Brazil's Senate approved the EU-Mercosul free trade agreement on Wednesday (4), completing congressional proceedings and sending the text for presidential sanction. The treaty is expected to take provisional effect in May after notification to the EU. Negotiated since 1999, it links markets with a combined GDP of $22 trillion and will eliminate tariffs on 91% of bilateral trade.
Brazil's Senate approved the EU-Mercosul free trade agreement in a symbolic vote, without nominal vote tally, on Wednesday (March 4, 2026). The rapporteur, Senator Tereza Cristina (PP-MS), described the treaty as strategic amid global trade tensions, stating that the use of economic instruments as political pressure underscores the need for partnership diversification. "By closing themselves off to supposedly put themselves 'first,' countries renounce building a system where all can prosper," she said, without naming specific countries.
The text now goes to President Lula for sanction, after which Brazil will formally notify the European bloc. Provisional application, with no end date, depends on the European Commission, and the Brazilian government expects it to start in May, per the treaty's timelines signed in January this year in Paraguay.
To secure support, the executive negotiated with the ruralist bloc and industry, issuing a decree regulating commercial safeguards that allow temporary suspension of tariff reductions in cases of abrupt import surges. This addresses agribusiness demands, akin to EU measures following farmer protests in France, Poland, and Belgium. The agreement includes quotas for dairy and 8-to-12-year timelines for phasing out wine import tariffs.
Eventually, tariffs will be zeroed for industrial goods like machinery, automobiles, and chemicals, increasing competition. The Ministry of Development, Industry, Trade and Services estimates an impact of +0.34% on Brazil's GDP and +0.76% on investments by 2044. In 2025, bilateral trade reached $100 billion, with Brazilian exports of fuels, coffee, and minerals, and imports of machinery, pharmaceuticals, and vehicles.
Argentina and Uruguay have already ratified the agreement. In the EU, Ursula von der Leyen, President of the European Commission, indicated that provisional application will avoid delays. Senator Nelsinho Trad (PSD-MS) announced a working group to monitor implementation and guide affected sectors. Senator Humberto Costa (PT-PE) assessed the agreement as rational, preserving sectors with long transition periods.
