Brazil’s Industry Leaders Want to Bypass Mercosur and Sign EU Accord

Industry numbers A group of businessmen belonging to Brazil's powerful National Confederation of Industry, CNI, said it was time to sign a bilateral agreement with the European Union – which would leave out Mercosur – according to press reports in the daily newspaper O Estado de S. Paulo.

CNI president Armando Montero Neto said Brazil must adopt a more "ambitious" position regarding trade agreements with the European Union. This week, Rio do Janeiro hosted the two day EU/Brazil summit where it was agreed that both parties must speak "with one voice" in the coming Group of 20 major economies meeting in April in London.

"Mercosur has become partly paralyzed and the feeling is that Brazil is shackled with limited movements; Brazil must reach bilateral agreements, Mercosur's time is up, long overdue", said Luiz Furlan president of the São Paulo based food group Sadia in an interview with O Estado.

In 2007 when Brazil and EU signed an association agreement, which opened the way for the summits, Uruguayan officials publicly expressed concern fearing Brazil could end up signing a free trade agreement with the EU, "without the participation of the rest of Mercosur member countries."

Brazilian diplomats at the time discarded such a possibility insisting that the Lula administration would not violate the block's regulations, which impede any Mercosur member to unilaterally sign such agreements with third countries.

EU ambassador in Brazil João Pacheco said then that the EU was not after a unilateral agreement with Brazil but admitted that Argentina, the second most important Mercosur member country had demands in the manufacturing sector that could become obstacles for the agreement with Mercosur.

Ambassador Pacheco also pointed out that the incorporation of Venezuela to the South American trade block, which so far has not happened, (blocked in the Brazilian and Paraguayan legislatives) could interfere with a possible consensus between the EU and Mercosur. These negotiations dating back to the nineties have remained stalled since the end of 1994.

At the recent Brazil-EU summit, presidents Luiz Inácio Lula da Silva from Brazil and Nicholas Sarkozy from France, which holds the EU rotating chair said that Europe and Brazil have a common vision on how to address "not only the financial crisis, but also the need to bring the Doha round of world trade talks to a successful conclusion, the need for alternative energy sources, the need to halt climate change and the need to reform global financial institutions."

This was followed by a bilateral Brazil-France strategic alliance agreement signed by both presidents, which includes US$ 8 billion in military cooperation plus understandings in several other areas.

CNI and Fiesp, São Paulo Industrial Federation, are Brazil's two main manufacturers organizations with strong influence in government and policy making.



  • Show Comments (5)

  • ch.c.

    Joao !!!!!
    but….but…but…..dont worry, the EU President has Noooooooo Power for decisions at all !
    HE manages Noooo one ! HE is just a diplomatic puppet for 6 months !
    Thus Sarko, Klaus or whoever doesnt change anything.

    But things may somewhat change next year, when the EU should elect their FIRST Real President who will keep office
    for 2 1/2 years. This President wont necessarily be an actual country President as is the case now.
    Many names come on the table such as Tony Blair and others.
    Time will tell as to what this new EU Real President could do or not !
    From the little I read about and I cant disagree, it will be a very important step for the tone and directions of EU future decisions !
    Because once the tone is defined, the nexst President cant change everything !!!!!
    Especially with countries members so different from one to the others.
    Very interesting years ahead….no doubt.

    As to my country, it is somewhat funny :
    – Our successive Governments were always in favor to enter the EU club.
    – Twice WE the people, via the votes, said…NIET ! Smiles

    I dont recall for how long they cant put it for new votations, but in my view we should have new ones in the next 1 to 3 years !

    Ultimately, in my view, I think we wont have a choice, if you look at a map !

    And in the meantime our government can continue to negotiate point by point every detail of the eventual agreements !
    Just remember of the fundamental right of all EU members : the right to difference, but that right(sssss) must be negotiated before entering the EU, not after !!!!!
    But once inside, as we have seen it recently, everyone still find a way top do things unilaterally even without asking first the permission to do so !

    A very strange Union….indeed !!!! But so it is !

    😀 😉 😀 😉 😀 😉 😀 😉

  • João da Silva

    [quote]Not Vaca Klaus (to my knowledge – smile) but Vaclav Klaus !
    And he is supposed to be MALE…not Female…also to my knowledge. [/quote]

    Thanks for your succinct and objective feedback on this fellow Vaca Klaus.I saw Sarko on the Brazilian TV bullshitting.If V.Klaus is any thing like him, God help EU. You Swiss better remain “Neutral”. 😉

  • ch.c.

    Joao !!!!!
    Not Vaca Klaus (to my knowledge – smile) but Vaclav Klaus !
    And he is supposed to be MALE…not Female…also to my knowledge.
    As to why HE is considered a Eurosceptic….just go to Yahoo or Google and type either only his names or….
    Eurosceptic Vaclav Klaus !

    Simple as usual ! I invent nothing ! smiles

    Cheers -.))

  • João da Silva

    [quote]Eurosceptic Czech President Vaclav Klaus[/quote]

    VACA Klaus ? Is this person a He or She ? Why is this one Sceptic?.Please clarify.

  • ch.c.

    Who is surprised ?
    When other Mercosur members want to fo something…..THEY CANT…and Brazil the largest members insists the others
    have to follow the Mercosur rules !
    But when Brazil wants to bypass the Mercosur rules…..that is different…of course….in Brazil opinion !

    Welll…who can then prove me wrong….that Brazil always cheats, lies and hides ?
    Welll…who can then prove me wrong….when I say…..Never Ever Trust a Bazilian….because cheating, lying and hiding is
    in their blood, genes, lifestyle and soul ?

    Yesssss WHO can proves me wrong ?

    And dont trust ONE second the “EU/Brazil summit where it was agreed that both parties must speak “with one voice” in the coming Group of 20 major economies meeting in April in London. “

    The EU is not ONE country ! you just had Sarko’s visit who happens to be the EU President until…NEXT WEEK !!!!!
    And in the G20 there is more than one European country…..not necessarily in agreement !
    On January 1st, the next EU President will be….Eurosceptic Czech President Vaclav Klaus !!!!
    Furthermore in 2009, the EU should elect for the first time a Real EU President which will keep office for
    2 1/2 years.

    And in my humble view, the EU is no doubt closer to the USA than Brazil….despite their differences….wether you like it not !!!!!!!

    And if Mercosur as stated “has become partly paralyzed” it is mostly due to BRAZIL….not Uruguay or Paraguay…if you re-read
    what happened around 2 years ago .
    And now of course, Brazil criticizes the OTHER Mercosur members. Who is surprised ? Not me for sure.
    Once more, when things dont worked in Brazil, 100 % of the time it is due to….THE OTHERS ARE RESPONSIBLE….NOT BRAZIL.

    Brazil will never ever change in their regular CHEATINGS, LYINGS, HIDINGS AND….BETRAYALS !!!!

    Sorry but…I CANT STOP LAUGHING !

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