Brazil, Italy want to push EU-Merokusul trade deal

Brazil’s president and his Italian counterpart reaffirmed their countries’ interest in a trade deal between the European Union and Mercosur, but Lula da Silva criticised “unilateral” carbon taxes.

“We believe it is of the utmost importance to quickly reach a historic decision,” Italian President Sergio Mattarella said alongside Lula da Silva at the Planalto Palace in Brasilia in a statement to the press today without the right to ask questions.

The Italian president, who is in Brazil for a five-day trip that includes cities such as Brasilia, Salvador, Rio de Janeiro and Porto Alegre, praised the fact that once signed, the agreement will be fundamental to maintaining peace and will bring with it a strong component of “continental integration.”

Lula da Silva, on the other hand, reiterated Brazil’s “interest in concluding an agreement with the European Union as soon as possible,” but warned that the agreement must be balanced.

Carbon taxes unilaterally introduced by the European Union to sign a deal between the bloc and the bloc of Argentina, Brazil, Paraguay, Uruguay and Bolivia (which came into force last week) have been criticized by the Brazilian head of state.

While reducing carbon emissions is important, he said, it should not be done through unilateral measures that affect Brazilian farmers and Italian consumers, the Brazilian president said.

The COMMERCIAL agreement aims to eliminate most customs duties between the two zones, creating space for more than 700 million consumers from the European Union and MERCOSUR (Brazil, Argentina, Uruguay, Paraguay and Bolivia).

After a political agreement was reached in 2019, opposition from a number of countries, including France, blocked its final adoption. This opposition was strengthened by the agricultural crisis devastating Europe.

Other European countries, such as Germany, Spain and Portugal, defend its conclusion and entry into force.

During the press statement, the two presidents recalled and emphasized the fact that Brazil holds the presidency of the G20 and Italy the G7, and their common agenda includes the fight against hunger and inequality.

Sergio Mattarella’s official visit is largely dedicated to the anniversary of the beginning of 150 years of Italian immigration to Brazil, where there are today an estimated 35 million Italian descendants, making the country the largest community of Italian descent in the world.

Before the press statement, the two countries signed bilateral agreements to strengthen cooperation in areas including science and technology and recognition of driving licenses.