Est. 2min 05-07-2007 (updated: 28-05-2012 ) lula__198.jpg Euractiv is part of the Trust Project >>> Languages: Français | DeutschPrint Email Facebook X LinkedIn WhatsApp Telegram The first-ever EU-Brazil Summit, held on 4 July 2007 in Lisbon, has raised hopes of deeper cooperation between the EU and the South-American Mercosur free-trade zone, with Brazil prone to quench the EU’s growing thirst for biofuels. Strategic Partnership The EU concluded a strategic partnership agreement with Brazil. Similar ties have previously been established with the United States and the remainder of the emerging economies also known as the BRIC (Brazil, Russia, India, China) countries. Brazil is Latin America’s biggest economy and the country is expected to boast a 4% growth rate in 2007. Trade and Agriculture Brazil is the EU’s main trading partner in Latin America, with a total trade volume around €39 billion in 2005. The EU imported mostly agricultural products for €23 billion euros and exported goods worth €16 billion. The special relationship with Brazilia could be a door-opener for closer economic ties with Mercosur, the South-American free trade zone of which Brazil is the economic champion. This is set to revive trade talks between the EU and Mercosur, which are currently blocked as a result of the global conflict on the Doha WTO round. In this round, developing nations led by Brazil and India want the EU and the US to reduce farm subsidies, while the US and the EU are pushing Brazil, India and others to open up their markets for industrial goods and services. Biofuels Brazil is by far the world’s most important producer of fuels made from plants (see LinksDossier Biofuels for transport), and Brazil has the greatest potential worldwide for affordable biofuels, experts say. The country’s traditional sugar cane cultures provide biomass for the production of ethanol, and soy beans are used to make fuel oils. As a symbolic first step on 4 July 2007, Portuguese oil company Galp Energia signed an agreement with Brazil’s Petrobras to have 600,000 tons of vegetable oils produced in Brazil. Global warming Brazil is home to the Amazon rainforest, which is by far the world’s most important producer of Oxygen and capturer of CO2. Big parts of the rainforest are threatened by deforestation – not least because of increased production of biofuels. Read more with Euractiv Commission tables disputed wine reform The Commission plans to abolish ineffective subsidies for surplus wine production in a bid to make EU producers more competitive. As a sweetener, Brussels proposes to put its current €1.3 billion budget to help wine producers change activity and help promote EU wine across the world. Subscribe now to our newsletter EU Elections Decoded Email Address * Politics Newsletters PositionsPortuguese Prime Minister José Socrates said: "This summit is a way to acknowledge the growing part that Brazil has played on the world stage and that makes the country an essential partner." On Doha, he added: "We realised our positions are close and that it's worthwhile keeping on. Let there be no doubt that this summit has relaunched the (trade) negotiations." Commission President José Manuel Barroso said: "It is still possible to save Doha. Brazil and the EU want to save Doha. A deal is still possible. We found our positions are not as far apart as they seemed." Brazilian President Lula said: "Brazil has shown it is dedicated to the success of Doha. We are willing to be flexible, as long as the deal, especially on agriculture, meets the concerns we share with Mercosur. We won't give up on Doha. We won't stop trying to reach agreement." Dick Oosting, Director of the EU Office of NGO Amnesty International, urged the Protuguese Presidency to have "a frank discussion about human rights" with its Brazilian partners: "As Brazil’s profile grows on the world stage, so too grows the duty of the Brazilian government to defend human rights internationally, regionally and most of all, at home", Oosting said. Green MEP Friedrich-Wilhelm Graefe zu Baringdorf criticised the EU's biofuel agenda: "The agreements planned between the EU and Brazil at the EU-Brazil summit would further destroy ecologically sensitive areas like the Amazonian rainforest and contribute to more food insecurity in Brazil and around the world. There is clear evidence that the rapid expansion of plant fuels produced from soy beans, sugar cane and other energy crops, supported by the Brazilian government, has made large scale farming practices even more unsustainable." BackgroundBrazilian President Luis Inacio 'Lula' da Silva followed an invitation to visit the Portuguese capital only three days after the start of Portugal's EU Presidency, marking close ties between the two lusophone countries. Lula met the current Council President, Portuguese Prime Minister José Sócrates, and Commission President José Manuel Durão Barroso. Lula also met French President Nikolas Sarkozy, and the prime ministers of Spain, Jose Luis Rodriguez Zapatero, of Italy, Romano Prodi and of Slovenia, Janez Jansa, as well as EU Trade Commissioner Peter Mandelson and Foreign Affairs Commissioner Benita Ferrero-Waldner. In parallel, the first-ever EU-Brazil Business Summit brought together business associations Businesseurope and Brazil's National Confederation of Industry (Confederação Nacional da Indústria - CNI). Timeline 5 July 2007: Lula makes an official visit to Brussels 5-6 July 2007: International biofuels conference in Brussels Further ReadingEuropean Union José Sócrates and Luis Inácio Lula da Silva:For a New solidary agenda(Joint op-ed published in Diário de Notícias (Portugal) and Globo do Rio de Janeiro (Brazil), 4 July 2007) Portuguese Presidency (Press release):José Sócrates accomplishes first EU-Brazil summit(3 July 2007) Political Groups Greens/EFA, MEP Monica Frassoni:EU-Brazil Summit: Environmental and social concerns sidelined in pursuit of short-term economic gain(4 July 2007) Greens/EFA, MEP Friedrich-Wilhelm Graefe zu Baringdorf:EU-Brazil Summit: EU must not support ecologically damaging agro-fuels projects in Brazil(4 July 2007) Business & Industry Businesseurope and CNI:Joint Declaration of Brazilian and European Business(PDF) NGOs and Think-Tanks Amnesty International:EU-Brazil Summit: neglect of poor causing extreme violence(3 July 2007); [EN] and [FR] Press articles Reuters:Brazil invited to become special EU partner(4 July 2007) Forbes:EU, Brazil Seek Closer Ties(3 July 2007) BBC:EU-Brazilian landmark summit held(4 July 2007) Monsters & Critics:EU, Brazil achieve privileged partnership, sign deal (Roundup)(4 July 2007) TV5:L'UE et le Brésil scellent un partenariat stratégique(4 July 2007) La Tribune:L'UE et le Brésil veulent se rapprocher(4 July 2007) Financial Times DeutschlandEU und Brasilien gehen strategische Partnerschaft ein(5 July 2007) Deutsche Welle:Brasilien wird Lieblingspartner der EU in Lateinamerika(4 July 2007)
