Countries and regions
The EU is negotiating a free trade agreement with Brazil. This is part of the EU's Association Agreement negotiations with the Mercosur countries (which also includes Argentina, Uruguay and Paraguay).
Brazil is the largest economy of Latin America and its trade with the EU accounts for 30.8% of the EU's total trade with the region (2016 – EU total trade with Latin America: €195.8 bn; EU total trade with Brazil: €60.3 bn).
As regards investments, Brazil holds 48.5% of the entire EU Investment stocks in Latin America (2015).
- The EU is Brazil's first trading partner, accounting for 19.6%% of its total trade, and Brazil is the EU’s eleventh trading partner, accounting for 1.7% of total EU trade (2016). This shows the strength of our bilateral trade relationship.
- EU imports from Brazil are dominated by primary products, in particular foodstuffs, beverages and tobacco products (18.2% of EU imports from Brazil), followed by vegetable products (17.9%) and mineral products (16.3%). But manufactured products such as machinery, transport equipment and miscellaneous manufactured products are also important: they represent around one fourth of EU imports from Brazil.
- Brazil is the single biggest exporter of agricultural products to the EU worldwide.
- EU's exports to Brazil consist mainly of machinery and appliances (25.7%), chemical products (24.4%), and transport equipment (18.1%). In terms of trade in goods, from 2013 to 2016 EU exports to Brazil have decreased from €39.9bn to €30.9bn. Similarly, EU imports from Brazil have registered a decline, from €33.3bn to €29.3bn. Thus, in 2016, while the EU registered a trade in goods surplus of €1.6bn, the negative trend continues from the peak of €6.6bn registered in 2013.
- The EU also has a surplus in services trade, which is decreasing.
- The EU is the biggest foreign investor in Brazil with investments in many sectors of the Brazilian economy.
EU-Brazil: Trade in goods
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EU-Brazil: Trade in services
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EU-Brazil: Foreign direct investment
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EU and Brazil
Brazil's import restrictions
- According to the European Commission's latest Reports on Potentially Trade Restrictive Measures, over the last few years, Brazil is among the countries that have resorted to the highest number of new potentially trade-restrictive measures.
The Brazilian market is relatively highly protected with an applied customs averaging tariff of 13.5%.
The EU therefore consistently encourages Brazil to reduce tariff and non-tariff barriers, and to foster a stable and more open regulatory environment for European investors and traders.
Brazil in Mercosur
Brazil is part of Mercosur and therefore participates in the EU's ongoing negotiations for a free trade agreement with that regional group.
A future EU-Mercosur Association Agreement – currently under negotiation – should provide a boost to regional trade integration among the countries of Mercosur and stimulate new opportunities for trade and investment with the EU by removing tariff and non-tariff barriers to trade and FDI. The potential economic impact is high, also taking into consideration Mercosur maintains a highly protected market.
The EU-Mercosur Association Agreement 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 phyto-sanitary aspects.
Trading with Brazil
- Rules and requirements for trading with Brazil
- The EU is present on the ground in Brazil
- Trade relations are part of the EU's overall political and economic relations with Brazil
- Brazil is a member of the World Trade Organisation
- Ninth Report on Potentially Trade Restrictive Measures
- Sustainable impact assessment of the EU-Mercosur Association Agreement Negotiations