“There will be no possibility that France, alone, will not allow the agreement,” says Lula

The president Luiz Inácio Lula da Silva declared, this Saturday (20), that the French opposition does not have the isolated capacity to interrupt the implementation of the trade agreement between Mercosur and the European Union. The demonstration took place in Foz do Iguaçu, after the postponement of the signing of the treaty, scheduled for that date during the summit of the South American bloc.

“If it is ready to sign and only France is missing, according to Ursula Von Der Leyen and Antonio Costa, there will be no possibility that France, alone, will not allow the agreement,” Lula said.

During a press conference, Lula reported the details of his conversation with the president of the European Commission, Ursula von der Leyen. According to the president, the European leader signaled his technical and political willingness to formalize the agreement in early January 2024. The Brazilian president stressed that, according to information shared by Von der Leyen and the future president of the European Council, Antonio Costathe French position would not have enough support to veto the advancement of the process if the other conditions are met.

The Brazilian government hopes that the document will be signed during the first month of Paraguay’s pro tempore presidency, currently under the command of Santiago Pena.

Although the European Commission intended to finalize the agreement this Saturday, the strategy was changed due to Italy’s position. The Italian government sided with France in asking for more time to analyze the terms. The main obstacle lies in protecting the European agricultural sector.

Lula mentioned that the Italian Prime Minister, Giorgia Meloniexpressed concerns about the distribution of agricultural subsidies within the European Union, which has generated pressure from rural producers in his country. This scenario resulted in the impossibility of immediate ratification of the text.

The agreement between Mercosur and the European Union has been negotiated for 25 years. The project establishes the following guidelines:

• Reduction or gradual extinction of customs duties on imports and exports.

• Harmonization of rules relating to trade in industrial goods and agricultural products.

• Definition of standards for foreign investments.

• Alignment of regulatory standards between member countries.

According to information collected by the AFP agency, the new date scheduled for the completion of the procedures is January 12, in Paraguayan territory. Ursula von der Leyen described the change in timetable as a one-off adjustment, reinforcing the existence of the political majority needed to implement the free trade area.