South Korea, Brazil move to revive Mercosur trade talks

July 28 (Asia Today) — South Korea and Brazil have agreed to establish a working group aimed at reviving stalled trade negotiations between Seoul and the Southern Common Market, or Mercosur, following a summit between their leaders.

South Korean President Lee Jae Myung and Brazilian President Luiz Inácio Lula da Silva agreed to pursue an announcement on the resumption of negotiations at a Mercosur summit scheduled for December.

The agreement gives new political momentum to talks that have been suspended for five years because of differences over agricultural market access, sanitary inspections and other sensitive trade issues.

Kim Yong-beom, South Korea’s presidential chief of staff for policy, and Brazilian Vice President Geraldo Alckmin will lead the bilateral working group.

The group will examine trade opportunities and sensitive sectors and seek to resolve obstacles before formal negotiations resume.

Lee and Lula reached the agreement during a summit Monday at the Alvorada Palace in Brasília, where Lee was making a state visit.

“In an era of increasing uncertainty in the global trade environment, we deeply agreed that a trade agreement between South Korea and Mercosur is an important task that can no longer be delayed,” Lee said during a joint news conference.

Lula said the working group would identify and coordinate sensitive issues to remove obstacles to restarting the negotiations.

South Korean presidential spokeswoman Kang Yu-jung said the two countries aim to announce the resumption of talks during the 69th Mercosur summit in December.

Market of about 300 million people

Mercosur is South America’s largest regional market. Its founding members are Brazil, Argentina, Paraguay and Uruguay.

The bloc has a combined population of about 300 million and gross domestic product of approximately $2.9 trillion, according to figures cited by the South Korean presidential office.

South Korea and Mercosur launched trade negotiations in 2018 but suspended discussions after a seventh round in 2021.

A trade agreement could reduce tariffs on major South Korean exports, including automobiles, machinery, steel and electronics.

Lower tariffs could improve the price competitiveness of South Korean companies in Brazil and other South American markets as Seoul seeks to diversify its trade relationships amid growing global protectionism.

The agreement could also expand cooperation involving critical minerals, energy, infrastructure and advanced manufacturing.

South Korean companies, however, could face stronger competition from Mercosur producers in the domestic agricultural market.

Brazil, Argentina, Paraguay and Uruguay are major exporters of products including beef, chicken, corn and soybeans.

South Korean farmers and livestock producers have expressed concern that lower tariffs could lead to increased imports of less expensive agricultural products.

The scope and pace of agricultural market opening are therefore expected to become central issues in future negotiations.

South Korea plans to send an inspection team to Brazil next year to examine slaughterhouses and assess sanitary and quarantine conditions in preparation for possible market-opening measures.

Leaders seek to break negotiating deadlock

The agreement is significant because Lee and Lula designated senior officials to take responsibility for negotiations that trade officials had been unable to advance.

Supporters say direct involvement by the two presidents could accelerate discussions and increase the likelihood of a final agreement.

Any deal would still require negotiations with the broader Mercosur bloc rather than Brazil alone.

Lee attended a state luncheon, a cultural performance and a reception after the summit before traveling to São Paulo.

— Reported by Asia Today; translated by UPI

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Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260729010010421