Seoul: President Lee Jae Myung announced that he and Brazilian President Luiz Inacio Lula da Silva have agreed that the trade pact between South Korea and the South American trade bloc Mercosur should no longer face delays. The announcement was made during a joint press event at the Brazilian presidential palace following their summit, as Lee is currently on a state visit to Brazil as part of his tour of South America, including stops in Chile and Argentina.
According to Yonhap News Agency, Lee emphasized the importance of finalizing the trade agreement amid the uncertain global trade environment. Mercosur, established in 1991, consists of Argentina, Brazil, Paraguay, and Uruguay as full members, with Bolivia also recently joining. Chile, Colombia, and Peru are among the associate members. Initiated in 2018, negotiations between South Korea and Mercosur have seen little progress over the years.
Lee, who has prioritized resuming these talks since assuming office last year, views the trade deal as a crucial step in diversifying South Korea's trade portfolio. Mercosur, recognized as one of the largest trading blocs, is particularly rich in essential mineral resources such as lithium.
The South Korean president stated that a trade agreement would not only open doors for South Korean companies in the South American market but also provide Brazilian companies with opportunities to expand into Asia. He also highlighted the potential of the trade pact to solidify a strategic partnership between South Korea and Brazil, encompassing areas like supply chains and digital industries.
Both leaders acknowledged Brazil's significant role in global supply chains and food security. They declared the current year as the beginning of a strategic partnership between their nations, having elevated their bilateral relations to this status in February during Lula's visit to Seoul.
The agreements reached in Brasilia will see cooperation extend to the defense industry, aerospace, critical minerals, and the digital economy. Plans are underway to launch a joint defense industry committee and pursue an agreement on military and defense information exchange.
Expressing gratitude, President Lee acknowledged Brazil's support for his administration's goals of achieving a nuclear-free Korean Peninsula and establishing lasting peace. Lula recognized South Korea's vital role in Brazil's efforts to strengthen ties with Asian nations, particularly in economic collaboration.
Bilateral trade between South Korea and Brazil amounted to $11 billion last year, with President Lula optimistic that this figure will be surpassed next year. Both presidents have also agreed to form a working group aimed at overcoming obstacles in resuming trade negotiations with Mercosur. Lula expressed hope for a swift development of bilateral relations following the summit.