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Countries covered by the Mercosur-European Union agreement represent about 25% of all world wealth

Common Market

Check the summary of the commercial agreement announced last week

The Brazilian government has released a summary of the trade agreement announced last week. The full text follows in technical revision and still needs to be approved by the parliaments (European and the four countries that make up the Mercosur) and published by the two blocs.

The special secretary of Foreign Trade and International Affairs, Marcos Troyjo, who led the negotiations by the Ministry of Economy, defines the agreement as a historical moment, that changes the economic scenario of the country "This is an agreement that covers more than 90% of all economy of the European Union and also of Mercosur, is the largest trade agreement between blocs in the history of the world economy, "he says.

The secretary emphasizes that the agreement between blocks does not affect Brazil's trade relations with the other countries. "Doing this agreement with the European Union we do not want to increase our current trade with that part of the world to the detriment of others, we want to increase our business with China and with the United States, for example, and not only trade but also investments "He said.

Brazilian companies will benefit from the elimination of export tariffs of 100% of industrial products. Some agricultural products of great interest in Brazil will also have their tariffs eliminated, such as orange juice, fruit and soluble coffee. Brazilian exporters will have broader access, through quotas, to meat, sugar and ethanol, among others.

The agreement includes tariff and non-tariff aspects. In public procurement, for example, Brazilian companies will be able to participate in the European Union bidding market, estimated at US $ 1.6 trillion. The agreement will also promote an increase in the competitiveness of the Brazilian economy, by guaranteeing, for domestic producers, access to inputs of high technological content and with lower prices.

According to the document, the EU countries will recognize as distinctives of Brazil various products, such as cachaças, cheeses (such as Serra da Canastra), wines and coffees. This will make our products compete on equal terms with other partners who already have free trade agreements with the European Union.

Agreement in numbers

The agreement between the European Union and Mercosur will create one of the largest free trade areas in the world, because together these countries account for about 25% of all wealth produced in the world, about $ 20 trillion and a market of more than 780 millions of people.

The Ministry of Economy estimates that the agreement will represent an increase of the Brazilian Gross Domestic Product (GDP) of US $ 87.5 billion over 15 years, reaching US $ 125 billion.

The increase in investments in Brazil in the same period will be in the order of US $ 113 billion. With regard to trade between Brazil and the European Union alone, Brazilian exports will present almost US $ 100 billion in earnings by 2035.