After more than two decades of negotiations, the Free Trade Agreement between Mercosur and the European Union has finally taken a decisive step. On September 3, the European Commission validated the final text of the treaty, allowing it to be submitted for review by the parliaments of the EU member states and the European Parliament. The official signing is expected to take place in December 2025 in Brasília, during the Mercosur Summit.
The treaty has historic and economic potential. It will be the largest agreement ever signed by Mercosur and one of the largest global trade agreements in terms of the number of consumers covered. It consolidates a bridge between South America and Europe, involving approximately 780 million people in 31 countries. For Brazil, it represents a strategic leap forward toward market diversification and enhancing its international competitiveness.
But what's really at stake here? And why is this agreement a game-changer for Brazilian companies looking to expand their borders?
Unprecedented agreement that reduces tariff barriers on a large scale
One of the central points of the agreement is the elimination of tariffs on most products traded between the blocs. The European Union will eliminate 100% of its industrial tariffs within ten years, while Mercosur commits to eliminating 91% of tariffs within 15 years. This means that Brazilian industrial and agricultural sectors will have preferential access to the European market, with a significant reduction in entry costs.
Currently, only 24% of Brazilian exports reach Europe duty-free. With the agreement, 92% of Mercosur products and 95% of tariff lines will be exempt. Products such as coffee, meat, fruit, footwear, furniture, and aircraft will be among the major beneficiaries. ApexBrasil estimates that Brazilian exports to the EU alone could grow by more than US$$7 billion annually.
More than just opening markets, this liberalization generates a movement toward reindustrialization and qualification of national production chains. To remain competitive, businesses will need to invest in technical certifications, innovation, traceability, and ESG practices, all aligned with the demands of the European market.
Market diversification
The United States' tariff offensive against Brazil, especially after the Executive Order imposing the popularly known "tariff hike," puts the dependence of several Brazilian states on the North American market at risk. Ceará, Espírito Santo, and Minas Gerais are among the most affected. Espírito Santo alone saw 28.6% of its exports go to the US in 2024, a volume of US$$ 3.1 billion.
In this context, the agreement with the European Union emerges as a strategic response. Products such as steel, pig iron, coffee, and pulp, affected by US tariffs, already have entry opportunities identified in countries such as Germany, France, Canada, Japan, and the Netherlands. According to the ApexBrasil study, alternative markets were mapped for 195 products with high dependence on the US.
In other words: the Mercosur-EU agreement is not just a diplomatic achievement. It is a real and immediate escape valve for entire sectors of the Brazilian economy threatened by global trade tensions.
New phase for Brazilian agribusiness and industry
The treaty also establishes export quotas and preferential access for sensitive products, especially agricultural ones. Brazilian agribusiness will be able to expand its presence in historically protected markets, such as France and Germany, with products such as beef and pork, tropical fruits, sugar, and ethanol.
But there are challenges: the European Union's environmental and health criteria are strict. The agreement includes commitments to sustainability, traceability, and deforestation control. This will require Brazil to strengthen its institutions and promote clean production chains, which can raise the quality and reputation of Brazilian products abroad.
On the industrial side, the treaty imposes competition with high-value-added European products, forcing Brazilian industry to invest in innovation, productivity, and efficiency. This competitive shock is both a challenge and an opportunity for modernization.
BRING on the international scene
BRING is strategically positioned to facilitate the internationalization of Brazilian businesses, acting as a bridge between the public and private sectors, and international entities. With headquarters in London, Lisbon, Rio de Janeiro, and São Paulo, as well as operations throughout Brazil, we act as facilitators between national companies and international markets, anticipating geopolitical movements and generating applied intelligence for global expansion.
Our BRIDGE methodology combines risk analysis, opportunity mapping, commercial feasibility, and legal-strategic support to connect businesses with investors, buyers, and foreign governments.
In this new cycle driven by the Mercosur-EU agreement, BRING is prepared to guide companies and governments in building solid strategies, focusing on concrete results, regulatory security, and competitive insertion in European markets.
The Mercosur-EU Agreement is not just a trade treaty. It is a new map of possibilities for Brazil. And those who take the lead, prepare, and position themselves strategically and with an international vision will have much to gain.
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