The EU is negotiating a free trade agreement with Brazil as part of the EU Association Agreement negotiations with Mercosur countries (which also include Argentina, Uruguay and Paraguay).
Brazil is the largest economy in Latin America and its trade with the EU accounted for 30.8% of total EU trade with the Latin America region in 2016.
- The EU is Brazil’s second largest trading partner, accounting for 18.3% of its total trade. Brazil is the EU’s eleventh largest trading partner, accounting for 1.7% of total EU trade (2017).
- EU imports from Brazil are dominated by primary products, in particular food, beverages and tobacco products (16.3% of EU imports from Brazil), followed by plants (17.8%) and mineral products (21.8%).
- Brazil is the largest exporter of agricultural products to the EU in the world.
- EU exports to Brazil consist mainly of machinery and appliances (26.6%), chemicals (23.6%) and transport equipment (13.6%).
- The EU is the largest foreign investor in Brazil with investments in many sectors of the Brazilian economy. The EU made 48.5% of its Latin American investments in Brazil in 2015.
The EU and Brazil
Brazil’s import restrictions
Brazil is among countries that have resorted to a high number of potentially trade-restrictive measures, according to the European Commission last report.
The Brazilian market is highly protected with an average applied customs duty of 13.5%.
The EU encourages Brazil to reduce tariff and non-tariff barriers and to promote a stable and more open regulatory environment for European investors and traders.
Fair and Ethical Trade Consultation Forum
The first EU-Brazil Fair and Ethical Trade Consultation Forum took place on June 21, 2018 in Rio de Janeiro, as part of a project designed by DG TRADE and funded by the Partnership Instrument.
The project will then focus on a study on fair and equitable trade in Brazil and is organizing a second forum in December 2018.
Brazil in Mercosur
Brazil is negotiating a free trade agreement with the EU within the framework of the Mercosur group.
A future EU-Mercosur Association Agreement should boost trade integration between Mercosur countries and create new trade and investment opportunities with the EU by removing tariff and non-tariff barriers to trade and FDI.
The potential economic impact is high according to a 2008 study sustainability impact assessmenteven if Mercosur remains a very protected market.
The EU-Mercosur Association Agreement will cover, among others:
- trade in goods and services;
- intellectual property rights (IPR);
- aspects including the protection of geographical indications;
- public markets;
- technical barriers to trade, and;
- sanitary and phytosanitary aspects.
More information about Mercosur