EU-BRAZIL Investment Dialogue

Bilateral trade between Brazil and the European Union reaches an unprecedented level in the first months of the biregional agreement

The trade flow between Brazil and the European Union totaled US$ 38.9 billion from May to August 2026, the highest value in the historical series, in an interval corresponding to the initial four months of provisional application of the agreement signed between the European bloc and the Southern Common Market (Mercosur). The trade flow, the indicator adopted in the calculation, is equivalent to the sum of the export and import flows of goods and services between the two parties.

The expansion of Brazilian sales to the European market was the main driver of the result. Exports totaled US$ 20.4 billion, a 23.5% increase over the equivalent four-month period of 2025, while imports originating from the bloc reached US$ 18.5 billion, a 6.2% increase compared to the previous period. The resulting balance was a surplus of US$ 1.9 billion for Brazil, which reversed the deficit recorded a year earlier. There were 42 groups of products with record shipments to the bloc, including optical instruments, wood manufactures, motors and components, chemicals, and industrial and agricultural machinery. Sales of items covered by a zero tariff under the treaty grew by 39.8%, highlighted by fish, tires, transformers, gas turbines, lemon essential oil, and equipment aimed at the production of paper and cardboard.

According to the Secretary of Foreign Trade, Tatiana Prazeres, these initial results are encouraging and indicate the potential to expand business, investments, and job creation in the country, and the agenda now moves to the implementation of the agreement, with support for the productive sector so that the benefits can be fully utilized. The diversity of industrial segments among the records suggests that the gains are not restricted to primary products, which elevates the strategic relevance of the agreement for the insertion of Brazilian higher value-added goods into the European market.

Read more at: https://www.cnnbrasil.com.br/economia/money/macroeconomia/comercio-entre-brasil-e-ue-bate-recorde-durante-vigencia-do-acordo/