Brazil: Potential Agricultural Trade Implications of the EU-MERCOSUR FTA

The EU-Mercosur Free Trade Agreement (FTA) is currently being negotiated between the four Mercosur countries (Argentina, Brazil, Paraguay and Uruguay. Venezuela was recently suspended) and the European Union (EU). Negotiations for the EU-Mercosur FTA began in 1999; however, failing to agree with each other’s final offers in 2004 the negotiations were on hiatus until May 2010. Ten rounds of negotiations took place between 2010 and 2012 until negotiations were again suspended. May, 2016 was the first time that both blocs exchanged offers since the re-launch, but these offers are still being negotiated with the next round to be held in September of 2017. Despite market access for agricultural products and food safety concerns remaining as outstanding issues between both blocs, there is a political commitment between the parties to reach an agreement by early 2018. If an agreement is reached, U.S. agricultural exporters could face further competition in Brazil.  

Brazil: Potential Agricultural Trade Implications of the EU-MERCOSUR FTA