See what changes with the EU-Mercosur agreement, including quotas for meat and cheese, as well as zero tariffs on fruit
See what changes with the EU-Mercosur agreement, including quotas for meat and cheese, as well as zero tariffs on fruit .      The negotiation provides for a reduction in tariffs on agricultural and industrial products, as well as the purchase of services, between the two blocs The historic agreement between Mercosur and the European Union (EU), announced last Friday (6th), details tariff reductions for agricultural and industrial products, as well as service purchases between the two blocs. Negotiations began 25 years ago, in June 1999.
Mercosur + European Union: Understand the main points of the historic agreement between
Lula: Brazil managed to 'preserve its interests' in agreement
Fruits such as avocados, lemons, limes, melons, watermelons, table grapes, and apples will not be subject to quotas and will
Jornal O Globo
The historic agreement between Mercosur and the European Union (EU), announced last Friday (6th), details tariff reductions for agricultural and industrial products, as well as service purchases between the two blocs. Negotiations began 25 years ago, in June 1999.

Fruits such as avocados, lemons, limes, melons, watermelons, table grapes, and apples will not be subject to quotas and will have their tariffs completely removed. Quotas will apply to beef, poultry, and pork.

Here are some key points of the agreement:

Meat

Quotas will be set for the entry of beef, poultry, and pork into the EU. For beef, the quota is 99,000 tonnes with a 7.5% tariff. Poultry will have a quota of 180,000 tonnes with a zero tariff, and pork will have a quota of 25,000 tonnes with a tariff of €83 per tonne.

The Brazilian Association of Meat Exporting Industries (Abiec) noted that while the agreement's implementation is not immediate, it marks progress.

Between January and November this year, Brazil exported 205,000 tonnes of chicken meat to the EU, valued at $749.2 million.

Sugar and Ethanol

For sugar, the agreement allows for 180,000 tonnes at zero tariff. Paraguay received an exclusive quota of 10,000 tonnes, also at zero tariff.

For ethanol, the agreement sets a quota of 450,000 tonnes of industrial ethanol at zero tariff. For ethanol intended for other uses, including fuel, Mercosur can sell to the EU a quota of 200,000 tonnes at a tariff amounting to one-third of the rate applied in Europe.

Dairy

Mercosur cheeses will have a 30,000-tonne quota for entry into the EU, with a gradually increasing volume and decreasing tariff over ten years (except for mozzarella). Yogurt will have a 50% preference margin, and butter a 30% margin.

For European products exported to Mercosur, tariffs will gradually be eliminated within quotas: 30,000 tonnes for cheese and 10,000 tonnes for powdered milk.

Fruit

Fruits such as avocados, lemons, limes, melons, watermelons, table grapes, and apples will not be subject to quotas in the EU and will have tariffs removed. Coffee will also be quota-free.

Cachaça

Bottles of less than 2 liters will see liberalized trade within four years. Bulk cachaça will have a quota of 2,400 tonnes at zero tariff, compared to approximately 8% today.

Government Procurement

Brazilian diplomacy managed to keep the use of government procurement as a tool to boost Brazilian industry in the Mercosur-EU agreement. Generally, the aim is to discourage external purchases so the government buys from Brazilian companies. Purchases by the Unified Health System (SUS), which were part of the 2019 text, are excluded from the agreement now.

Dispute Resolution

The chapter on dispute resolution has been strengthened. It defines mechanisms for resolving disputes, with initial consultations and the possibility of arbitration, ensuring compliance with obligations. The chapter now includes a section dedicated to maintaining the balance of the agreement, regardless of any violation of agreed terms.

An additional layer was included to prevent unilateral measures by any bloc outside the agreement from causing harm. Recently, the EU has approved such initiatives, for example, to tax imports from countries engaging in deforestation.

Environmental Requirements

The final text reinforces the environmental and economic commitment while rejecting "unnecessary trade barriers." Both blocs agreed on a series of commitments to environmental protection and the promotion of decent work.

