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Lula to push for Mercosur-Indonesia trade deal

Lula made the remarks during talks with President Prabowo Subianto.

Agencies
Rio de Janeiro, Brazil
Thu, July 10, 2025 Published on Jul. 10, 2025 Published on 2025-07-10T11:50:35+07:00

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President Prabowo Subianto (left) and Brazil's President Luiz Inacio Lula da Silva shake hands after a press statement at Planalto Palace in Brasilia, on July 9, 2025 President Prabowo Subianto (left) and Brazil's President Luiz Inacio Lula da Silva shake hands after a press statement at Planalto Palace in Brasilia, on July 9, 2025 (AFP/Evaristo Sa)

B

razilian President Luiz Inacio Lula da Silva said Wednesday he will use Brazil's rotating presidency of the Southern Common Market, or Mercosur, to resume negotiations for a free trade agreement with Indonesia, Xinhua has reported.

Lula made the remarks during talks with President Prabowo Subianto.

"Mercosur's Brazilian presidency will, with its partners, resume negotiations to conclude an agreement with Indonesia," Lula said.

Lula thanked Prabowo for supporting closer ties between Brazil and ASEAN, and confirmed he will attend the bloc's summit in Malaysia in October and pay a state visit to Indonesia.

"ASEAN is a bloc of 680 million people and has experienced accelerated economic growth and rapid technological evolution," he said.

Lula also reiterated opposition to the war in Gaza, though he did not explicitly name Israel.

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"Our countries have also tirelessly denounced the atrocities committed against the Palestinian population in Gaza," he said.

Mercosur bloc has sought to expand its markets in the face of US President Donald Trump's global trade war, with Brazil calling for closer ties with dynamic Asian economies.

"It's time for Mercosur to look toward Asia," President Luiz Inacio Lula da Silva said during a visit to Argentina, extolling the potential benefits of deeper relations with Japan, China, South Korea, India, Vietnam and Indonesia.

In a reflection of regional tensions, however, Argentina's President Javier Milei threatened to go it alone if necessary to secure a free trade deal with the United States.

"We will embark on the path of freedom, and we will do so together or alone because Argentina cannot wait," Milei warned, calling for "more freedom" to negotiate.

The libertarian leader, a huge fan of Trump, has made no secret of his disdain for Lula, referring to him in the past as "corrupt" and a "Communist."

Lula, on his first trip to Argentina since Milei took office in December 2023, had no bilateral talks with Milei. 

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