Much has been said about the entry into force of the Mercosur-European Union Agreement, but few analyses explain what really changes in practice for Brazilian companies engaged in foreign trade.
More than a diplomatic milestone, the agreement represents a significant operational change for exporters, importers, manufacturers, trading companies and businesses seeking to expand their international presence.
With the gradual reduction of tariffs, broader market access and the need to comply with specific rules of origin, documentation and regulatory compliance, companies will need to prepare technically to seize the opportunities without taking unnecessary risks.
Background of the Mercosur-European Union Agreement
After more than two decades of negotiations, the Interim Trade Agreement between Mercosur and the European Union entered into force on May 1, 2026, and was incorporated into Brazilian law by Decree No. 12.953 of April 28, 2026. The agreement also became subject to rules on preferential origin certification and origin self-certification.
The central objective is to expand trade flows between the blocs, reduce tariffs, improve the predictability of operations and create new conditions for market access.
In practice, the agreement involves one of the largest economic areas in the world and connects Brazilian companies to a highly relevant consumer market, with new possibilities for industrial, agro-industrial, chemical, food, forestry, technology and other products.
What changes for Brazilian exporters?
For Brazilian companies that sell or wish to sell to the European Union, the agreement may represent a gain in competitiveness, provided the operation is correctly structured.
1. Gradual tariff reduction
One of the main impacts lies in the gradual reduction or elimination of import tariffs applied by the European Union to products originating in Mercosur.
This means that many Brazilian products will be able to reach the European market at a lower tax cost, increasing their attractiveness compared to suppliers from countries that do not have an equivalent agreement.
Sectors with potential to benefit include:
- agribusiness;
- processed foods;
- beverages;
- forest products;
- machinery and equipment;
- chemical products;
- manufactured goods;
- industrial inputs.
The tariff reduction, however, should not be interpreted as an automatic benefit for every shipment. The company will need to prove that the product meets the conditions set out in the agreement, especially regarding the origin of the goods.
2. Rules of origin become decisive
Rules of origin will be one of the most important points for the correct use of tariff benefits.
For goods to be entitled to preferential treatment, it is not enough for them to be exported from Brazil. They must meet the origin criteria set out in the agreement.
This may involve analysis of:
- place of production;
- percentage of regional content;
- substantial transformation;
- imported inputs used in manufacturing;
- the product's NCM (Mercosur Common Nomenclature);
- production process;
- supporting documentation;
- applicable declaration or certification of origin.
Companies that fail to validate origin correctly may lose the tariff benefit, face challenges in the destination country or create problems for the European importer.
3. Greater regulatory and customs predictability
The agreement also tends to bring greater predictability to commercial, customs and regulatory procedures between the blocs.
For Brazilian companies, this means a clearer environment for structuring exports, negotiating international contracts, planning prices and evaluating European markets.
However, predictability does not eliminate requirements. Products subject to sanitary, technical, environmental or regulatory controls will continue to require specific attention, especially in sectors such as food, beverages, products of animal or plant origin, chemicals, cosmetics, industrial products and equipment.
4. Expanded business opportunities
The MDIC launched the Mercosur-European Union Opportunities Panel, gathering information on buyer countries, products exported by Brazil, applied tariffs and the tariff reduction schedule set out in the agreement. The tool was created to support the identification of trade expansion opportunities for Brazilian companies.
This shows that the agreement should not be analyzed only from a tax perspective. It can also support strategic market decisions, such as:
- which European countries already buy Brazilian products;
- which products have the greatest growth potential;
- where there are significant tariff reductions;
- which sectors may gain competitiveness;
- how to position the company in the European market.
What changes for Brazilian importers?
The agreement also has important impacts for Brazilian companies that import European products.
The gradual reduction of tariffs may make certain European goods more competitive in Brazil, especially products with higher added value, technology, production efficiency or industrial application.
Products that may gain relevance in imports include:
- industrial machinery;
- technology equipment;
- components for manufacturing;
- industrial inputs;
- pharmaceutical products;
- chemical products;
- precision equipment;
- productivity solutions.
For importers, this may mean lower costs, access to more competitive European suppliers and the possibility of modernizing production.
Importing with tariff reductions requires prior analysis
As with exports, tariff reductions on imports should not be treated as automatic.
The importing company will need to verify:
- whether the product is covered by the reduction schedule;
- what the correct NCM is;
- which rule of origin applies;
- whether there is valid origin documentation;
- whether there are tariff quotas;
- whether a license or agency approval is required;
- whether the product is subject to control by agencies such as ANVISA, MAPA, INMETRO or others;
- what the impact will be on the final cost of the nationalized goods.
Incorrect application of a tariff benefit may lead to tax challenges, requirements, document corrections and the risk of a tax assessment.
Key points of attention for Brazilian companies
The main opportunity of the agreement lies in reducing costs and expanding markets. The main risk lies in using the benefit without meeting the technical requirements.
Before importing or exporting under the Mercosur-European Union Agreement, the company should pay attention to:
- correct tariff classification;
- applicable rule of origin;
- origin documentation;
- required certificates;
- tariff reduction schedule;
- tariff quotas;
- sanitary requirements;
- technical requirements;
- environmental requirements;
- administrative treatment;
- commercial and customs documents;
- impact on the final price;
- responsibilities between seller and buyer;
- Incoterm used;
- risks in customs release.
An international operation that benefits from a trade agreement requires technical control. The tariff gain can be significant, but documentary inconsistencies can compromise the benefit.
The agreement creates opportunity, but requires preparation
Companies that prepare first tend to capture the best opportunities.
In exports, this means identifying products with potential in the European market, reviewing pricing, adapting documentation, validating origin and assessing the regulatory requirements of the destination country.
In imports, it means reviewing European suppliers, recalculating estimated costs, checking tariff schedules, validating origin documentation and analyzing whether the benefit has a positive impact on margins or productivity.
In both cases, the agreement should be treated as a strategic tool, not just as economic news.
Conclusion
The Mercosur-European Union Agreement represents one of the greatest transformations in Brazilian foreign trade in recent decades.
For exporters, it can open new markets, reduce tariffs and increase the competitiveness of Brazilian products in Europe. For importers, it can reduce acquisition costs and facilitate access to European technologies, machinery, equipment and inputs, while also improving the productivity of Brazilian companies.
But the benefit will not be automatic. Correct application of the agreement will depend on technical analysis, proper tariff classification, proof of origin, correct documentation, attention to tariff quotas and compliance with regulatory requirements.
Companies that quickly understand the new rules will be able to access more competitive markets, reduce costs and expand their international presence. Those that do not prepare may lose significant opportunities to better-structured competitors.
