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.
