Lula says Mercosur-EU trade deal protects vulnerable sectors

(MENAFN) Brazilian President Luiz Inácio Lula da Silva has described the free trade agreement between Mercosur and the European Union as a measure that protects vulnerable sectors while countering rising protectionism and unilateral economic policies.

In an opinion piece published by multiple outlets, Lula emphasized that while “unilateralism isolates markets and protectionism restrains global growth,” Mercosur and the EU have chosen “a different path.”

The agreement, concluded after more than 25 years of negotiation, spans 31 countries with a combined population of about 700 million and accounts for roughly 25% of the global GDP, making it one of the largest free trade zones worldwide.

Lula highlighted that the deal will increase mutual access to strategic markets under “clear, predictable and balanced” rules, stimulating investment, exports, and transatlantic production chains. He said it protects the interests of vulnerable sectors, ensures environmental safeguards, and is expected to benefit industries ranging from bioeconomy and high-tech to small and medium-sized farms and businesses, while providing consumers with greater choice at lower prices.

The president also noted that the pact supports an “active, representative, inclusive and fair” global governance system and reinforces the continued relevance of multilateralism in the face of political extremism and protectionism.

Lula cautioned that signing the agreement is only the first step, stressing that its success will depend on “swift and transparent” implementation and the speed with which benefits reach markets, farms, factories, and citizens.

Edinho Silva, president of Brazil’s Workers’ Party, added that the deal is a “win-win agreement, without any form of imposition or subordination,” contrasting it with U.S. actions characterized by economic pressure or attempts at territorial expansion.

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