The journey of Lula through Europe for continuing the negotiations on the agreement between the European Union (EU) and Mercosur [Author’s note: Common Market of the South, economical agreement between semi-colonial and semi-feudal countries of Latin America, headed by Brazil], ended on Saturday 24th of June. With the end of the journey, Lula demanded “put aside the arrogance” and “common sense” in order to reach an agreement. A principle of the agreement was reached in 2019 during the government of Jair Bolsonaro in Brazil, after almost 20 years of negotiations, but was pending ratification during the last years.
The European monopolies and the Brazilian big landlords are interested in this trade agreement. The latter could export around 99.000 tons of meat to Europe, with reduced taxes, and therefore achieving bigger profits. The exportation of soy and ethanol could also be increased, which would also benefit the big landlords. Currently, the trade between the EU and Brazil is around 100 billions of dollars per year, and the main exports from Brazil are agrarian products.
During the last weeks, apparently there were moments of tension in the negotiations, with disagreements between Lula and the President of the European Comission, Ursula von der Leyen, and also tense negotiations with the President of France, Emmanuel Macron. The current main point of the negotiations which has delayed the signing of the agreement, was the “green” demands of the European imperialist countries to Brazil. Among them, would be sanctions, possible bans to import some agrarian products related to the deforestation or climate change. Lula is reluctant to these measures despite that during the electoral campaign of 2022 in Brazil he promised the end of deforestation in Brazil, using this topic as an electoral weapon against Bolsonaro.
Currently Lula appears to be causing some difficulties or risking the negotiations, but actually has been looking actively to reach the agreement since the first moment. This seems to be a contradiction, but all of his actions are in favor of the big landlords. The president of the Brazilian State always had a clear position regarding the agreement: ratify it quickly. At the beginning of the year he was clear at the meeting with the German Chancellor, Olaf Scholz. In the last weeks von der Leyen and Lula himself affirmed that they want to ratify the agreement latest in 2023.
This defense of the interests of the big landlords by Lula and his government is something that has been happening since the start of this government. Currently, Lula is struggling hard in order to preserve the interests of the big landlords and increase their benefits. After the last negotiations with Macron, Lula was clear regarding this: “I intend to talk to… Macron because France is very tough on defending its agricultural interests…it’s wonderful they defend their agriculture, but they have to understand that others also have the right to defend theirs”. The other big profiteers of this agreement are the imperialists from the EU. They will increase their exports to Brazil, specifically manufactured products like machinery, and this will bring more subjection of the Brazilian economy to imperialism. In the meantime, Lula is demanding to unblock the agreement, to end French protectionism to achieve a true agreement of alleged “free trade” in order to sell-out the country more and more to imperialism.