Brazil's New Lula Government Is an Opportunity for a New Trade Model

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Brazil's New Lula Government Is an Opportunity for a New Trade Model
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The region—battered by COVID, inequality and environmental crisis—is seeing a second wave of progressive governments elected, most significantly with the recent victory of LulaOficial in Brazil.

Change is afoot in Latin America. The region—battered by COVID, inequality and environmental crisis—is seeing a second wave of progressive governments elected, most significantly with the recent victory of President Luiz Inácio Lula da Silva in Brazil. This is a unique opportunity for us to build a new trade model that puts people and the planet first. Stopping the harmful EU-Mercosur trade deal is a good place to start.Lula outlined some of the government’s priorities.

Initiatives from Mexico, Argentina, Chile and Colombia indicate that the region as a whole is keen to discuss regional integration as well as the strategic economic and political foundations on which to base our relationship with the world. Timing is everything. The world’s vulnerabilities have been laid bare by the COVID-19 pandemic and further heightened by the impact of the war in Europe. A war which is now taking place in key countries for the supply of energy and raw materials for the agro-industry. This alone should inspire an interrogation of international economic relations and the dominance of transnational corporations in determining trade and investment flows and national production patterns.

This is a unique opportunity for us to build a new trade model that puts people and the planet first. Stopping the harmful EU-Mercosur trade deal is a good place to start. While some politicians are trying to use Lula’s election as a reason to accelerate the ratification of the deal, now is the time to prioritise social needs, such as access to medicines, healthy food and the environment. It is time to confront the obsolete, neo-colonial and neo-liberal trade model, driven by the supply and market demands of European companies.The EU-Mercosur deal is a powerful symbol of the failed old trade model.

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