Background on Key Figures and Relevance
Luiz Inácio Lula da Silva, the newly elected President of Brazil, has called on French President Emmanuel Macron to approve the trade agreement between the European Union (EU) and the Mercosur trading bloc. This plea came during Lula’s visit to France, where he met with Macron in Paris. Brazil is set to take over the presidency of Mercosur from Argentina in July, and Lula aims to finalize the trade deal before his term ends.
The EU and Mercosur reached a long-anticipated trade agreement towards the end of last year, despite France’s strong opposition. France has been a significant critic of the agreement, insisting on stringent sanitary and environmental regulations for Mercosur companies to match those of European counterparts.
Key Points and Timeline
- Trade Agreement Negotiations: The EU and Mercosur nearly finalized the trade agreement terms following Ursula von der Leyen’s visit to Uruguay for the Mercosur summit.
- France’s Opposition: Despite the agreement, France, under Emmanuel Macron’s leadership, has vowed to obstruct its ratification due to concerns over sanitary and environmental standards.
- Lula’s Goal: Lula aims to conclude negotiations by December during a Mercosur leaders’ summit, making it the largest trade agreement ever signed by either bloc.
Lula’s Meeting with Macron
During a press conference in Paris alongside Macron, Lula urged him to reconsider his stance on the trade deal. “I won’t leave my presidency of Mercosur without finalizing this agreement with the EU. Open your heart to this possibility,” Lula said.
Impact and Significance
If the trade agreement is approved, it would be a landmark deal for both the EU and Mercosur, significantly boosting trade relations between the two blocs. The agreement would eliminate nearly all tariffs on goods traded between them, promoting economic growth and job creation in both regions.
Key Questions and Answers
- What is the trade agreement about? The proposed EU-Mercosur trade agreement aims to eliminate tariffs and promote trade between the European Union and the South American trading bloc, Mercosur.
- Why is France opposed to the agreement? France has raised concerns about sanitary and environmental standards for Mercosur companies, insisting that they must meet EU regulations.
- What are the potential benefits of the agreement? If approved, the trade deal would significantly increase trade between the EU and Mercosur, fostering economic growth and job creation in both regions.
- When is Lula hoping to finalize the agreement? Lula aims to conclude negotiations by December during a Mercosur leaders’ summit.
