Brazil’s Lula Says He Is Ready to Sign EU-Mercosur Trade Deal

Brazilian President Luiz Inacio Lula da Silva announced on Wednesday his willingness to finalize a trade agreement between the European Union and the South American Mercosur bloc, emphasizing that it is now the EU’s turn to wrap up negotiations.

During a discussion at the U.N. General Assembly, Lula mentioned that Brazil is exceeding expectations, impressing investors and credit rating agencies with stronger-than-anticipated growth, and is now providing renewed stability following advancements in tax reform within Congress.

“If the EU is prepared, we can sign the trade agreement during the G20 meeting in Brazil,” he remarked, referencing the upcoming Group of 20 summit scheduled in Rio de Janeiro in November.

“I have never been more optimistic about the EU-Mercosur accord,” Lula added.

A European diplomatic source indicated that progress had been made in addressing differences during a direct meeting of negotiators that took place in Brasilia on September 5-6. The source noted that while there is a desire to finalize negotiations when possible, a “gap” still exists.

Brazilian officials have reported that there have been significant strides in resolving issues concerning environmental protections and government procurement, which had previously delayed progress.

Mercosur consists of Brazil, Argentina, Uruguay, Paraguay, and more recently, Bolivia. The bloc presents a lucrative opportunity for EU manufacturers, although European farmers, particularly in France, remain concerned about the competition that the agreement may introduce.