On May 1, 2026, the European Union-Mercosur Agreement entered into force, marking one of the most significant advances in Brazil's trade integration agenda in recent decades. On the same date, the Ministry of Development, Industry, Trade and Services (MDIC), through the Secretariat of Foreign Trade (SECEX), published complementary acts regulating the practical application of the agreement within the scope of Brazilian foreign trade, especially regarding rules of origin, certification, and the operationalization of tariff preferences.
Agreement Status
The agreement, negotiated over more than 20 years, establishes a free trade zone between the blocs, with progressive commitments to reduce and eliminate tariffs, provisions for tariff quotas for sensitive products, and regulatory disciplines in areas such as services, government procurement, intellectual property, sanitary and phytosanitary measures, and technical barriers to trade.
The entry into force on 01/05/2026 occurred in the context of the partial internalization and provisional application of the trade chapters of the agreement. The transition period will be long, however, import tariffs have already begun to be reduced, provided that the access conditions for each product are met.
Current Legal Basis
In the Brazilian legal system, the validity and application of the agreement are based primarily on the following instruments:
- Legislative Decree No. 14, of March 17, 2026Approval of the agreement by the National Congress.,
- Decree No. 12,953, of April 28, 2026: Promulgation of the Provisional Agreement in Brazil.
- Regulatory acts of Secex/MDIC (01/05/2026), which regulate the practical application of the agreement:
- Secex Ordinance No. 491/2026 — regulates import tariff quotas (TRQs), with allocation based on the order of registration of the Import License in the Siscomex Single Portal and linking to the DUIMP within 60 days – products already covered: vehicles, dairy products, garlic, tomato preparations, chocolates and confectionery items;
- Secex Ordinance No. 492/2026 — regulates export tariff quotas, with the issuance of a Mercosur Quota Authorization Certificate – products already covered: meat, sugar, ethanol, rice, corn and derivatives, as well as items such as honey, eggs and beverages like rum and cachaça;
- Secex Ordinance No. 490/2026 — establishes the Certificate of Origin, requiring the importer to maintain it for at least 3 years;
In imports, quotas will now follow a model based on the order of license registration. To guarantee the use of the quota, the importer must link the license to the Single Import Declaration (Duimp) within 60 days on the Siscomex Single Portal, respecting the limits per operation.
In exports, product quotas follow the same principle of order of request, observing the limits of each quota and availability at the time of analysis.
According to MDIC1, the division of quotas among Mercosur countries is still under negotiation and, until a joint decision is reached, each country will continue to operate with its own procedures, without altering the total volume negotiated or the right of access to the benefits provided for in the agreement.
For products not subject to quotas, access to preferential tariffs depends solely on compliance with rules of origin.
Imports and Exports with immediate impacts
The Federal Government has made available a consultation system for verifying preferential access in https://www.gov.br/siscomex/pt-br/acordos-comerciais/acordos-comerciais/entrada-em-vigor-mercosul-ue .
For example:
- European products imported by MERCOSUR under quotas granted by the bloc — notably conventional automobiles (TRQ of 50,000 units/year, of which 32,000 are allocated to Brazil, with a reduction of 50% from the base for 8 years), chocolate (categories CH1/CH2), dairy products, among others — will be controlled in Brazil by DECEX/SECEX/MDIC, through the issuance of an Import License in the LPCO Importation module of the Siscomex Single Portal. The quota licensing request may be made after the shipment of the goods abroad, but before customs clearance, observing the allocation criteria published in SECEX Ordinance No. 491/26. The importer must present the declaration of origin from the European exporter and the quota document only at the time of customs clearance.
- Brazilian products exported under tariff quotas granted by the EU — such as beef, pork, chicken, sugar, ethanol, honey, sweet corn and others listed in Appendix 2-A-1 — require two cumulative documents: (i) the exporter's declaration of origin, as provided for in Article 3.17 (self-certification); and (ii) the official quota certificate, pursuant to Article 3.30 of the Agreement.
These certificates will be issued through the Siscomex Single Portal, in a dedicated module. The criteria for allocating the quota per product, the frequency, and the operational steps are detailed in SECEX Ordinance No. 492/26.
The information provided by the Federal Government (link above) also includes clarifications regarding applications, including shipping dates, customs clearance, and operational requirements.
Main impacts in the medium and long term.
The agreement foresees the elimination or gradual reduction of tariffs, combined with the application of tariff quotas for sensitive products, which tends to reduce import costs in various sectors, require strategic management of quotas (TRQs), and increase competition in the domestic market.
Access to tariff benefits depends on strict compliance with rules of origin, which implies the need for traceability of the production chain, maintenance of robust documentation, and review of sourcing and supply chain structures.
The impacts are particularly relevant in certain sectors. In the automotive and auto parts industry, a gradual tariff reduction is observed in a sensitive sector, with increased competition from European products and, at the same time, the possibility of Brazil consolidating itself as a production and export platform for the European Union. In the machinery and equipment sector (capital goods), the reduction in import costs can directly impact investment decisions (CAPEX) and increase the competitiveness of local industry.
