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Brazil turns to China trade deal after Trump’s tariffs, as years of resistance end
Xi and Lula agree to fast track Mercosur trade talks, endorsing a deal Brasilia fought to bury when Uruguay first proposed it
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Igor Patrickin Rio de JaneiroPublished: 2:46am, 28 Jul 2026Updated: 5:13am, 28 Jul 2026Chinese President Xi Jinping and Brazilian President Luiz Inacio Lula da Silva agreed on Sunday night to accelerate negotiations for a trade agreement between China and Mercosur, a striking reversal for Brasilia, which for years led resistance to such a deal in the South American bloc.
The two leaders spoke by telephone for more than an hour, according to a statement from the Brazilian presidency, and “coincided on the importance of speeding up the talks for a Mercosur-China agreement that contemplates the necessary flexibilities”.
The readout said the presidents discussed aligning the two countries’ national development projects and reaffirmed plans to expand cooperation in strategic and high-technology sectors, including artificial intelligence, satellites, critical-minerals processing, and fertiliser trade.
A short-stay visa waiver agreement, designed to boost tourism and business travel, was also announced.The call came days after a 25 per cent tariff imposed by US President Donald Trump on part of Brazil’s exports took effect.Last week Washington announced a further 12.5 per cent levy on 60 trading partners, Brazil among them, on the grounds that they had failed to adequately combat forced labour.
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