Bolsonaro expects Mercosur–EU deal effective in up to three years

President Bolsonaro said in Brasília Sunday (Jun 30) he expects Congress to be one of the first to approve the free-trade deal between Mercosur and the European Union (EU) signed Friday (28).

After the agreement is examined by the relevant Brazilian ministries, the government will submit the treaty to Congress, where it will be deliberated upon by commissions before being considered by both congressional houses.

If approved, the pact will eliminate import tariffs on over 90 percent of goods traded by both blocs.

What specialists think

Analysts heard by Agência Brasil, like Ammar Abdelaziz with BMJ Consultoria, believe Congress may take three to four years to ratify the agreement. Bolsonaro, however, is more optimistic.

“The information I have is the best possible. It’s expected to be brought into effect in two, three years. It depends on the Parliaments. Let’s see if ours will be among the first to approve it. It’s what we expect,” the president noted after arriving back in Brasília from the G20 summit in Japan.

The treaty should favor business between Mercosur and the EU, boosting the Brazilian GDP by around $87.5 billion over the course of 15 years, as per estimates from the Economy Ministry.