The Planning Ministry will serve as the chair of an interministerial commission that will advance South American integration projects, according to Renata Amaral, Brazil’s secretary for international affairs and development. President Luiz Inacio Lula da Silva will issue a decree establishing the commission, thereby easing internal cooperation and effectively initiating these projects.
Last year, the government set aside $10 billion from multilateral and development banks to fund infrastructure, strengthen South American integration, increase trade, and shorten transportation time to Asia. Brazil’s development bank, BNDES, will allocate $3 billion solely to domestic initiatives.
Amaral stated that despite probable political polarisation in the United States and its consequences, Brazil sees active collaboration from neighbouring nations such as Argentina, Paraguay, and Uruguay, despite their right-wing governments.
Lula’s administration recently cleared a $100 million debt with the Mercosur Structural Convergence Fund (Focem), freeing up $70 million for integration projects and reducing regional inequalities. Amaral emphasised that this decision, which has been waiting since 2015, indicates a commitment to Mercosur. Eight government-approved projects will receive financing, with potential trade and infrastructure benefits.
Amaral acknowledged that discussions on the Mercosur-European Union deal are likely to stall until after the European Parliament elections in June.
