(ATTN: UPDATES with more comments in last 4 paras; ADDS photos)

By Park Boram

BRASILIA, July 27 (Yonhap) -- President Lee Jae Myung said he and Brazilian President Luiz Inacio Lula da Silva agreed Monday that a trade pact between South Korea and the South American trade bloc Mercosur should not be delayed any further.

Lee made the remarks during a joint press announcement with Lula at the Brazilian presidential palace in Brasilia following their summit. Lee is currently on a state visit to Brazil as part of his three-nation South America tour, which also includes stops in Chile and Argentina.

"In an era of growing uncertainty in the trade environment, a trade agreement between South Korea and Mercosur is an important task that cannot be delayed any further," Lee said.

Mercosur, also known as the Southern Common Market, is a trade bloc established in 1991 by Argentina, Brazil, Paraguay and Uruguay. Bolivia is also a full member, while associate members include Chile, Colombia and Peru, among others.

South Korea and Mercosur began formal negotiations for a trade pact in 2018, but the talks have stalled over the past several years with little progress.

Since taking office last year, Lee has sought to resume negotiations with Mercosur as part of efforts to diversify South Korea's trade portfolio amid changes in the global trade environment.

Mercosur is one of the world's largest trading blocs and is rich in critical mineral resources, particularly lithium.

"A South Korea-Mercosur trade agreement would expand opportunities for our companies to enter the South American common market while offering new opportunities for Brazilian companies to expand into the Asian market through South Korea," Lee said.

The South Korean president also said that the trade pact, if concluded, would serve as an important foundation for strengthening the strategic partnership between South Korea and Brazil, expanding bilateral cooperation beyond trade to include supply chains, the digital industry and other advanced sectors.

Lee also described Brazil as a "core pillar" of global supply chains and food security, adding that he and Lula have declared this year as the starting point for advancing the strategic partnership between their countries.

South Korea and Brazil elevated their bilateral relations to a strategic partnership in February during Lula's visit to Seoul and adopted a four-year action plan to boost cooperation in politics, the economy and other areas.

During their talks in Brasilia, the leaders further fleshed out their shared vision for bilateral cooperation, Lee said.

Under the agreements reached Monday, Seoul and Brasilia will strengthen cooperation in the defense industry, aerospace, critical minerals and the digital economy.

Additionally, the countries "decided to expand strategic cooperation in the resources and energy sectors to diversify supply chains," the South Korean president said.

Lee and Lula also agreed to launch a joint defense industry committee later this year while pursuing an agreement on the exchange and protection of military and defense information to expand cooperation in the defense sector.

The South Korean president thanked Lula and the Brazilian government for voicing "firm support" for his administration's efforts to achieve a nuclear-free Korean Peninsula and establish permanent peace on the peninsula.

Lula said South Korea is playing an important role in Brazil's ongoing efforts to expand relations with Asian countries, including in the area of economic cooperation.

Bilateral trade between the two countries reached US$11 billion last year, the Brazilian president said, adding that he is confident bilateral trade will far exceed the 2025 level next year following his summit with Lee.

Lula said the two countries have agreed to launch a working group to help remove obstacles to resuming negotiations for a trade agreement between South Korea and Mercosur.

"I hope that our bilateral relations will develop more rapidly," Lula told the joint press event.

pbr@yna.co.kr

(END)

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