Brazil has officially enacted a long-awaited free trade agreement with the Palestinian Authority, a move aimed at showing solidarity with the Palestinian people amid the ongoing Israeli genocide in Gaza.

“The agreement is a concrete contribution to an economically viable Palestinian state, which can live peacefully and harmoniously with its neighbors,” Brazil’s Foreign Ministry said in a statement.

President Luiz Inacio Lula da Silva announced the ratification during his speech at the 64th Mercosur summit in Paraguay on Monday, expressing regret that the agreement took place while Palestinians are going through "a completely irrational war."

"We are proud to be the first country in the bloc to ratify the free trade agreement with Palestine. But I cannot help regret that this occurs in a context in which the Palestinian people are suffering as a result of a completely irrational war," the Brazilian President stressed.

It is worth noting that Brazil, which recognized a Palestinian state in 2010 and hosts a Palestinian embassy in its capital, ratified the agreement on Friday, following its signing by the Mercosur trade bloc in 2011.

It remains unclear if other Mercosur members, including Argentina under President Javier Milei's right-wing government, will follow suit.

Simultaneously, the Palestinian ambassador in Brasilia, Ibrahim Alzeben, described Brazil’s decision as “courageous, supportive, and timely.”

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It is “the effective way to support peace in Palestine,” he stressed in a message to Reuters, expressing hopes that Palestinian trade with Mercosur, currently at only $32 million annually, would increase.

Brazil: A staunch supporter of Palestine 

Back in May, Brazilian President Lula Da Silva recalled his ambassador to "Israel" amid the latter's brutal genocide in Gaza and an ongoing diplomatic disagreement between Brazil and the occupation. 

According to Brazil's official gazette, Ambassador Frederico Meyer was sent to Geneva as Lula's special representative at the United Nations and other international forums. Currently, the Brazilian embassy in Tel Aviv will be run by the Latin American country's charge d'affaires, with no ambassador until further notice.

In February, Brazil recalled its ambassador to "Israel" and summoned the Israeli ambassador to the country, the Brazilian Foreign Ministry announced, as reported by Reuters. This came shortly after the Israeli Foreign Minister announced that Lula Da Silva was "persona non grata" after he likened Israeli atrocities in Gaza to Hitler's actions in Nazi Germany.

At the time, President Lula Da Silva was declared a "persona non grata" by the Israeli occupation, with its foreign minister saying he would not be welcome in "Israel" until Brazil officially retracted its president's statement. 

However, Brazil announced that it had no plans to do so, with the directive from Lula being clear: there will be no retraction, and any responses will be conveyed through diplomatic channels.

In March, Brazil delayed the signing of a contract with Israeli company Elbit Systems for 36 armored vehicles equipped with 155 mm howitzers, citing the need for political discussions amid pressure from human rights organizations and political figures to halt arms trade with "Israel" due to its ongoing atrocities in Gaza.

The deal, valued at up to $145 million, was postponed to address potential resistance from President Lula da Silva's Workers' Party (PT) and allies. 

On their part, prominent figures in Brazil, including singer Chico Buarque and former ministers José Dirceu and Paulo Sérgio Pinheiro, along with supporters of the Workers' Party (PT), supported this initiative and called on Lula to suspend all arms deals with "Israel".