MERCOSUR Summit: Lula Calls for a Forceful Response to the EU

On July 4, 2023,  the Southern Common Market (MERCOSUR) began its biannual meeting in Puerto Iguazu, Argentina.

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The high-level event is attended by the presidents Lula da Silva (Brazil), Alberto Fernandez (Argentina), Mario Abdo (Paraguay), and Luis Lacalle (Uruguay). 

They will analyze the negotiations of a Free Trade Agreement (FTA) between MERCOSUR and the European Union (EU), given that the European nations have requested that South American countries meet climate-related conditions before ratifying the bilateral deal.

During his speech before the South American leaders, Lula da Silva pleaded with the MERCOSUR countries for a "quick" and "forceful" response to the EU position.

"Strategic partners do not negotiate with mistrust and threats of sanctions," he said upon assuming the six-month presidency of the South American bloc, which is made up of Argentina, Brazil, Paraguay and Uruguay.

Although Lula assured that he was "committed" to the conclusion of the negotiations, he stressed that the MERCOSUR-EU agreement "must be balanced" and include measures that favor the industrialization of the South American countries.

"We are not interested in agreements that condemn us to be eternal exporters of commodities," the Brazilian leader said, qualifying the environmental annex attached by the EU as "unacceptable."

Lula also made it clear that "it is inadmissible to renounce the purchasing power of the State" when referring to the annex related to government purchases proposed in the agreement.