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.

Mercopress

Tags:

You May Also Like

Brazil’s Food Company Perdigão Swallows Italian Subsidiary

Perdigão, a Brazilian food company which operates in the meats sector, concluded negotiations for ...

Brazilian Judge Recants and Is Now in Favor of Uncontacted Indians

A judge from Brazil has reinstated orders protecting an uncontacted Amazonian tribe following international ...

Brazil to Use Bio-Thermal Umbilical Chip to Track Hoof and Mouth Disease

Digital Angel Corporation, an advanced technology company in the field of rapid and accurate ...

According to the Music

Since the beginning of the twentieth century Brazilian popular music has reflected the social ...

Brazil, the Original Leader of the Americas ”“ Part II

On May 30, 1822, Brazil through the “Andrada Doctrine” became the original leader of ...

Some Believe It’s Latin America’s Turn and that Next Pope Will Be Brazilian

With Pope Benedict’s stunning announcement that he will resign at end of the month, ...

Brazil Has 228,000 College Professors. 48% Work in the Southeast.

Brazil has 228,319 university professors. 22.7% (52,376) have doctoral degrees or higher, 35% (80,787) ...

Brazilian Bosses and Workers Demand to Participate on Economic Policy

Successive increases on interest rate by the Brazilian Central Bank’s Monetary Policy Committee (Copom) ...

Feeling Good: Brazil Is 4th in Consumer Confidence in the World

According to a global consumer confidence survey by consultancy firm Nielsen, Brazil ranked 4th ...

Brazil’s Proposal of Mercosur Fund for Business Ready for Launching

The Fund for Small and Medium Companies of the Mercosur, proposed by Brazil, should ...

WordPress database error: [Table './brazzil3_live/wp_wfHits' is marked as crashed and last (automatic?) repair failed]
SHOW FULL COLUMNS FROM `wp_wfHits`