Lula to attend 64th Mercosur Summit in Paraguay, make official visit to Bolivia

President of the Republic Luiz Inácio Lula da Silva will visit Asunción, Paraguay, on July 8 to attend the 64th Mercosur and Associated States Summit. The following day, he will travel to Santa Cruz de La Sierra, Bolivia, for an official visit and a bilateral meeting with President Luis Arce.

Established 33 years ago by the Treaty of Asunción, the Ouro Preto Protocol determines that Mercosur’s pro tempore presidency must rotate alphabetically among each of its State Parties every six months. At the summit in Asunción, Paraguay's President, Santiago Peña, will transfer the bloc’s presidency to his Uruguayan counterpart, President Luis Lacalle Pou.

During Paraguay's presidency, 14 ministerial meetings were held on topics including education, health, justice, work, culture, human rights, the environment, tourism, social development and the indigenous population. Among the measures undertaken was the formation of committees, the most important one addressing integrated control of border areas.

"The most concrete decisions are made at these committees. The region must address issues at the borders to eliminate queues and make decision-making easier. We will sit down and talk," said Ambassador Gisela Padovan, secretary for Latin America and the Caribbean at the Brazilian Ministry of Foreign Affairs.

The ambassador highlighted that the concrete possibility of Bolivia joining the bloc is one of the highlights of the summit. "[Bolivia] itself expects President Arce to come to the summit with the ratification instrument. I believe this is a great moment for Mercosur, to see its membership expanded with the entry of a country as relevant as Bolivia is to Brazil," she explained.

The combined economies of Mercosur’s members would make it the world's seventh largest, with a GDP of USD 2.86 trillion, covering 67% of South America's territory. In 2023, Brazil exported USD 23.56 billion to the bloc and imported USD 17.09 billion from it, leading to a nearly USD 6.5 billion surplus. Most of Brazil's exports were manufactured goods, while cars, automotive parts, energy and soybeans were the main commodities traded among the bloc's members.

ASSIMETRIES - Brazil is also expected to sign an agreement with the Financial Fund for the Development of the River Plate Basin (FONPLATA), which provides technical and financial support for studies, projects, programs and initiatives that promote the harmonious development and physical integration of the member countries of the River Plate Basin: Argentina, Bolivia, Brazil, Paraguay and Uruguay.

Ambassador Padovan emphasized that the agreement aims to take advantage of the expertise of Mercosur’s Structural Convergence Fund (FOCEM), a fund aimed at reducing asymmetries between countries, providing technical cooperation and securing loans at lower rates.

Listening to society and understanding its expectations of Mercosur is fundamental. If this project is not integrated into Brazilian society, it has little value, which is why we promote social participation. We have already informed Uruguay that we will contribute and are open to offering any kind of assistance. We are keen to resume the bloc's social summits, which were held until 2016" - Gisela Padovan, Secretary for Latin America and the Caribbean at the Ministry of Foreign Affairs

SOCIAL PARTICIPATION — According to the ambassador, social participation in Mercosur is an essential element that strengthens regional integration, promotes democracy and ensures that the bloc's policies and decisions reflect the needs and interests of its population. "Listening to society and understanding its expectations of Mercosur is fundamental. If the project is not integrated into Brazilian society, it has little value, which is why we promote social participation. We have already informed Uruguay that we will contribute and are open to offering any kind of assistance. We are keen to resume the bloc's social summits, which were held until 2016," she said.

BOLIVIA — Following the Mercosur Summit, President Lula will head to Santa Cruz de La Sierra on July 9. It will be his first visit to Bolivia during his third term. The Bolivian president has been to Brazil four times in the past year, reinforcing the closeness of bilateral ties.

Upon his arrival in Bolivia, Lula will have a private meeting with President Luis Arce, followed by an extended meeting with officials and members of the Brazilian delegation. He will then attend a signing ceremony and issue a joint statement to the press. In the afternoon, Lula will meet with business leaders.

Ambassador Gisela Padovan underscored that the visit to Bolivia is particularly important because Brazil is rebuilding bilateral relations in the region, which had been largely abandoned by the previous government. "Bolivia is a very important country for us," she concluded.