Brazilian President Lula da Silva continued his worldwide tour with a visit to Spain where he stood his ground on Brazil's 'non-aligned' position in the Ukraine conflict.

"Brazil is back on the international stage," he exclaimed in Madrid, promising to rejoin international efforts to solve the climate crisis and to rebuild Brazil's reputation after turbulent times under Jair Bolsonaro.

Lula also promised a 'zero deforestation' policy, raising hopes that he's the man to save the Amazon.

"No-one is talking about peace"

The Brazilian leader was asked again about his stance on the Ukraine conflict in Madrid, after his remarks that the U.S and Europe should stop supplying arms which will prolong the war. 

The U.S. response to those comments was to tell Lula to stop "parroting Russian propaganda" and the Brazilian then toned down his message, later condemning what he termed Russia's violation of Ukraine's territorial integrity.

Lula again reiterated his non-aligned stance and called for a group of other non-aligned countries - including China - to get Russia and the Ukraine to the negotiating table.

"First of all they have to stop this war and start negotiating, they will both think they are right and that their arguments are better but right now people are dying so they need to stop hostilities now and come to an agreement," he said. "No-one is talking about peace."

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"I won't decide who owns Crimea"

Lula was pressed by Spanish journalists on whether he believes that Crimea and Donbass are Ukrainian territories.

"I'm not the one who decides who Crimea belongs to," Lula answered. 

"When they sit down to negotiate they will have to address that matter and all others, I'm not the one that has to debate that, it's Russia and Ukraine."

It was a marked difference from Spain and its Prime Minister Pedro Sanchez's stance supporting the NATO position that Russia is the aggressor in the conflict and has sent arms - including Leopard tanks - to Ukraine, while Ukrainian soldiers are also training on Spanish soil.

"My obsession to see the Brazilian economy grow"

"This visit marks the beginning of a new era," said an animated Lula, who has been on a worldwide tour of affirmation that Brazil wants to play a key role on the international stage.

Lula has already been to Russia, China, Argentina, and Portugal, with meetings with Rishi Sunak in Great Britain and Emmanuel Macron in France up next.

A key element of Lula's multiple visits are trade deals and investment.

"Many things destroyed by the far-right need to be rebuilt - my obsession is that our economy grows," he said in Madrid.

EU-Mercosur deal 'in sight'

Four years ago, the European Union signed an ambitious trade agreement with four leading South American countries - Brazil, Argentina, Paraguay and Uruguay - known as the 'Mercosur.'

That was halted over the EU's environmental concerns on Brazil's deforestation and Lula has now promised to make climate change a priority, promising "zero deforestation."

The stalled EU-Mercosur trade deal was top of the agenda for both Sanchez and Lula. The EU is Brazil's second biggest trading partner, and the deal would ease trade barriers even further. 

On Wednesday the two leaders stated confidently that an agreement is in sight and should be signed in the second half of 2023, coinciding with Spain taking over the rotating EU presidency.

EU exports to the Mercosur bloc were worth close to $50 billion USD back in 2020. 

With new agreements on lower and non-tariff trade and more joint ventures, that looks set to increase significantly, providing a boost for both South American and European agricultural and other products.

With tariffs reduced and trade barriers removed, trade could potentially flow more freely between the two blocs.

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