Brazil was concerned about environmental issues, fearing that Europe's new anti-deforestation law, effective at the end of 2025, would be used to hinder Brazilian goods' entry into the EU. This section of the agreement would serve as a protection mechanism against unilateral measures considered protectionist.

In english: Read more stories on O GLOBO's website

The Mercosur-EU agreement can be suspended if one party is in serious violation of the Paris Agreement or decides to abandon it. Mercosur also included its perspective on sustainable development.

The text also provides concrete commitments to halt deforestation by 2030, in line with nationally determined contributions under the Paris Agreement.

Green and Digital Transition

The agreement establishes a €1.8 billion EU fund to facilitate a fair green and digital transition in Mercosur countries. It will be used for developing sustainable value chains in forests, such as the Amazon, and adapting small and medium-sized enterprises in Mercosur, indigenous peoples, and traditional communities to the agreement's standards.

Automotive Sector

Mercosur secured more flexible conditions for tariff reduction on electrified vehicles and vehicles with new technologies, even those not yet commercially available. For electrified vehicles, the tariff reduction will occur over 18 years. For hydrogen vehicles, the period is 25 years, with a six-year grace period. For new technologies, it's 30 years, with a six-year grace period.

An unprecedented safeguard mechanism was established to preserve and expand automotive investments. If an increase in European imports causes harm to the industry, Brazil can suspend the tariff reduction schedule for the sector or resume the applicable rate to other origins (currently 35%) for three years, renewable for another two, without offering compensation to the EU.

Critical Minerals

The agreement provides flexibility for public policies on so-called critical minerals. This ensures Brazil retains the right to apply export restrictions on these minerals if deemed appropriate, for example, to encourage value addition within the country.

