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

Almost 70% of Brazilian Exports to Arabs Come from Agribusiness

Agribusiness was the main base for Brazilian exports to the Arabs last year. Of ...

War Keeps on Bringing Arabs to Brazil

At the end of the 19th Century, Brazil received a group of Arab immigrants ...

Russia Adds Two Brazilian States to Its Safe-Beef List

While dozens of countries continue to ban Brazilian beef due to foot and mouth ...

Low Inflation Leads Brazil to Hold Benchmark Interests at 19.75%

The nine members of the Brazilian Central Bank’s Monetary Policy Committee (Copom) decided unanimously, ...

After Record Year of Foreign Investment Brazil Braces for Slowing Down in 2012

Foreign direct investment (FDI) is expected to reach a new record this year in ...

Despite Record Investment in 2005 Brazil’s Housing Deficit Still at 7.2 Million Homes

Brazil’s Minister for the Cities, Márcio Fortes, stated that 2005 was a year in ...

Court of Audit Finds Chaos in Brazil’s Nuclear Installations

Published this weekend by Rio daily O Globo, a report by a Brazilian official ...

Showdown Near Between Brazil and AIDS Drugs Labs

The Brazilian government must soon decide about breaking the patents of three antiretroviral medications ...

9 Years of Privatization Bring US$ 5 Bi in Investments to Brazil’s Railways

Brazilian railways transported 178.3 billion ton-kilometers in the third quarter of the year, according ...

World Social Forum Says Bye to Brazil

The V World Social Forum (WSF) came to an official end, January 31, with ...