The Mercosur countries are prepared to make concessions, but not to give up everything to the European Union as part of the negotiations on the bilateral trade agreement. This was the message from the Brazilian President, Luiz Inácio Lula da Silva, to the press on Wednesday 19 July in Brussels.
“In a negotiation, you never win everything you want, but you never give in to everything. And Mercosur is ready for it”, he said, after reiterating his position on several aspects of the discussions.
It is important, for example, that the EU recognises the importance of public procurement as an industrial policy tool for Brazil, he believes. The agreement provides for the opening up of public procurement to competitors from third countries, without discrimination between bidders from one bloc or the other. Brazil would like to maintain a certain preference for its domestic companies.
“Why would a country like Brazil give up on this, and kill off its SMEs? Or the possibility of creating new businesses? [...] In France, the issue of public procurement is a question of sovereignty, as it is in Germany. Why not for us?”, he asked. He added that his country would make “no concessions” on this issue.
For the former Paraguayan Environment Minister and current coordinator of the ‘For the Survival of Friends of the Earth Paraguay’ network, this position is perfectly normal. Interviewed by EUROPE, he insisted that governments must be able to “promote support for their economy and the development of national industries”.
Lula also spoke to the press about the EU’s additional letter to the trade agreement with Mercosur, describing it as “aggressive”. In his view, threats of sanctions are unacceptable between strategic partners. This view is also shared by Mr Rivas, who believes that “it is not possible to work together in a context of mistrust”.
Mercosur’s counter-proposal will be submitted to the EU within 2 or 3 weeks, according to Mr Lula da Silva, who said he was “optimistic” about the EU’s reception and the possibility of concluding the negotiations quickly. “This is the first time that I really believe that we will be able to conclude this agreement this year”, he said.
His Argentine counterpart, Alberto Fernández, sent a similar message of enthusiasm at the close of the EU/CELAC summit on Tuesday 19 July (see EUROPE 13225/1). (Original version in French by Léa Marchal)