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Mercosur-China trade negotiations

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2026-07-27 06:57 UTC → 2026-07-27 07:07 UTC · added removed

In early July 2026, President Luiz Inácio Lula da Silva used the Mercosur summit in Asunción to reaffirm the bloc’s ambition for a trade agreement with China. He argued that closer ties would diversify markets and lessen dependence on the United States, while Brazil pledged an annual China, pledging a US$100 million contribution to the Fund for Structural Convergence of Mercosur (FOCEM) to finance infrastructure projects in Paraguay and Uruguay. Trade experts cautioned Experts warned that high production costs, needed structural reforms, reforms and competition from Chinese industry made a near‑term deal unlikely. Later in July, after an that month Lula’s hour‑long conversation with Chinese President Xi Jinping, Lula pressed for accelerated progress on the Mercosur‑China agreement. The dialogue Jinping highlighted accelerated negotiations and cooperation in high‑technology sectors such as artificial intelligence, artificial‑intelligence, satellite technology, critical minerals and fertilizers, and mentioned cultural and visa‑waiver initiatives. Lula also linked while linking the talks to broader geopolitical concerns, noting concerns such as the wars in Ukraine and Gaza and Brazil’s position amid heightened US‑China rivalry, a situation described by historian Niall Ferguson as Brazil being “condemned to stay in the middle” US‑China rivalry. On 27 July, Xi told Lula that China is ready to deepen bilateral and multilateral strategic coordination with Brazil and voiced full support for Brazil’s rejection of external interference. The phone dialogue, occurring amid a renewed Cold War. Together, the snapshots trace diplomatic row sparked by Argentine President Javier Milei’s criticism of Lula and ahead of Brazil’s continued October presidential election, reaffirmed the push to secure a Mercosur‑China trade pact while navigating the strategic pressures of speed up the US‑China competition. MERCOSUR‑China free‑trade agreement and expand cooperation in AI, energy, critical minerals and other high‑technology sectors, while emphasizing Brazil’s sovereignty within BRICS and broader multilateral frameworks.

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  1. 2026-07-27 07:07 UTC Mercosur-China trade negotiations
  2. 2026-07-27 06:57 UTC Mercosur-China trade negotiations

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