President Luiz Inácio Lula da Silva (PT) said this Monday (30) that he intends to conclude the trade agreement between the European Union and Mercosur by the end of the semester, but said that the text needs to undergo changes.
The declaration was given after the meeting with the Chancellor of Germany, Olaf Scholz, at the Planalto Palace, in Brasília.
“We’re going to work very hard to make this deal come true. [entre União Europeia e Mercosul]but something needs to be changed, it can’t be the way it is,” said Lula, who said he had spoken with the president of Argentina, Alberto Fernández, on the subject during his visit to the neighboring country.
“We are going to close this agreement, if all goes well, by the end of this semester,” he added.
The trade agreement, which was at the center of the conversation between the leaders in the context of the revitalization of the strategic partnership between the two countries, had its negotiation concluded in 2019 and its terms can no longer be changed. Under the normal procedure, it should have been translated and then submitted to the European Council (which brings together heads of government from the 27 member countries of the bloc), the European Parliament and the national and regional Parliaments of the European bloc.
However, the lack of control in the deforestation of the Amazon during the Bolsonaro government raised criticism of Brazil in several countries of the bloc and the agreement began to suffer opposition from blocs of MEPs and governments of some countries, such as France, Austria and Holland, which made cause its processing to be frozen.
For Lula, the issue of government purchases is central to the negotiations. “Government purchases make small and medium-sized Brazilian industries grow,” she said. The president spoke of finding a middle ground to negotiate something better “for those who feel aggrieved”. “Let’s sit at the table as openly as possible,” he added.
The PT member met alone with the German for approximately an hour and a half. Afterwards, an extended meeting took place, lasting about an hour, with the presence of ministers Mauro Vieira (Itamaraty), Marina Silva (Environment and Climate Change), Luciana Santos (Science and Technology), Alexandre Silveira (Mines and Energy ) and vice-president Geraldo Alckmin (Development, Industry, Commerce and Services). Former foreign minister Celso Amorim, head of the president’s special advisory service, was also present.
The leaders also met with business delegations from Brazil and Germany. A potential increase in bilateral trade and investment, especially in the industrial sector, was the subject of discussion.
Last year, the trade flow between the countries surpassed US$ 19 billion (R$ 97 billion), with Brazilian exports of US$ 6.3 billion (R$ 32 billion), imports of US$ 12.8 billion (R$ $65 billion) and a German surplus of $6.5 billion. More than a thousand German companies operate in Brazil.
In charge of Apex (Brazilian Export and Investment Agency), the former governor of Acre, Jorge Viana (PT), participated in bilateral agendas in the Planalto with foreign businessmen.
The War in Ukraine and its global consequences, in terms of peace and security, food and energy security, were other topics addressed in Lula’s meeting with the German Chancellor.
The environmental issue was at the center of the dialogue. Earlier, the German Minister of Economic Cooperation and Development, Svenja Schulze, announced a contribution of 200 million euros (R$ 1.1 billion) from Germany to various actions related to the environmental area, of which 35 million euros (about R$ 194 million) for the Amazon Fund. The announcement of the investment was disclosed at a press conference alongside minister Marina Silva.
In December, after the confirmation of Lula’s election, Germany and Norway, the main financiers of the Amazon Fund, had already committed to release new resources.
In an interview with SheetSchulze mentioned the need to quickly rehabilitate the resources stopped in the Amazon Fund, which has R$ 3.3 billion in cash, unused by the government of Jair Bolsonaro (PL).
The current government has signaled to international partners that the fund is a priority in partnerships and should be used on an emergency basis for environmental inspection actions and combating deforestation in the Amazon.
Scholz’s visit is the first visit by a European leader to Brazil since the beginning of Lula’s government. At the inauguration ceremony for the PT’s third term, Germany was represented by President Franz-Walter Steinmeyer.
Before arriving in Brazil, Scholz was in Argentina and Chile, over the weekend, with presidents Alberto Fernández and Gabriel Boric.
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