São Paulo

Brazilian President Luiz Inacio Lula da Silva on Friday welcomed the approval of the Mercosur-European Union Partnership Agreement, calling it a “historic day for multilateralism” as the deal secured backing from a qualified majority of EU member states.

The endorsement concludes more than two decades of negotiations between the South American trading bloc and the European Union, marking a major breakthrough in one of the world’s most ambitious trade pacts. Studies suggest the agreement could boost Brazilian agribusiness output by nearly 2 per cent, particularly in livestock, poultry, pork, vegetable oils, and fats.

President Lula said the 25-year negotiation will bring wide-ranging commercial benefits to Mercosur nations and strengthen global multilateral cooperation. In a post on social media platform X, he described the deal as “one of the largest free trade agreements in the world,” noting that it unites two economic blocs representing 718 million people with a combined GDP of approximately US$22.4 trillion.

The treaty provides for phased tariff reductions on industrial and agricultural goods to balance market sensitivities. Mercosur will liberalise about 91 per cent of goods and 85 per cent of the value of Brazilian imports from the EU, while the EU will liberalise 95 per cent of goods and 92 per cent of the value of imports from Brazil.

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Beyond tariffs, the agreement includes provisions on sustainability, government procurement, intellectual property rights, and new technologies. Analysts say the pact signals strong support for open international trade amid rising protectionism, expanding export opportunities for Brazil, encouraging European investment, and simplifying trade procedures on both sides.