Brazil sees 26% surge in EU exports as Mercosur‑EU pact begins

Vice‑President Geraldo Alckmin announced that Brazilian exports to the European Union rose by about R$ 10 billion – a 26 % increase – in the first two months after the provisional Mercosur‑EU trade agreement took effect on 1 May. The jump was driven by higher sales of agricultural products such as mango, coffee and honey, alongside industrial shipments of machines and engines.

The agreement foresees an immediate reduction of tariffs on roughly 91 % of Mercosur goods and 95 % of EU imports, with further cuts scheduled over the coming years. ApexBrasil reported a €1.7 billion rise in May‑June and a total of €23.5 billion for the first half of the year, up 12.8 % year‑on‑year. The growth comes as the United States imposed a 25 % retaliatory tariff on several Brazilian products, prompting Brazil to diversify its export markets toward Europe and other regions.

Analysts see the surge as an early indication that the tariff reductions are already influencing trade flows, helping Brazil lessen its dependence on the US market and expand its presence in Europe, Asia and India.