President Luiz Inácio Lula da Silva told Mercosur leaders to avoid automatic alignments with global powers during a summit in Asunción, Paraguay [1].

This push for regional autonomy comes as South American nations face increasing pressure to choose sides amid shifting trade tensions and geopolitical rivalry between the U.S. and other major economies.

Speaking at the 68th Mercosur Summit in June 2026 [1], Lula said the bloc must strengthen its political and economic independence to protect regional sovereignty [2]. He said members must resist becoming dependent on the decisions of external superpowers [3].

"Nobody owns South America," Lula said [4].

The president's remarks coincided with trade friction involving the U.S. Reports indicate a proposed 25% tariff on Brazilian exports [5]. Lula said the region must avoid "automatic alignments with great powers" to prevent such vulnerabilities [1].

Beyond diplomacy, Lula proposed a technical integration of the bloc's financial systems. He suggested expanding Pix, Brazil's instant payment system, to other member countries [1]. This initiative would serve as a regional infrastructure base to facilitate trade, and reduce reliance on external financial intermediaries [1].

Throughout the summit, the Brazilian leader said that the Mercosur countries should prioritize collective stability over individual alliances with non-regional powers [2]. He said a unified front is the only way to ensure the continent is not treated as a subordinate territory by global actors [3].

“"Nobody owns South America"”

Lula's strategy reflects a broader effort to position Brazil as a leader of a non-aligned South American bloc. By proposing a shared financial infrastructure via Pix and resisting US-centric trade alignments, Brazil is attempting to create a 'third way' that mitigates the economic impact of US tariffs while reducing the region's systemic dependence on the US dollar and Western political dictates.