The citrus sector estimates savings of around US$250 million, equivalent to approximately R$1.3 billion, with the signing of the trade agreement between Mercosur and the European Union for Brazilian exports of orange juice in the first five years of validity.
The agreement was signed this Saturday, January 17, in Paraguay, and provides for the gradual reduction of import tariffs applied to Brazilian products in the European market. The estimate is from the National Association of the Citrus Juice Exporting Industry, CitrusBR, based on the tariff reduction schedule and data from the Foreign Trade Secretariat.
According to the entity’s executive director, Ibiapaba Netto, the calculation considers the average prices and volumes exported by Brazil over the last ten years. Based on this history, tariff discounts were projected year by year to estimate the savings in paying import tax.
“To this end, we consider the average price and volume over the last ten years and project the discounts year by year to get an idea of the savings in paying import taxes”, says Netto.
With the entry into force of the agreement, the three main types of orange juice exported by Brazil will have a progressive reduction in tariffs, with the rate zeroed over a period that varies from seven to ten years. The sector’s expectation is that, in five years, the tariff will already be around 50% lower than what is currently practiced.
Before coming into force, the agreement still needs to be approved by the European Parliament and the National Congress. CitrusBR’s assessment is that, as this is a topic of interest for both blocks, the process can be completed this year, allowing the new tariffs to come into effect from 2026.
