiled. Last year, in Montevideo, Uruguay, a partnership agreement was signed, on the basis of which the texts of the trade treaty itself could be drafted for subsequent final signature.

Further partnerships

In his speech at the opening of Saturday’s summit, President Lula stated that Mercosur will remain committed to expanding trade agreements with other partners.

He cited, for example, the agreement with the European Free Trade Association (EFTA) – a group of countries with a combined GDP of almost one and a half trillion dollars.

In the last six months, discussions began on expanding the agreement with India. In the same period, negotiations with the United Arab Emirates advanced, and talks with Canada resumed.

Also on the table are negotiations for a strategic partnership with Japan and a tariff preference agreement with Vietnam.

Lula also highlighted the need to expand regional trade among Latin American countries.

“In the region, we hope to make rapid progress in negotiating an agreement with Panama. We also need to update agreements with other South American countries – such as Colombia and Ecuador. Intra-regional trade in South America is far below its potential. It accounts for only 15 percent of trade flows, while in Asia and Europe it stands around 60 percent. The inclusion of the sugar-alcohol and automotive sectors in Mercosur rules could help to change this situation,” he went on to say.

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Brazilian President Luiz Inácio Lula da Silva said Saturday (Dec. 20), during the Mercosur Summit, held in Foz do Iguaçu, South Brazil, that tackling organized crime should be one of the priorities of the bloc formed by Argentina, Bolivia, Brazil, Paraguay, and Uruguay, regardless of the political profile of the countries’ governments.

He argued that the weakening of democratic institutions is one of the problems opening the way for illegal activities. The president also mentioned a series of initiatives underway in South American countries.

“Public safety is the right of citizens and the duty of the state, regardless of ideology. Mercosur has shown its willingness to tackle criminal networks jointly. More than a decade ago, we created a body of authorities specializing in anti-drug policies. Early this year, we signed an agreement against human trafficking. We created a commission to implement a common strategy against transnational organized crime. We established a specialized working group on asset recovery in order to stifle the sources of financing for illicit activities,” he declared.

Lula also advocated the regulation of digital environments to combat crime and announced an international meeting with security ministers to discuss the issue.

“We agree that the internet is not a lawless territory and we have adopted measures to protect children and adolescents and personal data in digital environments. Freedom is the first victim of a world without rules. But this is a struggle that goes beyond Mercosur. There is currently no South American body dedicated to this problem. Therefore, in consultation with Uruguay, Brazil intends to propose a meeting of the ministers of justice and public security […] to discuss how to strengthen South American cooperation in the fight against organized crime,” he stated.

Gender-based violence

At the Mercosur Summit, President Lula addressed the issue of violence against women – one of the main public safety challenges in Brazil, but also a problem in neighboring countries.

“Latin America also holds the sad record of being the most lethal region in the world for women. According to ECLAC [Economic Commission for Latin America and the Caribbean], 11 Latin American women are murdered every day. Yesterday, I sent an agreement to the National Congress for ratification that will allow women who benefit from protective measures in one country of the bloc to have the same protection in other countries. I would like to propose to Paraguay – which is taking over the presidency of the bloc today – that we work to create a major Mercosur pact to end femicide and violence against women,” said the president, who has made repeated speeches proposing a national effort to combat gender violence.

Risk of military conflict

Another key point in Lula’s speech at Saturday’s Mercosur meeting was the risk of armed conflict in South America, given the threat of US military intervention in Venezuela, which could attempt to overthrow the current regime of President Nicolás Maduro and trigger a new war. Today, US troops surround the Caribbean Sea on the Venezuelan border, allegedly to combat drug trafficking.

“More than four decades after the Falklands War, the South American continent is once again haunted by the military presence of an extra-regional power. The limits of international law are being tested. An armed intervention in Venezuela would be a humanitarian catastrophe for the hemisphere and a dangerous precedent for the world,” he warned.

In addition to advocating a doctrine of peace in South America, Lula defended democracy and praised the ability of Brazilian institutions to thwart an attempted coup d’état almost three years ago.

“Brazilian democracy survived the most serious attack it has suffered since the end of the dictatorship. Those responsible for the coup attempt on January 8, 2023, were investigated, tried, and convicted in accordance with due process of law. For the first time in its history, Brazil has settled its accounts with the past,” he argued.