Portugal can be an important ally in the Mercosur-EU agreement, says Lula government

Itamaraty said that Portugal could be an essential ally of Brazil in negotiations for ratifying the trade agreement between Mercosur and the European Union.

The Portuguese government has shown itself to be a defender of the treaty. Portuguese Prime Minister Antonio Costa said last October that an eventual non-ratification of the agreement would be a “historic mistake.”

Approved in 2019 after 20 years of negotiations, the Mercosur-European Union free trade agreement, must be ratified by the parliaments of all countries in the two blocs to come into force, a process involving 31 nations.

It covers tariff and regulatory issues, such as services, government procurement, trade facilitation, technical barriers, sanitary and phytosanitary measures, and intellectual property.

According to the Ministry of Foreign Affairs, the agreement between the two blocks will be addressed by President Luiz Inácio Lula da Silva in his talks with the Portuguese and Spanish on his visit to Europe that began this Friday (21).

TRADE AND INVESTMENTS

Trade between Brazil and Portugal was US$5.26 billion in 2022, an increase of 50.8% over the previous year.

Brazilian exports totaled US$4.27 billion. Oil represents 59% of the total volume of Brazil’s exports to Portugal.

Agricultural products, on the other hand, constitute 20% of total exports. Portuguese agricultural products represent about 45% of the imports made by Brazil.

According to the Central Bank, Portugal is Brazil’s 16th most important trading partner, with US$10.7 billion.

The energy sectors – exploration and production of oil and gas and generation, transmission, distribution, and commercialization of energy – concentrate most of the volume invested.

Brazilian investments in Portugal are US$4.2 billion, especially in the aeronautical, steel, tourism, hotel, hospital, and infrastructure sectors.

OFFICIAL VISIT

The official commitments begin today (22), when President Lula will participate in a welcoming ceremony at the Praça do Império, in front of the Jerônimo Monastery, and the laying of flowers at the tomb of the Portuguese poet Luís de Camões, inside the monastery. Next, Lula will meet with President Marcelo Rebelo de Sousa at the Belém Palace.

This will be followed by lunch hosted by Prime Minister Antonio Costa and, in the afternoon, the 13th Luso-Brazilian Summit, at the Belém Cultural Center, with the signing of bilateral agreements. Initially, the two heads of government have a private meeting, followed by a plenary with both delegations.

According to the Planalto Palace, at least 13 agreements and partnerships will be signed with the Portuguese government.

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