Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Lula victory revives EU trade hopes for Latin America

Lula victory revives EU trade hopes for Latin America

Lula wants to get an early trade deal with the EU. Brussels needs pledges on the environment first

“This is the result we were all hoping for.” The center-left European lawmaker MEP Kathleen Van Brempt captured the mood in Brussels on Monday, as the EU breathed a diplomatic sigh of relief over the victory of left-winger Luiz Inácio “Lula” da Silva in the second round of Brazil’s presidential election.

Brussels has big ambitions in Latin America. The European Union needs to diversify its trade flows away from Russia and — to a lesser extent — China. With far-right incumbent Jair Bolsonaro on his way out of power, the EU is now keen to revive its ties with Brazil on climate change, deforestation and trade.

“I look forward to working with you to address pressing global challenges, from food security to trade and climate change,” European Commission President Ursula von der Leyen tweeted to Lula on Monday morning.

But Brussels may have to wait in line. Russia wants to trade and China will also be competing for influence in the region, especially after relations between Brazil and Beijing had soured under Bolsonaro. Chinese foreign ministry spokesperson Zhao Lijian welcomed Lula's victory on Monday, saying that China wants to raise the comprehensive strategic partnership with Brazil to a new level.

The most concrete way for the EU to get its foot in the door is to finally tie up the loose ends with the trade deal between the EU and the Latin American Mercosur bloc — made up of Brazil, Argentina, Uruguay and Paraguay.

The closer cooperation would not just ease trade between the economies on both sides of the Atlantic, but is also key for Brussels to be less dependent on China’s raw materials for its green transition.

The Mercosur pact was sealed at a political level in 2019 but has been effectively on ice since then, mostly because of the rampant deforestation of Brazil’s Amazon rainforest under Bolsonaro, which dismayed the EU and French President Emmanuel Macron in particular. Free traders also pointed to more protectionist concerns, particularly in France, which held up progress for the deal over fears of opening the floodgates to imports of Brazilian beef.

Lula's election may be the key to easing those environmental concerns and unlocking the Mercosur deal. In a huge win for the global fight against climate change, he has made clear he's keen to tackle deforestation of the Amazon.

From the EU side, the political stars are also aligned. A range of trade-friendly countries — the Czechs, the Swedes and the Spanish — are at the helm of the EU’s rotating Council presidency this year and next and have already said they want to get the deal back on track.


There may be trouble ahead


To get the agreement through the European Parliament, Brussels plans to negotiate an extra environmental protection document with the Mercosur bloc to try to assuage climate concerns.

But just how far those extra demands should go is already a sensitive discussion within the European Commission, and will likely prove to be even more contentious when it is discussed with the European Parliament, EU countries and the Mercosur countries.

"We will not nail it at the door of the Berlaymont," said a senior EU official, referring to the European Commission building in Brussels. "We need to play this carefully." The official stressed that the EU should propose something that is "more palatable for the other side."

Van Brempt, the trade committee MEP from the socialists, fired a warning against too much flexibility from Brussels. If the Commission wants this deal to pass through Parliament, extra environmental commitments from the Mercosur countries cannot be empty promises, she said. If Brazil or the other countries don’t live up to their promises, they should risk trade sanctions, in line with the EU’s new policy of ensuring trade deals are green.

If Mercosur countries have additional demands to bring to the table, then so be it, Van Brempt argued. “We have to get this deal right,” she said. “Trade is a key component of our geopolitical direction. For that, a renewed cooperation with Brazil is key.”

On his end, Lula has already said he wants to renegotiate some areas of the Mercosur deal in favor of Brazil’s industrial development. Strengthening Brazilian industry was one of his main promises during the campaign.

"In the first six months, we will conclude the agreement with the European Union," Lula said in September. That, he said, must be "an agreement that takes into account the need for Brazil to industrialize again."

