Brazil: EU-Mercosur Trade Agreement - The Brazilian Perspective and Agricultural Impacts

On January 17, 2026, the European Union (EU) and Mercosur (Argentina, Brazil, Paraguay, and Uruguay) signed the EU-Mercosur agreement, the culmination of negotiations started in 1999. Agricultural liberalization was one of the most politically sensitive components of the negotiations, resulting in phased tariff reductions and safeguards for select agricultural products. The Brazilian agricultural sectors expected to see the greatest export gains by value include vegetable oils and fats, pork and poultry meat, and other food products. By percentage, notable increases are also anticipated for Brazilian beef, sugar, and rice exports. The European Commission estimates the agreement will boost EU agricultural exports to Mercosur by approximately 49 percent, most notably beverages, fruits and vegetables, vegetable oils, and dairy. While Mercosur countries are expected to quickly ratify the agreement, the timeline for EU ratification is less certain.