Lula goes to Brussels with no response to Europeans’ environmental demands

President Luiz Inácio Lula da Silva will travel to Brussels, if from the European Union, in Belgium, without a counterpoint to the environmental demands made by Europeans to close a trade agreement with Mercosur.

The Brazilian president failed in his intention to close the agreement in the first half of the year and is now running to try to put together a joint response with Argentina, Paraguay and Uruguay to try to save the agreement. If it comes to fruition, it could open up a market worth around BRL 500 billion in exports to the European Union.

The Ministry of Foreign Affairs said this Thursday (13th) that the Brazilian government already has a proposal for a response to the side letter made by the European Union regarding the free trade agreement between the bloc and Mercosur. side letter is the term given to the new demands made by the Europeans after an initial version of the agreement was closed at the beginning of the government of former President Jair Bolsonaro.

Ambassador Philip Fox-Drummond Gough informed that the text was closed in the last few weeks but still needs to go through the approval of the South American neighbors before being sent to Europe.

“The Civil House prepared a Brazilian suggestion in response to the Europeans and this suggestion is technically ready. The intention is to send this new text in the coming days [ao Mercosul] so that it can then be released. I can say that our response will have a strong position on the issue of sustainable development”, said Philip.

The ambassador also revealed that the text is only awaiting approval from the president of the republic to be sent to Argentina, Paraguay and Uruguay, the other members of Mercosur.

Europeans put up more environmental barriers to close deal

The European Union and Mercosur have been negotiating a free trade agreement for over 20 years. In 2019, a document was finally closed but not ratified by European countries. This year, in response to the text closed by the South American bloc, the European Union produced the so-called side letter, where he made a series of new demands for the deal to actually be closed. Most of them require a higher degree of forest preservation.

At this moment, the negotiations are waiting for a response from Mercosur regarding the new impositions made by the EU. Current rotating president of the bloc, President Lula criticized what he called “threats” made by the European bloc.

During this Thursday’s event, the ambassador and director of the Department of Economic, Financial and Services Policy at the Ministry of Foreign Affairs also said that most of what was negotiated in 2019 will be maintained. The answer to the EU, therefore, must have new proposals to the points that bother the member countries of Mercosur.

Lula leaves for Brussels, Belgium, this Sunday (16) to participate in the CELAC and European Union Summit. At the event, leaders from more than 60 countries meet to discuss biregional agreements. The free trade negotiation between the EU and Mercosur, however, should not be Lula’s main discussion at the event.