Brazil: Mercosur–European Union agreement comes into force
On April 28, the Brazilian government signed the presidential decree allowing the immediate application of the Mercosur–European Union Trade Agreement in Brazil, enabling its entry into force on May 1.
With the commercial chapter entering into force, even on a provisional basis, the agreement provides for: gradual tariff reductions; elimination of trade barriers; and greater regulatory predictability.
Opportunities
For the textile and apparel industry, the agreement creates opportunities for Mercosur companies to gain greater access to a market that imports approximately €115 billion annually. The Abit (Brazilian Textile and Apparel Industry Association) considers the agreement’s entry into force a significant step toward strengthening trade relations and enhancing Brazil’s competitive integration into the global economy. The Association welcomes this progress, recognizing its potential to expand investments, exports, innovation, and job creation.
The reduction of import duties established under the agreement will be implemented gradually for most textile and apparel products.
For the textile and apparel industry, the agreement creates opportunities for Mercosur companies to gain greater access to a market that imports approximately €115 billion annually. The Abit (Brazilian Textile and Apparel Industry Association) considers the agreement’s entry into force a significant step toward strengthening trade relations and enhancing Brazil’s competitive integration into the global economy. The Association welcomes this progress, recognizing its potential to expand investments, exports, innovation, and job creation.
The reduction of import duties established under the agreement will be implemented gradually for most textile and apparel products.
Ongoing cooperation
Abit and Euratex, together with other sector associations from Mercosur, AICP and FITA, created the EU-Mercosur Free Trade Agreement – Textile and Apparel Dialogue. The initiative aims to provide an organized framework for ongoing cooperation between the textile and apparel industries on both sides of the Atlantic.
More recently, on April 27, Abit participated in important meetings in Europe. In Prato, in the Tuscany region of Italy, the Association attended the Italy–Latin America Economic Forum alongside institutional and business leaders in sector-focused panels aimed at expanding economic cooperation. In the city of Porto, Portugal, Abit also took part in the event Em Foco Brasil – Textile and Apparel Sector, where it addressed the current landscape of Brazil’s textile industry and joint opportunities, as well as the impacts of the European Union–Mercosur agreement on the textile and apparel sector.
