Lula says he hopes to conclude a ‘balanced’ agreement between Mercosur-EU that preserves both parties By Estadão PRODUTO

2023-07-17 16:10:47

© Reuters Lula says he hopes to conclude a ‘balanced’ agreement between Mercosur-EU that preserves both parties

President Luiz Inácio Lula da Silva said he hopes for the conclusion of a “balanced” agreement between Mercosur and the European Union later this year and that preserves “the capacity of the parties to respond to challenges”. Citing government purchases, one of the obstacles to concluding the agreement, Lula stated that the countries of Latin America and the Caribbean will continue to play a strategic role for Europe and the world.

“A balanced agreement between Mercosur and the European Union, which we intend to conclude later this year, will open new horizons”, said the PT, this Monday, 17, during the opening session of the European Union-Latin America business forum, in Brussels, in Belgium. “We want an agreement that preserves the parties’ ability to respond to present and future challenges.”

In his last speeches, Lula has reiterated criticism of the additional document to the trade agreement presented by the European Union, which opens up the possibility of sanctions on Mercosur in case of non-compliance, in addition to saying that he does not accept including government purchases in the treaty. Such government purchases were mentioned by Lula in today’s speech, classifying them as a “vital instrument to articulate investments in infrastructure and sustain our industrial policy”.

In the speech, Lula was next to the president of the European Commission, Ursula von der Leyen, who said she had the expectation that the European Union and Mercosur overcome current differences as soon as possible. “Our ambition is to resolve the remaining differences as quickly as possible so that we can complete this agreement,” said von der Leyen.

When talking about the Brazilian domestic market and the need to expand investments in durable goods, inputs and associated services, Lula said that Brazil will launch, in the coming days, the new Growth Acceleration Program (PAC) “to face the bottlenecks existing”. “By launching an ambitious investment program, I am not thinking solely and exclusively of my country. We do not want to be an island of prosperity”, he stated.

According to Lula, after six years of setbacks and stagnation, the country will once again generate quality jobs, fight poverty and increase the income of Brazilians. “This new, fairer and more solidary Brazil is being rebuilt without abdicating our commitments to macroeconomic fundamentals. Controlling inflation and balancing public accounts are essential requirements to ensure stability, a solid foundation for economic expansion and social progress” , he stated. In his speech, Lula also mentioned the tax reform, underway in the National Congress, and which should make the Brazilian economy “more efficient”.

In the speech, Lula reiterated that Brazil will fulfill its commitment to zero deforestation in the Amazon by 2030 and highlighted that climate change demonstrates “the urgency of preserving biodiversity and ecosystems.”