Argentina hands over presidency of Mercosur to Brazil’s Lula

MEXICO CITY

Latin American leaders gathered in Puerto Iguazu, Argentina on Tuesday to celebrate President Alberto Fernandez’s transfer of Mercosur’s temporary presidency to his Brazilian counterpart Luiz Inacio Lula da Silva as misgivings surfaced within the trade bloc.

Lula, who will act as the head of Mercosur for the next six months, welcomed the presidency as some leaders expressed concern over upcoming elections in Venezuela and fruitless commercial trade with the European Union.

Founded in the early 90s by Argentina, Brazil, Uruguay and Paraguay, with Venezuela and Bolivia joining in later years, Mercosur now encompasses all of South America through various trade agreements with associated countries.  

The meeting marked the 62nd summit of Mercosur members and the associated states. 

During the ceremony, Fernandez congratulated Lula for his role as Mercosur’s new interim president. 

“I know you will lead with conviction and clarity. Your challenges are our challenges. Your decisions are our decisions. And I am going to accompany you in this next semester,” he said.

However, Uruguayan President Luis Lacalle Pou expressed “abundant pessimism” over a trade agreement between Mercosur and the European Union that was 25 years in the making and has recently shown renewed signs of stagnation. 

The agreement, officially approved in 2019 and covering 31 countries, was paused during the presidency of Brazil’s Jair Bolsonaro, who is said to have created distrust among the European bloc over his environmental policies and treatment of the Amazon.

Although an expedited process was expected following Lula’s victory in Brazil’s elections in 2022, the leftist president labeled the agreement “unacceptable” after the EU added an article to the Mercosur treaty that would subject member countries to sanctions if they failed to comply with the terms of the Paris Agreement.

“The Additional Instrument presented by the European Union in March this year is unacceptable. Strategic partners do not negotiate based on mistrust and the threat of sanctions. It is imperative that Mercosur presents a swift and forceful response,” said Lula at Tuesday’s summit.

Lula said Mercosur countries are relegated to the “eternal role of exporters of raw materials, minerals and oil” under the proposed agreement.

In addition, Lacalle Pou and his Paraguayan counterpart Mario Abdo Benitez denounced the government of Venezuelan President Nicolas Maduro for barring opposition leader María Corina Machado from holding public office for 15 years retroactive from 2015, preventing her from running in upcoming elections, a move some have criticized as an authoritarian attempt to secure Maduro’s power.

While both Lula and Fernandez said the ongoing crisis is a problem that must be resolved by Venezuelans through dialogue “among themselves, not by countries meddling in internal issues,” Pou and Benitez said the alleged human rights violation happening in Venezuela should be addressed by Mercosur members.

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