Seoul: President Lee Jae Myung announced that he and Brazilian President Luiz Inacio Lula da Silva have agreed that the trade pact between South Korea and the South American trade bloc Mercosur should no longer be delayed. This announcement came during a joint press briefing at the Brazilian presidential palace in Brasilia after their summit. President Lee is on a state visit to Brazil as part of his tour of South America, which also includes visits to Chile and Argentina.
According to Yonhap News Agency, the formal negotiations for a trade pact between South Korea and Mercosur began in 2018 but have seen little progress in recent years. Since taking office last year, President Lee has been keen on resuming these talks to diversify South Korea's trade portfolio amid the changing global trade landscape. Mercosur, established in 1991, includes Argentina, Brazil, Paraguay, Uruguay, and Bolivia as full members, with Chile, Colombia, and Peru among its associate members.
Mercosur is one of the largest trading blocs globally and possesses significant mineral resources, notably lithium. President Lee emphasized that a trade agreement between South Korea and Mercosur would open up new opportunities for South Korean companies to access the South American market and allow Brazilian companies to expand into Asia through South Korea. Furthermore, he stated that such a pact would be vital in strengthening the strategic partnership between South Korea and Brazil, fostering cooperation beyond trade to include supply chains and the digital industry.
President Lee highlighted Brazil's role as a "core pillar" of global supply chains and food security. He and President Lula have declared this year as a starting point for advancing the strategic partnership between their countries, following the elevation of bilateral relations to a strategic partnership in February during Lula's visit to Seoul. The leaders adopted a four-year action plan to boost cooperation in politics, the economy, and other areas.
During their discussions in Brasilia, the leaders elaborated on their shared vision for bilateral cooperation. They agreed to enhance cooperation in the defense industry, aerospace, critical minerals, and the digital economy. Additionally, the two nations have decided to expand strategic cooperation in the resources and energy sectors to diversify supply chains.
President Lee and President Lula also agreed to establish a joint defense industry committee later this year and pursue an agreement on the exchange and protection of military and defense information to bolster cooperation in the defense sector. President Lee expressed gratitude to President Lula and the Brazilian government for their "firm support" for efforts to achieve a nuclear-free Korean Peninsula and establish permanent peace in the region.