16/01/2026
𝐋𝐮𝐢𝐳 𝐈𝐧á𝐜𝐢𝐨 𝐋𝐮𝐥𝐚 𝐝𝐚 𝐒𝐢𝐥𝐯𝐚, 𝐏𝐫𝐞𝐬𝐢𝐝𝐞𝐧𝐭 𝐨𝐟 𝐭𝐡𝐞 𝐅𝐞𝐝𝐞𝐫𝐚𝐭𝐢𝐯𝐞 𝐑𝐞𝐩𝐮𝐛𝐥𝐢𝐜 𝐨𝐟 𝐁𝐫𝐚𝐳𝐢𝐥
𝐓𝐡𝐞 𝐌𝐞𝐫𝐜𝐨𝐬𝐮𝐫–𝐄𝐔 𝐚𝐠𝐫𝐞𝐞𝐦𝐞𝐧𝐭 𝐢𝐬 𝐦𝐮𝐥𝐭𝐢𝐥𝐚𝐭𝐞𝐫𝐚𝐥𝐢𝐬𝐦’𝐬 𝐚𝐧𝐬𝐰𝐞𝐫 𝐭𝐨 𝐢𝐬𝐨𝐥𝐚𝐭𝐢𝐨𝐧
· Mercosur and the EU are creating the world's largest free trade area with 720 million people.
· The agreement promises more investment, exports, and jobs, while protecting the environment.
· Multilateralism, democracy, and fairer global governance remain important.
At a time when unilateralism is isolating markets and protectionism is hampering global growth, two regions that share democratic values and multilateralism are choosing a different path. Contrary to the logic of trade wars, which fragment economies, impoverish countries, and increase inequality, Mercosur and the European Union are today signing one of the most comprehensive agreements of the 21st century, writes Luiz Inácio Lula da Silva, President of the Federative Republic of Brazil.
After more than 25 years of negotiations and based on the conviction that only integration and increased openness in trade can bring shared prosperity, this agreement creates the world's largest free trade area. No economy exists in isolation. International trade is not a zero-sum game. All economies seek to grow, and this new partnership will create mutual opportunities for employment, income generation, sustainable development, and economic progress.
Together, the Mercosur-European Union agreement covers 31 countries with a population of around 720 million people. Our combined gross domestic product (GDP) exceeds $22 trillion. The agreement expands mutual access to strategic markets through clear, predictable, and balanced rules. By removing trade barriers and establishing common regulatory standards, it will expand investment, exports, and value chains on both sides of the Atlantic.
The economies of Latin America and Europe are linked by strong trade complementarity. The approved version of the agreement protects the interests of
vulnerable sectors, ensures environmental protection, promotes common values such as democracy and human rights, strengthens labor rights, and preserves the role of the state as a strategic driver of economic and social development.
This agreement was made possible because Mercosur and the European Union understood that they have much more to gain by working together than by acting separately, and chose a dialogue based on respect and equality. The two blocs also found common ground despite their different perspectives, demonstrating that cooperation is significantly more effective and beneficial than intimidation and conflict. We thank the countries of Mercosur and the European Union for their commitment to concluding such an important agreement.
However, signing is only the first step. Today marks the beginning of a new monitoring phase to ensure the swift and transparent implementation of the agreement. The agreement will be judged by how quickly its benefits reach shops, fields, factories, and homes.
Numerous sectors on both sides of the Atlantic stand to gain from the agreement – from the bioeconomy to high-tech industries, and from small and medium-sized agricultural producers to small, medium-sized, and large enterprises. Consumers in Europe and South America will have access to a wider range of products at lower prices, while producers will gain access to new markets.
In addition to the commercial and economic benefits, the agreement will further bring together partners who share historical ties and a common commitment to democracy and multilateralism. Interdependence is both a necessity and a reality. Only joint action by countries and regional blocs can promote peace, prevent atrocities, and confront the most severe consequences of climate change.
In the context of growing protectionism and unilateralism, this agreement shows that a different model of global governance is possible – one that is more active, more representative, more inclusive, and more equitable. We are also applying these same principles to the reform of multilateral institutions, including the World Trade Organization and the UN Security Council.
Amidst the rise of political extremism, Mercosur and the European Union are demonstrating in concrete terms how multilateralism, which has brought enormous benefits to the world since the Second World War, remains relevant and irreplaceable.
The article can be found in Postimees in estonian:
https://arvamus.postimees.ee/8397171/luiz-inacio-lula-da-silva-mercosuri-ja-eli-leping-on-multilateralismi-vastus-isolatsioonile
