President Luiz Inácio Lula da Silva stated in an article published this Friday (16) in the Argentine newspaper The Nation that the free trade agreement between Mercosur (Argentina, Brazil, Paraguay and Uruguay) and the European Union (EU) is “the answer” to deal with “unilateralism that isolates markets and protectionism that suffocates global growth”, criticisms that can be associated with the USA.
The text was published on the eve of the signing of the agreement between both economic blocs, which will take place in Asunción, this Saturday (17), ending a 26-year process of negotiations.
“At a time when unilateralism isolates markets and protectionism inhibits global growth, two regions that share democratic values and defend multilateralism choose a different path”, says the PT member in the article.
He then argued that the agreement goes against the logic of trade wars which, according to him, segregate economies, impoverish nations and exacerbate inequality.
In the same vein, Lula continued: “There is no isolated economy. International trade is not a zero-sum game. Everyone seeks to grow, and this new partnership will generate mutual opportunities for employment, income generation, sustainable development and economic progress.”
The publication of this text in one of the most important newspapers in Argentina occurs in parallel with the announcement that the president will not be present at the ceremony, which will be attended by his Argentine counterpart, Javier Milei (with whom he maintains marked discursive and political differences), the host Santiago Peña; Yamandú Orsi, from Uruguay; José Raúl Mulino, from Panama; and Rodrigo Paz, from Bolivia.
“The signing of this agreement is only possible because Mercosur and the European Union understood that together they had much more to gain than separately and chose to dialogue under conditions of respect and equality. Despite different visions, the blocs found points of convergence, demonstrating that cooperation is much more advantageous and effective than intimidation and conflict”, follows Lula’s text.
In another reference to the current geopolitical scenario, Lula proposed: “In a context of growing protectionism and unilateralism, this agreement demonstrates that a more active, representative, inclusive and fair global governance is possible. These same principles guide our search for renewed multilateral institutions, such as the reform of the World Trade Organization and the UN Security Council.”
“Interdependence is a necessity and a reality. Only joint work between States and blocs can promote peace, prevent atrocities and face the worst effects of climate change”, the president also commented at the end of the article published in The Nation.
Despite Lula’s absence in Asunción, Brazil – the largest economic power in Latin America and which led negotiations with the EU – defends the agreement, which will create the largest free trade zone in the world by population, with 720 million people and an economic weight of US$22 trillion.
Furthermore, one day before the signing, Lula scheduled a meeting with the president of the European Commission, Ursula von der Leyen, in Rio de Janeiro, to discuss the next steps of the trade agreement, among other topics on the international agenda.
