Brazil and South Korea advance Mercosur trade talks

Brazil and South Korea agreed to accelerate discussions on a potential trade agreement between the Asian country and Mercosur, the South American trade bloc, during a ceremony in Brasilia on Monday.

Brazil has been working to expand trade partnerships, either independently or through Mercosur, which also includes Argentina, Paraguay and Uruguay, as it seeks to diversify its exports amid tariff pressures from the United States, one of its major trading partners.

Brazilian President Luiz Inacio Lula da Silva said the two countries agreed to establish a working group to speed up negotiations, while South Korean President Lee Jae Myung described a possible trade deal with Mercosur as an urgent priority.

Mercosur has recently strengthened its trade network by reaching agreements with partners such as the European Union and the European Free Trade Association, which includes Switzerland, Iceland, Liechtenstein and Norway.

Earlier on Monday, Lula said in a phone conversation with Chinese President Xi Jinping that both leaders supported advancing discussions on a possible trade agreement between China and Mercosur.

During the ceremony, Lula announced that Brazil will welcome a South Korean mission next month to conduct a sanitary evaluation of Brazilian meat processing facilities. Lee said the two countries also agreed to increase cooperation in the critical minerals sector.

The meeting came five months after Lula and Lee met during a summit in Seoul. -Reporting by Lisandra Paraguassu in Brasilia and Gabriel Araujo in Sao Paulo; additional reporting by Andre Romani and Isabel Teles; Editing by Chris Reese and Paul Simao/Reuters