Asuncion, January 29th Electric – Brazil is set to significantly expand its access to global trade, with the recent Mercosur-EU trade agreement expected to increase the country’s share of the global goods import market from 8% to 36%, according to a survey by Brazil’s National Confederation of Industry (CNI). The agreement, signed on January 17 in Paraguay, marks a historic milestone for Brazilian industry after more than 25 years of negotiations.

Once the agreement comes into force – pending ratification by the European Parliament and the national congresses of Mercosur member countries – more than 54.3% of traded products (over 5,000 items) will enter the EU with zero tariffs. On the Mercosur side, Brazil will have 10 to 15 years to reduce tariffs on 44.1% of products (4,400 items), ensuring a gradual and predictable transition for domestic industries.

Data from 2024 shows that 82.7% of Brazil’s exports to the EU will be tariff-free from the outset, while Brazil will only immediately eliminate tariffs on 15.1% of imports from the EU, giving domestic industries additional time to adapt. On average, Brazil will have eight more years than the EU to adjust to tariff reductions, according to the CNI survey.

The agreement is expected to boost job creation and economic growth, with the CNI noting that every BRL 1 billion exported from Brazil to the EU in 2024 created 21,800 jobs, generated BRL 441.7 million in wages, and BRL 3.2 billion in production. The agro-industrial sector is set to benefit significantly, with EU quotas for Brazilian beef more than double those granted to Canada and four times higher than those for Mexico.