President Lee Jae-myung and Brazilian President Luiz Inácio Lula da Silva agreed Wednesday to resume trade agreement negotiations between South Korea and the Southern Common Market (Mercosur).
The two leaders shared their recognition of the need for a Mercosur trade deal during their summit at Cheong Wa Dae, signaling that negotiations suspended since 2021 could gain momentum. They also agreed to expedite review of import procedures for Brazilian beef and pork, which had been obstacles in previous talks.
"We need to promptly resume negotiations for a trade agreement between Korea and Mercosur," President Lee said at a joint press conference following the summit.
President Lula responded that he "deeply shares the view that concluding a trade agreement is a pressing task."
President Lee emphasized that given the years-long deadlock, "we agreed to find a breakthrough based on trust between our leaders."
Mercosur, comprising Brazil, Argentina, Paraguay, and Uruguay, represents South America's largest economic bloc. A successful agreement would open a market of 270 million people. While Korea seeks to expand exports in automobiles, steel, and petrochemicals, member nations have demanded market access for beef and grains—issues that had stalled progress.
President Lula addressed the contentious issue directly. "I explained to President Lee that if sanitary and quarantine requirements for Brazilian beef exports are concluded promptly, it could benefit Korean consumers as well," he said.
The two nations agreed in their action plan to dispatch a government inspection team to conduct risk assessments for Brazilian beef imports, which are currently restricted. They also committed to expanding market access for Brazilian pork from regions beyond Santa Catarina state.
The focus on agriculture was evident in the memoranda of understanding signed during the visit. Of the nine MOUs concluded alongside one "Trade and Production Integration Agreement," three concerned agricultural cooperation: general agricultural cooperation, streamlined pesticide registration procedures, and agricultural technology collaboration.
The Trade and Production Integration Agreement also listed "agriculture and sanitary quarantine" as key cooperation areas, alongside industry and technology, critical minerals, and artificial intelligence.
Cheong Wa Dae said the agricultural MOUs would serve as a catalyst for strengthening next-generation farming technology cooperation, including smart farms, between Korea and Brazil, which possesses advanced agricultural technology. The pesticide registration period in Brazil is expected to be reduced from an average of eight years to three years.
Cooperation will also expand in future industries including space, defense, and aviation. President Lee noted that Korean component manufacturers are participating in Brazilian transport aircraft production and that the two countries would pursue "higher-level cooperation such as joint development of next-generation commercial aircraft."
He also referenced Korea's first commercial space launch vehicle attempt at Brazil's Alcântara Space Center last December, expressing confidence that "we will succeed in the launch in the near future."
President Lula highlighted Brazil's status as holder of the world's largest rare earth reserves. "We hope to attract investment from Korean companies in critical minerals," he said. "We will strengthen production integration in strategic sectors including critical minerals, semiconductors, green hydrogen, pharmaceuticals, and aerospace."
The two leaders also agreed to closely consult on global affairs and regional issues. They expressed shared recognition that "peace on the Korean Peninsula has a profound impact on peace not only in Northeast Asia but throughout the world."
As part of the summit, the two nations upgraded their relationship from "comprehensive cooperative partnership" to "strategic partnership" and adopted the "Korea-Brazil Four-Year Action Plan (2026-2029)," which will serve as a roadmap for future cooperation in political affairs, economy and trade, practical collaboration, and people-to-people exchanges.