Brazilian President Luiz Inacio Lula da Silva plans to expand and strengthen the Mercosur trading bloc despite disagreements among some members, including Venezuela, and issues with free trade agreements with other markets.

On Tuesday, Lula da Silva took the role of president of the South American customs union. At the time, he committed to reducing dissent in the group founded by Argentina, Brazil, Paraguay, and Uruguay.

Mercosur Trading Bloc

Lula da Silva's support for Mercosur to resume talks with Venezuela, a country suspended from the bloc in 2017 over the breaching of its democratic clauses, immediately faced criticism.

The presidents of Paraguay and Uruguay, Mario Abdo Benitez and Luis Lacalle Pou, respectively, criticized the Venezuelan government. This was due to the latter's decision to bar opposition leader Maria Corina Machado from running in upcoming presidential elections, which placed Lula da Silva on a defensive stance, as per Bloomberg.

During a Mercosur summit held in the Argentine city of Puerto Iguazu, Benitez said he was following Venezuela's events with "great concern." He added that erasing the opposition with the disqualification of Machado would collide with human rights.

Echoing that statement, Lacalle Pou said that it was clear that Venezuela would not have a healthy democracy if a candidate such as Machado, who has enormous potential, is disqualified for political reasons when there is an election possibility.

As a longtime ally of Venezuelan President Nicolas Maduro, Lula da Silva said he still needed a full image of Machado's situation in Venezuela. However, he called on his colleagues to remain open to dialogue, saying that when there are problems, they are faced head-on and not avoided.

Lula da Silva has also criticized some of the requests of the European Union for the deal, which includes an addendum attaching sustainability and climate change commitments while introducing penalties for countries that fail to comply with such climate goals, according to Reuters.

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Rejecting European Requests

During a live broadcast on social media, the Brazilian president said they did not want impositions on the Mercosur trading bloc. He added that plenty of strategic partners exist, which means one cannot threaten another. He urged officials to sit down together and work out their differences regarding the matter.

The deal was struck in 2019 by the European Commission and the South American bloc after lengthy negotiations. However, it was then placed on hold primarily due to European concerns regarding Amazon deforestation.

On Tuesday, leaders of the Mercosur will gather for a summit in Argentina as Brazil takes the temporary presidency of the group for the next six months. Lula da Silva said that he would work for the deal to be completed within the period that he is the group leader.

European Commission President Ursula von der Leyen and Lula da Silva last month said they were both hoping to take the free-trade agreement over the hump by the end of the year. It was a timeline that seemed more elusive as time passed, said The Brazilian Report.

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