Last October, more than 120 million Brazilians went to the polls. The winner of these elections, under difficult and polarized circumstances, has been Brazilian democracy. Now, President Lula is sending a clear message to the world: Brazil is back. He intends to heal the wounds of society, defend democracy, fight inequality, and boost the economy while fighting climate change and deforestation. After a period of isolation and disengagement, the new administration returns to the international stage to act as committed global and multilateral player.

These commitments have been received very positively by Europeans. In the current geopolitical context, characterised by threats to the rules-based international order and Russia’s aggression against Ukraine, the world needs Brazil. With its powerful diplomacy, it can make a difference. And by acting together, the EU and Brazil can be a force for good around the world.

Together, the EU and Brazil represent almost one fifth of global GDP. The EU is the biggest investor and the second trade partner of Brazil. However, our economic relations have not lived up to their full potential in recent years. Others, like China in particular, are expanding their role as commercial partner and source of investment in Brazil and Latin America. We need to reenergise our strategic partnership.

An obvious area where we should join our forces is the fight against climate change. Brazil can become a green superpower driving global efforts to protect our planet. During President Lula´s previous terms, the deforestation rate fell significantly. For the future, robust traceability systems can restore trust in our bilateral value chains. These efforts must go hand in hand with social justice and the fight against inequality: environmental policies need to be flanked by strong measures for a fairer and more inclusive economy, so we do not risk leaving vulnerable communities behind. Brazil is also already a giant in the field of renewable energies, but we can also develop our cooperation in this area, including on green hydrogen.

The EU is also ready to step up cooperation on the digital transition. We share the same understanding of the importance of a human-centric digital transformation and its enormous potential to foster development, create jobs and advance social inclusion. After installing the submarine Bella cable to connect our two continents, we intend to launch a digital alliance between the EU and Latin American and Caribbean countries in the coming months. 

I have no doubt that President Lula’s rule will help Brazil to return to a sustainable growth path. It offers an opportunity to expand our economic ties. Under the Global Gateway strategy, we stand ready to step-up EU investments in Brazil in the green, digital and fair transitions.

In addition, we should join efforts in areas like health and education, research and innovation, human rights and security, including the fight against illegal mining and the protection of indigenous peoples. In all these areas, we have a huge potential for cooperation - not only between states, but also between regional and local authorities, the private sector and our societies at large.

Finally, it is critical we make decisive progress with the EU-Mercosur Association Agreement. This agreement would seal a strategic alliance between two regions, among the world’s most closely aligned in terms of interests and values.

On both sides of the Atlantic, we intend to improve our economic resilience by reducing excessive dependencies. However, we both know that autonomy does not mean isolation. Rather, it requires more cooperation with reliable economic and political partners. Mercosur countries strive to develop their own productive capacity, adding value to natural resources through innovation and technology, while adhering to high social and environmental standards. We are ready to accompany Brazil and the other Mercosur countries on this road.

Bringing together two of the world’s largest trading blocs – with a combined population of more than 700 million – the EU-MERCOSUR agreement would generate real opportunities for businesses on both sides, supporting the creation of high-quality jobs in Europe and in Latin America. Recognizing an economic asymmetry in our situations, the agreement specifies that trade would be opened up progressively, thereby giving relevant sectors time to modernise and become competitive. A shared commitment to fight climate change and stronger environmental policies brings us closer to help overcome the remaining concerns.

2023 should also mark the revitalisation of the cooperation between the EU and Latin America and the Caribbean through an EU-CELAC summit. Our common agenda is clear: to counter geopolitical tensions, succeed in the global digital, green and fair transitions and build the multilateral order of the future, we need to deepen EU-Brazil cooperation and finalise the EU-Mercosur agreement. Let us roll up our sleeves and start working together.