at the Planalto Palace in Brasília, President Luiz Inácio Lula da Silva signed into law the Mercosur-European Union trade agreement, clearing the final domestic hurdles for its implementation. This landmark agreement, which covers over 90% of bilateral trade, will establish one of the world's largest free-trade areas, connecting Mercosur—Brazil, Argentina, Paraguay, and Uruguay—with the EU’s 27 member countries, affecting a market of approximately 700 million people.

Lula described the signing as a victory achieved through “iron, sweat, and blood,” emphasizing the persistence required to overcome resistance from various competing interests, particularly within European agricultural lobbies. He stated that the deal comes at a significant moment, strengthening the commitment to multilateralism amid rising protectionist sentiments worldwide.

The treaty outlines a gradual tariff reduction over a period ranging from four to 15 years, linking important sectors of both economies. Such provisions aim not only to enhance trade but also to establish safeguards for sensitive sectors, including agriculture, which faced opposition from EU farmers concerned about increased competition from South American producers.

The initial implementation of the agreement will be marked by a virtual meeting among the leaders of Mercosur countries and European representatives on May 1. Lula highlighted that the agreement heralds a new phase in international trading relations, particularly in light of recent unilateral measures taken by the U.S., suggesting that the EU-Brazil alliance serves as a testament to the benefits of collective engagement in trade.

Moving forward, Brazil also plans to pursue additional trade agreements, including efforts to integrate Colombia into Mercosur, suggesting a broader strategy to enhance regional collaboration and expand markets.

The formal entry into force of this agreement is seen as a vital step for Brazil and the EU, potentially reshaping economic relations between the two regions for decades to come.