Lula signs Brazil into Mercosur-EU trade deal ahead of rollout

Brazilian President Luiz Incio Lula da Silva signed into law the trade agreement between Mercosur and the European Union (EU) on Tuesday, clearing the final domestic hurdle before the pact begins to take effect gradually from May 1. The decree, signed at the Planalto Palace in Braslia, formally incorporates the treaty into Brazils legal framework. The ceremony was attended by senior officials and lawmakers. The agreement, which was signed in January after 26 years of negotiations between the two blocs, will be implemented gradually. It covers over 90% of bilateral trade, with tariff reductions phased in over time, and is expected to create one of the worlds largest free-trade areas, integrating a market of more than 700 million people, by connecting Mercosur made up of Brazil, Argentina, Paraguay, and Uruguay, with Bolivia in the process of full accession with 27 European countries. Iron, sweat and blood Lula described the accord as a victory achieved through persistence amid resistance from competing interests. This agreement was forged through iron, sweat, and blood, because there are many interests trying to prevent Brazil from growing and competing for space, he said. One of the main points of resistance to the treaty was the European agricultural lobbies, in particular French farmers, who argued that cheaper South American agricultural imports would hurt EU producers. The Brazilian president also added that the deal comes at a very important moment because it reinforces the established idea of multilateralism” amid a global climate of protectionism and nationalist politics. Lula also questioned the trade policies pursued by United States President Donald Trump.  After [Trump] took the measures he took, unilaterally imposing tariffs on the entire world, the response that the European Union and Brazil gave to the world is that there is nothing better than believing in the exercise of democracy, in multilateralism, and in cordial relations between nations, he stated. The provisional launch of the commercial pillar of the treaty will be marked on May 1 with a virtual meeting involving the presidents of the four Mercosur member states and European representatives.