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Agreement between Mercosur and the European Union could unlock the impasse over Brazilian meat and also pave the way for clearer rules, lower costs, and new opportunities for companies in both blocs.

Published on 19/05/2026 at 19:10
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Agreement between Mercosur and the European Union can create instruments to resolve trade impasses, including the situation of Brazilian beef, as well as increase predictability, reduce costs, and organize import quotas among the countries of the South American bloc

The automotive industry is following a debate: the agreement between Mercosur and the European Union can help resolve impasses between the blocs. Among them is the removal of Brazil from the European list of countries authorized to export beef.

According to infomoney.com, the assessment is by Roberto Azevêdo, from Coscex of Fiesp. He argued that the rapprochement will create institutional paths to address regulatory divergences, such as those involving antibiotics in livestock.

Agreement creates instruments for divergences

Azevêdo participated in the Mercosur-European Union Business Dialogue, organized by Fiesp. The former Director-General of the WTO stated he has no doubt that commercial proximity can help address impasses.

According to him, more economic integration tends to increase divergences over regulations, trade flows, and border treatment. At the same time, the agreement should create technical committees, debate forums, political instances, and dispute mechanisms.

Azevêdo said that this mechanism is usually effective in overcoming situations between blocs. For him, the proximity will lead to more controversies, but also to instruments capable of overcoming these situations.

Automotive industry and integration

The European Union ambassador, Marian Schuegraf, stated that the agreement represents opportunities, predictability, and integration. She mentioned interests in green transition, digital transformation, infrastructure, clean energy, sustainable agribusiness, and circular economy.

According to the ambassador, the treaty should expand companies’ access to the European market. It should also reduce costs and provide more stable rules for investing, in a scenario of geopolitical tensions and economic uncertainty.

Schuegraf stated that the agreement sends a clear message in defense of open trade. For her, the model should be based on rules, sustainability, and mutual benefit, which is why the business dialogue was important.

Quotas need to be adjusted

Azevêdo stated that the negotiation of quotas among Mercosur countries should be adjusted internally. The bloc members did not reach an agreement on the division of import quotas in the European agreement.

According to the cited rules, some products will have a reduction in import tax. Certain items will need to comply with quotas to access a lower rate; after the limit, excesses will be subject to the full tax.

In the case of beef, the quota will be 99 thousand tons annually, with a rate of 7.5%. This quantity should be divided among the four Mercosur countries.

For Azevêdo, similar situations should arise among the bloc countries. He stated that it will be necessary to understand impacts, organize internal relations, and seize opportunities opened by the European Union, under the attention of the automotive industry.

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Fabio Lucas Carvalho

Journalist specializing in a wide variety of topics, such as cars, technology, politics, naval industry, geopolitics, renewable energy, and economics. Active since 2015, with prominent publications on major news portals. My background in Information Technology Management from Faculdade de Petrolina (Facape) adds a unique technical perspective to my analyses and reports. With over 10,000 articles published in renowned outlets, I always aim to provide detailed information and relevant insights for the reader.

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