Lula of Brazil calls for an EU-South American trade agreement before talks with China
Lula of Brazil calls for an EU-South American trade agreement before talks with China
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Montevideo: On Wednesday, Brazilian President Luiz Inacio Lula da Silva urged the Mercosur trade bloc in South America to swiftly complete a free trade agreement with the European Union before beginning talks with China.

Lula made the remarks in Uruguay, a country that has been pursuing its own trade agreement with Beijing in defiance of Mercosur, an association of Brazil, Argentina, Uruguay, and Paraguay. After 20 years of negotiations, the EU and Mercosur came to a trade agreement in 2019, but it has not yet been ratified.

In Montevideo, where he met with President Luis Lacalle Pou, Lula declared that "it is urgent and extremely important for Mercosur to reach an agreement with the EU."

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"We will intensify our talks with the EU and sign this agreement," he continued, "so that we can then talk about a deal between China and Mercosur." The EU-Mercosur agreement has drawn a lot of criticism in Europe, especially from the agricultural and environmental communities.

It was negotiated by the European Commission, but before it takes effect, each of the 27 EU member states must ratify it.

Uruguay had long pushed for more flexibility within Mercosur, but its independent talks with China aroused disapproval from other participants and even rumours that the group might split up.

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Uruguay "is part of Mercosur, and that has not changed," insisted Lacalle Pou, despite direct negotiations with China. There are no barriers to telling Brazil and Argentina what is being discussed, according to Lacalle Pou.

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Without the consent of its Mercosur partners, Uruguay has also submitted an application to join the Trans-Pacific Partnership (CPTPP), a trade pact encompassing nations in eastern Asia, the Pacific, and North and South America.

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