Brazil began importing cheese with reduced tariffs following the entry into force of the agreement between Mercosur and the European Union (EU) on May 1st. According to the Ministry of Development, Industry, Trade and Services (Mdic), the country also began exporting beef, poultry, and cachaça (Brazilian rum) to the European market with a zero tariff.
Brazil registered the first import operations of chocolates and tomatoes under the rules of the agreement. These orders are part of the first commercial licenses approved by the Ministry within the tariff quotas provided for in the treaty.
According to the Mdic, the Secretariat of Foreign Trade (Secex) has already authorized six import licenses for European products and eight export licenses for Brazilian goods since the agreement came into effect.
European products
The imported products include cheeses, chocolates, and tomatoes originating from the European Union. In the case of cheeses, the agreement has already guaranteed an immediate tariff reduction, with the rate falling from 28% to 25.2% within the negotiated preference.
For chocolates and tomatoes, the reductions will occur gradually starting in 2027. Until then, the tariffs currently applied in trade between the blocs remain in effect.
The operations follow specific rules for licensing and certification through the Single Siscomex Portal, a system used to control Brazilian foreign trade.
Exports authorized
On the Brazilian side, the first licenses covered exports of fresh beef, frozen beef, boneless poultry, and cachaça.
According to the MDIC, exports of poultry and cachaça will now enter the European market with a zero tariff within the quotas established by the agreement.
In the case of beef, the treaty expanded access for the Brazilian product to the European market. The so-called Hilton Quota, a mechanism that existed before the agreement, had its tariff reduced from 20% to zero for the premium cuts exported by Brazil.
In addition, a new quota of 99,000 tons was created, shared among the Mercosur countries, with tariff reductions on sales to the European bloc. Before the agreement, exports outside the Hilton Quota were subject to a tariff of 12.8% plus €304.10 per 100 kilograms. Now, they will pay an intra-quota tariff of 7.5%.
Expanded trade
The government states that most of the trade between Mercosur and the European Union is already operating without quantitative restrictions and with reduced or eliminated tariffs.
According to the Mdic, more than 5,000 tariff lines (rates for each product code) have been reduced to zero for exports destined for the European Union. In Mercosur, more than 1,000 tariff lines operate with exemptions for European products.
The tariff quotas represent a reduced portion of bilateral trade, equivalent to approximately 4% of Brazilian exports and 0.3% of imports.
Operating system
The operations are being carried out through the Single Siscomex Portal, which centralizes license and certification requests for importing and exporting companies.
According to the government, all the necessary regulations for the implementation of the quotas were completed before the agreement came into force, ensuring the full functioning of the system from the first day of the treaty's validity.