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Brazil to promote FTA between Mercosur, SICA

July 29th, 2010

Brazilian President Luiz Inacio Lula da Silva said on Wednesday he will promote negotiations on a free trade agreement between the Central American Integration System (SICA) and Mercosur, where he will take the interim presidency.

“A comprehensive trading agreement between Mercosur and the SICA would be essential as Nicaraguan exports to Brazil need to be boosted in order to balance the exchange,” said Lula.

Mercosur, or the Common Market of the South, is a bloc composed of Brazil, Argentina, Uruguay and Paraguay.

In a speech delivered during the luncheon meeting with Nicaraguan President Daniel Ortega, Lula stressed that the agreement would facilitate the trade balance between two countries.

Brazil exported 33.3 million dollars worth of goods to the Central American countries in 2009 while Nicaragua’s exports to South America totaled only 354,000 dollars.

At the end of his speech, Lula welcomed Nicaragua’s early participation in the Latin American Integration Association.

Source: Xinhua

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