Brazil's VP Alckmin, a negotiator of the Mercosur-EU deal, sees it as relief in a turbulent world

BRASILIA, Brazil (AP) — The trade deal between South American bloc Mercosur and the European Union that capped a quarter-century of talks offers some solace at a time when unilateral moves have dominated the geopolitical landscape, Brazil's Vice President Geraldo Alckmin said.

He was one of the key negotiators of the agreement reached in late 2024 that provisionally comes into force May 1.

“In a moment that the world much needed it, at a time of protectionism, a tough world, this gives a message that it is possible to open markets,” Alckmin said Wednesday during an interview with media, including The Associated Press, at the presidential palace in Brasilia. “It is the biggest deal between trade blocs in the world. A market of $22 trillion and 720 million people.”

Fierce opposition by farmers and environmentalists delayed the deal in December. It then hit another wall after EU lawmakers sent the deal to the bloc’s judiciary. The EU executive responded by saying it would provisionally enact the deal, which sidesteps the European Parliament. After the trade deal is implemented, it will be halted if the European Court of Justice rules against it.

Alckmin said not finishing the deal with the EU would have meant staying behind while other competitors accomplished other agreements.

“It is a win-win. The societies of the Mercosur countries win, and so the 27 countries of the EU,” added Alckmin, who expects a boost in Brazilian exports to the EU of about 13% per year.

The trans-Atlantic trade deal was signed Jan. 17. The European Commission’s president Ursula von der Leyen repeatedly paid tribute to Brazilian President Luiz Inácio Lula da Silva’s administration for its efforts in making the deal happen despite opposition in Europe. Brazil is by far the largest economy of Mercosur, with a gross domestic product estimated at more than $2.3 trillion in 2025.

Alckmin confirmed other potential deals with the United Arab Emirates and Canada are being negotiated.

Change of mind and time

Two decades ago, Alckmin and Lula were on opposite camps in almost every issue, including the negotiations for a deal between the EU and the bloc that includes Brazil, Argentina, Paraguay and Uruguay. While the man who was then governor of the powerful Sao Paulo state advocated for a pact with European nations, Lula did not.

Fast forward to 2022, the two gathered forces to unseat then-President Jair Bolsonaro, who they deemed to be a risk to Brazil's democracy. Both gravitated toward the political center. Lula made Alckmin his trade and industry minister, one of the government's key negotiators in any front.

Lula's win in 2022 for a fourth nonconsecutive term did not assure the Mercosur-EU trade deal was going ahead, but the conversations gained a new momentum after U.S. President Donald Trump took office last year and imposed tariffs against several countries, including Brazil.

French President Emmanuel Macron, one of the critics of the deal, has demanded safeguards to monitor and stop large economic disruption in the EU, increased regulations in the Mercosur nations like pesticide restrictions, and more inspections of imports at EU ports.

Alckmin rejected the accusation that Mercosur countries have less concerns about environmental preservations, as some EU farmers have said.

“If there’s one country that is a role model of environmental preservation, that is Brazil … Brazil reduced deforestation in 50%,” Alckmin said.

“So no one is too scared in either side, if there’s an import boom any of the two (blocs) can ask for safeguards,” he added.

The full implementation of the deal might take up to 12 years, which Alckmin sees as key for Mercosur companies to improve productivity and quality of thousands of products. He said the fruit, beef and sugar industries of the South American bloc will be among the first to benefit but many more will over time.

“It is better to do it gradually than not do it at all,” Alckmin said. “This was a very well-built deal.”

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