Will the world’s largest free trade zone fail because of the EU?

Berlin, Brussels, Paris, Salvador Olaf Scholz’s (SPD) commitment at the beginning of January was clear. Supporters of President Jair Bolsonaro, who was voted out of office, stormed the presidential palace in the Brazilian capital, Brasilia. The Chancellor immediately made it clear that he was “close to President Lula da Silva’s side”. Lula inherited Bolsonaro at the helm of Brazil at the turn of the year.

The public solidarity between Scholz and Lula was not only a sign against the violence, but also for the desired cooperation between Germany and Brazil – and consequently between the EU and the Mercosur countries, which also include Argentina, Paraguay and Uruguay.

With Lula there is an opportunity to finally conclude the trade agreement between the EU and the Mercosur states, which has been in negotiations since 1999. The agreement would create the largest free trade area in the world with more than 770 million inhabitants.