The meeting showed that there are political and economic differences between the countries of the group; The regional integration advocated by Lula is complex
The 62nd Mercosur Summit ended this Tuesday (July 4, 2023) as President Luiz Inácio Lula da Silva (PT) raised the tone of criticism of the European Union and Uruguay refused to sign the final joint declaration (full 94 KB ) to expressly sign disagreements between South American leaders about Venezuela’s return to the group or not.
The meeting took place over two days in Puerto Iguazú, Argentina. The city borders with Foz do Iguaçu in Paraná and Ciudad del Leste in Paraguay. The meeting of the areas is called the “triple border”.
Watch Giro Poder at the end of the 62nd Mercosur Summit (2 min 5 sec):
The hotel that received the Presidents and Ministers of the Union is the Gran Meliá. It is located in Iguazú National Park and near the Iguazú Falls. It is about 20 km from the border with Brazil. The breathtaking view served as a backdrop for official photos of heads of state like the one above.
This Tuesday, Brazil took over the interim presidency of the bloc. It will remain until the end of 2023. The command of the group changes and changes take place every 6 months. Argentine President Alberto Fernández passed the baton to Lula. The Brazilian defends expanding the bloc with more countries joining.
O Power360 He was in Puerto Iguazú, Argentina and in Foz do Iguaçu to follow Lula’s activities and the Mercosur meeting. Below is a summary of what was discussed:
- Mercosur X European Union — Lula again categorized the demands of the Europeans as “unacceptable”. He declared that Mercosur must react “quickly and forcefully” and that it is “inadmissible” to give up the purchasing power of the state. He declared that the country had no interest in deals condemning the region to the “eternal role of commodity exporters” Argentine President Alberto Fernández agreed. A counterproposal for the EU is still pending;
- Venezuela’s return to the bloc There is no consensus on the agenda. Brazil and Argentina want to avoid isolation; Paraguay and Uruguay criticize the exclusion of election opponents and call for a clearer position. Nicolás Maduro’s country is banned from Mercosur for seven years;
- Uruguay from the outside President Luis Alberto Lacalle Pou did not sign the joint declaration of the summit. He criticized Mercosur’s protectionism and told his colleagues in the Union that he would continue negotiations on the bilateral agreement between Uruguay and China. It is the fourth time that the country has not ratified the document.
- Cow Death The President of Brazil and the Minister of Economy of Argentina, Sergio Massa, met this Tuesday. According to Massa, it was BNDES funding for the construction of the NéstorKirchner gas pipeline. In June, Lula said he was “pleased” with the “positive funding outlook.” The decision to potentially fund the works in the neighboring country is at odds with the PT government, which makes the environment one of its flags (understand here);
- common currency Lula again defended the use of a common reference currency for international transactions between Mercosur countries. In practice, the measure aims to decouple exports and imports from the dollar’s exchange rate fluctuations. There would be a cost reduction, the PT says;
- origin system Mercosur has completed the revision of the mechanism that sets the rates of national or regional and imported inputs so that a product can be considered to be made from the block. For the executive secretary of the Ministry of Development, Industry, Trade and Services, Márcio Elias Rosa, the decision would facilitate trade within the bloc and expand sales to other continents.
How the 62nd Mercosur Summit was divided:
- 1 day (3 July 2023) A meeting of the Mercosur Common Market Council was held, attended by Ministers for Foreign Affairs and Economy.
- 2 day (July 4, 2023) A meeting was held between the presidents of the countries of the bloc: Brazil, Argentina, Paraguay and Uruguay. The other nations of South America were invited as partners.