The president of the European Commission, José Manuel Barroso, has reaffirmed his support for a commercial agreement between the European Union (EU) and Brazil, which would depend on a prior agreement with Mercosur.

While admitting some reluctance on both sides, he said it is “alarming that the EU has free trade agreements in place virtually all around the world but not in Brazil, the core of the Mercosur.”

Moreover, he went on to explain, the European Union, like Brazil, has advocated the multilateral negotiations of the WTO's Doha Development Round. According to him, the reason for the poor progress made with the WTO is that some countries, including the United States and India, “were not ready”, leading the EU to pursue other negotiations on a bilateral basis. So far, agreements have been signed with South Korea, as well as African, Caribbean, and Andean countries. Negotiations for a major agreement with the United States are also underway. With Mercosur, however, the talks have stalled.

The president of the European Commission said the US agreement will not be detrimental to Brazil's economy. What could actually have a negative impact, he argued, is further delay reaching an agreement between the EU and Mercosur. “If the EU closes a deal with the US covering beef, for example, which is sensitive for Brazil's economy, this will [only partially] restrict our imports. But if we open for Canada, the US and other countries, maybe there won't be many areas of interest left when we finally reach a deal with Brazil.”

Barroso said that the relationship with Brazil would help increase trade with the South Atlantic. He pointed out that Brazil shares some values with the EU, unlike China, for example. While Beijing is an important ally, including in terms of backing the euro, there is little political alignment with the values of Brussels, he maintained.