Export-oriented sectors of the Brazilian economy are assessing business opportunities and challenges linked to the free trade agreement between Mercosur and the European Union, scheduled to be signed next Saturday (January 24th) in Paraguay.
Brazilian fruit exporters are monitoring developments closely, following years of negotiations. Europe is already the main destination for Brazilian fruit exports, but competition has been strong from suppliers that currently benefit from tariff-free access. Grapes are one example, where a Brazilian product has faced an import duty of 11 per cent.
Under the agreement, this tariff is expected to be reduced to zero once the deal enters into force, a process that could take several months. Import duties on other fruits, including avocado, lemon, melon, and watermelon, will be phased out over longer transition periods. Apples face the longest timeline, with tariff elimination scheduled over ten years.
Luiz Roberto Barcelos, director of the Brazilian Association of Fruit and Derivative Producers and Exporters, said Brazil's export potential remains underutilised. "One of the problems we've always had is this issue of tariffs; from the moment we remove this barrier, we facilitate the entry of our products into this market," says Luiz Roberto Barcelos, director of the Brazilian Association of Fruit and Derivative Producers and Exporters (Abrafrutas).
Beyond fresh produce, analysts also see broader implications for agribusiness. Brazil already holds a strong position in exports of grains and meat, but the agreement may support the development of higher-value derivatives. These include cheeses, distilled beverages such as cachaça, and olive oils, which may gain improved access to European markets.
Marcos Jank, professor of global agribusiness at Insper, said the agreement could also encourage structural changes in Brazil's export strategy. "They have strong brands, they have standards, they have designations of origin, right? And that's what we also need to diversify our export portfolio, right? And perhaps this integration will help us to jointly develop value-added markets around the world."
As implementation details are clarified, Brazilian exporters across agriculture are reviewing how reduced tariffs and closer market integration could reshape future trade flows with the European Union.
Source: Jornal Nacional / Abrafrutas
