São Paulo, Oct 23 (EFE).— The trade agreement between Mercosur and the European Union (EU), still awaiting ratification by the European Council, has gained strategic importance in the view of Brazil and several EU member states as a response to the trade war launched by U.S. President Donald Trump.
Calls for swift ratification have multiplied in Germany, Spain, Uruguay, and Brazil, which hope to sign the accord in December during the Mercosur summit in Brasília.
A $22 trillion free-trade area
The agreement, finalized in 2024 after two decades of talks, will create a free-trade zone of more than 700 million people with a combined GDP of $22 trillion.
“Brazil and the EU have a strategic relationship that, after the U.S. tariffs, has become even more central. For many sectors, the EU has taken on the role of a natural counterweight in market diversification,” said Aloysio Nunes, head of strategic affairs at the Brussels office of the Brazilian Trade and Investment Promotion Agency (ApexBrasil), in an interview with EFE.
Tariffs hit Brazil hard
For Brazil, the tariffs have been particularly harsh. Since August, about 34.9% of Brazilian products have faced a 50% customs duty in the United States.
Most EU-origin goods entering the U.S. have been subject to a minimum 15% tariff. Steel, aluminum, and copper have faced rates of up to 50%.
In this context, Nunes stressed that blocs such as Mercosur and the EU, “which share common values,” must continue exploring new paths of cooperation to withstand external pressures.
Strategic allies and shared growth
The Mercosur-EU alliance was endorsed in September by the European Commission. That paved way for ratification by the European Council—a move ApexBrasil president Jorge Viana welcomed.
He told EFE the treaty has the potential to “reshape the global economic landscape,” creating a bi-regional free-trade area covering more than 700 million people.
Viana said the partnership between economies that together account for 25% of global GDP—with tariff eliminations on 97% of industrial goods and 77% of agricultural products—could boost Brazil’s exports to the EU by up to $7 billion in the short term.
He also noted that ApexBrasil identified 6,740 export opportunities for Brazil to its third-largest trading partner.
“If protectionist measures persist in certain countries, new opportunities may arise in others, where lower tariffs make Brazilian products more competitive,” he said.
European support and global stability
For her part, EU Ambassador to Brazil Marian Schuegraf told EFE that “in times of geopolitical turbulence, reliable partners are essential.”
“Amid growing nationalism and protectionism worldwide, let’s show that constructive cooperation beyond our own borders and regions is worthwhile,” she added.
A hard blow from the U.S. and cautious trade optimism
The Mercosur-EU deal has faced resistance from several European nations, led by France, where farmers continue to protest against the agreement.
To ease those concerns, the European Commission proposed in early September new safeguard clauses to counter sudden import surges or price drops, particularly for sensitive agricultural products.
Trump’s tariff war has also softened some opposition within the French government.
Schuegraf said the agreement “will expand reciprocal investment flows and give Mercosur industries time to modernize, grow and compete.”
She added that the partnership reflects a “shared commitment to sustainable development” and includes mechanisms to ensure that trade “contributes to the green transition.” EFE
EFE published this report with the support of ApexBrasil.