Brazil and China agree to speed up Mercosur trade talks

Brazilian President Luiz Inácio Lula da Silva and Chinese President Xi Jinping agreed to accelerate negotiations for a trade agreement between China and the Mercosur bloc during a phone call on July 26, 2026. The conversation, which lasted over an hour, signals a significant strategic shift for Brazil as it seeks to diversify its trade partnerships amid new U.S. tariff pressures.

The two leaders committed to speeding up talks for a Mercosur-China agreement that would include necessary flexibilities, according to a statement from the Brazilian presidency. This move represents a reversal for Brazil, which had previously led resistance within the South American bloc to such a deal. The call came just days after the United States confirmed a 25 percent tariff on part of Brazil's exports, with an additional 12.5 percent levy announced last week on Brazil and other trading partners.

Beyond the trade push, Lula and Xi reaffirmed plans to expand cooperation in strategic and high-technology sectors, including artificial intelligence, satellites, critical minerals processing, and fertilizer trade. They also announced a short-stay visa waiver agreement designed to boost tourism and...