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Elon Musk Unveils Grokipedia: An AI-Driven Alternative to Wikipedia
Russia’s President Putin Declares Burevestnik Nuclear Cruise Missile Ready for Deployment
US Administration Under President Donald Trump Reportedly Lifts Ban on Ukraine’s Use of Storm Shadow Missiles Against Russia
White House Announces No Imminent Summit Between Trump and Putin
China Presses Netherlands to “properly” Resolve the Nexperia Seizure as Supply Chain Risks Grow
Merz Attacks Migrants, Sparks Uproar, and Refuses to Apologize: “Ask Your Daughters”
Apple Challenges EU Digital Markets Act Crackdown in Landmark Court Battle
Shouting Match at the White House: 'Trump Cursed, Threw Maps, and Told Zelensky – "Putin Will Destroy You"'
‘No Kings’ Protests Inflate Numbers — But History Shows Nations Collapse Without Strong Executive Power
"The Tsunami Is Coming, and It’s Massive": The World’s Richest Man Unveils a New AI Vision
EU Moves to Use Frozen Russian Assets to Buy U.S. Weapons for Ukraine
Europe Emerges as the Biggest Casualty in U.S.-China Rare Earth Rivalry
“Firepower” Promised for Ukraine as NATO Ministers Meet — But U.S. Tomahawks Remain Undecided
The Sydney Sweeney and Jeans Storm: “The Outcome Surpassed Our Wildest Dreams”
Dutch Government Seizes Chipmaker After U.S. Presses for Removal of Chinese CEO
AI and Cybersecurity at Forefront as GITEX Global 2025 Kicks Off in Dubai
Ex-Microsoft Engineer Confirms Famous Windows XP Key Was Leaked Corporate License, Not a Hack
Hungarian Prime Minister Viktor Orbán stated that Hungary will not adopt the euro because the European Union is falling apart.
Mayor in western Germany in intensive care after stabbing
Australian government pays Deloitte nearly half a million dollars for a report built on fabricated quotes, fake citations, and AI-generated nonsense.
BYD’s UK Sales Soar Nearly Nine-Fold, Making Britain Its Biggest Market Outside China
Latvia to Bar Tourist and Occasional Buses to Russia and Belarus Until 2026
Wave of Complaints Against Apple Over iPhone 17 Pro’s Scratch Sensitivity
Munich Airport Reopens After Second Drone Shutdown
Pro Europe and Anti-War Babiš Poised to Return to Power After Czech Parliamentary Vote
Sean ‘Diddy’ Combs Sentenced to Fifty Months in Prison Following Prostitution Conviction
Altman Says GPT-5 Already Outpaces Him, Warns AI Could Automate 40% of Work
Russian Research Vessel 'Yantar' Tracked Mapping Europe’s Subsea Cables, Raising Security Alarms
Global Cruise Industry Posts Dramatic Comeback with 34.6 Million Passengers in 2024
U.S. Demands Brussels Scrutinize Digital Rules to Prevent Bias Against American Tech
Private Equity’s Fundraising Surge Triggers Concern of European Market Shake-Out
Tokyo’s Jimbōchō Named World’s Coolest Neighbourhood for 2025
European Officials Fear Trump May Shift Blame for Ukraine War onto EU
The Personality Rights Challenge in India’s AI Era
Italy Considers Freezing Retirement Age at 67 to Avert Scheduled Hike
Italian City to Impose Tax on Visiting Dogs Starting in 2026
Study Finds No Safe Level of Alcohol for Dementia Risk
Trump Says Ukraine Can Fully Restore Borders with NATO Backing
Europe Signals Stronger Support for Taiwan at Major Taipei Defence Show
Germany Weighs Excluding France from Key European Fighter Jet Programme
Cyberattack Disrupts Check-in and Boarding Systems at Major European Airports
Björn Borg Breaks Silence: Memoir Reveals Addiction, Shame and Cancer Battle
When Extremism Hijacks Idealism: How the Baader-Meinhof Gang Emerged and Fell
JWST Data Brings TRAPPIST-1e Closer to Earth-Like Habitability
Trump Orders $100,000 Fee on H-1B Visas and Launches ‘Gold Card’ Immigration Pathway
France’s Looming Budget Crisis and Political Fracture Raise Fears of Becoming Europe’s “Sick Man”
Three Russian MiG-31 Jets Breach Estonian Airspace in ‘Unprecedentedly Brazen’ NATO Incident
European manufacturers against ban on polluting cars: "The industry may collapse"
Turkish car manufacturer Togg Enters German Market with 5-Star Electric Sedan and SUV to Challenge European EV Brands
Christian Brueckner Released from German Prison after Serving Unrelated Sentence
×