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Brazil

Brazil

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).

Trade picture

  • 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

Trade in goods 2014-2016, € billions
Year EU imports EU exports Balance
2014 31.2 36.9 5.7
2015 31.2 34.5 3.4
2016 29.3 30.9 1.6

EU-Brazil: Trade in services

Trade in services 2013-2015, € billions
Year EU imports EU exports Balance
2013 6.4 15.1 8.7
2014 7.4 15.2 7.9
2015 8.7 15.6 6.9

EU-Brazil: Foreign direct investment

Foreign direct investment 2015, € billions
Year Inward stocks Outward stocks Balance
2015 127.4 327.1 199.7

Date of retrieval: 15/02/2017

More statistics on Brazil

EU and Brazil

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.

More information on Mercosur

Trading with Brazil