Mercosur and EFTA: What the European Agreements Mean for Brazilian Fruit Exports
Mercosur and the European Free Trade Association (EFTA), which includes Iceland, Liechtenstein, Norway, and Switzerland, signed a trade agreement last month that will open new opportunities in various sectors of the economy. The fruit-growing sector is among the main beneficiaries. Brazil is one of the countries set to benefit from the agreement, as Brazilian fruits are highly valued in the international market.
Estimates indicate the agreement could generate a positive impact of R$2.69 billion on Brazil’s GDP, an increase of R$660 million in investments, and an expansion of R$3.34 billion in exports by 2044.
The agreement establishes a “pre-listing” system to facilitate agricultural trade, granting prior recognition to Brazil’s sanitary inspection system. This mechanism will allow products to be exported more easily and with reduced bureaucracy.
According to Jorge de Sousa, Technical Manager at Frutas do Brasil, Brazil still has limited penetration in EFTA member markets, but the agreement offers significant potential to strengthen trade relations once it takes effect.
Mercosur countries are also awaiting progress on the agreement with the European Union, which is expected to mark a new era in trade. According to a simulation by the Brazilian government, Brazil’s GDP could grow by 0.34% by 2044, representing approximately R$37 billion, alongside an expected 0.76% increase in investments.
Earlier this year, Frutas do Brasil presented forecasts on the potential impact of the EU agreement for the future of the fruit-growing sector. It is estimated that the sector’s revenue could increase by 40% in the coming years, reaching US$1.8 billion by 2029.