Mercosur–European Union Agreement Enters into Force

On April 28, the Brazilian government signed the presidential decree allowing the immediate application of the Trade Agreement between Mercosur and the European Union in Brazil, enabling its entry into force on May 1.

With the entry into force of the commercial pillar, even on a provisional basis, the agreement provides for a gradual reduction of tariffs, the elimination of trade barriers, and greater regulatory predictability.

For the textile and apparel industry, the agreement offers the opportunity for Mercosur companies to gain greater access to a market that imports around €115 billion annually.

The reduction of import duties provided for in the agreement will be gradual for most textile and apparel products and can be consulted in the official text of the agreement (Annex 10).

It is also possible to consult the rules of origin that must be followed in the production process for goods to qualify for the agreement’s tariff preferences (Annexes 11-A and 11-B).

Check out some questions and answers released by the government regarding the entry into force of the agreement and how to use it in practice.

Abit and Euratex, together with other sector associations in Mercosur, AICP and FITA, created the EU–Mercosur Free Trade Agreement – Textile and Apparel Dialogue. The initiative aims to provide an organized framework for ongoing cooperation between the textile and apparel industries on both sides of the Atlantic.