EU-Mercosur Β· Enters into force May 1, 2026

The €77.6B Corridor.

An intelligence brief on the EU–Mercosur Free Trade Agreement: live trade flows, sectoral impact, and what activates on May 1, 2026.

Live Corridor Map
πŸ‡ͺπŸ‡Ί
EU
US$120B+
πŸ‡§πŸ‡·
Mercosur

Interactive corridor map Β· Bilateral trade flows

€0B
Annual Tariff Savings
0%
Goods Tariff-Free
0M
Integrated Market
0K
Jobs Created in Europe

Trade Flow Visualizer

Sectoral composition of bilateral trade β€” what moves in each direction.

EU β†’ MERCOSUR

Machinery
28%
Chemicals
22%
Auto Parts
18%
Pharma
15%
Services
17%

MERCOSUR β†’ EU

Agri & Food
32%
Iron & Steel
22%
Energy
18%
Minerals
15%
Other
13%

Source: Eurostat & MDIC Brazil, 2023 figures. Shares approximate.

Macro Economic Impact

Projected impact by 2040 β€” EU vs. Mercosur side-by-side.

Metric
EU Impact
Brazil Impact
GDP Growth
+€77.6B
+2.7% GDP
Export Growth
+3.6%
+7.7%
Investment Increase
+€6.7B
+15.1%
Jobs Created
+440K
+780K
Consumer Prices
-0.1%
-0.5%
Real Wages
+0.1%
+0.3%
Tariff Savings
€4.5B/yr
N/A

The Germany-Brazil Corridor

Germany is Brazil's largest European trade partner β€” and vice versa.

US$20.9B
Bilateral Trade
1,600+
German Companies in Brazil
61.5%
EU FDI from Germany
+70.7%
Trade Growth (10yr)
Trade Flow
Value
Key Detail
Germany β†’ Brazil
US$14B
Machinery, auto parts, chemicals
Brazil β†’ Germany
US$9.25B
Iron ore, soybeans, coffee, minerals
Ranking
4th
4th largest EU trade partner for Brazil

Tariff Elimination Schedule

Key sectors with tariff reduction to 0% upon full implementation.

Sector
Current Tariff
After Agreement
Phase-Out
Machinery & Equipment
14-20%
0%
7 years
Automotive
35%
0%
15 years
Pharmaceuticals
12-14%
0%
10 years
Chemicals
3-6.5%
0%
10 years
Gov. Procurement
Restricted
Open Access
Immediate

Sectoral Opportunities

Industrial and agricultural sectors with the highest growth potential.

Industrial Sectors

Automotive Parts

Full tariff elimination on parts; local assembly incentives

Renewable Energy

Wind & solar equipment tariff-free; green hydrogen corridor

Machinery

14-20% tariffs eliminated; immediate market access

Pharmaceuticals

Patent protection + tariff elimination = competitive pricing

Digital Services

Data flow provisions; regulatory cooperation framework

EU Agricultural Export Growth

Product
Projected Growth
Cheese & Dairy
+155%
Wine & Spirits
+98%
Olive Oil
+66%
Chocolate & Confectionery
+44%

Critical Minerals & Raw Materials

Strategic access to minerals essential for Europe's green and digital transition.

82%
Global Niobium Supply (Brazil)
12x
Lithium Demand Growth by 2030
6
Minerals with Export Tax Elimination

Niobium

Essential for superconductors and high-strength steel alloys

Lithium

Critical for EV batteries and energy storage systems

Tantalum

Used in electronics, capacitors, and medical devices

Graphite

Key material for battery anodes and industrial applications

Cobalt

Essential for rechargeable battery cathodes

Rare Earths

Critical for wind turbines, EVs, and defense technology

Government Procurement Access

For the first time, Mercosur opens public procurement to EU companies β€” and vice versa.

€8B
Brazil Procurement Market
€2.4T
EU Procurement Market

Brazil Exceptions (Reserved Sectors)

β€’ National defense and military equipment
β€’ Public health (SUS) basic supplies
β€’ Small enterprise set-asides (< R$80K)
β€’ Strategic technology programs (MCTI)

Services & Regulatory Cooperation

Geographic indications protection and digital services framework.

37
Brazilian GIs Protected in EU
358
EU GIs Protected in Mercosur

Excluded Service Sectors

β€’ Audio-visual and cultural services
β€’ National maritime cabotage
β€’ Air transport traffic rights
β€’ Government-subsidized services

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