This could mean that European agriculture and farming production may face additional competition from Brazilian farmers.
In addition, Lula da Silva has announced that he wants to amend the Mercosur trade agreement, a trade treaty between the EU and Latin American countries including Brazil. Although EU countries are positive about adjusting the agreement, there are also hesitations about proceeding to ratify the currently signed treaty.
The EU is concerned about the impact of Mercosur countries’ agricultural exports on European farming and has therefore indicated that certain conditions must be set for the ratification of the treaty. These conditions mainly focus on corn exports due to the expansion of agricultural land in place of cleared rainforest areas.
That environmental argument is used not only by environmental organizations such as Greenpeace but also by European agricultural associations that oppose increased meat imports from South America.
It was already known that Lula would follow a completely different agricultural path than his predecessor Bolsonaro, since Lula da Silva was also president of Brazil about ten years ago. Last week he announced that he has appointed former environmental activist Marina Silva as the new Minister of Environment.
She was also minister for several years in the previous term of President Lula and is known as a protector of the Amazon rainforest area. Her appointment is a sign that the new Brazilian government places high priority on rainforest protection.
The previous president Bolsonaro, who was voted out last month, mainly saw the rainforest as economic potential. He encouraged the clearing of rainforest areas for agriculture and the establishment of new grain and corn fields. As a result, Brazil became in recent years one of the world’s largest corn exporters.
Lula da Silva has also announced that he will focus on the development of Brazilian family farms. He states that these farms have the capacity to feed the entire country.
Finally, Lula da Silva has announced that he wants to increase Brazilian agricultural production without cutting down a single tree. This implies there may be an increase in agricultural product output in Brazil, which again poses additional competition for European agriculture.