Brazil Hopeful on Mercosur-EU Deal, Cautious on U.S. Tariffs
The Brazilian Association of Fruit and Derivative Producers and Exporters (Abrafrutas) believes the Mercosur-European Union (EU) Agreement is nearing completion, but remains cautious about the potential reduction of the additional 50% tariffs imposed by the United States.
Positive Developments in Europe
Jorge de Souza, Abrafrutas' technical and project manager, highlighted that the European trade environment has improved significantly in recent months. There is a more favorable atmosphere for advancing negotiations between Mercosur and the EU, as some countries that were previously resistant are showing greater flexibility.
"Everyone realized that those who are aligned, from a strategic point of view, are better off uniting, because united they will be in a better position than if they remain separate. So, I think it is very likely that [the Mercosur-EU agreement] will be signed by the end of the year,"
— Jorge de Souza, Abrafrutas
Uncertainty on U.S. Trade Decisions
Despite progress with the EU, Souza expressed caution regarding U.S. trade policy, emphasizing that decisions remain unpredictable and heavily influenced by political factors. The additional 50% tariffs imposed by the U.S. continue to be a concern for Brazilian exporters.
Global Trade Tensions Influence Positions
According to Souza, global trade tensions, especially due to U.S. protectionist actions, have prompted some European governments to reconsider their earlier stances on the agreement, moving toward unity and strategic alliances.
Summary
Abrafrutas sees significant progress in Mercosur-EU talks but remains wary of unresolved U.S. tariffs, reflecting broader shifts in global trade dynamics and political uncertainty.
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