Brazil’s Lula hopes for Mercosur-EU trade deal by year-end

Brazilian President Luiz Inacio Lula da Silva said on Wednesday he hoped a trade deal between the European Union and the South American Mercosur bloc would be signed by the end of this year, even as it faced opposition, mainly from France.

"We will get it done," Lula told an event hosted by industry group CNI in Brasilia, shrugging off French opposition and noting the deal was being negotiated directly with European Commission President Ursula von der Leyen.

"Von der Leyen has the mandate to make this agreement, and I intend to sign it this year."

Mercosur joins Brazil, Argentina, Uruguay, Paraguay and most recently, Bolivia, in a market that is a sought-after destination for EU manufacturing exporters, though European farmers, especially in France, fear the competition it will bring.

A deal between the EU and Mercosur has been in the works for some 25 years. The parties had announced an agreement in 2019, but it was never formally ratified due to EU demands for commitments on Amazonian deforestation and climate change.