Lula assumes presidency of Mercosur and toughens criticism of European restrictions to the agreement

President Luiz Inácio Lula da Silva (PT) took office of the rotating Mercosur presidency this Tuesday morning (4) in Puerto Iguazu, Argentina, with a hardening of criticism of the restrictions imposed by the European Union on the trade agreement between the two blocs. . He classified the so-called “Additional Instrument” of the negotiations, presented in March this year, as “unacceptable”.

“Strategic partners do not negotiate based on distrust and the threat of sanctions. It is imperative that Mercosur presents a quick and forceful response. It is inadmissible to give up the purchasing power of the state – one of the few instruments of industrial policy that we have left. We have no interest in agreements that condemn us to the eternal role of exporters of raw materials, minerals and oil”, he said during the inauguration speech.

During the presentation, Lula emphasized that the Mercosur administration until the end of the year will focus on establishing new bilateral trade agreements with countries such as China, Indonesia, Vietnam and regions such as Central America and the Caribbean, and on reviewing and advancing treaties with Canada, South Korea and Singapore.

Internal trade and trade with other South American countries is also on the radar of Lula’s management in Mercosur, such as the expansion of agreements with Chile, Colombia, Ecuador and Peru and the approval of Bolivia’s accession to the bloc. “We are urgently in need of Bolivia’s accession as a full member and I will work personally for its approval by the Brazilian Congress,” he said.

However, Lula made no mention of Venezuela, the country with which he re-established diplomatic relations and classified it as a “democracy” during Nicolás Maduro’s honorable visit to Brazil in May. The act was heavily criticized mainly by the presidents of Uruguay and Chile, in addition to the Venezuelan opposition itself.

Mercosur’s single currency returns to the discussion

Still during his inauguration speech as rotating president, Lula reaffirmed the need to create a single currency for commercial transactions between the countries of the bloc instead of using the dollar. However, restricted to negotiations.

“The adoption of a common currency to carry out clearing operations between our countries will help to reduce costs and further facilitate convergence. I speak of a specific reference currency for regional trade, which will not eliminate the respective national currencies, ”he said.

The president also highlighted the agricultural, mineral and manufactured products produced in the bloc, but which still has an “unfinished agenda with two sectors still excluded from free trade: automotive and sugar. And we will also seek to complete the eighth round of liberalization of trade in services”.

Lula also stated, during the speech, that the member countries of the bloc need to implement policies that promote deeper regional integration, based on qualified work and the production of science, technology and innovation.

“This requires more integration, articulation of production processes and energy, road and communications interconnection,” he said.

Foreign financing for infrastructure

The president pointed out that, with the presence of Dilma Rousseff (PT) at the head of the Banco dos Brics, it will be possible to help finance development projects in Mercusul member countries to “reduce the asymmetries of its members”.

In addition to the Banco dos Brics, resources should also be used with national banks and regional development organizations, such as CAF, Fonplata and the IDB.

Lula also intends to strengthen Parlasul, the Mercosur Parliament, which is responsible for legislating on matters of common interest to regional integration; the Institute of Public Policies on Human Rights; of the Social Institute and the Permanent Court of Mercosur. Finally, it also intends to propose the reinstallation of the Consultative Forum of Municipalities and Federated States, and hold the Social Summit in person.