Brazil, European nations urge ratification of Mercosur-EU deal amid trade war

São Paulo, Oct 23 (EFE).– The trade agreement between Mercosur and the European Union (EU), still awaiting ratification by the European Council, has gained strategic importance in the view of Brazil and several EU member states as a response to the trade war launched by U.S. President Donald Trump.

Calls for the swift ratification of the deal have multiplied in countries such as Germany, Spain, Uruguay, and Brazil, which hope to sign it in December during the Mercosur summit in Brasília.

The agreement, finalized in 2024 after two decades of talks, will create a free trade area encompassing well over 700 million people with a combined gross domestic product (GDP) of $22 trillion.

“Brazil and the EU have a strategic relationship that, after the U.S. tariffs, has become even more central. For many sectors, the EU has taken on the role of a natural counterweight in market diversification,” Aloysio Nunes, head of strategic affairs at the Brussels office of the Brazilian Trade and Investment Promotion Agency (ApexBrasil), said in an interview with EFE.

For Brazil, the tariffs have been particularly harsh. Since August, about 34.9% of Brazilian products have faced a 50% customs duty in the United States.

Most EU-origin goods have been subject to a minimum 15% tariff to enter the U.S., but duties on steel, aluminum, and copper have reached 50%.

In this context, Nunes stressed that blocs such as Mercosur and the EU, “which share common values,” must continue seeking new paths of cooperation to withstand external pressures.

Strategic allies

The Mercosur-EU alliance was endorsed in September by the European Commission, paving the way for its ratification by the European Council, something ApexBrasil president Jorge Viana welcomed.

He told EFE the treaty has the potential to “reshape the global economic landscape,” establishing a bi-regional free trade zone covering over 700 million people.

Viana said this strategic cooperation platform between economies that together account for 25% of global GDP—with tariff eliminations on 97% of industrial goods and 77% of agricultural products—could boost Brazil’s exports to the EU by up to $7 billion in the short term.

He also noted that ApexBrasil had identified 6,740 export opportunities for Brazil to its third-largest trading partner.

“If protectionist measures persist in certain countries, new opportunities may arise in others, where lower tariffs make Brazilian products more competitive,” he said.

For her part, the EU ambassador to Brazil, Marian Schuegraf, told EFE that “in times of geopolitical turbulence, reliable partners are essential.”

“Amid growing nationalism and protectionism worldwide, let’s show that constructive cooperation beyond our own borders and regions is worthwhile,” she added.

A hard blow from the U.S.

The Mercosur-EU deal has faced opposition from several European countries, led by France, where farmers continue to protest against the pact.

To ease French concerns, the European Commission proposed in early September new safeguard clauses to address sudden surges in imports or price drops, particularly for sensitive agricultural products.

Trump’s tariff war has also helped soften some resistance within the French government.

Schuegraf said the agreement “will expand reciprocal investment flows and give Mercosur industries time to modernize, grow and compete.”

She also underscored that the partnership reflects a “shared commitment to sustainable development” and includes institutional mechanisms to ensure that trade “contributes to the green transition.”

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EFE published this report with the support of ApexBrasil.

File photo of Brazil’s Foreign Minister Mauro Vieira (L) and the European Union’s High Representative for Foreign Affairs and Security Policy, Kaja Kallas, during a press conference at the Itamaraty Palace in Brasília, Brazil. EFE/ Andre Borges