Mar Florès

Brazilian Trade Stuck between Mercosur and EU

In Negociación Política y Cabildeo on August 25, 2013 at 2:57 am

Brazil’s future depends on its negotiations

Global Risk Insights

Brazil, being one of the BRICs and a country that economists fantasize about after having reached the verge of depression from looking at the EU, is facing a dilemma that it will have to confront by next year. Due to its growth and increasing wealth (social unrest aside), Brazil will be re-classified as an upper-middle-income country. On the surface, this sounds like good news, indicating a country on the path to prosperity. However, there are kinks in the EU trade agreement, which cause Brazil to worry. As it is, Brazil stands to lose its EU trade preferences next year, as determined by the Generalised Scheme of Preferences. The only way to iron out those kinks is to negotiate a trade deal.

Brazil’s trade with the EU makes up about 37 percent of total trade between the EU and Latin America ($80 billion of bilateral trade), and in terms…

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