Brazil’s Lula says he is ready to sign the EU-Mercosur trade deal By Reuters

UNITED NATIONS (Reuters) – Brazilian President Luiz Inacio Lula da Silva said on Wednesday he was ready to sign a trade deal between the European Union and South America’s Mercosur bloc, but that it was now up to the EU to conclude the negotiations.

Speaking on the sidelines of the UN General Assembly, Lula said his country was surprising investors and credit rating agencies with stronger-than-expected growth and providing new stability now that tax reform has advanced in Congress.

“If the EU is ready, we can sign the trade deal during the G20 meeting in Brazil,” he told reporters, referring to the Group of 20 rich nations summit in Rio de Janeiro in November.

“I have never been so optimistic about the EU-Mercosur agreement,” the Brazilian leader added.

A European diplomatic source said progress had been made in resolving the differences at a face-to-face meeting of negotiators in Brasilia on September 5-6.

The diplomat said the plan is to close the negotiations as soon as opportunity allows, but added that “there is still a gap”.

Brazilian diplomats said progress had been made in overcoming differences over environmental safeguards and government procurement that had stalled negotiations.

Mercosur is composed of Brazil, Argentina, Uruguay, Paraguay and more recently Bolivia. The bloc is a sought-after destination for EU produce exporters, although European farmers, particularly in France, fear the competition it will bring.