The European Council approved the free trade agreement between the European Union and Mercosul on Friday (9), with support from 21 of the 27 member states, following negotiations started in 1999. Despite the progress, hurdles remain, including European Parliament approval and potential legal challenges from countries like France. Signing is scheduled for January 17 in Asunción, Paraguay.
The agreement, endorsed in Brussels, provides for gradual liberalization of 91% to 92% of bilateral trade over 10 to 15 years, covering tariffs on industrial and agricultural goods. For Mercosul, this includes elimination of tariffs on 91% of EU exports in up to 15 years; the EU will eliminate tariffs on 92% of Mercosul exports in up to 10 years. Benefited products include Brazilian agribusiness items like meats, sugar, coffee, and ethanol, as well as European wines, cheeses, and chocolates. Additional measures cover bureaucratic simplification, mutual recognition of sanitary standards, and specific quotas, such as 180,000 tons of poultry meat and 25,000 tons of pork with tariff exemptions.
Approval followed concessions to Italy, which opposed in December: early access to €45 billion in Common Agricultural Policy subsidies and relief on carbon taxes for imported fertilizers. However, resistances persist from France, Poland, Hungary, Austria, and Ireland, who plan to appeal to the EU Court of Justice, a process that could last years. The European Parliament must vote by April, overshadowing the imminent signing.
Leaders hailed the milestone. European Commission President Ursula von der Leyen called the decision 'historic' for growth and jobs. In Brazil, Vice President Geraldo Alckmin predicted signing in the coming days and entry into force in 2026, with benefits like cheaper products, investments, and strengthened multilateralism. President Lula and entities like Abiquim and Fiesp highlighted opportunities in chemical exports, bioeconomy, and clean energy, despite a 2025 trade deficit of $13.5 billion.
The deal unites 720 million people and a $22 trillion GDP, driven by global tensions like U.S. tariffs under Donald Trump and Chinese exports. Readers diverge: some see gains for agribusiness and consumers but warn of risks to Brazilian industry, criticizing the EU's hypocritical protectionism.