Mercosur and the European Union sign free trade agreement | International Trade Newsletter 38

28 . June . 2019
International Trade Newsletter 38

Mercosur and Brazil closed today a trade agreement at historical moment, after 20 years of negotiations. The agreement involves 28 countries of the European Union and the 4 Mercosur countries, that is, Argentina, Brazil, Paraguay and Uruguay, impacting business operations of several companies present in Brazil. According to the Brazilian Foreign Trade Secretary, Marcos Troyjo, the agreement between Mercosur and the European Union will affect 750 million consumers in all territories.

The text of the agreement has not been disclosed yet. However, import tariff reductions on goods of several sectors are expected. Most part of Mercosur’s exports to the European Union consists of agricultural products, while most part of Mercosur’s imports originating from the European Union consists of manufactured goods.

For your reference, in 2018, Brazil itself imported USD 34 billion in products originating from the European Union and exported USD 42 billion to the same partner in the same period.

The International Trade Team remain at your disposal for further information.


 

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