It worked out! The European Union will move forward. The agreement with Mercosur came into force. After more than twenty years of negotiations, the treaty is gaining momentum at a time when Europe is seeking new trading partners and greater stability in supply chains. For many, this is a distant, diplomatic topic. For trade in Brazil and Portugal, it is anything but the advent of a myriad of possibilities worth listing.
First: lower fares. Many European products faced high taxes when entering Brazil, Argentina, Uruguay or Paraguay. With the agreement, most of these tariffs disappear or decrease significantly. This makes Portuguese products more competitive.
Second: less bureaucracy at the borders. The agreement provides for customs simplification. Less paperwork, fewer delays, more predictability in transportation. For those who export, time is money.
Third: expanded access to the agri-food market. Portuguese wines, olive oils, preserves, cheeses and gourmet products gain better conditions to compete in a market of more than 260 million people.
Fourth: more opportunities for services. Portugal exports engineering, architecture, technology and consultancy. With clearer rules, Portuguese companies can act with greater legal certainty.
Fifth: participation in public purchases. Portuguese companies now have better conditions to compete for public contracts in Mercosur, something that was previously extremely difficult.
Sixth: brand and intellectual property protection. Products with their own identity — such as wines and designations of origin — are better protected.
Seventh: integrated production chains. It is more viable to produce part in Portugal and part in Brazil, for example, and still benefit from tariff advantages.
Eighth: attracting Brazilian investment to Portugal. Brazilian companies can use Portugal as a gateway to the European market, reinforcing the country’s role as an Atlantic platform.
Ninth: more regulatory stability. Exporting is no longer an uncertain bet and now has more predictable rules.
Tenth: strategic scale. The agreement places the Portuguese businessman within an economic space that connects two large blocs. This means a larger potential market, greater capacity for growth and more room for innovation.
Mercosur EU is not just trade. It’s positioning. France resists because it fears losing. Germany supports it because it wants to sell more. And Portugal?
Portugal has an advantage that few others have: language, historical relationship and in-depth knowledge of Brazil. If Portuguese businesspeople act quickly and with strategic vision, the country can transform into a true Atlantic business platform.
The opportunity is open. What each company will do with it will define the next chapter.
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