Lula criticizes EU’s ‘unacceptable’ letter to Mercosur

President Luiz Inácio Lula da Silva expressed his dissatisfaction on Thursday (22 June) with the additional letter sent by the European Union (EU) to Mercosur regarding the ongoing negotiations for a trade agreement between the two blocs.

Lula deemed the document unacceptable due to its inaccurate sanctions for environmental non-compliance.

In an interview in Rome, Italy, Lula emphasized that the proposed agreement does not align with his vision for Latin American countries striving to regain their industrialization capacity.

He criticized the EU’s additional letter, which imposes penalties on any country that fails to adhere to the Paris Agreement, while the EU itself has not fully complied with it.

Lula called for greater sensitivity and humility in the discussions, stating that Brazil is preparing a response to the EU.

The Europeans presented new environmental demands in March through the additional “side letter,” which includes sanctions for non-compliance with climate obligations.

During his visit to Rome, Lula had meetings with Italian President Sergio Mattarella and Italian Prime Minister Giorgia Meloni.

He later traveled to Paris to meet with French President Emmanuel Macron, with the Mercosur-EU agreement serving as the main topic of conversation.

Lula emphasized that imposing punishments on the agreement partner is unjust, emphasizing the need for a mutual understanding.

While acknowledging the French government’s firm stance on defending its agriculture, he stated that it is also natural for Brazil to reject such penalties.

Lula sees this as an opportunity for dialogue.

In addition to the agreement discussions, Lula discussed energy transition and emphasized the need for investments from wealthy countries to preserve forests and take environmental actions in developing nations.

He mentioned the potential inclusion of green hydrogen in the global energy matrix.

Lula highlighted the significance of the upcoming COP30, to be held in the city of Belém, Pará, in 2025, as an opportunity for countries to have a serious discussion on the climate issue.

He called for rich nations to fulfill their promise of donating US$100 billion annually to forest preservation efforts, mentioning Brazil, Indonesia, and Congo as countries requiring assistance.

The president defended that the energy transition can present an opportunity for industrialization in these countries, but it necessitates collective action.

He urged developed nations, which have historically deforested their own lands and industrialized for centuries, to address their responsibilities to the planet.

For the full picture, see our Mercosur EU Trade Deal: Complete Guide.

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