Brazil House of Representatives approves Mercosur–EU trade deal
The Brazilian House of Representatives approved on Wednesday (25) the Mercosur-European Union trade agreement which will soon be submitted to the Senate.
The document had already been approved on Tuesday (24) by the Brazilian delegation to the Mercosur Parliament (Parlasur), but still needs to be ratified by the Congresses of Argentina, Paraguay, and Uruguay.
For its part, the European Parliament has requested a legal assessment of the agreement from the Court of Justice of the European Union. The deal will enter into force only after all necessary procedures have been completed.
The text, approved by the House in a symbolic vote with only one vote against, creates a free trade area between the two blocs, including a gradual reduction of tariffs, the preservation of sensitive sectors, and safeguards and dispute resolution mechanisms.
“The agreement opens a new stage of cooperation and partnership between Mercosur and European Union countries,” stressed Federal Representative Arlindo Chinaglia.
According to the document, Mercosur will eliminate tariffs on 91 percent of European goods within 15 years. The European Union, in turn, will eliminate tariffs on 95 percent of Mercosur goods within 12 years.
Once approved, the agreement will establish the world’s largest free trade area, encompassing more than 720 million people. The Brazilian Trade and Investment Promotion Agency (ApexBrasil) estimates that its implementation could increase Brazilian exports by approximately USD 7 billion, further diversify the country’s foreign sales, and benefit domestic industry.
