Brazil's Export Boom: Mercosur-EU Deal Spurs Growth

Brazil's government anticipates a 13% growth in the country's exports by 2038, attributed to the comprehensive enforcement of the free trade agreement between Mercosur and the European Union. Vice President Geraldo Alckmin confirmed this in a recent interview with international media, including Reuters.

Alckmin highlighted that industrial exports could see a 26% boost within the same period, owing to the deal inked by the two blocs in January. He emphasized that while tariff cuts will be phased, nearly 5,000 product tariffs will be slashed to zero starting May 1, projecting a notable impact.

The gradual dissolution of tariffs between the EU and Mercosur, which encompasses Argentina, Brazil, Paraguay, and Uruguay, kicks off immediately and is planned for completion over 12 years. Alckmin, a former trade minister during negotiations with the EU, pinpointed sugar, fruits, beef, and poultry as initial beneficiaries.