Brazil Trade Agreements With Other Countries

While Brazil was one of the main Latin American architects of the defeat of the free trade agreement, its economic policy has, in many cases, been in favour of signing free trade agreements. Given its dominant position in Mercosur and on the continent in general, it has focused its efforts on securing such agreements in the institutional for a of which it is a member. The EU encourages Brazil to remove tariff and non-tariff barriers and promote a stable and more open regulatory environment for European investors and traders. Mercosur, in particular, is actively involved in the search for negotiations with India, Central America, the Southern African Customs Union and Algeria. Brazil negotiates a free trade agreement with the EU under the Mercosur Group. At the same time, Brazil is negotiating with India and South Africa, with which it is the largest economic bloc of the southern countries within the IBSA, creating tensions within Mercosur. The project will then focus on a study on fair and fair trade in Brazil and will hold a second forum in December 2018. In many cases, these trade agreements are being pursued as part of the administration`s policy to expand agrofuel (ethanol) markets. In March 2011, Brazil signed a Trade and Economic Cooperation Agreement (ATEC) that many analysts see as a first step towards a free trade agreement. Since 2010, Brazil has also insisted on a free trade agreement with Mexico.

The main categories of imports (double-digit SH) in 2019 were: petroleum fuels ($5.2 billion), iron and steel ($3.4 billion), aircraft ($2.7 billion), other special aircraft ($2.5 billion) and machinery ($2.4 billion). Brazil is Latin America`s largest economy and its trade with the EU accounts for 30.8% of the EU`s total trade with Latin America in 2016. Brazil is one of the countries that, according to the latest European Commission report, has resorted to a large number of potentially restrictive measures. The United States recorded a service surplus of $18 billion with Brazil in 2019, down 11.6% from 2018. A future association agreement between the EU and Mercosur should promote the integration of trade between Mercosur countries and create new trade and investment opportunities with the EU, eliminating direct investment and non-tariff and non-tariff direct investment. Unless otherwise stated, you keep in mind the “EU concerns” for all the years indicated, the Current European Union with 27 Member States. The association agreement BETWEEN the EU and Mercosur will include the following issues: the EU is negotiating a free trade agreement with Brazil as part of the negotiations of the EU Association Agreement with Mercosur countries (including Argentina, Uruguay and Paraguay).

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