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After More Than 25 Years of Negotiations Begun in 1999, the Mercosur Agreement with the European Union Brings Together 718 Million People, an Estimated GDP of US$ 22.4 Trillion, and Foresees Elimination of Tariffs on 95% of Goods in Up to 12 Years, with Direct Impact on Brazilian Exports, Public Procurement, and Rules for the Agricultural Sector
The rapporteur of the Mercosur agreement with the European Union, Deputy Marcos Pereira, advocated for the approval of the text signed in January, after more than 25 years of negotiations, highlighting that the decision impacts Brazil’s economic future and its position on the international stage.
Political Defense of the Mercosur Agreement with the European Union
Deputy Marcos Pereira stated that the Mercosur agreement with the European Union represents more than a commercial decision. According to him, Congress will not just be voting on a text, but on Brazil’s standing in the world.
He declared that the deliberation involves a strategic choice regarding the country’s economic positioning. For the rapporteur, the Mercosur agreement with the European Union projects Brazil to a new level in international relations.
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Marcos Pereira recalled that the negotiations for the Mercosur agreement with the European Union began in 1999. The process spanned different governments until reaching a political agreement in 2019.
In 2023, a decisive resumption of negotiations occurred regarding essential aspects of the Mercosur agreement with the European Union. The final text was signed in January, after a journey of more than two decades.
According to the deputy, a policy of this magnitude cannot be built overnight. He emphasized that the Mercosur agreement with the European Union transcends different eras and administrations.
Economic Dimension of the Mercosur Agreement with the European Union
The Mercosur agreement with the European Union provides for the elimination or reduction of import and export tariffs between the blocs. Together, Mercosur and the European Union bring together 718 million people.
The combined GDP is estimated at US$ 22.4 trillion, approximately R$ 116 trillion. These figures place the Mercosur agreement with the European Union among the largest trade understandings in terms of population and economic reach.
Under the text, the European Union commits to eliminating import tariffs on about 95% of goods. These products account for 92% of the value of European imports of Brazilian goods.
The elimination of tariffs will occur within up to 12 years. The schedule integrates the commitments established in the Mercosur agreement with the European Union.
Public Procurement and Equal Treatment Rules
The Mercosur agreement with the European Union establishes equal treatment between Brazilian and European products. The text maintains exceptions related to purchases by the Unified Health System, micro and small enterprises.
There are also exceptions in preference margins, technological orders, and compensations in acquisitions. According to Marcos Pereira, Brazilian public bodies will be able to operate in an international bidding environment.
He stated that this model could increase competition and save public resources. The rapporteur recalled that he was minister of Industry, Foreign Trade, and Services during Michel Temer’s government.
According to him, the ministry’s actions during that period were decisive for the Mercosur agreement with the European Union to cease being merely a diplomatic project and become a real economic agenda.
Agriculture and Safeguards in the Mercosur Agreement with the European Union
Marcos Pereira pointed out as a point of concern the internal regulation approved by the European Union. The rule provides for safeguards for agricultural and agro-industrial products.
The measures can be triggered with a 5% variation in volume or price drop. Products such as corn, raw sugar, and fresh beef recorded variations of 94.1% and 76.2% in 2025 compared to 2024.
According to the Confederation of Agriculture and Livestock of Brazil, these products can be subject to the triggers of the European rule. This could restrict their entry into the European market.
Pereira stated that it will be necessary to develop measures in dialogue with the Executive and the Legislative. The aim is to find solutions to defend the productive sector, if necessary.
He advocated for a future edition of an executive decree to regulate safeguards also on the Brazilian side. According to the deputy, an agreement has already been reached with the Vice President and Minister of Industry and Commerce, Geraldo Alckmin.
According to Pereira, a draft of the text will be sent today to the Civil House. He reaffirmed that the Mercosur agreement with the European Union represents a choice about Brazil’s economic future and its international integration, in a context where dialogue and cooperation are losing ground to forceful solutions, but the country opts for the defense of peace and qualified dialogue to reaffirm its national independence.
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