EU cannot ‘threaten’ Mercosur with punishments, says Lula – 06/19/2023 – Market

President Luiz Inácio Lula da Silva (PT) once again complained this Monday (19) about the European Union’s new demands to conclude the free trade agreement with Mercosur, stating that the European bloc “cannot try to threaten” the South American .

The president stated that he will precisely discuss these issues during his trip to Europe, when he will meet with French President Emmanuel Macron.

“I’m having lunch with Macron and I want to discuss the issue of the French parliament that approved the tightening of the Mercosur-European Union agreement. That is, the European Union cannot try to threaten Mercosur with punishing Mercosur if it does not comply with this or that”, said the president during live broadcast.

“If we are strategic partners. You don’t have to threaten,” he added.

The Brazilian president was referring to the approval by the National Assembly of France of a resolution against the ratification of the trade agreement. It is a resolution that does not have the power of law, but represents a political setback for the negotiations, in view of the Brazilian objective of concluding the treaty by the end of this year.

The French parliamentarians pointed out as a reason for this resolution the damage to French producers due to possible unfair competition, in addition to environmental risks.

Furthermore, the European Union is pressuring Mercosur to include a so-called “side letter”, with new environmental requirements.

Lula made the statement during his second live broadcast on social media, called Conversa com o Presidente. Initially, these lives would take place on Tuesdays, but ended up in advance because of commitments from the representative.

The president leaves on Monday night (16) for an official trip to Europe. Initially, Lula is going to Italy, where he will have meetings, among others, with President Sergio Matarella and Pope Francis, at the Vatican.

Afterwards, he goes to Paris, where he participates in the New Global Financial Pact summit, an event organized by French President Emmanuel Macron, in addition to having a working lunch with the French representative and speaking at the Power Our Planet event.