President Lula submits Provisional Trade Agreement between Mercosur and the European Union to the National Congress

President Luiz Inácio Lula da Silva submitted the Provisional Trade Agreement between Mercosur and the European Union to the National Congress on Monday, February 2. The order was published in a special edition of the Federal Official Gazette.

The agreement will bring together two of the world’s largest economic blocs. Combined, Mercosur and the EU represent a market of roughly 718 million people and a gross domestic product (GDP) of approximately USD 22.4 trillion. In terms of trade volume, it is both the largest trade agreement ever concluded by Mercosur and one of the largest ever signed by the EU.

EXPANSION STRATEGY — The Mercosur–European Union Partnership Agreement, the result of more than 25 years of negotiations, is part of a broader strategy to expand the trade agreement network of Mercosur and Brazil. The agreement will significantly expand access for South American products to the European Union market by eliminating tariffs on approximately 95 percent of goods imported by the bloc, under phased implementation schedules.

The agreement establishes a range of political cooperation mechanisms between Mercosur and the European Union, creating dialogue platforms that will strengthen collaboration on global debates and contribute to a more just and peaceful international order.

For Brazil, the agreement holds strategic value on several fronts. The European Union is Brazil’s second-largest trading partner, with bilateral goods trade reaching approximately USD 100 billion in 2025. The agreement is expected to further diversify Brazil’s trade partnerships while promoting the modernization of the country’s industrial base through deeper integration into European value chains.

NEXT STEPS — With the signing of the agreement, the process of domestic approval by the parties involved has begun, a necessary step for the instrument to enter into force. In Brazil, the Provisional Trade Agreement has been submitted to the National Congress, which is responsible for legislative review and approval.

In the other Mercosur countries, the internal approval process follows a similar path. Within the European Union, however, the trade agreement requires approval only by the European Parliament.

Once the internal procedures are completed, the parties will notify one another that the legal requirements have been met, formally confirming their commitment to implementation through ratification.