The Brazilian government hopes that the agreement with the EU will come into effect sometime in 2026.

Luiz Cláudio Ferreira - Reporter for Agência Brasil

Vice President Geraldo Alckmin said this Friday (9) that the agreement between Mercosur and the European Union should be signed in the “coming days” and that the Brazilian government expects it to come into force in 2026. 

For this to happen, Alckmin explained in a press interview that it is necessary to "internalize" it. This means that the European Parliament and the Congresses of each Mercosur country (Argentina, Brazil, Paraguay, and Uruguay) need to approve the trade pact. Alckmin emphasized that society will benefit from cheaper and better quality products.

"If the Brazilian Congress votes in the first half of the year, we won't depend on Argentina, Paraguay, and Uruguay for it to come into effect immediately," Alckmin stated. 

Employment and investment

Geraldo Alckmin highlighted that the agreement has the potential to generate jobs and investments for Brazil.

"We should have more European investments in the Mercosur region and in Brazil, and more Brazilian investments in the 27 countries of Europe," added Alckmin.

The vice president highlighted that the agreement strengthens multilateralism, to the detriment of isolationism. To highlight the potential of the agreement, Alckmin pointed out that the European Union is the country's second largest trading partner, second only to China. Furthermore, the trade flow (combining exports and imports) last year totaled US$100 billion. 

One example is that the Brazilian manufacturing industry alone exported US$23,6 billion to the European Union, representing a 5,4% growth in that sector (for the world, this increase was 3,8%). 

"The European Union was the first or second destination for exports from 22 Brazilian states [last year]," the vice-president highlighted. Alckmin also noted that 30% of Brazilian exporters sell products to that continent, representing more than 9 Brazilian companies. "These exporting companies employ more than three million workers." 

Sustainability

Alckmin pointed out that the agreement enables trade with rules and also strengthens sustainability by generating commitments from countries in the fight against climate change. "It's a win-win situation. Whoever is more competitive sells." 

The vice president further considered that the agreement becomes even more fundamental given the current geopolitical moment, which is "difficult, unstable, and conflict-ridden."

"(The agreement) shows that it is possible to build a path to trade with rules, open trade, and a strengthening not of isolationism, but of multilateralism." 

Historical decision

The approval of the trade agreement with MercosurThe decision was confirmed this Friday by the President of the European Commission, Ursula von der Leyen, by a "large majority of the countries that make up the European Union (EU)".

“The Council’s decision to support the EU-Mercosur agreement is historic,” Ursula wrote in a post on the microblog X. “We are committed to creating growth, jobs and safeguarding the interests of European consumers and businesses,” wrote the Commission President.