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."

Newsletter

Related Articles

0:00
0:00
Close
Unelected PM of the UK holds an emergency meeting because a candidate got voted in… which he says is a threat to democracy…
Farmers break through police barriers in Brussels.
Ukraine Arrests Father-Son Duo In Lockbit Cybercrime Bust
US Offers $15 Million For Info On Leaders Of Cybercrime Group Lockbit
Apple warns against drying iPhones with rice
Alexei Navalny: UK sanctions Russian prison chiefs after activist's death
German economy is in 'troubled waters' - ministry
In a recent High Court hearing, the U.S. argued that Julian Assange endangered lives by releasing classified information.
Tucker Carlson says Boris Johnson wants "a million dollars, in Bitcoin or cash, from Tucker Carlson to talk about Ukraine.
Russia is rebuilding capacity to destabilize European countries, new UK report warns
EU Commission wants anti-drone defenses at Brussels HQ
Von der Leyen’s 2nd-term pitch: More military might, less climate talk
EU Investigates TikTok for Child Safety Concerns
EU Launches Probe Into TikTok Over Child Protection Under Digital Content Law
EU and UK Announce Joint Effort on Migration
Ministers Confirm Proposal to Prohibit Mobile Phone Usage in English Schools
Avdiivka - Symbol Of Ukrainian Resistance Now In Control Of Russian Troops
"Historic Step": Zelensky Signs Security Pact With Germany
"Historic Step": Zelensky Signs Security Pact With Germany
Russian opposition leader Alexey Navalny has died at the Arctic prison colony
Tucker Carlson grocery shopping in Russia. This is so interesting.
France and Germany Struggle to Align on European Defense Strategy
‘A lot higher than we expected’: Russian arms production worries Europe’s war planners
Greece Legalizes Same-Sex Marriage and Adoption Rights
Russia "Very Close" To Creating Cancer Vaccines, Says Vladimir Putin
Hungarian Foreign Minister: Europeans will lose Europe, the Union's policy must change drastically
Microsoft says it caught hackers from China, Russia and Iran using its AI tools
US Rejects Putin's Ceasefire Offer in Ukraine
The Dangers of Wildfire Smoke and Self-Protection Strategies
A Londoner has been arrested for expressing his Christian beliefs.
Chinese Women Favor AI Boyfriends Over Humans
Greece must address role in migrant vessel disaster that killed 600: Amnesty
Google pledges 25 million euros to boost AI skills in Europe
Hungarian President Katalin Novák Steps Down Amid Pardon Controversy
Activist crashes Hillary Clinton's speech, calls her a 'war criminal.'
In El Salvador, the 'Trump of Latin America' stuns the world with a speech slamming woke policing after winning a landslide election
Trudeau reacts to Putin's mention of Canadian Parliament applauding a former Ukrainian Nazi in his interview with Tucker Carlson.
The Spanish police blocked the farmers protest. So the farmers went out and moved the police car out of the way.
Volodymyr Zelenskiy fires top Ukraine army commander
Tucker Carlson's interview with Vladimir Putin raises EU concerns
Finnish Airline, Finnair, is voluntarily weighing passengers to better estimate flight cargo weight
Russia's Economy Expands by 3.6% Due to Increased Military Spending
Ukraine MPs Vote To Permit Use Of Dead Soldiers' Sperm
German Princess Becomes First Aristocrat To Pose Naked On Playboy Cover
UK’s King Charles III diagnosed with cancer
EU's Ursula von der Leyen Confronts Farmer Protests Amid Land Policy Debates
Distinguishing Between Harmful AI Media and Positive AI-Generated Content: A Crucial Challenge for the EU
Tucker Carlson explains why he interviewed Putin
Dutch farmers are still protesting in the Netherlands against the government, following the World Economic Forum's call for 'owning nothing.'
Hungarian Prime Minister Viktor Orbán stands up for European farmers and says, 'Brussels is suffocating European farmers.
×