President Luiz Inácio Lula da Silva (PT) stated this Monday (8) that the advance of neoliberal policies in Mercosur countries seen in recent years has worsened social inequality between the countries of the bloc, and also defended a strengthening of the relationship to become an active voice in international geopolitics.
The speeches were made during the plenary session of the 64th Summit of Heads of State of Mercosur and Associated States, held in Asunción, Paraguay, which holds the temporary presidency of the bloc. The meeting also confirmed Bolivia’s entry among full members.
In the same speech in which he criticized the advancement of neoliberal policies, Lula defended the role of the State as an inducer of development and pragmatism in relations both between the members of the bloc and with the rest of the world “without extremism”.
“Mercosur is resilient and has survived the difficult years of disintegration. Thinking alike has never been a criterion for constructive engagement in the bloc’s task. Diversity of opinions without extremism and intolerance is welcome, because it strengthens our democracies and leads us to better choices,” he said in a speech read without improvisation.
“Extremism” of “false democrats”
The issue of “extremism” was addressed by him when criticizing the leadership of “false democrats [que] they try to undermine institutions and put them at the service of reactionary interests.” For Lula, “as long as our region remains among the most unequal in the world, political stability will remain under threat.”
“Democracy and development go hand in hand. Good economists know that the free market is not a panacea for humanity,” he pointed out.
The president also used the speech to criticize the attempted coup d’état in Bolivia on June 26 and the acts of January 8, 2023.
“Democracy prevailed thanks to the firmness of the Bolivian government, the mobilization of its people and the rejection of the international community. Mercosur remained once again united in defense of the full validity of the rule of law, enshrined in the Ushuaia Protocol. The unanimous reaction to June 26 in Bolivia and January 8 in Brazil demonstrate that there are no shortcuts to democracy in our region. But we must remain vigilant,” he pointed out.
The president also congratulated the UK Labour Party and the French left for their victory in the last elections. “Both [as forças progressistas] are fundamental to the defense of democracy and social justice against the threats of extremism,” he added.
Mercosur with a voice in the world
Lula once again placed his bets on Mercosur as the path to insert South America into the international scene and to the development of Brazil, which he already defended when he occupied the temporary presidency last year and which failed to advance in the agreement with the European Union – for him, due to their “internal contradictions”.
Lula’s speech, delivered in a calm and easy-going tone, without improvisation, served as a reaction to criticism made by the foreign ministers of Argentina and Uruguay, Diana Mondino and Omar Paganini, respectively. On the first day of the summit, on Sunday (7), both criticized the bloc – “it needs an adrenaline rush,” said Mondino.
“Mercosur will be whatever we want it to be. It is not up to us to belittle it with simplistic proposals that weaken it institutionally,” said Lula.
For him, the bloc’s member countries need to move forward together in their relations with other countries and blocs around the world, highlighting that regional integration alone generates US$49 billion in trade flows and that, since last year, an agreement has been reached with Singapore, space has been opened with the United Arab Emirates and trade will be deepened with China.
He also pointed out that it is not possible to resort to isolationism in trade relations in the face of globalization, nor to “simplistic proposals” on some issues. He pointed out local bottlenecks that need to be overcome.
“We have an unfinished agenda, which involves two important sectors of our economies excluded from free trade. Progress towards the inclusion of the automotive sector is still insufficient. In the sugar sector, which includes the development of biofuels, we have not managed to move beyond theoretical discussions,” he stressed.
Lula highlighted the need to value mineral production, in which “we can form an alliance of producers of critical minerals so that the benefits of processing these resources remain in our countries.”
The president also once again defended the use of local currencies for negotiations between the bloc’s member countries, dispensing with the dollar – as he had already proposed when he held the temporary presidency – stating that “this type of operation will reduce costs and will benefit, above all, small and medium-sized companies on our continent”.
Conflict mediator
Finally, Lula mentioned Brazil’s support for finding a solution to the war between Russia and Ukraine, in reference to the proposal made with China, and once again attacked Israel for its reaction to Hamas.
“Brazil’s support for South Africa in its action at the International Court of Justice aims to put an end to the indiscriminate killing of women and children in Gaza,” he said.
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