Brazilian election revives EU trade hopes for Latin America

“This is the effect we were each hoping for.” The center-left European lawmaker MEP Kathleen Van Brempt captured the temper successful Brussels connected Monday, arsenic the EU breathed a diplomatic suspiration of relief implicit the triumph of left-winger Luiz Inácio “Lula” da Silva successful the 2nd circular of Brazil’s statesmanlike election.

Brussels has large ambitions successful Latin America. The European Union needs to diversify its commercialized flows distant from Russia and — to a lesser grade — China. With far-right incumbent Jair Bolsonaro connected his mode retired of power, the EU is present keen to revive its ties with Brazil connected clime change, deforestation and trade.

“I look guardant to moving with you to code pressing planetary challenges, from nutrient information to commercialized and clime change,” European Commission President Ursula von der Leyen tweeted to Lula connected Monday morning.

But Brussels whitethorn person to hold successful line. Russia wants to commercialized and China volition besides beryllium competing for power successful the region, particularly aft relations betwixt Brazil and Beijing had soured nether Bolsonaro. Chinese overseas ministry spokesperson Zhao Lijian welcomed Lula's triumph connected Monday, saying that China wants to rise the broad strategical concern with Brazil to a caller level.

The astir factual mode for the EU to get its ft successful the doorway is to yet necktie up the escaped ends with the commercialized woody betwixt the EU and the Latin American Mercosur bloc — made up of Brazil, Argentina, Uruguay and Paraguay.

The person practice would not conscionable easiness commercialized betwixt the economies connected some sides of the Atlantic, but is besides cardinal for Brussels to beryllium little babelike connected China’s earthy materials for its greenish transition.

The Mercosur pact was sealed astatine a governmental level successful 2019 but has been efficaciously connected crystal since then, mostly due to the fact that of the rampant deforestation of Brazil’s Amazon rainforest nether Bolsonaro, which dismayed the EU and French President Emmanuel Macron successful particular. Free traders besides pointed to much protectionist concerns, peculiarly successful France, which held up advancement for the woody implicit fears of opening the floodgates to imports of Brazilian beef.

Lula's predetermination whitethorn beryllium the cardinal to easing those biology concerns and unlocking the Mercosur deal. In a huge triumph for the planetary combat against clime change, helium has made wide he's keen to tackle deforestation of the Amazon.

From the EU side, the governmental stars are besides aligned. A scope of trade-friendly countries — the Czechs, the Swedes and the Spanish — are astatine the helm of the EU’s rotating Council presidency this twelvemonth and adjacent and person already said they privation to get the woody backmost connected track.

There whitethorn beryllium occupation ahead

To get the statement done the European Parliament, Brussels plans to negociate an other biology extortion papers with the Mercosur bloc to effort to assuage clime concerns.

But conscionable however acold those other demands should spell is already a delicate treatment wrong the European Commission, and volition apt beryllium to beryllium adjacent much contentious erstwhile it is discussed with the European Parliament, EU countries and the Mercosur countries.

"We volition not nail it astatine the doorway of the Berlaymont," said a elder EU official, referring to the European Commission gathering successful Brussels. "We request to play this carefully." The authoritative stressed that the EU should suggest thing that is "more palatable for the different side."

Van Brempt, the commercialized committee MEP from the socialists, fired a informing against excessively overmuch flexibility from Brussels. If the Commission wants this woody to walk done Parliament, other biology commitments from the Mercosur countries cannot beryllium bare promises, she said. If Brazil oregon the different countries don’t unrecorded up to their promises, they should hazard commercialized sanctions, successful enactment with the EU’s new policy of ensuring commercialized deals are green.

If Mercosur countries person further demands to bring to the table, past truthful beryllium it, Van Brempt argued. “We person to get this woody right,” she said. “Trade is simply a cardinal constituent of our geopolitical direction. For that, a renewed practice with Brazil is key.”

On his end, Lula has already said helium wants to renegotiate immoderate areas of the Mercosur woody successful favour of Brazil’s concern development. Strengthening Brazilian manufacture was 1 of his main promises during the campaign.

"In the archetypal six months, we volition reason the statement with the European Union," Lula said in September. That, helium said, indispensable beryllium "an statement that takes into relationship the request for Brazil to industrialize again."

Camille Gijs contributed reporting from Prague.