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Merz, Lula hail EU-Mercosur deal as antidote to unilateralism
German Chancellor Friedrich Merz opened the Hanover trade fair with Brazil's President Lula da Silva as guest of honour, framing the EU-Mercosur deal as a counter to tariffs and unilateralism. Lula described cooperation over protectionism, while the pact faces a European legal challenge and is slated to provisional take effect on May 1.
Why It Matters
The deal could create a market of about 720 million people with a GDP of $23 trillion, boosting trade links between Europe and South America. It also signals a bloc against unilateral policy approaches and comes amid domestic European opposition from farmers and differing political stances.
Timeline
4 Events
Deal opposition and long history of negotiations
April 19, 2026
The pact has faced fierce opposition in Europe from farmers’ groups backed by France and others, even as Germany has long championed the deal. The agreement has been in the works for more than 25 years, with Merz arguing it would strengthen and make economies more resilient.
EU-Mercosur deal set to take provisional effect on May 1
April 19, 2026
The EU-Mercosur trade deal is set to take provisional effect on May 1, though the agreement still faces a legal challenge from European lawmakers. The pact envisions a market of almost 720 million people and a GDP of about $23 trillion and includes Brazil, Argentina, Uruguay and Paraguay.
Lula reinforces message of cooperation over unilateralism
April 19, 2026
Lula joined Merz in framing the EU-Mercosur deal as a response to tariffs and other trade protectionism, with Lula saying, “Faced with unilateralism, Mercosur and the European Union have chosen cooperation.” He also urged against policy actions he viewed as coercive, saying the world should not bow to such behaviour.
Merz opens Hanover trade fair with Lula as guest of honour
April 19, 2026
German Chancellor Friedrich Merz opened the Hanover industrial trade fair, which attracts more than 3,000 companies, and welcomed Brazil's President Luiz Inacio Lula da Silva as a guest of honour. Merz described Brazil as the largest Mercosur member and a valuable economic and strategic partner for the European Union, highlighting the value of cooperation with as few tariffs as possible.