By Patrícia Ribeiro* | Cassab Law Advogados
01 July 2019
Mercosur and the European Union concluded last Friday (June 28) a Free Trade Agreement whose negotiations began 20 years ago.
The documents that make up the agreement have not been released yet, but information available reports its tariff and regulatory scope, including services, government procurement, barriers, sanitary measures and intellectual property.
Here are some highlights that have already been released:
• Some of the items that will have tariffs eliminated: chemicals and pharmaceuticals, machinery, cars and automotive parts, clothing, shoes and textiles;
• The agreement provides tariff elimination for several Brazilian agricultural products that are exported, such as fruit juices, soluble coffee, fish, crustaceans and vegetable oils;
• Other Brazilian products such as chicken, beef, sugar and ethanol will have quotas for entry into the European Union with zero tariffs;
• Removal of unwarranted barriers for negotiation through electronic devices and protection of personal data;
• Protection of names of products originated in its respective regions, such as “cachaça”, “Mendoza wine”, “Di Parma” ham, among others;
• Compliance with environmental and labor obligations.
The agreement will be translated into the languages of the member countries of the two blocs and will need to be ratified by the parliaments of the European Union and member countries, as well as of the Mercosur countries. In Brazil it will be analyzed by the House of Representatives and the Senate.
Official statistics show that in 2018 the European Union was the second largest destination of Brazilian exports, second only to China.
As additional information is disclosed, Cassab Law Advogados will analyze and report it to its clients.
*Patrícia Ribeiro is a partner at Cassab Law – Advogados; Master of Laws by the University of California, Davis School of Law; graduate in Brazilian Business Law by Escola de Direito de São Paulo (FGV); Transactional lawyer with practice in the areas of Regulatory Law, Compliance, Business Law and Government Relations.