Brazil’s Lower House greenlights Mercosur-EU Free Trade Agreement

By Laura Gamba

BOGOTA, Colombia (AA) - Brazil’s Chamber of Deputies approved a draft legislative decree Wednesday for a free trade agreement between the South American trade bloc Mercosur and the European Union.

The Mercosur-EU Free Trade Agreement, signed in Paraguay in January, marks the culmination of more than 25 years of negotiations.

The decree now moves to the Senate for further deliberation.

At its core, the agreement is designed to dismantle trade barriers by either eliminating or significantly reducing import and export tariffs between the two powerful blocs.

The partnership agreement between the EU and Mercosur (comprising Brazil, Argentina, Paraguay and Uruguay) forms one of the world's largest trade blocs, covering approximately 718 million people and representing a combined GDP estimated at over $22 trillion.

For the deal to take effect in Brazil, it requires the stamp of approval from both the Brazilian Congress and the European Parliament. Brazil’s implementation of the pact can proceed independently of the ratification status in other member countries.

The debate on the House floor was not without criticism, however. Representative Renildo Calheiros, speaking for the Brazil of Hope Federation, said the deal is strictly a trade agreement, not a comprehensive development strategy for the nation.

Calheiros took the opportunity to criticize Brazil’s internal economic landscape, blaming a historical "anti-national mentality" among the country's elite for the lack of industrial growth.

"Our problems are not caused by this agreement but by an elite that prefers the financial market over national industry," he said.

Calheiros pointed to a shifting global order, specifically referencing the protectionist policies of US President Donald Trump.

"The United States is unilaterally imposing absurd tariffs and ignoring multilateral organizations," Renildo noted. "As a result, the rest of the world is forced to move, seeking new partnerships and better conditions to survive this new global reality."

While the agreement offers Brazil significant advantages in agricultural exports, critics say it poses a direct threat to the country's manufacturing sector.

Calheiros described the challenges posed by the agreement as "enormous homework" that the country must now complete to avoid being left behind.