Brazil is confident that the trade agreement between Mercosur and the European Union (EU) will take effect this very year, with the expectation of it being signed on January 17th in Paraguay and approved by the Brazilian Congress in the first half, official sources stated this Friday. The Vice President highlighted that the EU became Brazil's second-largest trading partner last year after China, with a product exchange of $101 billion and Brazilian exports to the European bloc reaching $49.81 billion. Alckmin, who is also Brazil's Minister of Development, Industry, and Trade, affirmed that after being signed, the agreement must be internalized, meaning it must be approved by the congresses of the Mercosur countries and the European Parliament. "But if the Brazilian Congress approves it in the first half, it will enter into force without depending on approval in other countries." "Our expectation is that it will take effect this same year," stated Brazilian Vice President Geraldo Alckmin at a press conference where he celebrated the imminent signing of "the largest agreement between blocks in the world" after 25 years of negotiations. "At a difficult geopolitical moment, of instability and conflicts, the signing of the agreement is fundamental for the world and shows that it is possible to build trade paths with rules, commercial opening, and strengthening of multilateralism," he said. "30% of Brazilian exporters, which is equivalent to about 9,000 companies, send products to the European Union," he stated. The signing of the agreement on January 17th in Paraguay was announced after the European Commission received this Friday from the EU countries the respective mandate for its subscription. A majority of EU countries gave the green light to the signing of the agreement, despite the votes against from France, Poland, Hungary, Austria, and Ireland, and the abstention of Belgium, which were insufficient to block the advance. He added that the EU is the second-largest destination for Brazilian manufacturing exports, with purchases of $23.6 billion last year, a value 5.4% higher than in 2024. According to Alckmin, the agreement not only strengthens trade between the two blocs but also investment and multilateralism. That is why our expectation is that it will begin to take effect this same year," he said.
Brazil Expects Mercosur-EU Trade Deal to Take Effect This Year
Brazil expressed confidence that a major trade deal with the European Union will be signed in January and take effect in 2025, despite some political objections.
