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- Negotiations and agreementsTrade policy
The EU is negotiating a free trade agreement with Brazil as part of the EU's Association Agreement negotiations with the Mercosur countries (which also include Argentina, Uruguay and Paraguay).
Brazil is the largest economy of Latin America and its trade with the EU makes up 30.8% of the EU's total trade with the Latin America region in 2016.
- The EU is Brazil's second-biggest trading partner, accounting for 18.3% of its total trade. Brazil is the EU's eleventh-biggest trading partner, accounting for 1.7% of total EU trade (2017).
- EU imports from Brazil are dominated by primary products, in particular foodstuffs, beverages and tobacco products (16.3% of EU imports from Brazil), followed by vegetable products (17.8%) and mineral products (21.8%).
- Brazil is the single biggest exporter of agricultural products to the EU worldwide.
- The EU's exports to Brazil consist mainly of machinery and appliances (26.6%), chemical products (23.6%), and transport equipment (13.6%).
- The EU is the biggest foreign investor in Brazil with investments in many sectors of the Brazilian economy. The EU had 48.5% of its Latin American investments in Brazil in 2015.
The EU and Brazil
Brazil's import restrictions
Brazil is one of the countries that have resorted to a high number of potentially trade-restrictive measures, according to the European Commission's latest report.
The Brazilian market is highly protected with an applied customs averaging duty of 13.5%.
The EU encourages Brazil to reduce tariff and non-tariff barriers, and to promote a stable and more open regulatory environment for European investors and traders.
Fair and Ethical Trade Consultation Forum
The first EU-Brazil Fair and Ethical Trade Consultation Forum took place on 21 June 2018 in Rio de Janeiro, as part of a project designed by DG TRADE and financed by the Partnership Instrument.
The project will next focus on a study on fair and equitable trade in Brazil and is organising a second forum in December 2018.
Brazil in Mercosur
Brazil is negotiating with the EU on a free trade agreement as part of the Mercosur group.
A future EU-Mercosur Association Agreement should boost trade integration among the Mercosur countries and create new opportunities for trade and investment with the EU by removing tariff and non-tariff barriers to trade and FDI.
There's high potential economic impact is high according to a 2008 sustainability impact assessment, even though Mercosur remains a highly protected market.
The EU-Mercosur Association Agreement will cover, among other issues:
- trade in goods and services;
- intellectual property rights (IPR);
- aspects including protection of geographical indications;
- government procurement;
- technical barriers to trade, and;
- sanitary and phytosanitary aspects.
Trading with Brazil
The Commission published today the final version of the SIA on the potential impact of the EU-Mercosur agreement.
On the occasion of the EU27-LAC Informal Ministerial Meeting in Berlin on 14 December, the ratification and entry into force of the EU-Mercosur Agreement were discussed.
European Commission publishes draft Sustainability Impact Assessment for the Trade part of the EU-Mercosur Association Agreement
The Commission today published the draft version of the final assessment of the potential economic, social, environmental and human rights impact of the trade part of the association agreement between the European Union and Mercosur (Argentina, Brazil, Paraguay and Uruguay).