President says agreement creates a market of almost 720 million people, criticizes false statements about agricultural sustainability, and points to WTO paralysis as a sign that the system needs to be refounded
On the eve of the agreement between the European Union and Mercosur coming into force, President Luiz Inácio Lula da Silva praised the partnership in a speech at Hannover Messe, in Hanover, Germany, and criticized what he called false statements about Brazilian agriculture.
The speech took place during the opening ceremony of the industrial fair, which this year features Brazil as the spotlight country. Lula also demanded fewer barriers from Europeans to Brazilian biofuel and asked the European Union to take into account Brazil’s clean energy matrix.
EU Mercosur Agreement enters into force partially on May 1st
In his speech, Lula highlighted that in less than two weeks an agreement will come into force that creates a market of almost 720 million people and a GDP of US$22 trillion, with the expectation of expanding trade and investments.
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The president linked the agreement to impacts on employment and opportunities and stated that greater productive integration reinforces the stability of supply chains, citing unexplored complementarities between the blocs.
Biofuels and energy matrix become central point of demand to Europe
Commenting on the agreement and its effects, Lula asked the European Union to consider the energy matrix used in Brazilian processes. He also stated that the country still faces false statements about agricultural sustainability.
Along the same lines, the president criticized the creation of access barriers to national biofuel, saying that this is counterproductive from an environmental and energy perspective. Lula also recalled that, in 1970, oil shocks highlighted the risks of dependence on fossil fuels.
WTO paralysis and defense of more space for the Global South
In addition to the agreement, Lula criticized the paralysis of the World Trade Organization and pointed out the need to refound the entity.
According to him, the effective incorporation of the interests of the Global South is an essential condition for multilateral arrangements to be legitimate and relevant.
Hannover Messe, agenda in Germany and upcoming commitments in Europe
Lula spoke at the opening of Hannover Messe, described as the largest industrial fair in the world, in the German city, and this year’s edition features Brazil as the spotlight country. The fair runs until next Friday, the 26th.
Earlier, the president met privately with Friedrich Merz, the German Chancellor. The Brazilian leader is traveling in Europe, will also participate in the Hannover Fair tomorrow, and on Tuesday, will head to Lisbon.
Do you believe the agreement will truly facilitate the entry of Brazilian products into Europe, or will the barriers continue to change form?

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