Lula says he intends to sign an agreement between the European Union and Mercosur on December 20 next in Brazil

Lula said he was leaving the G20 satisfied and would then head to Mozambique. Then he returns to Brazil and does not intend to travel again this year “except to sign the Mercosur agreement with the European Union.”

The Secretariat of Foreign Trade (Secex), linked to the Ministry of Development, Industry, Trade and Services (Mdic), estimates that the treaty could generate a “spillover” effect, by making Brazilian industry more competitive, thus expanding exports to other markets, as well as introducing national inputs into European production chains that supply other regions of the world.

Simulation made by Secex exclusively for value and Published in a report this week It indicates that in the 20 years after the start of the agreement, total Brazilian exports will grow by 2.7% compared to the no-deal scenario. Sales are expected to increase by 13% to the European market, but the impact of connected production chains and lower input costs should also increase exports to the United States (up 2.6%) and China (1.6%).