Brazil remains hopeful that the EU-Mercosur trade agreement can be approved despite certain objections, with the ongoing U.S. tariff issues likely accelerating this process, according to a prominent Brazilian trade representative speaking to Euronews.
We remain highly optimistic, particularly since the U.S. has increased tariffs globally,” said Jorge Vian, the head of ApexBrasil, Brazil’s trade and investment promotion agency, speaking to Euronews. He further stated, “Given the current contentious global climate, we might work together to enhance the execution of this accord.
In December, the European Commission reached a political accord with the Mercosur nations—Argentina, Brazil, Paraguay, and Uruguay—to create one of the largest free trade areas globally, covering around 750 million individuals and approximately one-fifth of the worldwide economy. The pact will require endorsement from EU member states prior to implementation.
Several member states, with France taking the lead, have opposed the agreement due to worries about potential uneven playing fields caused by Mercosur’s agricultural product exports and differing environmental regulations in Mercosur nations.
“What we currently face is an objective scenario: the Trump administration is undermining free trade and multilateralism; adjustments must be made across the board,” stated Jorge Vian, further noting: “Europe ships over $600 billion worth of products to the U.S. Should those shipments incur approximately 20% tariffs, it would negatively impact farmers, industrial manufacturers, and various production sectors within Europe.”
Regarding the French call for what they term “mirror clauses” to be included in the agreement—meant to guarantee that agricultural imports from Mercosur adhere to the same production standards as those applied to EU farmers—he stated that the differing production conditions make such mirroring unfeasible.
“Brazil has a production system based on tropics whereas Europe operates with one rooted in temperate climates. These climate frameworks significantly differ,” Vian stated.
He stated that despite food production continuing to be a delicate subject, “it can be addressed through discussions and collaboration.”
Brazil aims to export both crucial raw materials and renewable energy to Europe. In the industrial realm, Embraer, Brazil’s leading aerospace company—which already operates a facility in Portugal—has pledged “significant investments totaling billions of dollars in Europe for manufacturing aircraft parts,” according to officials.
In the EU, advocates of the Mercosur agreement claim that the deal is necessary to counter Chinese influence in the region.
“Clearly, the impact of Chinese influence across the entire continent exists,” Vian stated, yet he also noted: “Europe remains our top priority. While China may be Brazil’s largest trading partner in terms of volume, it doesn’t equate to superior quality.”