Rio de Janeiro, Brazil, Jan. 16, 2026 (Lusa) - Brazilian President Lula da Silva on Friday praised Saturday's signing of the trade agreement between the European Union and Mercosur, ending "25 years of suffering".
"More trade means new jobs on both sides of the Atlantic," emphasised the Brazilian head of state, alongside European Commission President Ursula von der Leyen in Rio de Janeiro, on the eve of the agreement's signing in the Paraguayan capital.
In his opinion, the agreement that will be signed, creating a market of more than 700 million people with a GDP of around €22 billion, "is good for Brazil, good for Mercosur, good for Europe and, above all, good for the democratic world".
In Asunción, the European Union and Mercosur "will make history by creating one of the largest free trade areas in the world, bringing together around 720 million people and a GDP of more than $22 trillion" in a "partnership based on multilateralism", stressed the Brazilian President, one of the leaders who worked hardest to conclude the agreement.
In Lula da Silva's opinion, the text demonstrates a commitment to the environment and climate change, which had been one of the main obstacles for several European countries.
"We are already major suppliers of agricultural products to the European Union. But we will not limit ourselves to the eternal role of exporters of commodities [non-industrialised basic goods]. We want to produce and sell industrial goods with higher added value," the Brazilian head of state said.
The agreement was only possible after the 27 countries of the European Union reached a qualified majority last week to validate it, despite votes against by France (the main opponent), Poland, Austria, Ireland, and Hungary, and abstentions by Belgium.
To achieve this qualified majority, it was necessary to negotiate additional safeguards for European farmers, who have continued to protest against the agreement in recent days. These safeguards were enough to convince Italy, but not Paris.
The agreement will eliminate tariffs on 91% of EU exports to Mercosur and 92% of South American sales to Europe, opening up a joint market of more than 700 million consumers who together represent a gross domestic product (GDP) of approximately $22 trillion, according to European Commission data.
For the European Union, the treaty opens the historically protected market to its most competitive industrial sectors, notably the automotive and industrial machinery industries, where current tariffs of 35% to 14% will gradually disappear.
Other sectors that will benefit in particular are chemicals and pharmaceuticals, as well as agri-food products protected by designations of origin, such as wines and cheeses.
The signing of the trade agreement at the Gran Teatro José Asunción Flores, at the Central Bank of Paraguay, will be attended by the President of the European Commission, Ursula von der Leyen, the President of the European Council, António Costa, and the Foreign Ministers of the Mercosur countries (Brazil, Argentina, Paraguay and Uruguay), as well as the current leader of the South American bloc, Paraguayan President Santiago Peña.
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