Mercosur-EU Pact a 'Historic Day for Multilateralism,' says Brazil President Lula

São Paulo [Brazil], January 10 (ANI): Brazilian President Luiz Inacio Lula da Silva yesterday welcomed the approval of the Mercosur-European Union Partnership Agreement, calling it a "historic day for multilateralism" as the long-pending deal secured the backing of a qualified majority of EU member states.
The endorsement effectively concludes more than two decades of negotiations between the South American trading bloc and the European Union.
As reported by Brasil 247, the decision marks a major breakthrough in one of the world's most ambitious trade negotiations. The agreement, confirmed by most European countries, is expected to significantly reshape trade relations between the two regions. Studies cited by Reuters suggest that, over the long term, the pact could boost Brazilian agribusiness output by nearly 2 per cent, with gains concentrated in sectors such as livestock, poultry, pork, vegetable oils and fats.
President Lula said the agreement, negotiated over 25 years, would deliver wide-ranging commercial benefits to Mercosur nations and strengthen global multilateral cooperation. In a post on social media platform X, he described the deal as "one of the largest free trade agreements in the world," noting that it brings together two economic blocs representing a combined population of 718 million people and a total gross domestic product of approximately US$22.4 trillion.
The treaty provides for extensive tariff liberalisation on industrial and agricultural goods through phased reduction schedules designed to address the sensitivities of both markets. Under the agreement, Mercosur has committed to liberalising around 91 per cent of goods and 85 per cent of the value of Brazilian imports from the EU, while the European Union will liberalise about 95 per cent of goods and 92 per cent of the value of imports from Brazil.
Beyond tariffs, the agreement includes modern provisions on sustainability, government procurement, intellectual property rights and new technologies. Analysts view the pact as a strong signal in support of open international trade at a time of rising protectionism, expanding export opportunities for Brazil, encouraging European investment and simplifying trade rules for both sides. (ANI)