President Luiz Inácio Lula da Silva will take part in the 65th Summit of Mercosur Heads of State on December 5 and 6 in Montevideo, Uruguay. The event  marks the end of Uruguay's pro tempore presidency and its transfer to Argentina. Bolivia is participating for the first time as a full member of the bloc, after officially joining in August this year.

The 65th Meeting of the Common Market Council (CMC) will be held on Thursday, December 5. During a press briefing on Monday, December 2, at the Itamaraty Palace, Ambassador Gisela Padovan, secretary for Latin America and the Caribbean, highlighted Mercosur's historical evolution and commercial outreach.

With Bolivia's inclusion, the bloc now covers 73% of South America's territory, and represents around 65% of the region's population. “With Brazil, Argentina, Bolivia, Paraguay and Uruguay, Mercosur covers 73% of South America. It would be the second largest country in the world in terms of territory. It harbors almost 300 million inhabitants, which is roughly equivalent to the United States — just to give you a dimension of Bolivia's inclusion — and 70% of the region's GDP. This expansion of the population area, of Mercosur's outreach, is very important,” said the ambassador.

During the meeting, Panama will be officially integrated as an Associated State, becoming the first Central American country to join the group. The country will sign three agreements: the Economic Complementation Agreement 76 (ACE-76), the Ushuaia Protocol on Democratic Commitment, and the Presidential Declaration on Democratic Commitment.

“An important fact is that Panama is Brazil's main trading partner in Central America. It is the first Central American country to join this group of associates. Once these three agreements are signed, it will be eligible for the same portfolio of bilateral and regional agreements as Mercosur, broadening the bloc's scope beyond South America,” stressed Padovan, who also said that similar negotiations are underway with El Salvador and the Dominican Republic, which have shown interest in joining the bloc.

URUGUAY'S PRESIDENCY — Under Uruguay's presidency, Mercosur held discussions on women's participation in democracy, electoral observation and cybersecurity. In the social field, ministerial meetings were held on health, human rights, education and the fight against organized crime. Among the advances were initiatives such as restricting flavored tobacco products, protocols for organ transplants and rapid HIV tests, as well as regulating the marketing of breast milk substitutes.

The secretary stressed that these initiatives reinforce Mercosur's impact on the daily lives of the region's citizens. “Each presidency has a priority that is reflected in the activities carried out, and Uruguay's presidency has proposed three axes. Firstly, strengthening women's participation in democracy. Secondly, intensifying cooperation to monitor electoral processes in the region. Then, to continue discussions on cybersecurity, which I think is an issue we should all be concerned about. Finally, as a principle, to avoid duplicating agendas with the [Brasilia] Consensus, with the Community of Latin American and Caribbean States [Celac], with other integration organizations, and this is being done,” she stressed.

TRADE AGENDA — According to Gisela, economic integration remains a priority. Intra-Mercosur trade has increased exponentially over the last 33 years, increasing from BRL 4.5 billion to BRL 49 billion. In 2023, Brazil exported BRL 23.5 billion to the bloc's countries, but the surplus fell due to a drop in exports to Argentina. Even so, the secretary added, intraregional trade is significant for its high added value: 82% of exported products are manufactured or semi-manufactured, generating jobs and income.

“Last year, Brazil exported BRL 23.5 billion, or 6.9% of our exports, to Mercosur countries and imported BRL 17.7 billion, more or less, so it is equivalent to 7% of Brazil's total imports, with a surplus of BRL 6.5 billion, which is very important. Intra-Mercosur trade is high value-added trade,”  she said.

TRADE BALANCE — From January to October 2024, trade between Mercosur countries amounted to USD 32.5 billion. Brazilian exports amounted to USD 16.5 billion and imports to USD 16 billion, a surplus of USD 537.8 million. Brazil's imports are largely based on motor vehicles for the transportation of goods and passengers, unground wheat and rye, and electricity. Brazil mainly exports passenger and goods vehicles, parts and accessories for these vehicles, other products from the manufacturing industry, iron ore, among others, to Mercosur.

NEGOTIATIONS — The Secretary for Economic and Financial Affairs at the Ministry of Foreign Affairs, Ambassador Mauricio Carvalho Lyrio, also highlighted the progress and importance of Mercosur's trade negotiations with other blocs and countries outside the region. He emphasized three main fronts: the European Union, the European Free Trade Association (EFTA) and the United Arab Emirates. Regarding Mercosur-European Union, the secretary mentioned that the agreement reflects a political commitment in times of global conflicts and protectionism, promoting values such as democracy and sustainability.

“We are taking a positive view of how the negotiations are going. President Lula himself has already mentioned that he expects the negotiations to be concluded by the end of the year. He has also said that this has a significance beyond trade, because it also has a very considerable political importance, at this time of conflicts, recurring antagonisms, protectionism, unilateral threats and so on,” said the secretary.

Last week, President Lula met with the president-elect of Uruguay, Yamandú Orsi, and discussed the prospects for the next Mercosur Summit, as well as the agreement with the European Union. The Uruguayan president was also optimistic about the possibility of closer ties with other regions.

WHAT IT IS — The Southern Common Market (Mercosur) was created in 1991 to be a regional integration process made up initially of Argentina, Brazil, Paraguay and Uruguay, as well as associated countries. Venezuela and Bolivia have recently joined. With more than three thousand regulations covering trade, health, energy and human rights, Mercosur has established itself as one of the largest regional integration mechanisms in the world. As well as fostering peace and cooperation between countries, the bloc provides practical benefits such as the free movement of people, recognition of social security rights and alignment of trade and health standards. The bloc also has, among other characteristics, one of the most important freshwater reserves on the planet: the Guarani Aquifer, and has immense renewable and non-renewable energy resources.

“You have to see that various elements of everyday life are affected by Mercosur. If a person crosses the border with just their ID card, this is due to Mercosur. If a Brazilian can retire in Argentina or Uruguay and have their pension rights recognized, that is Mercosur. If your university degree is accepted for you to study in another country, that is Mercosur. If you have a common strategy to combat organized crime, as we are working on, that is Mercosur. If you have a common rule for labelling medicines, that is also Mercosur,” emphasized Secretary Gisela Padovan.