“We must establish a vast network of free-trade agreements, with the first being the one with Mercosur. Failing to achieve the agreement by December would be an outright failure,” declared Paulo Rangel during his speech at the EuroAméricas Forum, held today in Carcavelos, Cascais.
Signed in December 2024, the trade agreement between the European Union (EU) and Mercosur (the economic bloc that has linked South American countries since 1991) aims to eliminate most import tariffs to create one of the largest free trade areas in the world.
The agreement has faced multiple criticisms and resistance, particularly from Europe’s agricultural sectors—most notably France—due to competition concerns and environmental issues.
Despite this, the agreement is currently in the ratification phase with the President of the European Commission, Ursula von der Leyen, indicating earlier this month that the signing is expected to occur on December 20.
According to the Portuguese minister, this should be just the first of several economic agreements between Europe and the Americas, which he argued should follow the example of the one celebrated with Canada.
“The connections between Europe and the Americas must be economic. The retraction by the United States [adopted by the Trump administration, leading to the creation or reinforcement of import tariffs with much of the world] introduced a factor of skepticism regarding future growth,” Paulo Rangel remarked.
However, “we were educated with the idea that free trade is a sign of growth, and there are signs of hope: the agreement with Canada shows great success” and should be “a model for the future,” he asserted, emphasizing the need to create “a vast network of free trade.”
For the Foreign Affairs Minister, growth is essential for all countries, particularly in Europe.
“Without prosperity, it is much easier to attack democracies,” he said, adding that in addition to trade, investment should also focus on technology.
Therefore, “for us in the EU, and for the Americas in general, there is no alternative. If the Atlantic space wants to assert itself, if it wants to ensure that its social welfare model is viable and long-lasting, it must invest now in technology and move already into AI [Artificial Intelligence].”
While acknowledging that Europe is behind in AI development compared to the US and China, Paulo Rangel believes this can become an advantage, provided there is investment in the most modern technologies.
To illustrate, the minister pointed to the automotive sector’s situation.
“Today, everyone is obsessed with electric mobility. But placing all bets on electric mobility is a mistake. When China realized it could not compete with America and Europe” in combustion-engine cars, “it invested in electric mobility.”
Now that the country is a leader in this area, we should not “rush to catch up with the damage,” he considered.
“If we do, when hydrogen [as fuel] comes in 15 or 20 years, we will be left behind. We must be able to anticipate the next revolution and gain distance and advantage,” he argued.
The EuroAméricas Forum, organized by the Portuguese Diaspora Council, runs from today until Tuesday, bringing together international organization leaders, ambassadors and diplomats, entrepreneurs, philanthropists, and academics from both continents.
The meeting’s theme is “Longevity: Engine of Global Opportunities,” aiming to explore what increased life expectancy means for building resilient health systems, creating sustainable cities, and promoting enduring global partnerships that enable long-lasting democracies and economies.
