New Chapter: Lula Meets with Scholz in Berlin: Is the Free Trade Agreement a Go? 🚀
After a long hiatus, the governments of Germany and Brazil are back in the game! Scholz's and Lula's teams are set to discuss a plethora of topics, from economic cooperation to climate protection and foreign policies, in the Berlin Chancellery. But, will this meeting finally seal the deal on the decades-long negotiations about a potential free trade agreement between Mercosur and the European Union? 🤔
The Powerhouse of Trade 🗺️
If successful, this agreement would create one of the world's largest trade zones, boasting over 700 million inhabitants. The EU has been talking with Mercosur countries - Brazil, Argentina, Uruguay, and Paraguay - for more than two decades. The EU government has an agreement-in-principle from 2019, but the deal has yet to see the light of day, with issues such as rainforest protection still under scrutiny.
The German economy is pushing for a swift conclusion, but the Green Party has other plans. They've called for renegotiations to combat the "intensive extraction of raw materials in the global South for consumption in the global North." The ruling coalition, however, remains committed to the planned trade agreement.
Numerous Agreements Await 📝
The meeting will bring together several ministers on both sides, and no less than nine German ministers will attend the event. The duo will discuss signing numerous agreements, encompassing topics like biodiversity, marine protection, digitalization, rainforest reforestation, and mineral resource extraction.
Brazil as G20 Chair 🇧🇷
The year 2023 marks Brazil's tenure as the leader of the G20 group of leading economic powers. Brazil will host the next annual summit in Rio de Janeiro, an incredible opportunity for them to demonstrate their global influence.
The Brazilian presidency of the G20 carries significance beyond economic considerations. Brazil is also a part of the Brics group – along with China, Russia, and India – which challenges the western influence of the G7 countries.
Views Clash on Security Policies 🛡️
Germany and Brazil hold conflicting opinions on numerous security-related issues, like the situation in Gaza and Ukraine. Germany advocates for ceasefires, while Brazil calls for a permanent ceasefire in Gaza. As for Ukraine, Germany refrains from taking a stance and allows Kyiv to make its own decisions.
Consultations on Ice for Years ❄️
The German government holds regular talks with crucial partners or countries of strategic importance. However, these discussions were paused during Bolsonaro's presidency. Following Lula's return to the Brazilian presidency, consultations resumed during Scholz's inaugural trip to Brazil in January 2023.
Insights from Enrichment Data
Strong economic ties between the EU and Mercosur countries are at stake with the pending free trade agreement. The deal, known as the Mercosur-EU Free Trade Area (MEFTA), aims to bolster trade relations while reducing tariffs. While the agreement has been highly anticipated, its implementation faces significant challenges, including concerns over the environment and agricultural industries in the EU.
