Lula Pushes for Historic EU-Mercosur Trade Deal at G20 Summit

Brazil's President Lula da Silva is prepared to sign a trade agreement between the European Union and the Mercosur bloc. He stated that it is now up to the EU to complete negotiations, with potential signing during the G20 summit in Brazil. Optimism is high despite lingering issues.

Brazilian President Luiz Inacio Lula da Silva announced on Wednesday his readiness to sign a trade agreement between the European Union and South America's Mercosur bloc, but emphasized that the conclusion of negotiations now rests with the EU.

Speaking at the U.N. General Assembly, Lula highlighted Brazil's surprising economic growth and the new stability offered by recent tax reforms in Congress. 'If the EU is prepared, we can sign the trade agreement during the G20 meeting in Brazil,' he told reporters, referencing the upcoming summit of the Group of 20 rich nations in Rio de Janeiro in November.

'I have never been so optimistic about the EU-Mercosur accord,' Lula added. European diplomatic sources noted progress in resolving differences during recent negotiations in Brasilia. However, challenges remain in closing the gap, particularly on environmental safeguards and government procurement issues.

Mercosur, which includes Brazil, Argentina, Uruguay, Paraguay, and recently Bolivia, is a key destination for EU manufacturing exporters. Nonetheless, concerns persist among European farmers, especially in France, about increased competition.

(With inputs from agencies.)