South American and European authorities took advantage of the signing of the free trade agreement between Mercosur and the European Union, this Saturday (17), in Paraguay, to defend multilateralism and free trade as engines of economic development.
In his speech, the President of the European Council, António Costa, stated that the signing of the treaty negotiated over the last 26 years reaffirms the belief of the Member States of the two regional blocs in fair trade and multilateralism.
“With this agreement we send a clear message to the world in defense of rules-based free trade, and [a favor] of multilateralism and international law as the basis of relations between countries and regions”, stated the president of the council
Costa considered that, although it took a long time, the treaty “arrives at an opportune time”. “Because this agreement is a bet on openness, exchange and cooperation, in the face of [ameaças de] isolation and the use of trade as a geopolitical weapon. […] With it, we do not aspire to create spheres of influence, but rather spheres of shared prosperity, based on trust, cooperation and respect for the sovereignty of our democracies. We do not intend to dominate or impose, but rather to promote and strengthen the links between our citizens and our companies so that we can create wealth in a sustainable way, protecting the environment and environmental rights.”
The president of the European Commission, Ursula von der Leyen, reinforced Costa’s assessment by saying that the act has the potential to connect continents and create the largest free trade area in the world, with a market of 700 million people.
“We choose fair trade over tariffs. We choose long-term partnerships over isolation,” said Ursula.
Host of the event, the president of Paraguay, Santiago Peña, highlighted the diplomatic pragmatism necessary to overcome 26 years of impasses.
“We are facing a truly historic day, long awaited by our people, [capaz de] uniting two of the most important global markets, and which demonstrates that the path of dialogue, cooperation and fraternity is the only path”, highlighted Peña.
He highlighted the commitment of the President of Brazil, Luiz Inácio Lula da Silva – who, for scheduling reasons, was unable to travel to Asunción – and Ursula von der Leyen for the success of the negotiations. “Without President Lula, perhaps we would not have reached this day. He was one of those fundamentally responsible for this process.”
The president of Argentina, Javier Milei, highlighted that the agreement constitutes a starting point for exploring new commercial opportunities and a basis for greater regional integration, based on free trade. According to the Argentine president, the promotion of macroeconomic stability and legal predictability are indispensable conditions for prosperity and social justice.
“But, for this to happen, it is essential that, during the implementation stage of the agreement, the spirit of what was agreed is preserved. [eventual] The incorporation of restrictive mechanisms, such as quotas, safeguards or equivalent measures, would significantly reduce the economic impact of the agreement, going against its essential objective”, considered Milei, encouraging the South American and European countries that signed the agreement to continue advancing on new fronts of trade opening.
President of Uruguay, Yamandú Orsi, classified the agreement as a “strategic association”, capable of improving the lives of the population of the signatory countries with real opportunities. “In a world traversed by tensions and the erosion of certainties that have ordered global politics and trade for decades, this treaty acquires particular relevance. Not only because it constitutes the largest commercial association in the world, but also because it represents a clear decision: to bet on the rules in times of volatility and permanent changes”, said Orsi, maintaining that commercial integration, for Uruguay, is an “indispensable condition for development”, in addition to constituting a platform for confronting “threats that do not recognize borders, such as the drug trafficking and other transnational illicit practices”.
Representing Brazil, the Minister of Foreign Affairs, Mauro Vieira, repeated Lula’s statement, for whom the trade agreement between Mercosur and the European Union is proof of the strength of the democratic world and a demonstration of multilateralism. “The agreement establishes, in fact, a partnership between our regions, with enormous economic potential for our societies and profound geopolitical meaning for our countries […] It will provide tangible gains, more jobs and investments, greater productive integration, expanded access to quality goods and services, technological innovation and economic growth with social inclusion […] in the face of a world plagued by unpredictability, protectionism and coercion.”
After signing, the text will be submitted for ratification to the European Parliament and the national congresses of each Mercosur member country. The entry into force of the commercial part of the agreement depends on legislative approval, with gradual implementation expected over the next few years.
Expanded article at 2:37 pm
