Brazilian Finance Minister Fernando Haddad stated that the European Union should recognize the trade deal with Mercosur for its political significance rather than solely its economic implications.
At a conference at Sciences Po university in Paris, Haddad noted that while the agreement offers limited economic benefits for Mercosur, it carries political importance for both sides, presenting an alternative to a bipolar world.
He emphasized the need for Europe to approach the agreement from a political perspective instead of focusing solely on individual clauses.
In December, the EU and Mercosur announced the conclusion of a deal that could lead to approximately 4 billion euros in annual tariff reductions. However, the agreement awaits approval from EU member states and faces opposition from countries like France and Italy, particularly in light of uncertainty surrounding U.S. tariffs.
Haddad argued that the best approach to addressing the crisis of multilateralism is to strengthen multilateral efforts. He also highlighted the finance ministry's commitment to supporting a successful COP30 climate summit, which Brazil will host in November, aiming to restore the importance of multilateralism.