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Saturday, Jun 07, 2025

Lula and Macron Diverge on EU-Mercosur Trade Agreement

Brazilian President Luiz Inacio Lula da Silva urges French President Emmanuel Macron to support the long-discussed trade deal amid agricultural and environmental concerns.
PARIS - Brazilian President Luiz Inacio Lula da Silva met with French President Emmanuel Macron on Thursday to discuss the contentious EU-Mercosur trade agreement, urging support from France.

The agreement, which has been in negotiation for over twenty years, was finalized by the European Commission at the end of 2024, but faces significant opposition within the EU, particularly from France, which cites concerns over agriculture and environmental standards.

During a press conference in Paris, Lula asserted, "I will not leave the presidency of Mercosur without concluding the agreement," referring to his upcoming six-month presidency of the South American trade bloc that includes Argentina, Brazil, Paraguay, and Uruguay.

He emphasized the importance of the agreement as a response to the global rise of unilateralism and tariff protectionism, stating, "My dear Macron, open your heart a little to this possibility of concluding this agreement with our dear Mercosur."

France's Macron reiterated his reservations, emphasizing the need to "improve" the current terms of the agreement to protect the agricultural sector.

He stated, "This agreement, in the strategic moment we are living, is good for many sectors, but poses risks for the agriculture of European countries." Macron underscored that European farmers face stricter environmental regulations compared to Mercosur countries, which he claimed do not adhere to the same regulatory standards.

The looming concern, according to Macron, revolves around the environmental impact and the potential influx of agricultural products that do not meet European norms.

"I cannot explain to my farmers that at a time I ask them to respect more standards, I open my market massively to those who do not respect them at all," he remarked.

He emphasized the need for safeguard clauses in the agreement to ensure balanced trade.

Lula's state visit to France marks the first by a Brazilian president since 2012 and comes ahead of the COP30 climate conference scheduled in Brazil for November.

The leaders are expected to sign several cooperation agreements encompassing various sectors including environment, technology, defense, energy, and health.

Despite differing views on the trade deal, the two presidents maintain a warm bilateral relationship.

The discourse surrounding the EU-Mercosur agreement illustrates broader tensions in international trade dynamics, particularly amid rising protectionist policies globally, including tariffs imposed by the United States.

Lula's visit, which follows Macron's visit to Brazil in March 2024, seeks to strengthen ties amid fluctuating geopolitical conditions, including ongoing conflicts in Ukraine and the Middle East.

France's agriculture ministers have expressed strong concerns regarding the agreement, highlighting that it may disproportionately favor Mercosur countries at the expense of the European agricultural sector, amid calls from other EU nations like Germany and Spain that support the agreement.
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