EU-Mercosur Agreement: Brazil goes from deficit to surplus with European bloc

“ Nós we are very sure that this is the result of the agreement ", said, in an interview with Lusa, Laudemir Müller, on the margins of an event, in the Amazon city of Manaus, promoted by the Brazilian Agency for the Promotion of Exports and Investments (ApexBrasil), to strengthen the debate on the opportunities of the agreement between the European Union (EU) and Mercosur.

From January to July this year, Brazilian exports to the bloc grew 11%, to $31,590 million (EUR 27,309 million), while imports increased slightly to 0.7%, totaling 29,280 million US dollars 25,310 million).

Throughout 2025, exports of Brazilian products to the European Union amounted to USD 49,810 million (EUR 43,060 million) and imports totalled USD 50,290 million (EUR 43,475 million).

Müller pointed out that the reduction in tariffs is taking effect not only on the sales of products that have come to have access to the European market without customs duties, but also on exports covered by quotas and those that have not changed tariffs.

“ The 5,000 products that went to the zero tariff increased 47% and even the products that did not have a tariff change also increased 10% ", emphasized to Lusa the president of ApexBrasil.

“ So the deal also brings a new business environment. Improves the business environment”, he said.

Trade performance gained particular strength after the provisional entry into force of the agreement on 1 May, with Brazilian exports to the EU totaling $14,691 million (EUR 12,704 million) between May and July, more 17.2% than the 12.535 million recorded in the same period of 2025.

Among the products with the greatest growth after the provisional entry into force of the agreement are orange essential oil, whose exports increased by 88%, crude maize oil, with an increase of 859%, and turbojet parts, which grew by 91%.

Exports of aircraft of more than 15 tons also stood out, with an increase of 31%, and parts of diesel engines, which grew 10%.

For products subject to quotas, sales of natural honey to the European Union increased by 270%.

In the same period, imports grew by 4.5% to 13,733 million dollars (EUR 11,877 million), compared to the 13,146 million dollars (11,370 million euros) a year earlier, leaving a positive balance of around 958 million dollars (827 million euros) for Brazil.

“Brazil is also attracting more and more investments”, reinforced the Brazilian leader.

In addition to the increase in trade, ApexBrasil's president highlighted the impact of the agreement on the attraction of investments, arguing that tariff reductions are contributing to a greater integration of Brazilian and European economies.

“ It is much more than just a flow of trade without tariffs. It is a productive integration,” Müller said, pointing to investments in the areas of energy, hydrogen and renewable energy.

“ While many countries are going to increase tariffs, they are making conflicts, imposing wills, Brazil and Europe are moving towards opening up, lowering tariffs, negotiating,” he said.

The free trade agreement between the EU and Mercosur entered into force provisionally on 1 May following a decision adopted by the European Commission and after the parliaments of the four founding members of the South American bloc (Argentina, Brazil, Uruguay and Paraguay) ratified the treaty.

The full entry into force will depend on ratification by the European Parliament, which awaits an opinion from the EU Court of Justice on the compatibility of the agreement with the Community Treaties.

The agreement continues to face resistance in countries such as France and Poland, major agro-industrial producers, a sector in which Mercosur members are highly competitive worldwide.

In the meantime, despite the signing of the agreement, the European Commission confirmed on 20 May the exclusion of Brazil from the list of countries authorised to export products of animal origin following a vote by Member States to update the list of authorised third countries.

According to EU rules, antibiotics are not allowed in cattle to increase their growth or yield, nor are animals treated with antimicrobials reserved for human infections.

The measure, which will enter into force on 3 September, suspends exports of poultry, bovine and porcine meat, eggs, aquaculture fish, honey and equidae intended for human consumption from the Brazilian territory.