The figures were released Saturday (Jan. 17), after the treaty was signed by representatives of the European bloc and Mercosur member countries at a ceremony in Asunción, Paraguay. After the signing, the text will still be submitted for ratification by the European Parliament and the national congresses of each Mercosur nation. The confederation believes that the formalization of the agreement is a turning point for Brazilian industry.
“Based on 2024 data, 82.7 percent of Brazil’s exports to the EU will enter the bloc without import tariffs from the outset. On the other hand, Brazil has committed to immediately eliminating tariffs on only 15.1 percent of imports originating in the European Union, reinforcing the favorable difference for the country,” the document says.
Also according to the analysis, Brazil will have eight additional years on average to adapt to the tariff reduction, compared to the European bloc’s deadline and considering bilateral trade and the schedule set out in the Mercosur–EU agreement.
“The signing of the agreement is a historic milestone for strengthening Brazilian industry, diversifying the export basket, and integrating the country into global trade,” says the confederation.
“Under negotiation for more than 25 years, this is the most modern and comprehensive treaty ever negotiated by Mercosur and goes beyond tariff reduction as it incorporates disciplines that increase regulatory predictability, reduce costs, and create a more favorable environment for investment, innovation, and job creation,” the entity goes on to state.
According to CNI, in 2024, for every BRL 1 billion exported from Brazil to the EU, 21,800 jobs were created – generating BRL 441.7 million in wages and BRL 3.2 billion in production.
The compact also has positive results for the agro-industrial sector, as the negotiated quotas favor key sectors and, in the case of beef, are more than double those granted by the European Union to partners such as Canada, and more than four times higher than those allocated to Mexico. Rice quotas exceed the volume currently exported by Brazil to the bloc, expanding the potential for access to the European market.
The signing of the treaty also creates a favorable environment for expanding research and development projects focused on sustainability and technological innovation, CNI reports.
“New regulatory and market requirements are driving opportunities in industrial decarbonization technologies—such as carbon capture, use, and storage; CO₂ use and mineralization; low-emission hydrogen electrification; hybrid-flex engines; and battery and critical mineral recycling—and in the development of bio-supplies for more resilient agriculture. The articulation of these fronts strengthens technological cooperation, accelerates the transition to a low-carbon economy, and increases Brazil’s competitiveness in the European market,” the text reads.
In 2024, the European Union was the destination for USD 48.2 billion of Brazilian exports, equivalent to 14.3 percent of the country’s total exports, and remains Brazil’s second largest foreign market, behind China. In the same period, the bloc accounted for USD 47.2 billion of Brazilian imports, 17.9 percent of the total.
Almost all (98.4%) of Brazilian imports from Europe were manufacturing products, while 46.3 percent of Brazilian exports to the EU were industrial goods. Considering industrial supplies, the share of trade in 2024 was 56.6 percent of imports from the bloc and 34.2 percent of Brazil’s exports to the European Union, CNI points out.
“This complementarity contributes to the modernization of Brazilian industry, increasing its competitiveness. The EU also stands out as the main investor in Brazil. In 2023, the bloc accounted for 31.6 percent of foreign productive investment in the country, totaling USD 321.4 billion. Brazil was the largest Latin American investor in the European Union – the bloc was the destination for 63.9 percent of Brazilian investments abroad,” the study says.
The two met at the Ministry of Foreign Affairs palace to discuss the agreement, which will create one of the world’s largest trading areas, home to approximately 720 million people. The European Union’s approval of the agreement was announced last week, after more than 25 years of negotiations.
“Political dialogue and cooperation will guarantee high standards of respect for labor rights and environmental protection,” Lula said.
Lula added that, unlike in the past, Brazil will not restrict itself to supplying commodities - especially agricultural products - to the European Union.
“We will not limit ourselves to the eternal role of commodity exporter. We want to produce and sell industrial goods with higher added value,” he stated, adding that the agreement provides incentives for investments by European companies in Mercosur, which includes strategic value chains for the energy transition and digital transmission.
European Commission President Ursula von der Leyen said that all members of the bloc should benefit from new jobs and that many opportunities will arise for the business sector on both sides.
“I know that, between our regions and our peoples, the best is yet to come. This is how we create true prosperity, which is shared prosperity. We agree that international trade is not a zero-sum game,” she noted.
“The whole story will only be successfully told when companies begin to feel the benefits of our agreement. Something that should happen quickly,” von der Leyen added.
She went on to say that the agreement will multiply opportunities, with clear and predictable rules, as well as standards and supply chains that, according to her, “will serve as highways for investment.”
“This agreement now concluded is the achievement of an entire generation,” the European leader highlighted, as she thanked Lula for his commitment to consolidating the agreement.
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