Lula and Milei make contrasting speeches at Mercosur summit

The 66th Mercosur State Chefs Summit, held on Thursday (3) in Buenos Aires, was marked by contrasting speeches by Presidents Luiz Inacio Lula da Silva (Brazil) and Javier Milei (Argentina). In assuming the bloc’s temporary presidency, Lula emphasized the importance of Mercosur as a safe haven in an unstable global scenario, while Milei defended a turn towards “commercial freedom” without discarding individual Argentina’s individual performance.

The Brazilian president pointed out that Mercosur is a “house with solid foundations, capable of enduring the strength of the weather”, noting that the block protects its members from “foreign trade wars” and the accreditation as “reliable partners” in the global scenario. For Lula, the customs union and the common external tariff are essential mechanisms for protection and integration.

“When the world is unstable and threatening, it is natural to look for refuge where we feel safe. For Brazil, Mercosur is this place,” said the petista. “South America has become a free -trade -based and balanced free trade area. Being at Mercosur protects us. Our common external tariff in the merciful wars of others. Our institutional robustness in the accreditation before the world with reliable partners,” he added.

On the other hand, Milei, by leaving the temporary presidency, argued that Mercosur should no longer be a “shield that protects us from the world” and becoming a “spear that allows us to effectively enter global markets.” The Argentine leader, who has already ventilated the possibility of leaving the bloc, defended the flexibility of the rules and the inclusion of more items in the exceptionalities of common tariffs, aiming at greater commercial freedom for members.

Despite the command passage, Lula and Milei did not have a bilateral meeting. The relationship between the two heads of state, marked by ideological disagreements and public criticism of Milei to Lula during the Argentine election campaign, has been pragmatized by chances. While the Brazilian met with the presidents of Paraguay, Santiago Peña, and Bolivia, Luis Arce, Milei had meetings with Uruguay President Yamandú Orsi, and Panama, José Raúl Mulino. Lula’s agenda also included a visit to former Argentine president Cristina Kirchner, an additional sign of distancing between the two leaders.

Brazilian priorities: internal strengthening and looking at Asia

Lula outlined five pillars for the Brazilian presidency of Mercosur:

• Strengthening of trade: Encourage the use of local currencies in transactions and include the automotive and sugar sectors in the customs union.
• Confrontation of climate change and energy transition: Promote sustainable agriculture and the role of South America in the energy transition, with COP 30 in Belém as a showcase.
• Technological Development: Seek partnerships and digital sovereignty in the region, focusing on artificial intelligence.
• Combating organized crime: Intensify regional cooperation against trafficking, environmental crimes and corruption.
• Promotion of citizens’ rights: Resume the social summit and the Mercosur trade union summit.

The Brazilian president also highlighted the need for Mercosur to look at Asia, considered the “dynamic center of the world economy”, seeking closer approach with countries such as Japan, China, Korea, India, Vietnam and Indonesia. Lula expressed confidence that free trade agreements with the European Union and the Efta (European Free Trade Association, composed of Switzerland, Norway, Iceland and Liechtenstein) will be signed by the end of the year.

The conclusion of negotiations with EFTA was announced on Wednesday (2), and the agreement, which aims to create a free trade zone with almost 300 million people and a combined GDP of more than $ 4.3 trillion, is in the revision phase. The Brazilian president also said he intends to advance in negotiations with Canada, United Arab Emirates, Panama and Dominican Republic, as well as updating the agreements with Colombia and Ecuador.

Posted by Felipe Dantas

*Report produced with the aid of AI