In a press release published on July 27, the Agencia Brasil announced that Brazilian President Luiz Inácio Lula da Silva and the President of China, Xi Jinping discussed “the integration of national development projects, the leaders talked about the creation of a free trade zone between the two countries.”

China and Brazil are exploring increased cooperation in artificial intelligence, satellites, critical mineral processing and fertilizer trade.

In a separate press release published on the same day, the Agencia Brasil announced new efforts to advance negotiations for a potential Free Trade Agreement (FTA) between South Korea and the Southern Common Market (MERCOSUR).

During a bilateral meeting in Brasília on July 27, Brazilian President Luiz Inácio Lula da Silva and South Korean President Lee Jae-myung agreed to establish a working group tasked with identifying and addressing sensitive issues that have hindered progress in previous negotiations.

Agencia Brasil’s press release on Brazil and China can be found here:
https://agenciabrasil.ebc.com.br/es/internacional/noticia/2026-07/lula-y-xi-jinping-discuten-acuerdo-mercosur-china

Agencia Brasil’s press release on a potential MERCOSUR-South Korea agreement can be found here:
https://agenciabrasil.ebc.com.br/es/internacional/noticia/2026-07/brasil-intensifica-dialogo-mercosur-corea-del-sur