RIO DE JANEIRO (Brazil), Jan 18 (NNN-AGENCIES) — Brazil’s President Luiz Inacio Lula da Silva and EU chief Ursula von der Leyen on Friday hailed a trade deal between the EU and South America’s Mercosur bloc as a victory for multilateralism at a time of global volatility.
The pair met in Rio de Janeiro on the eve of the signing of the deal, which has been 25 years in the making and will create one of the world’s largest free trade areas.
Lula said the signing of the deal in Asuncion, Paraguay on Saturday was “very good, especially for the democratic world and for multilateralism.”
Von der Leyen praised Lula’s role in pushing forward the negotiations, and said the deal “sends a powerful message” and shows “the power of partnership and openness. And this is how we create real prosperity.”
The deal is among several that countries are rushing to close in an uncertain global environment shaped by US President Donald Trump’s tariff threats and protectionism.
On Friday, Trump threatened to slap trade tariffs on countries that don’t support his plans to take over Greenland, part of the territory of NATO ally Denmark.
Lula added that the partnership with the EU went “beyond the economic dimension.”
“The European Union and Mercosur share values such as respect for democracy, the rule of law, and human rights.”
The signing of the deal comes as Latin America is still reeling from Trump’s ouster and capture of Venezuelan leader Nicolas Maduro in a dramatic military operation.
Together, the EU and Mercosur account for 30 percent of global GDP and more than 700 million consumers.
The treaty eliminates tariffs on more than 90 percent of bilateral trade.
This will favor European exports of cars, wine, and cheese, while making it easier for South American beef, poultry, sugar, rice, honey, and soybeans to enter Europe.
The deal between the EU and Mercosur nations Argentina, Brazil, Paraguay and Uruguay, was agreed in Brussels last week despite fierce opposition from European farmers.
They fear the deal will lead to an influx of cheaper South American products due to production standards considered less stringent.
Von der Leyen will head to Asuncion in Paraguay for the signing ceremony, which Lula will not attend. His office said the signing had been initially planned as a ministerial-level event, and Paraguay issued “last-minute” invites to presidents.
In addition to host president Santiago Pena, Uruguay’s president Yamandu Orsi will also attend the signing.
The attendance of Argentina’s leader Javier Milei is not confirmed.
Von der Leyen said it was important for her to meet with Lula before the signing, highlighting his role in the negotiations, which he made a priority of his third term in office.
“You are a leader deeply committed to the values we hold dear, democracy, the rules-based international order and respect. This is the leadership we need in today’s world.”
Lula said Brazil was also working on trade partnerships with Canada, Mexico, Vietnam, Japan and China.
Meanwhile, the EU is working on a trade deal with India, the world’s most populous nation with 1.4 billion people, whose relations have soured with Washington due to punishing tariffs.
Geopolitical tensions are also rising over strategic minerals, with Trump insisting the United States needs access to Greenland’s critical raw materials, which are largely unmined.
Von der Leyen said the EU and Brazil were also “moving towards a very important political agreement on critical raw materials” such as lithium, nickel and rare earths that “tend to become an instrument of coercion.” — NNN-AGENCIES