President Lula met this Friday, 16th, in Rio de Janeiro with the president of the European Commission, Ursula von der Leyen to celebrate the free trade agreement with Mercosur.
Speaking about the next steps of the partnership agreement with the European bloc, Lula highlighted that the alliance is positive for a democratic world.
“The European Union and Mercosur share values such as respect for democracy, the rule of law and human rights. […]The Agreement is good for Brazil, it is good for Mercosur, it is good for Europe. And it is good, and very good, especially for the democratic world and for multilateralism”, he declared.
Lula emphasized that concluding negotiations was one of his priorities in his third term and that this agreement goes beyond the economic dimension.
“The European Union and Mercosur share values such as respect for democracy, the rule of law and human rights. More political dialogue and more cooperation will guarantee high standards of respect for labor rights and the defense of the environment”, he said.
After the president’s speech, Ursula von der Leyen also spoke. According to her, the agreement is an achievement of “an entire generation”.
The Brazilian president will be the only one from the bloc absent from the signing ceremony of the treaty in Paraguay, which takes place on Saturday, 17th, in Asunción.
Planalto’s expectation is that the agreement, negotiated since 1999 with Argentina, Brazil, Uruguay and Paraguay, founding members of the South American bloc, will be ratified in the first half of the year.
In an interview with Tarde Bandnews, for presenter Vitor Brown, the former Minister of Agriculture, Roberto Rodrigues, explained what the process is like after the agreement is made official.
“For it to come into force, it fundamentally needs the European Parliament to consolidate the agreement. On this side, it needs the four parliaments – Brazil, Argentina, Paraguay and Uruguay – to also agree on the agreement.
Probably, here in our region, Mercosur, the four parliaments will approve it quickly. Now in the European Union, it might take a few months.”
The minister also highlighted points that could delay the full functioning of the agreement
“Firstly, the tariff reduction process lasts from 7 to 15 years. So it’s not about making the agreement, just exporting to the European Union. It’s a slow process, it could take years, but in addition to the reduction, there’s the issue of quotas. The quotas will persist even after the agreement is signed and substantiated with parliament.
Safeguards can also interfere with the difficulty of agricultural commercialization coming into full force.”
Despite this analysis, the former minister assesses that Brazilian producers are ready to deal with the regulatory measures imposed to negotiate with Europe.
“The majority of Brazilian producers are ready to face any regulation that comes along correctly. A small portion will have to adapt more and more. Now, one thing that can interfere and is not a regulatory issue, is what is illegal in Brazil. For example, illegal deforestation. Those who deforest illegally are not rural products, they are not those who compete with Europe, nor with the world. Those who deforest illegally are criminals, they are land invaders. Those who commit arson are criminals in clandestine mining. It is I need to eliminate everything that concerns illegalities so that we don’t get confused with illegals.”
Roberto Rodrigues also highlights that the agreement that will be formalized this Saturday opens horizons for new trade negotiations between economic blocs and countries.
“If this agreement works, it will be useful for India, for Asians, for the Middle East. I believe that we will have more trade agreements, which is fundamental to guaranteeing the market. I am very hopeful that the functioning of the agreement will be an endorsement for other relevant trade agreements”
Rodrigues highlights, however, that the results of the agreement should not come immediately.
“This will allow Brazilian production chains to be incorporated into global and European production chains. It is a benefit. We are ready, yes, but the Brazilian strategy must include this increase in production with adequate credit, with logistics studies, with a marketing mechanism, with commercial agreements.
Over time, we will improve exports, increasing production, generating jobs throughout the country, bringing investments in technology and management to Brazilian industry. It’s a win-win process in the medium and long term. In the short term, someone will suffer here and there.”
