Mercosur-EU agreement will be finalized this year, says von der Leyen

Ursula von der Leyen, President of the European Commission, affirmed her and Brazilian President Luiz Inácio Lula da Silva’s dedication to finalizing the EU-Mercosur trade agreement “as soon as feasible”, setting a year-end deadline as the ultimate timeframe.

Stating, “It’s the most extensive and ambitious deal we’ve ever brokered. And now, we’re nearing the final stage.”

“I believe it’s time to cross that milestone. Today, President Lula and I have pledged to wrap up the agreement at the earliest, but no later than year-end,” she revealed.

Von der Leyen announced at the conference titled “The Future of the European Union-Brazil Partnership”, organized by CNI (National Confederation of Industry) and the Delegation of the European Union in Brazil, on Monday, June 12.

She highlighted that the European Union and Mercosur already share robust trade ties, but there are “numerous impediments constraining our trade flow”.

Von der Leyen’s Brazil visit was centered on three core areas: clean growth, the human aspect of the digital revolution, and more equitable and prosperous global trade.

Some key takeaways from her address include:

• Deforestation: “Lula pledged to implement a zero-deforestation policy by 2030, which is excellent news for the planet and the local economy.”
• Investments: “European investors are keen on contributing to the Amazon fund and a new investment program in the Amazon river basin… We will augment our financing in Latin America and the Caribbean. Private investments are expected, and we are prepared to back sustainable forest chains and hydrogen production… An investment of 2 billion euros in renewable energy awaits, and we will collaborate to protect the planet and boost our economies
• Hydrogen production: “Brazil holds immense potential for renewable energies… We will cooperate, given that we Europeans have set a target of importing 10 million tons of hydrogen annually by 2030”
• Digital infrastructure: “We’re pushing for expanded 5G connectivity to reach Brazil’s remotest regions”
• Data protection: “Brazil and Europe already have personal data protection laws. We can jointly tackle platform regulation issues.”Earlier that day, the European leader had an appointment with Lula at the Planalto Palace in Brasilia as part of the government’s effort to forge closer ties with the European Union, primarily focusing on the Mercosul-European bloc agreement.

Following the meeting, Lula voiced his disapproval of the sanctions against Brazil, stipulated in an addendum to the agreement.

He argued that a “trust-based” relationship must be maintained between strategic partners.

This remark was in response to the “side letter” submitted by the European bloc, listing socio-environmental prerequisites for the negotiation to be concluded.

Addressing the issue, Von der Leyen opined that the additional letter provides a chance for both sides to negotiate on how to strike a deal.

With information from Poder360

Ursula von der Leyen, Mercosur news, English news Mercosur, Lula da Silva and Ursula von der Leyen, trade agreement Mercosur EU

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