Brazil Takes Leadership in Mercosur and Eyes New Historic Agreement with the European Union After Signing Treaty That Eliminates Barriers for 97% of Exports

Written by Noel Budeguer

Published on 03/07/2025 at 14:38

Brasil assume liderança no Mercosul e mira novo acordo histórico com a União Europeia, após firmar tratado que elimina barreiras para 97% das exportações

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With A Combined GDP Of US$ 4.3 Trillion, Brazil’s New Deal With The EFTA Projects A Leap In Exports; Lula Aims To Repeat The Feat With The European Union By 2025

Anyone who thought that Mercosur was stuck in time was heavily mistaken. On Wednesday, during a summit held in Buenos Aires, the chancellors of the bloc made a masterstroke by announcing a free trade agreement with the EFTA, a European group formed by Iceland, Norway, Switzerland, and Liechtenstein. And as if that weren’t enough, all eyes are now on this Thursday, when Argentine President Javier Milei will pass the temporary presidency of the bloc to Lula, leader of Brazil.

An Unexpected Pact

The announcement was made at the iconic San Martín Palace, the seat of the Argentine Chancellery. According to Argentine Chancellor Gerardo Werthein, the new agreement creates a gigantic free trade zone, impacting around 300 million people and generating a consolidated GDP of over US$ 4.3 trillion.

“Both sides win: over 97% of exports will have better access, which translates into more business, more jobs, and more opportunities for small and medium enterprises,” Werthein explained at a press conference. This strategic step strengthens the presence of Mercosur in Europe at a time when negotiations with the European Union remain stalled.

ARTICLE CONTINUES BELOW

Lula Takes Command Aiming At The EU

This Thursday, Lula officially takes over the pro tempore presidency of Mercosur, arriving full of ambition. “We are going to sign the largest trade agreement in history with the European Union,” he declared recently in Brasília.

The Mercosur-EU agreement has been dragging on for 25 years, marked by ups and downs. Environmental concerns, especially from France and Germany, still block a resolution. For Lula, unlocking this agreement would be a political and economic trump card, consolidating Brazil as a regional leader amid a troubled international scenario.

Extra Flexibility To Export More

Another important point decided at the summit was the expansion of exceptions to the Common External Tariff (TEC). Each country will be able to add up to 50 new products to the list of exceptions, a measure initially proposed by Argentina to alleviate the pressure that national industries face due to tariffs from the US and other markets.

Currently, Brazil and Argentina already have about 100 exceptions, while Uruguay and Paraguay count with around 400. With the new agreement, all members will be able to expand this list by 50 items, giving extra breathing room to compete globally.

For Argentine economist Marcelo Elizondo, a foreign trade specialist, “these exceptions allow Mercosur to be more agile and competitive. Without them, many exports would become unfeasible due to high costs.”

Milei and Lula: Rivals or Partners?

Official photo of Milei’s arrival at the G20 meeting in Rio

The transition from Milei to Lula is not just a protocol: the two had major disagreements during the Argentine election in 2023. Now, however, they are required to sit at the same table to defend regional interests.

Milei advocates a more liberal and open market model, while Lula defends a strengthened Mercosur with greater internal protection. The balance between these views will determine the next steps of the bloc and South America’s position in the world.

So, What Do You Think?

Do you think that the agreement with the EFTA will open a new chapter for Mercosur? Will Lula be able to unlock the treaty with the EU? Leave your opinion in the comments.

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Paulo

#147086

03/07/2025 15:38

Mercosul? Com essas medidas o chocolate suiço vai ter imposto zerado no Brasil, de acordo com as manchetes locais. É para isso que serve o inútil Mercosul, ignorado pelos ricos que não tem o chocolate como principal produto de exportação. Será que os relógios suiços também terão tarifa zero? O Brasil deveria aproveitar e seguir a ALCA para importar bananadas do Caribe e rum de Cuba. A banânia é mesmo uma piada e o Mercosul seu maior expoente!

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Brazil Takes Leadership in Mercosur and Eyes New Historic Agreement with the European Union After Signing Treaty That Eliminates Barriers for 97% of Exports

With A Combined GDP Of US$ 4.3 Trillion, Brazil’s New Deal With The EFTA Projects A Leap In Exports; Lula Aims To Repeat The Feat With The European Union By 2025

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Lula Takes Command Aiming At The EU

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Brazil Takes Leadership in Mercosur and Eyes New Historic Agreement with the European Union After Signing Treaty That Eliminates Barriers for 97% of Exports

With A Combined GDP Of US$ 4.3 Trillion, Brazil’s New Deal With The EFTA Projects A Leap In Exports; Lula Aims To Repeat The Feat With The European Union By 2025

An Unexpected Pact

Lula Takes Command Aiming At The EU

Extra Flexibility To Export More

Milei and Lula: Rivals or Partners?

So, What Do You Think?

While an average building in London or New York takes three years to be completed, in China a 26-story tower went up in five days with about 100 workers, and the global modular construction market already moves US$ 95 billion per year.

Australia installs giant concrete structures on the seabed 800 meters from the shore to create an ocean intake for desalination that will draw in saltwater and produce 30 million liters of drinking water per day.

While a traditional school may take several days just to raise walls, in Malawi a 3D-printed school had its structure ready in 18 hours, welcomed children in June, and showed a new solution to the lack of classrooms.

Goodbye traditional washing machine: Panasonic surprises housewives with the NA-G5 featuring four drums, a 13 kg washer and dryer, a 12 kg dryer, independent mini washers, a heat pump, and a 4-in-1 system awarded at the German Design Award.

While cities spend fortunes patching potholes and tons of plastic become waste, the Netherlands transforms over 218,000 recycled cups into a modular bike path that can conceal drainage, cables, and pipes.

A public school student single-handedly created a machine capable of treating water for up to 50 people using only solar energy. It was awarded third place at one of the most important science fairs in the world.

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