Foreign Minister Ernesto AraOjo has stated that the trade agreement between Mercosur and the European unio, announced last week, is already beginning to produce positive results (although it still needs to be ratified by each of the 32 countries involved).

"Even before the agreement comes into force, which should take some time, we are already beginning to detect a very positive impact in terms of attracting investment. Investors are looking at Brazil in a completely different way and will already start to place themselves here because of this preferential access to the European market," said the chancellor on July 4th.

The minister also said he intends to expedite enforcement of the agreement, on the Brazilian side, as soon as National Congress approves it. "We will try to have an arrangement within Mercosur so that it can enter into force as soon as it is approved in each of the blocs parliaments. On the European unio side, it is not possible to have this individual access, but on our side it is possible, we will work so that it can be done this way and these advantages start operating as soon as possible.”

The agreement covers both tariff and regulatory issues, such as services, government purchases, trade facilitation, technical barriers, sanitary & phytosanitary measures and intellectual property.

According to the terms announced, agricultural products of great interest to Brazil will have their tariffs eliminated, such as orange juice, fruit, and soluble coffee.

Brazilian companies will benefit from the abolition of tariffs on the export of industrial products. European industry will also have tariffs eliminated for sales to Mercosur, although phased in over time.