European Commission Directorate-General for Trade

Brazil

The EU is Brazil's biggest trading partner, accounting for 22.5% of its total trade (2009). It is part of Mercosur and part of the EU's ongoing negotiations for a free trade agreement with that regional group. Brazil is the single biggest exporter of agricultural products to the EU, accounting for 12.4% of total EU imports (2009) and ranks as the EU's 10th trading partner. In goods, the EU runs an overall trade deficit with Brazil of over €4.1 billion (2009but has a surplus in commercial services trade of €2.4 billion (2009). The EU  is the biggest foreign investor in Brazil with investments in many sectors of the economy.

The Brazilian market is relatively highly protected with an applied customs averaging tariff of 12% and the EU consistently encourages Brazil to reduce tariff and non-tariff barriers, and to maintain a stable regulatory environment for European investors and traders. Brazil is a key interlocutor for the EU in the on-going WTO Doha Round of world trade talks.

The EU is the biggest foreign investor in Brazil with investments in many sectors of the economy

Trade in goods

• EU goods exports to Brazil 2009: €21.6 billion
• EU goods imports from Brazil 2009: €25.7 billion

Main EU imports from Brazil are primary products, in particular agricultural products, but not exclusively since manufactured products such as machinery and transport equipment and miscellaneous manufactured products represent almost one third of Brazilian exports to the EU.

The EU's exports to Brazil are mainly manufactured products such as; machinery, transport equipment and chemicals.

Trade in commercial services

• EU services exports to Brazil 2009: €8.8 billion
• EU services imports from Brazil 2009: €6.3 billion

Foreign direct investment

• EU investment flows to Brazil 2009: €6.9 billion
• Brazil investment flows to EU 2009: €2.8 billion
• EU investment stocks in Brazil 2009: €112.5 billion
• Brazil investment stocks in EU 2009: €42.1 billion

More statistics on Brazil

EU-Mercosur negotiations

The backbone of the EU's future bilateral trade relations with Brazil will be a wide-ranging EU-Mercosur Association Agreement which will also result in the creation of a vast free trade area. This agreement which is currently under negotiation should provide a boost to regional trade integration among the countries of Mercosur and stimulate new opportunities for trade with the EU by removing tariff and non-tariff barriers to trade. The Mercosur-EU AA will cover, among other issues, trade in goods and services, investment, intellectual property rights (IPR) aspects including protection of geographical indications, government procurement, technical barriers to trade and sanitary and phytosanitary aspects.

Until summer 2004 there was gradual but substantial progress in the negotiationwhich, however, stalled in September 2004. Since then, regular contacts have taken place both at ministerial and technical level in order to explore ways on how to re-engage the process.  The Madrid Summit, which brought together Heads of State and Governments from Latin America, the Caribbean and Europe, as well as important non-state actors, resulted in a decision to re-launch negotiations of the EU-Mercosur Free Trade Agreement - a process which is now under way.

WTO

A successful conclusion of the Doha round would contribute significantly to a more open and stable environment for trade and investment for both the EU and Brazil. Brazil is part and important player in Doha process and a part of the G20 group of advanced developing countries; a group which the EU is ready to trade with in order to reach a successful outcome to the Doha talks.