Senator Alcolumbre stated that the agreement represents the realization of a dream that has lasted nearly thirty years, once again demonstrating the institutional maturity of the Brazilian Parliament in safeguarding the interests of society. Rapporteur Senator Tereza Cristina emphasized that although the agreement is not perfect, it is necessary and beneficial for Brazil.
Chairman of the Foreign Relations Committee Senator Nelsinho Trad described the agreement as a historic step for the Brazilian economy. Trad highlighted its importance in revitalizing the economy, creating jobs, attracting investments, and diversifying the export portfolio.
Under the agreement, safeguard measures will be activated to allow the suspension of tariff preferences in case of surges in imports of sensitive products from Mercosur. Senators Jorge Seif, Jayme Campos, and Jaime Bagattoli stressed that these measures are critical to protecting Brazilian producers.
The interim agreement also includes balancing mechanisms that allow parties to seek compensation in the event of damage caused by different applications. Issues such as the EU’s mechanism for suspending customs duties and the regulation on deforestation-free products (EUDR) continue to generate debate between the parties.
The Mercosur-EU partnership encompasses approximately 718 million people and a combined GDP of 22.4 trillion US dollars. The European Union is Brazil’s second-largest trading partner. Senator Randolfe Rodrigues noted that the agreement not only opens new markets for the agricultural sector but also represents Brazil’s repositioning in global trade.
The agreement will enter into force upon approval by both parties. The European Commission announced that trade provisions will be applied provisionally before all national parliaments give their approval. However, the European Parliament has referred the text to the Court of Justice of the European Union, and the legality assessment could take up to two years. Some countries (France, Hungary, Austria, Ireland) voted against the text.
The Brazilian government expects the agreement to enter into force within 60 days.
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