American Marconi Wireless News - Brazil's Lula urges Macron to seal Mercosur trade deal

France has staunchly opposed ratifying the so-called Mercosur agreement, a trade deal between the European Union and four South American nations including Brazil, over fears a flow of lower-cost agricultural goods would outcompete Europe's farmers.

"Open your heart a little to this opportunity to finalise this agreement with our dear Mercosur," Lula said during a state visit to Paris.

"This agreement would be the strongest response our regions could offer in the face of the uncertainty caused by the return of unilateralism and tariff protectionism," he added, referring to sweeping tariffs imposed or threatened by US President Donald Trump.

Trump, who argues his tariffs will bring manufacturing jobs back to the United States, has hit the EU with multiple waves of levies.

For his part, Macron reiterated his concerns about the deal's impact on French farmers, citing differences in environmental regulations between the EU and Mercosur countries.

"I don't know how to explain to my farmers that, at a time when I am asking them to comply with more standards, I am opening up my market on a massive scale to people who do not comply at all," Macron said.

"Because what will happen? It won't be better for the climate, but we will completely destroy our agriculture," he added.

"That is why I said earlier we must improve this deal."

Germany, Spain, Portugal and others have welcomed the accord with Mercosur bloc members Argentina, Brazil, Paraguay and Uruguay, but France has said from the start it is not acceptable in its current form.

To be approved, the deal must receive the backing of at least 15 of the 27 EU states, representing a minimum of 65 percent of the population.

Y.Kobayashi--AMWN