South Korea and Brazil agree to accelerate negotiations on the Korea–Mercosur trade pact, while expanding cooperation in critical minerals, defence, digital industries and resilient supply chains.
President Lee Myung Bak of South Korea and President Luiz Inácio Lula Da Silva of Brazil have made it clear that there is no more time to waste on talks regarding the signing of a trade deal between South Korea and Mercosur. The deal was reached during a bilateral meeting held in Brasília while President Lee was on a state visit to Brazil.
It was underlined by the two heads that the rising uncertainties in the world’s trading climate make the conclusion of a trade deal between Korea and Mercosur ever more crucial. Official talks between South Korea and Mercosur were launched back in 2018 but were left hanging since 2021. In order to restart the process, the two countries decided to create a joint working group that would prepare for official negotiations set to take place in December.
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Mercosur, consisting of Brazil, Argentina, Paraguay, Uruguay and Bolivia, is among the world’s biggest trading blocs and an important source of agricultural produce and essential minerals. Both mentioned that a trade agreement would provide fresh chances for Korean firms to get into the South American market, while also giving Brazilian firms a chance to establish themselves in Asia via South Korea.
Apart from trading, there was another aspect that dominated the summit. Both South Korea and Brazil decided to strengthen cooperation in key industries including critical minerals, defense, aerospace, digital technologies, energy and supply chains. In addition, both South Korea and Brazil will create a Joint Defense Industry Committee in the upcoming months of the year and will sign an agreement to exchange and protect military and defense information.
Critical minerals became an important pillar in the partnership as well. The huge lithium reserves of Brazil along with its other strategic minerals are supposed to help in complementing the manufacturing capabilities of South Korea. Both countries want to develop stronger and better supply chains through cooperation in batteries and manufacturing technology.
The presidents also reconfirmed their commitment to the strategic partnership created earlier this year through President Lula’s visit to Seoul. They agreed to undertake the bilateral action plan that includes political dialogue, economic cooperation, industry development, and innovation, among others.
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President Lee appreciated Brazil for their assistance in achieving peace and non-proliferation in Korea, whereas President Lula emphasized the significance of South Korea as an important partner of Brazil in Asia. The bilateral trade between the two countries stood at around $11 billion last year, and both Presidents were optimistic about the expansion of the economic relations in the coming years.
It is an important step forward toward the revival of the long-stalled negotiations on trade relations between Korea and Mercosur, expanding bilateral relations in key areas. Through increased liberalization of trade and industry relations and robust supply chain networks, South Korea and Brazil seek to enhance economic integration between Asia and South America.