Mercosur summit has Lula’s first trip to Buenos Aires after Milei’s inauguration; See topics of interest to Brazil

This is the first time that President Lula has traveled to Argentina since the inauguration of Javier Milei as president of the neighboring country. Integration into Mercosur must master conversations. President Luiz Inacio Lula da Silva (PT) embarks this week to Buenos Aires, where he participates in the Mercosur summit, scheduled for Wednesday (2) and Thursday (3) July. This will be Lula’s first trip to Argentina after President Javier Milei’s inauguration. The meeting takes place amid global geopolitical tensions and expectation for the conclusion of the agreement between Mercosur and the European Union. UE X MERCOSUR: Leaders say that agreement should soon come out Brazil to take the presidency of Mercosur in July and should coordinate the block by December 31 this year. Lula should succeed Argentine President Javier Milei – the bloc’s presidency is rotating and lasts six months. 🌎Mercosul: Created in 1991, the commercial group aims to promote the free circulation of goods, services and persons among member countries, as well as strengthen the regional economy. However, the block faces challenges such as bureaucracy, commercial barriers and economic differences between members. The Brazilian agenda includes regional public security and commercial integration proposals in strategic sectors, as well as concluding Bolivia’s definitive incorporation into the block. (See more details below) The Secretary of Latin America and the Caribbean of the Ministry of Foreign Affairs (MRE), Ambassador Gisela Padovan, said one of the central themes will be the strengthening of cooperation between member countries to combat drug trafficking and organized crime. In 2024, Mercosur summit met with Ursula von der Leyen, chairman of the European Commission. Mercosur/Reproduction In addition to security, the Brazilian government intends to advance on commercial guidelines, such as the Mercosur European Union Agreement and the integration of the productive chains of the sugar and automotive sector in the block. “Mercosur is fundamental for the development of our country, especially for the quality of regional trade. Almost 95% of our exports to Argentina are manufactured and value -added products …. which generates industrial jobs and moves the economy,” said Padovan. Key topics of the external rates and regional trade, Brazil should propose advances in the list of exceptions to the so -called Common External Rate (LETEC), a mechanism that allows the application of different rates from the common external rate (TEC) for certain products. The idea is to facilitate trade between bloc countries, reducing barriers and strengthening strategic sectors. In practice, TEC acts as a common barrier against products outside the block, such as those from Europe or China. On Friday, the Ministry of Development, Industry and Foreign Trade (MDIC) reported that Mercosur countries signed on Wednesday (25) an authorization that expands 50 tariff codes to the list of exceptions to the Block’s Common External Tariff (Letec). Mercosur-UE Agreement/GloboNews Expansion of Automotive and Sugar Sectors The Brazilian government also aims to open debates on an integrated industrial policy in Mercosur, focusing on the creation of a regional agreement for the automotive sector-today based mainly on bilateral negotiations, especially with Argentina. “Only about a quarter of the region’s fleet is in the automotive sector. Still, regulation is through bilateral agreements. We want to consolidate this in a regional agreement,” explained ambassador Francisco Cannabrava, director of the Mercosur Department. In the sugar sector, Brazil proposes the inclusion of higher value-added products in regional chains, such as cookies and cakes, to expand intra-blacco trade without impairing local production from other countries. Sugarcane Harvest in Mato Grosso do Sul Biosul/Disclosure Brazil is responsible for over 90% of Mercosur’s sugar production. Argentina, Paraguay and Bolivia have lower production, focused mainly on domestic consumption. Energy transition and climate ministers of the environment of Mercosur countries should also be gathering to discuss joint actions in the face of climate crisis. During the summit, the Mercosur Verde program will be launched focused on promoting low -carbon agriculture and the expansion of sustainable agricultural exports. A joint message must be prepared by the member countries to be presented at COP30, with the intention of reinforcing the regional commitment for facing climate emergency. Lula says Mercosur-UE agreement is a need for public security and combating organized crime Another important point of the agenda will be the strengthening of public security cooperation between countries. The Brazilian government intends to propose coordinated actions, especially in border areas, to address criminal factions. Padovan cited as an example the recent arrest of Marcos Roberto de Almeida, a member of the CCP, during an inspection approach in Bolivia. “This is the kind of cooperation we want: information exchange, rapid response and joint action by the authorities of the countries,” said the ambassador. Lewandowski talks about arrest of CCP leader in Bolivia Bolivia Bolivia was incorporated into Mercosur in July last year. As a rule, the country has four years to adapt the block standards and join the Common External Rate (TEC). Brazil supported the country’s entry into the block and should reinforce the importance for the region that Bolivia concludes the entry process.

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