Because of the convergence in several features
Europe and Latin America complement each other
The European Union wants to expand its alliances to South America.
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Lula expressed his desire to tackle climate change and deforestation in the Amazon.
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In the world of giants, the countries of the European Union and the countries of the "Mercosur" bloc in South America, which are Brazil, Argentina, Uruguay, Paraguay and Venezuela, represent only 10% of the world's population, and provide 20% of the world's total output.
In this increasingly dangerous and multipolar world, whose developments cannot be predicted, and in which we live now, commercial relations remain of fundamental importance, but they cannot be separated from geopolitical relations.
Many Europeans had long thought they could, but the war in Ukraine has highlighted the dangers of the EU's dependence on Russian gas and shown that this approach is no longer working.
And if the European Union wants to be recognized as a real geopolitical player, then strengthening our internal unity will not be enough, and we must reorient our strategic compass, using our political and economic tools in a more coherent and specific manner, not only risks but also opportunities more effectively, and for this I have been seeing since At the beginning of my tenure, Europe should deepen its relations with the countries of Latin America and the Caribbean.
In order to achieve this qualitative leap that we need, we must strengthen our political dialogue at the highest levels, but to ensure the credibility of our efforts, we must complete the modernization of the existing partnership agreements with Mexico and Chile, and the signing of the post-Cotonou agreement that was agreed upon with the countries of Africa, the Caribbean and the Pacific Ocean, and amending The partnership agreement with Central American countries, and the termination of the European Union and Mercosur agreement.
Although trade plays an important role in all of these agreements, none of them can be seen as a mere trade agreement. The most complex of these agreements is the one with the Mercosur countries that we have been negotiating for nearly two decades. Some might say that 20 A year isn't a big deal, but in this case it's too long.
The political will is alive
On a visit to South America last month, I had the opportunity to meet leaders from Argentina, Paraguay, and Uruguay, which currently holds the rotating presidency of Mercosur.
Finally, I congratulated the newly elected Brazilian President Luiz Lanacio Lula da Silva on his election.
In all of these dialogues, the agreement between the European Union and the Mercosur countries was at the forefront, and I sought to convey to these leaders that the political will to end this mutually beneficial agreement is still present and alive.
Admittedly, the word "strategic" is an exaggeration, but in the case of the EU-Mercosur deal, it may be too apt.
Although some may object to this under the pretext of the conflicting interests that currently exist, there are compelling arguments for completing this agreement.
For a start, the EU-Mercosur agreement is more than just a trade agreement. It is a deeply political tool that can strengthen an alliance between two regions that are considered among the most convergent in terms of interests and values, and share a similar vision of the kind of societies we seek, through the development of dialogue and cooperation.
In addition, we on both sides of the Atlantic intend to strengthen our strategic independence and improve our economic resilience by reducing excessive dependencies, but independence does not mean isolation, rather it means diversifying value chains, which in turn requires cooperation with reliable economic and political partners.
The largest trading blocs in the world
And when we bring together two of the largest trading blocs in the world, with a population of about 700 million people, the EU-Mercosur agreement will be the largest trade agreement that the European Union has been able to accomplish, and it will also be the first comprehensive trade agreement for the Mercosur group of countries, which will strengthen its cohesion.
Common laws will open doors between our huge markets, create real opportunities for trade on both sides, and support the formation of high-quality jobs in Europe and Latin America.
Aware of the economic disparity between our markets, the agreement stipulates that trade will be liberalized gradually, giving the relevant sectors time to modernize themselves and develop their competitiveness.
Mercosur countries want to export more to Europe, but they also want to avoid becoming a mere exporter of raw materials, and intend to develop their production and export capabilities, adding value to their natural resources through innovation and advanced technologies, while adhering to strict social and environmental standards.
Paris agreement
Another argument for the EU-Mercosur agreement lies in its ability to develop climate action and environmental protection. In fact, the political agreement reached by the European Union with the Mercosur countries in 2019 was the first of its kind to include a reference to the Paris Climate Agreement.
But in Europe there are doubts about compliance, especially in light of the rapid deforestation in the Amazon region in recent years.
Some in Europe see EU legislation as the only credible way forward, but the regulatory framework must be accompanied by more dialogue, international cooperation, and focus on clarifying shared commitments and building more sustainable value chains.
The desire to protect democracy
Lula explained his desire to protect Brazil's democracy, heal its society's wounds, advance the cause of social justice, and boost the economy, while addressing climate change and deforestation in the Amazon.
The agreement with the European Union will support this effort by promoting information sharing, improving standards, enabling environmental protection and a mood for sustainable production.
The European side will propose an additional instrument outlining our common commitments to environmental sustainability.
Finally, it must be said that the European Union's agreement with the Mercosur countries is not the end, but rather represents the beginning of a joint path to form the institutional framework that we need in order to facilitate cooperation in a wide range of areas of common interest, starting from the protection of human rights and sustainable development to regulating the digital economy and combating Organized crime.
This agreement will deepen relations not only between governments and institutions, but also between parliaments, civil societies, companies, students, universities, scientists and innovators as well.
It is time to abandon short-term tactics. In the world of giants, the European Union and Mercosur countries together represent only 10% of the population, and 20% of the world's total output.
If the European Union and Mercosur countries want to be influential, the EU-Mercosur agreement is a strategic necessity.
In fact, the Brazilian presidency of Mercosur and Spain of the European Union, starting in the second half of 2023, provides an ideal opportunity to generate the momentum that the EU's relationship with Mercosur needs.
Josep Borrell, High Representative for Foreign Policy of the European Union
The EU-Mercosur agreement is more than just a trade agreement. It is a deeply political tool that can strengthen an alliance between two regions that are considered among the most close in terms of interests and values, and share a similar vision of the kind of societies we seek, by developing dialogue and cooperation.
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