Brazilian President Luiz Inácio Lula da Silva has decided not to attend the formal signing ceremony of the EU-Mercosur trade agreement in Asunción, Paraguay, scheduled for Saturday. Instead, he will remain in Rio de Janeiro as the South American trade bloc finalizes one of its most significant agreements in decades.
Lula’s absence marks him as the only leader from Mercosur not participating in the event, which will include Paraguay’s Santiago Peña, Argentina’s Javier Milei, Uruguay’s Yamandú Orsi, and Bolivia’s Rodrigo Paz. European leaders, including European Commission President Ursula von der Leyen and European Council President António Costa, will also be present.
Brazil’s representation and Lula’s rationale
Brazil will be represented at the ceremony by Foreign Minister Mauro Vieira. This decision has attracted attention due to Lula’s pivotal role in revitalizing the agreement since his return to the presidency in 2023. Brazilian media sources indicate that Lula opted for a bilateral meeting with von der Leyen in Rio on Friday, which he framed as a significant gesture of Brazil’s political involvement in the deal.
“The pact is historic,” Lula stated alongside von der Leyen in Rio, emphasizing its potential to establish one of the world’s largest free-trade areas, encompassing approximately 720 million individuals.
Progress towards finalizing the agreement
The signing event comes on the heels of a critical political advancement in Brussels earlier this month, when a qualified majority of EU member states approved the agreement for signing. However, France, Poland, Austria, Ireland, and Hungary expressed opposition to the deal, while Belgium chose to abstain. These positions reflect ongoing concerns, particularly regarding agricultural imports. To address these worries and garner support, the European Commission has committed to implementing additional safeguards that would activate should there be a surge in farm imports from Mercosur.
Once the deal is signed, it will enter a potentially protracted ratification process within the EU. The European Parliament must approve the trade components, and sections that extend beyond EU trade competencies will also require the consent of national parliaments.