Approval of the trade agreement between the European Union and Mercosur, expected to be signed on the 17th of this month, according to Vice President Geraldo Alckmin, could lead to higher cargo volumes at the Port of Santos. The increase would be driven by sectors positioned to expand exports and imports under the agreement.
The EU-Mercosur pact covers 27 countries, representing a combined market of 718 million people and a total GDP of about US$22.4 trillion. If implemented, the agreement is expected to reshape trade flows between the two blocs, with implications for port operations and logistics infrastructure.
According to Anderson Pomini, president of the Santos Port Authority, the port is preparing for higher demand through ongoing logistics and infrastructure projects. These include deepening the navigation channel, improving access on both banks of the port, progressing with the Santos–Guarujá tunnel project, and advancing other planned works.
Pomini also pointed to the need to resolve bottlenecks delaying the STS10 container terminal, expand the port's operational perimeter, and develop truck logistics hubs. These measures are intended to adapt the port's structure to medium and long term demand.
Brazil's agribusiness sector, along with manufacturers of machinery and vehicles and companies such as Embraer, is expected to increase trade with European Union markets under the agreement. In the agricultural segment, products expected to benefit include beef, pork, and poultry, which would be granted preferential quotas and tariff reductions.
Fresh fruit exports, including avocados, melons, and table grapes, are expected to gain tariff-free access to EU markets within a transition period of up to seven years. Coffee, both green and soluble, would face lower tariffs, while ethanol and sugar would be traded under preferential quotas with reduced duties. Tariffs on orange juice are also expected to be eliminated.
Pomini noted that the agreement's effects may extend beyond trade with Europe. In his assessment, the deal, which took 26 years to negotiate and involves complex technical frameworks, could also encourage interest from Asian economies such as India or from Middle Eastern countries in pursuing trade agreements with Mercosur. Such outcomes could lead to additional increases in trade volumes, although these impacts have not yet been quantified.
