Lula and Leyen announce success. The largest trade zone in the world is being created

Brazilian President Luiz Inacio Lula da Silva said on Friday that the conclusion of a trade agreement between the European Union and the South American Mercosur bloc is a success for a world based on democracy and multilateral international cooperation. The agreement will be signed on Saturday.

This agreement shows the power of cooperation and openness, added European Commission President Ursula von der Leyen, who met Lula on Friday in Rio de Janeiro and appeared with him at a joint press conference.

Historic agreement

The President of Brazil emphasized that the agreement was historic. Von der Leyen pointed out that the agreement will create the largest trade zone in the world.

The head of the European Commission and the President of the European Council, Antonio Costa, will take part in the signing ceremony of the agreement on Saturday in the capital of Paraguay, Asuncion. Lula will not be at the ceremony.

Agreement with Mercosur countries: Argentina, Brazil, Paraguay and Uruguaywill introduce tariff preferences for certain agricultural products, including beef, poultry, dairy products, sugar and ethanol. In return, the markets of these countries will open to EU industrial goods such as cars, machinery and medicines.

The agreement was negotiated for 25 years, von der Leyen emphasized. EU countries adopted it on January 9. Poland, France, Ireland, Hungary and Austria voted against the agreementand Belgium abstained.

The EU wants to export to South America

The EC, in cooperation with Mercosur, sees an opportunity to increase exports to the bloc. Representatives of Argentina, Brazil, Paraguay and Uruguay also expressed joy at the agreement, hoping to modernize their economies, increase trade and investment, and create new jobs.

In Europe, the part of the agreement concerning agriculture arouses the greatest emotions. The completion of work on the agreement was accompanied by farmers' protests throughout Europe, including Poland. The EC assures that additional clauses have been adopted to protect European farmers against market disruptions related to the agreement.

The agreement still needs to be approved by the European Parliament. (PAP)

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