Brazil's Vice President Geraldo Alckmin has described the long-awaited trade agreement between the South American Mercosur bloc and the European Union as a beacon of hope in an increasingly protectionist global environment. The deal, which concluded a quarter-century of negotiations, is set to provisionally take effect on May 1.
Alckmin's Remarks on the Deal
Speaking at the presidential palace in Brasilia, Alckmin emphasised the significance of the pact. "In a moment that the world much needed it, at a time of protectionism, a tough world, this gives a message that it is possible to open markets," he stated. He described it as "the biggest deal between trade blocs in the world, a market of $22 trillion and 720 million people."
The agreement was signed on January 17, despite fierce opposition from farmers and environmentalists that delayed it in December. EU lawmakers subsequently sent the deal to the bloc's judiciary, but the European Commission opted to provisionally enact it, bypassing the European Parliament. If the European Court of Justice rules against it, the deal will be halted.
Strategic Importance
Alckmin stressed that failing to finalise the agreement would have left Mercosur behind while competitors pursued other deals. "It is a win-win. The societies of the Mercosur countries win, and so the 27 countries of the EU," he said, predicting a 13% annual boost in Brazilian exports to the EU. Brazil, the largest Mercosur economy with a GDP exceeding $2.3 trillion in 2025, played a pivotal role in the negotiations.
The vice president also confirmed ongoing negotiations for potential deals with the United Arab Emirates and Canada.
Political Evolution and Bipartisan Support
Alckmin's support for the deal marks a significant shift from two decades ago, when he and President Luiz Inácio Lula da Silva held opposing views. While Alckmin, then governor of Sao Paulo, advocated for a pact with Europe, Lula opposed it. However, after joining forces in 2022 to unseat former President Jair Bolsonaro, both gravitated toward the centre. Lula appointed Alckmin as trade and industry minister, making him a key negotiator.
The deal gained renewed momentum after U.S. President Donald Trump imposed tariffs on several countries, including Brazil, last year.
Addressing Criticism
French President Emmanuel Macron, a critic of the deal, has demanded safeguards to prevent economic disruption, stricter pesticide regulations, and enhanced import inspections. Alckmin rejected accusations that Mercosur nations neglect environmental preservation, noting that Brazil reduced deforestation by 50%. "If there's one country that is a role model of environmental preservation, that is Brazil," he asserted.
He added that either bloc can request safeguards if imports surge. The full implementation of the deal may take up to 12 years, allowing Mercosur companies to improve productivity and quality. Alckmin expects the fruit, beef, and sugar industries to benefit first, followed by many others over time. "It is better to do it gradually than not do it at all," he concluded. "This was a very well-built deal."
