This Tuesday, the National Congress will hold a formal session to promulgate the legislative decree that approves the trade agreement between Mercosur and the European Union, formally concluding the stage of ratification of the treaty by the Brazilian Congress. The ceremony is scheduled for 3:30 pm in the Senate plenary.
The promulgation ends the process that began at the beginning of the month, when senators approved the text of the provisional trade agreement signed between the two blocs in January this year, in Asunción, Paraguay. The treaty is the result of 27 years of negotiations and paves the way for the creation of one of the largest free trade zones in the world.
Together, Mercosur and the European Union bring together around 718 million people and a combined Gross Domestic Product of more than US$22 trillion. The agreement provides for the gradual reduction of import tariffs for industrial and agricultural products, in addition to establishing rules for areas such as investments, services, public purchases and intellectual property.
Simulations by the Brazilian government indicate that the implementation of the treaty could increase the country’s Gross Domestic Product by 0.34% by 2044, equivalent to around R$37 billion. Projections also point to a 0.76% increase in investments and 2.65% growth in Brazilian exports.
The approval of the agreement in Congress was accompanied by measures aimed at responding to concerns from productive sectors. On voting day, President Luiz Inácio Lula da Silva signed a decree that regulates commercial safeguard mechanisms to protect industry and agribusiness in cases of a sudden increase in imports.
On the international stage, the treaty still needs to advance in the internal procedures of other Mercosur countries and the European Union. The president of the European Commission, Ursula von der Leyen, has already indicated the possibility of provisional application of the commercial part of the agreement while the European Parliament analyzes the text.
Continues after advertising
The Brazilian government’s expectation is that, with the conclusion of the legislative stage in the country, the agreement will advance to the implementation phase in the coming months, expanding access to markets and deepening economic integration between the two blocs.
