Speech by President Lula on the occasion of the 62nd MERCOSUR Summit

It is with great joy that I return to Argentina to participate in a MERCOSUR Summit.

This satisfaction is even greater for we are today on the triple border, a place of great symbolism for the integration between our countries and of great natural beauty.

Today, I am completing an essential step in Brazil's reunion with the region.

In the first month of my government, I participated in the CELAC Summit in Buenos Aires.

In May, we met at the Meeting of South American Presidents, in Brasilia, to revive UNASUR's institutional heritage.

A few days ago, Alberto Fernández and I celebrated the 200th anniversary of Brazil-Argentina relations.

MERCOSUR, however, was still missing: one of the main foundations of the regional integration project built over the last decades.

Since January, I have met several world leaders, in different forums, in this and in other continents.

The world is increasingly complex and challenging.

No country will solve its problems alone, nor can it remain aloof from humanity's great dilemmas.

We have no alternative other than unite.

In face of the climate crisis, it is necessary to act in a coordinated manner to protect our biomes and promote a fair ecological transition.

In time of wars that bring destruction, suffering and impoverishment, it is necessary to speak of peace.

In a world increasingly ruled by geopolitical competition, our regional option must be cooperation and solidarity.

In view of the rise of hatred, intolerance and lies in politics, it is urgent to renew MERCOSUR's historic commitment to the rule of law.

As democratically elected presidents, we are challenged to confront all those who try to appropriate and pervert democracy.

I am convinced that building a more democratic and participatory MERCOSUR is the way to move forward.

Dear Alberto Fernandez,

I would like to thank you for your team's efforts at the forefront of MERCOSUR during the semester that is now ending.

The Argentine presidency sought to deepen convergences and reduce asymmetries between the member states.

We achieved important results with the revision of the Regime of Origin, the negotiation of an Agreement on matters of Family Law, as well as organization of another edition of the Business Forum.

The resumption of the MERCOSUR Social Summit was also a symbol of your hard work. It is inconceivable that we have set aside this valuable space for almost seven years.

The participation of social movements, with all the diversity of our peoples, reinforces the bloc's transparency and legitimacy.

Brazil assumes the pro-tempore presidency today with the determination to strengthen these efforts.

On the economic and commercial front, we intend to improve our Common External Tariff and prevent non-tariff barriers from compromising the flow of trade.

In 2022, intra-MERCOSUR trade amounted to 46 billion dollars. It is not little, but it is below the peak registered in 2011, of 52 billion dollars. We are short of our potential.

Our trade is characterized by the significant presence of higher value-added products. This is an asset that needs to be valued and expanded.

We have an unfinished agenda with two sectors still excluded from free trade: automotive and sugar. And we will also seek to complete the eighth round of liberalization of trade in services.

We have significant reserves of strategic minerals, such as lithium and cobalt, which are essential for next generation industrial projects.

The adoption of a common currency to carry out clearing operations between our countries will help reduce costs and further facilitate convergence.

I am talking about a specific reference currency for regional trade, which will not eliminate the respective national currencies.

Although we already have a de facto free trade area with our South American neighbors, there is room to expand and improve trade agreements with Chile, Colombia, Ecuador and Peru.

We will resume an ambitious external agenda to expand access to markets for our export products.

I am committed to concluding the Agreement with the European Union, which must be balanced and ensure the necessary policy space for the adoption of public policies in favor of productive integration and reindustrialization.

The Additional Instrument presented by the European Union in March of this year is unacceptable. Strategic partners do not negotiate based on distrust and the threat of sanctions.

It is imperative that MERCOSUR presents a forceful response.

It is inadmissible to give up the purchasing power of the state – one of the few instruments of industrial policy that we have left.

We have no interest in agreements that condemn us to the eternal role of exporters of raw materials, ores and oil.

We need policies that contemplate deep regional integration, based on qualified work and the production of science, technology and innovation.

This requires more integration, the articulation of productive processes and the interconnection of energy, roads and communications.

Based on these assumptions, we are going to review and advance the agreements being negotiated with Canada, South Korea and Singapore.

We are going to explore new negotiation fronts with partners such as China, Indonesia, Vietnam and countries in Central America and the Caribbean.

The proliferation of unilateral trade barriers perpetuates inequalities and harms developing countries.

Fighting the resurgence of protectionism in the world implies rescuing MERCOSUR's leading role in the World Trade Organization.

We will work to mobilize resources from national banks and regional development agencies, such as CAF, Fonplata and the IDB, to finance physical and digital infrastructure projects.

With Dilma Rousseff at the head of the BRICS Bank, new horizons open up for MERCOSUR to reduce the asymmetries of its members.

This year, Brazil paid off its debt of nearly US$100 million with the MERCOSUR Structural Convergence Fund (FOCEM). We will work with the Brazilian Congress to make new contributions to FOCEM in its second stage.

We will pay special attention to our border regions, which involves both the delivery of services such as health and education, and the fight against transnational crimes that have such an impact on the daily lives of these locations.

The institutional improvement of our bloc will involve the reinvigoration of PARLASUL, the Institute of Public Policies on Human Rights, the Social Institute and the Permanent Court of Mercosur.

With the Green Agenda, we started a permanent discussion exercise on topics such as desertification, firefighting and recovery of degraded soils, which will be the object of coordinated actions by the bloc in favor of sustainable development.

Consolidating democracy will be a permanent task. We are going to propose the reinstallation of the Consultative Forum of Municipalities and Federated States and hold the Social Summit in person.

Strengthening MERCOSUR means counting on the participation of all our members. We are in urgent need of Bolivia's accession as a full member and I will work personally for its approval by the Brazilian Congress.

Dear friends,

As Pepe Mujica reminds us, our integration goes far beyond a strictly commercial project.

MERCOSUR cannot be limited to the bargain of “how much do I sell you and how much do you sell to me”.

It is necessary to recover a citizen and inclusive agenda, with a human face, that generates tangible benefits for broad sectors of our societies.

Our integration must be solidary and awaken the feeling of belonging.

Our integration must also be feminine, black, indigenous, peasant and worker.

Here we have important advances to share. With the Equal Salary and Remuneration Law, which we sanctioned yesterday, Brazil is beginning to settle a historic debt. Men and women who perform the same function will be paid the same.

This is a great achievement for Brazilian women.

This is the MERCOSUR we want and it has returned to its place at the center of the Brazilian strategy for insertion at the world stage.

Only the unity of MERCOSUR, South America and Latin America and the Caribbean will allow us to resume growth, fight inequalities, promote inclusion, deepen democracy and guarantee our interests in a changing world.

This is what our populations expect from us.

Thank you very much.