Mercosur-EU agreement is good for large and small companies

Geraldo Alckmin highlights that the historic Mercosur-European Union agreement will still go through stages, but it brings great opportunities for Brazil

The acting president and Minister of Development, Industry, Commerce and Services (MDIC), Geraldo Alckmin, celebrated this Friday (6) the announcement of the conclusion of negotiations on the Partnership Agreement between Mercosur and the European Union.

“Today is a historic and strategic day. After 33 years of Mercosur and more than 20 years of negotiations, the agreement between Mercosur and the European Union was finally announced. It is the largest agreement between blocks in the world. We are talking about more than 700 million people in this Mercosur-European Union agreement”, highlighted the minister in a press interview at Palácio do Planalto, in Brasília.

For the acting president, the definitive conclusion of the Partnership Agreement negotiations between the two blocs, announced during the Mercosur summit meeting in Uruguay, has great significance in a polarized world.

“This is proof of dialogue, of good politics. And I also want to highlight President Lula’s leadership, if it weren’t for President Lula, this agreement would hardly have been reached”, he stated.

The announcement of the conclusion of negotiations culminates a process that began in 2023, when MERCOSUR, under Brazilian coordination, and the European Union resumed biregional negotiations. In these two years, a total of seven rounds of face-to-face negotiations were held between the two blocs, all in Brasília.

The effect of concluding the negotiation is not immediate, explained the minister. The agreement will still undergo legal review; translation into 25 languages; signature; internalization; ratification; and entry into force.

Alckmin also highlighted that the agreement opens up opportunities for Brazil and has the support of the national confederations of Industry (CNI), Commerce (CNC) and Agriculture and Livestock (CNA). Studies show that, with the agreement, exports to the European Union could grow in agriculture (6.7%), services (14.8%) and the manufacturing industry (26.6%).

“It can help make Brazil’s GDP grow more, Brazilian exports grow more, income and employment grow more and bring down inflation. It also helps to reduce inflation. So, it is an extremely positive agenda”, he assessed.

Small companies will also benefit from the agreement, says Alckmin. “It opens up many opportunities for reciprocal understanding and reciprocal gain. We are going to encourage small companies, too, so that they can participate, not just large companies”, he highlighted.

With information from VPR*