Mercosur-European Union Agreement: The Rescue of Multilateral Diplomacy
"More than a trade agreement, this initiative is an important signal toward a more open and inclusive world," says Aloizio Mercadante
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Aloizio Mercadante, president Brazilian Development Bank (BNDES)The world is undergoing a historic period of profound economic, commercial, technological, climatic, and geopolitical transformations. It faces armed conflicts in Europe (between Russia and Ukraine) and the Middle East (Lebanon, Gaza, Syria), escalating tensions in Asia (Taiwan and the South China Sea), and decoupling among major powers, with unprecedented economic rivalry since the post-war era, putting trade rules and multilateral mechanisms into question.
Developed countries are increasingly adopting aggressive protectionist policies, based on massive subsidies across various industrial sectors and heightened tariff and non-tariff barriers. This approach has fueled a global protectionist spiral and reduced incentives for other countries to adhere to established international trade rules.
In the technological arena, the world is experiencing a revolution driven by Artificial Intelligence, which promises to transform production systems, labor, and global competitiveness. Regarding the climate crisis, we are witnessing increasingly extreme and frequent events that demand a new generational stance to address these challenges.
The Mercosur-European Union agreement, alongside the G-20 meeting in Riopromoção casa de apostasJaneiro—which resulted in an unprecedented global effort to combat hunger—and the COP 30 in Belém, at the heart of the Amazon, the world's largest biodiversity reserve, represents the construction of a world that does not close in on itself, erect walls, or create divisions among nations. The agreement demonstrates that bipolarity between the United States and China is not inevitable, that the growing protectionist spiral is reversible, and that common causes like combating hunger and environmental catastrophe are shared struggles.
Under the leadership of President Lula, Brazil and BNDES are committed to a more pluralistic, open, supportive, green, and inclusive world. And now, more than ever, the world needs Brazil.
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