Recently signed Mercosul Agreement represents business opportunities with Brazil not seen in decades

Frankfurt, December 6, 2024

After 25 years of negotiations, the Free Trade Agreement between Mercosur and the European Union was finally signed on December 6. In my opinion, it represents a historic opportunity for European companies to invest in Brazil.

There are still important steps to be taken, such as defining quotas for products and services and setting deadlines for the implementation of the agreement. This new phase will require the efforts and commitment of technicians, diplomats, regulators and politicians from both regions.

The European Parliament is expected to approve the agreement without major difficulties, as are the parliaments of the countries of the European Union and Mercosur (Brazil, Argentina, Uruguay, Paraguay and, more recently, Bolivia). Despite some resistance, such as from France and Poland, there is not expected to be enough opposition to block the agreement.

Once formalized, the agreement will open new markets for Mercosur's agricultural products, such as meat and grains, which currently face high tariffs in Europe. The European Union will benefit from access to a market of 300 million consumers for industrial products and financial services.

The benefits of the agreement will be felt gradually over the next two decades, depending on the ability of both blocs to overcome differences and implement transitional measures for more vulnerable sectors. The Mercosur-EU agreement will be a geopolitical milestone that reflects the challenges of building alliances in an increasingly interconnected and complex world.

It is important to identify and understand the opportunities of this agreement for your company expanding to Brazil already now. 

I am here to help you maximise the potential future benefits of this historic agreement.