(Reuters) – Brazilian Finance Minister Fernando Haddad said on Monday the European Union should view its trade deal with Mercosur for its political significance, not just its economic impact.
Speaking at a conference at Sciences Po university in Paris, Haddad said the agreement offers little economic advantage for Mercosur but holds political value for both parties, providing an alternative to a bipolar world.
“In my opinion, Europe should also take a political look at this agreement, not just discuss every single ‘win or lose’ clause in the text,” he said.
In December, the EU and Mercosur announced the conclusion of a free trade agreement which could result in some 4 billion euros ($4.33 billion) annual tariff reductions.
The agreement, which is pending approval by EU member states and faces resistance by nations such as France and Italy, could be an alternative for the two blocs amid uncertainty of U.S. tariffs.
Haddad argued that the best way to deal with the multilateralism crisis is by pushing multilateralism further.
“The ministry of finance is committed to responding to calls for a successful COP30, which will restore the centrality of multilateralism,” he said in reference to the climate summit which Brazil will host in November.
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(Reporting by Isabel Teles; Editing by Chris Reese and Marguerita Choy)
