The Minister of Foreign Affairs warned this Monday, 17th, that not ratifying the agreement between the European Union and Mercosur on December 20th would be “a complete failure”, stressing that free trade is a sign of growth.
“We have to celebrate a huge network of free trade agreements, and the first one has to be with Mercosur. If we go through December without reaching an agreement, it will be a complete failure”, stated Paulo Rangel during his speech at the EuroAméricas Forum, which takes place today in Carcavelos, Cascais.
Signed in December 2024, the trade agreement between the European Union (EU) and Mercosur (the economic bloc that has linked South American countries since 1991) aims to eliminate most import customs duties to create one of the largest free trade zones in the world.
The agreement has been the target of various criticisms and resistance, especially from the agricultural sectors in Europe – particularly from Fanca – due to competition and environmental concerns.
Despite this, the agreement is currently in the ratification phase, with the president of the European Commission, Ursula von der Leyen, announcing at the beginning of this month that the signature should take place on December 20th.
For the Portuguese minister, this should be just the first of several economic agreements between Europe and the Americas which, he argued, should follow the example of what was concluded with Canada.
“The bridges between Europe and the Americas must be economic. The retraction of the United States [adotada pela administração Trump e que levou à criação ou reforço de tarifas de importação com grande parte do mundo] introduced a factor of skepticism regarding future growth”, recalled Paulo Rangel.
But “we were educated with the idea that free trade is a sign of growth and there are signs of hope: the agreement with Canada shows great success” and should be “a model for the future”, he argued, stressing that it is necessary to create “a huge free trade network”.
For the Minister of Foreign Affairs, growth is essential for all countries, particularly those in Europe.
“If there is no prosperity, it is much easier to attack democracies,” he said, noting that in addition to trade, the focus must include technology.
Therefore, “for us, in the EU, and for the Americas in general, there is no alternative. If the Atlantic space wants to impose itself, if it wants to guarantee that its model of social well-being is viable and long-lasting, it must invest in technology and move to AI now [Inteligência Artificial”].
Despite recognizing that Europe is lagging behind in the development of AI compared to the USA and China, Paulo Rangel considers that this could become an advantage as long as there is investment in the most modern technologies.
As an example, the minister pointed to the situation in the automobile sector.
“Today everyone is obsessed with electric mobility. But betting everything on electric mobility is a mistake. China, when it saw that it could not compete with America and Europe” in the field of cars that use combustion, “bet on electric mobility”.
Now that this country is a leader in this area, we should not “run after losses”, he considered.
“If we do this, when the hydrogen comes [como combustível]in 15 or 20 years, we will be left behind. We must be able to anticipate the next revolution and gain distance and lead, he argued
The EuroAméricas Forum, an event promoted by the Portuguese Diaspora Council, takes place between today and Tuesday and brings together leaders of international organizations, ambassadors and diplomats, businesspeople, philanthropists and academics from both continents.
The meeting’s theme is “Longevity: Engine of Global Opportunities” and aims to explore what increasing life expectancy means for building resilient health systems, creating sustainable cities and promoting lasting global partnerships that enable democracies and economies that last over generations.