This policy will preserve MERCOSUR’s autonomy and reduce transaction costs and currency risks.

On Thursday, Brazilian President Lula da Silva called on member countries of the Southern Common Market (MERCOSUR) to adopt a system of international payments based on local currencies, during his address at the regional summit held in Buenos Aires.

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Lula, who is set to assume MERCOSUR’s rotating six-month presidency at the end of the summit, also reaffirmed Brazil’s commitment to ongoing negotiations aimed at “expanding markets”.

He also expressed strong confidence that the long-delayed free trade agreement with the European Union — under negotiation for more than 25 years — would be signed “before the end of the year.” This deal, however, still faces opposition from France and other EU countries.

The Brazilian leader celebrated the recent conclusion of a free trade agreement between MERCOSUR and the European Free Trade Association (EFTA), a development that was announced a day earlier in Buenos Aires. He also expressed his intention to pursue trade deals with Canada, the United Arab Emirates, Panama, and the Dominican Republic.

The text reads, “This was Milei’s greeting with Lula. The presidents of Argentina and Brazil met at the MERCOSUR summit in Buenos Aires. The last time they met was at the G20 summit in Rio de Janeiro, where they exchanged a brief, distant greeting. After the meeting, a formal photo was taken with all the leaders participating in the event.“

Lula proposed updating existing trade agreements with Ecuador and Colombia and called for a greater focus on Asia through closer engagement with Japan, China, India, South Korea, Vietnam and Indonesia.

The Brazilian president described MERCOSUR as a “house with solid foundations” and a natural refuge in a world that is “increasingly unstable and threatening.” His comments were aimed at reinforcing the unity of the economic bloc, which currently includes Argentina, Brazil, Paraguay and Uruguay, with Bolivia in the process of joining.

Lula also defended the bloc’s Common External Tariff, saying it “shields” MERCOSUR from “trade wars,” and emphasized that the bloc’s institutional strength positions it as a reliable partner on the global stage.

To preserve MERCOSUR’s autonomy and reduce transaction costs and currency risks, Lula urged member states to use local currencies in international trade payments.

The text reads, “The Second Federal Oral Court, the same court that convicted Cristina Fernandez in 2022 for corruption in public works, approved Brazilian President Lula da Silva’s visit to her residence in Buenos Aires on July 3.”

With Brazil set to host COP30 in November, Lula also called on MERCOSUR to unite in the fight against global climate change, warning that its consequences are already affecting the Southern Cone in the form of droughts and floods that cause “human losses, destruction of infrastructure, and crop failures.”

“Reality is moving faster than the Paris Agreement and exposing the fallacy of climate denialism,” the Brazilian president said, announcing a forthcoming meeting of MERCOSUR environment ministers.

Lula also highlighted the need to confront organized crime, stating that it would be impossible to defeat “multinational criminal networks without coordinated action.”

To support that effort, Lula offered MERCOSUR the use of a regional security coordination center in the Amazonian city of Manaus, inaugurated earlier this year, which will facilitate the exchange of information among South American countries.

He also announced plans to strengthen MERCOSUR mechanisms that promote human rights and cooperation in social policy areas and to convene meetings of civil society movements and labor unions from the bloc’s member countries.

“The strength of democracy depends on dialogue and respect for pluralism — values that Brazil intends to uphold during the next six months to promote inclusive and sustainable integration,” he said.

teleSUR/ JF

Source: EFE

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