The trade agreement between Mercosur and the European Union was enacted by the National Congress this week. The text is expected to take about 60 days to come into effect. On the European side, national parliaments of all member states still need to ratify the agreement, but the European Commission has already stated it will begin provisional application of the trade terms. Contributor Iara Lemos comments on Radar DN Brasil. Radar DN Brasil airs every Friday at 8 am on the DN Brasil YouTube and Spotify channels, featuring a weekly summary and everything of interest to Brazilians in Portugal.
Trade agreement between Mercosur and the European Union is enacted in Brazil. Understand the next steps
Sunday, 22 March 2026RSS
Context & Explainers
Mercosur (Mercado Comum do Sul) is South America's largest trade bloc, comprising Brazil, Argentina, Uruguay, and Paraguay as full members. It has been negotiating a landmark free trade agreement with the European Union for over two decades.
The EU-Mercosur deal matters for Portugal because of the country's deep historical, cultural, and economic ties with Brazil — Portugal's largest non-EU trading partner and home to the biggest Portuguese diaspora community. A deal would reduce tariffs on European exports (including Portuguese wine, olive oil, and textiles) while opening EU markets to South American agricultural products (beef, soy, sugar, ethanol).
Portuguese farmers, particularly in the beef and dairy sectors, have expressed concern about competition from lower-cost South American producers. Environmental groups have criticized the deal over deforestation risks in the Amazon. The agreement requires ratification by all EU member states and the European Parliament, making its passage politically complex.