If Brazil imposes an export tax on these products (which is not the case today), the rate applicable to the EU must be lower than that to other destinations and cannot exceed 25%. The 2019 text prohibited any tariff in trade between Brazil and the EU.
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https://oglobo.globo.com/english/noticia/2024/12/07/see-what-changes-with-the-eu-mercosur-agreement-including-quotas-for-meat-and-cheese-as-well-as-zero-tariffs-on-fruit.ghtml
2024-12-08
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     The negotiation provides for a reduction in tariffs on agricultural and industrial products, as well as the purchase of services, between the two blocs The historic agreement between Mercosur and the European Union (EU), announced last Friday (6th), details tariff reductions for agricultural and industrial products, as well as service purchases between the two blocs. Negotiations began 25 years ago, in June 1999.
Mercosur + European Union: Understand the main points of the historic agreement between
Lula: Brazil managed to 'preserve its interests' in agreement
Fruits such as avocados, lemons, limes, melons, watermelons, table grapes, and apples will not be subject to quotas and will have their tariffs completely removed. Quotas will apply to beef, poultry, and pork.
Here are some key points of the agreement:
Meat
Quotas will be set for the entry of beef, poultry, and pork into the EU. For beef, the quota is 99,000 tonnes with a 7.5% tariff. Poultry will have a quota of 180,000 tonnes with a zero tariff, and pork will have a quota of 25,000 tonnes with a tariff of €83 per tonne.
The Brazilian Association of Meat Exporting Industries (Abiec) noted that while the agreement's implementation is not immediate, it marks progress.
Between January and November this year, Brazil exported 205,000 tonnes of chicken meat to the EU, valued at $749.2 million.
Sugar and Ethanol
For sugar, the agreement allows for 180,000 tonnes at zero tariff. Paraguay received an exclusive quota of 10,000 tonnes, also at zero tariff.
For ethanol, the agreement sets a quota of 450,000 tonnes of industrial ethanol at zero tariff. For ethanol intended for other uses, including fuel, Mercosur can sell to the EU a quota of 200,000 tonnes at a tariff amounting to one-third of the rate applied in Europe.
Dairy
Mercosur cheeses will have a 30,000-tonne quota for entry into the EU, with a gradually increasing volume and decreasing tariff over ten years (except for mozzarella). Yogurt will have a 50% preference margin, and butter a 30% margin.
For European products exported to Mercosur, tariffs will gradually be eliminated within quotas: 30,000 tonnes for cheese and 10,000 tonnes for powdered milk.
Fruit
Fruits such as avocados, lemons, limes, melons, watermelons, table grapes, and apples will not be subject to quotas in the EU and will have tariffs removed. Coffee will also be quota-free.
Cachaça
Bottles of less than 2 liters will see liberalized trade within four years. Bulk cachaça will have a quota of 2,400 tonnes at zero tariff, compared to approximately 8% today.
Government Procurement
Brazilian diplomacy managed to keep the use of government procurement as a tool to boost Brazilian industry in the Mercosur-EU agreement. Generally, the aim is to discourage external purchases so the government buys from Brazilian companies. Purchases by the Unified Health System (SUS), which were part of the 2019 text, are excluded from the agreement now.
Dispute Resolution
The chapter on dispute resolution has been strengthened. It defines mechanisms for resolving disputes, with initial consultations and the possibility of arbitration, ensuring compliance with obligations. The chapter now includes a section dedicated to maintaining the balance of the agreement, regardless of any violation of agreed terms.
An additional layer was included to prevent unilateral measures by any bloc outside the agreement from causing harm. Recently, the EU has approved such initiatives, for example, to tax imports from countries engaging in deforestation.
Environmental Requirements
The final text reinforces the environmental and economic commitment while rejecting "unnecessary trade barriers." Both blocs agreed on a series of commitments to environmental protection and the promotion of decent work.
Brazil was concerned about environmental issues, fearing that Europe's new anti-deforestation law, effective at the end of 2025, would be used to hinder Brazilian goods' entry into the EU. This section of the agreement would serve as a protection mechanism against unilateral measures considered protectionist.
In english: Read more stories on O GLOBO's website
The Mercosur-EU agreement can be suspended if one party is in serious violation of the Paris Agreement or decides to abandon it. Mercosur also included its perspective on sustainable development.
The text also provides concrete commitments to halt deforestation by 2030, in line with nationally determined contributions under the Paris Agreement.
Green and Digital Transition
The agreement establishes a €1.8 billion EU fund to facilitate a fair green and digital transition in Mercosur countries. It will be used for developing sustainable value chains in forests, such as the Amazon, and adapting small and medium-sized enterprises in Mercosur, indigenous peoples, and traditional communities to the agreement's standards.
Automotive Sector
Mercosur secured more flexible conditions for tariff reduction on electrified vehicles and vehicles with new technologies, even those not yet commercially available. For electrified vehicles, the tariff reduction will occur over 18 years. For hydrogen vehicles, the period is 25 years, with a six-year grace period. For new technologies, it's 30 years, with a six-year grace period.
An unprecedented safeguard mechanism was established to preserve and expand automotive investments. If an increase in European imports causes harm to the industry, Brazil can suspend the tariff reduction schedule for the sector or resume the applicable rate to other origins (currently 35%) for three years, renewable for another two, without offering compensation to the EU.
Critical Minerals
The agreement provides flexibility for public policies on so-called critical minerals. This ensures Brazil retains the right to apply export restrictions on these minerals if deemed appropriate, for example, to encourage value addition within the country.
If Brazil imposes an export tax on these products (which is not the case today), the rate applicable to the EU must be lower than that to other destinations and cannot exceed 25%. The 2019 text prohibited any tariff in trade between Brazil and the EU.
The translation of this text into english was carried out by Project Irineu, O GLOBO's initiative to develop artificial intelligence tools. Here is the link to the original report.
See what changes with the EU-Mercosur agreement, including quotas for meat and cheese, as well as zero tariffs on fruit