EU-BRAZIL Investment Dialogue

Mercosur-EU Agreement Tariff Reduction Already Reflected in Rise of Brazilian Exports

Data released on trade between Brazil and the European bloc show that the Mercosur-EU agreement has begun to produce practical effects in the first months of provisional application of the text, boosting Brazilian sales abroad.

In the cumulative period between January and July, Brazil shipped US$ 31.59 billion in goods to the European Union, a value 11% higher than that recorded a year earlier. For ApexBrasil’s president, Juscelino Filho, the 47% rise in sales of the roughly five thousand products that had zeroed tariffs reinforces the reading that the pact has been generating a more favorable environment for business, a trend corroborated by the 10% growth even in items without any tariff changes. In the trimester following the entry into provisional force of the agreement, between May and July, exports rose 17.2% compared to the annual comparison, with highlights including the jump in crude oil, orange essential oil, turboprop parts, and large aircraft, in addition to a rise of over 270% in natural gas, an item subject to import quotas. For Brazil, this growth is also a positive sign given that some of these products are within the new U.S. tariff package announced in July 2026.

The trade balance for the period was positive by about US$ 958 million on the Brazilian side. According to ApexBrasil, this consolidates Brazil’s position as a partner of the EU and tends to unlock foreign investments focused on clean energy, hydrogen, and renewable sources.

Read more at: https://www.agrolink.com.br/noticias/acordo-ue-mercosul-ja-impulsiona-vendas-do-brasil_517860.html