Brazil’s Lula Intends to Revive EU-Mercosur Trade Deal Talks If Elected

Brazil’s presidential election frontrunner Lula intends to reopen European Union-Mercosur trade talks if elected. Lula also wants to add some provisions to the deal, including environmental protection, human rights and technology. If Lula wins the election in October, Brazil will likely join Argentina and environmental groups to review the agreement, which has been blocked in Europe over concerns that it could destroy the Amazon rainforest under the Bolsonaro administration.

The decision will put Lula in a delicate balance between his ambitious environmental pledges, and his old ties with agribusiness leaders who have been critical of Europe’s environmental demands as “hypocritical barriers to trade”.

Lula’s campaign believes they can strengthen clauses on climate without them becoming a pretext for protectionism.

Still, they acknowledge the challenge to keep the agreement balanced to serve climate targets and sustainable development, as well as industrial development with up to date technology that must be green.

The Lula campaign also suggests adjustments to the agreement, which took two decades to negotiate, in order to improve provisions on government purchases, services and intellectual property.

Lula aims to strengthen the strategic partnership between Mercosur and the EU, and to create the largest free trade area in the world.

Lula leads by double digits in opinion polls ahead of the Oct. 2 election against Bolsonaro, whose presidency has increased deforestation of the Amazon.

The EU believes under Bolsonaro administration, an agreement with Mercosur is impossible largely because of environmental concerns.

Need to access the insight?

Start your 7-day free trial now

Need to access the insight?

Start your 7-day free trial now

Need to access the insight?

Start your 7-day free trial now


Do you need to access special insights on this matter?

Start your 7-day free trial  and become a member today


Subscribe to Top Insights Today

Subscribe to Executive Newsletter Top Insights Today

The Executive Newsletter -Top Insights Today- puts global business events in perspective through special insights

Join the ranks of global executives and subscribe to Top Insights Today

Top Insights Today covers insights on energy, clean-tech, oil&gas, mining, rare earths, defense, aviation, infrastructure, manufacturing, electrical vehicles, big-tech, finance and politics of business

By clicking subscribe you agree to our privacy and cookie policy and terms and conditions of use.

Read more insights

Germany, Canada Discuss LNG Supply Options

German Chancellor Scholz and Canadian Prime Minister Trudeau discussed options for Germany to import LNG via a terminal on Canada’s east coast on the sidelines of this week’s G7 summit.  

Russia Concerns Prompt UK, Japan Sign New Defense Pact

British Prime Minister Johnson said the militaries of the UK and Japan will work together more closely after the two countries signed a new defense pact during Japanese Prime Minister Kishida’s London visit. 

Lucrative Chinese Auto Market Has Its Thorn

China has been a priority for foreign automotive manufacturers both for its sheer size and its fast adoption of electric vehicles (EV), but regulatory issues have started to create headache. Lack of transparency and uncertain lead times for new regulations have become the primary issues for automakers.

Stay informed

error: This content is protected !!