In agribusiness, especially in products such as proteins, sugar, and ethanol, there is increased access to the European market, although subject to tariff quotas and strict sanitary requirements, which increases the need for compliance and traceability. In the chemical and pharmaceutical sectors, the progressive tariff reduction is accompanied by greater relevance of regulatory and intellectual property requirements. In the energy and raw materials segment, export opportunities are expanding, with a growing influence of ESG and environmental criteria.
The agreement also increases the relevance of non-tariff barriers, including technical standards (TBTs), sanitary and phytosanitary measures (SPS), as well as environmental and labor requirements, resulting in a significant increase in regulatory compliance demands.
Furthermore, there is a gradual opening of government procurement and services markets, creating new opportunities for Brazilian and European companies, albeit with limitations and safeguards.
Finally, the implementation of the agreement occurs in parallel with the transition to the new consumption tax system in Brazil (CBS and IBS), which will require a review of tax structures and logistics chains, a competitiveness analysis considering tax credits, and alignment between tax planning and customs strategy.
Conclusion
The entry into force of the EU-Mercosur Agreement inaugurates a new scenario for Brazilian foreign trade, combining significant opportunities for market access with new regulatory, operational, and tax challenges.
Companies that adopt an integrated approach — involving customs, tax, and supply chain planning — will be better positioned to capture the benefits of the agreement and mitigate risks.
English
On May 1st, 2026, the EU–Mercosur Partnership Agreement entered into force in Brazil, marking one of the most significant milestones in the country's trade integration agenda in recent decades. On the same date, the Ministry of Development, Industry, Trade and Services (MDIC), through its Secretariat of Foreign Trade (SECEX), issued complementary regulations to govern the practical application of the Agreement within the Brazilian foreign trade system, particularly with respect to rules of origin, certification, and the operationalization of tariff preferences.
Agreement Status
The Agreement, negotiated over more than 20 years, establishes a free trade framework between the blocs, including progressive commitments for tariff reduction and elimination, the implementation of tariff-rate quotas for sensitive products, and regulatory disciplines in areas such as services, government procurement, intellectual property, sanitary and phytosanitary measures, and technical barriers to trade.
Its entry into force on May 1st, 2026 occurred in the context of the partial internalization and provisional application of its trade-related chapters. The transition period is expected to be long; however, import tariffs have already begun to be reduced, provided that the specific access conditions for each product are met.
Legal Framework in Force
Within the Brazilian legal system, the validity and application of the Agreement are primarily grounded on the following instruments:
- Legislative Decree No. 14, of March 17, 2026: Approval of the agreement by the National Congress.
- Decree No. 12,953, of April 28, 2026: Promulgation of the Provisional Agreement in Brazil.
- The implementing regulations issued by SECEX/MDIC on May 1st, 2026, which governs the practical application of the Agreement, including:
- SECEX Ordinance No. 491/2026, which regulates import tariff-rate quotas (TRQs), establishing allocation based on the order of registration of Import Licenses in the Portal Único Siscomex, with mandatory linkage to the Import Declaration (DUIMP) within 60 days. Products already covered include vehicles, dairy products, garlic, tomato preparations, chocolates, and confectionery items.
- SECEX Ordinance No. 492/2026, which regulates export TRQs, including the issuance of Mercosur Quota Authorization Certificates. Covered products include meat, sugar, ethanol, rice, corn and derivatives, as well as items such as honey, eggs, and beverages like rum and cachaça.
- SECEX Ordinance No. 490/2026, which establishes the Certificate of Origin framework, requiring importers to retain the document for at least three years.
For imports, quotas follow a first-come, first-served model based on license registration. To secure quota allocation, the importer must link the license to the DUIMP within 60 days through the Portal Único Siscomex, subject to operational limits.
For exports, quotas follow a similar order-of-request allocation principle, subject to product-specific limits and availability at the time of analysis.
According to MDIC1, the allocation of quotas among Mercosur countries is still under negotiation and, until a joint definition is reached, each country will continue to operate under its own procedures, without changes to the total negotiated volumes or access rights under the Agreement.
For products not subject to quotas, access to tariff preferences depends solely on compliance with the applicable rules of origin.
Imports and Exports with Immediate Impacts
The Federal Government has made available a consultation system to verify preferential access under the Agreement in https://www.gov.br/siscomex/pt-br/acordos-comerciais/acordos-comerciais/entrada-em-vigor-mercosul-ue .
For example:
- European products imported into Mercosur under quotas granted by the bloc—particularly conventional vehicles (TRQ of 50,000 units per year, of which 32,000 are allocated to Brazil, with a 50% reduction in the tariff base over 8 years), chocolate (categories CH1/CH2), dairy products, among others—will be controlled in Brazil by DECEX/SECEX/MDIC through the issuance of Import Licenses within the LPCO Import module of the Siscomex Single Portal. The quota licensing request may be submitted after shipment of the goods abroad but prior to customs clearance, subject to the allocation criteria established in SECEX Ordinance No. 491/2026. The importer must present the exporter's declaration of origin and the quota document at the time of customs clearance.
- Brazilian products exported under EU tariff quotas—such as beef, pork, poultry, sugar, ethanol, honey, sweet corn, and other products listed in Appendix 2-A-1—require two cumulative documents: the exporter's declaration of origin, as provided in Article 3.17 (self-certification), and the official quota certificate, pursuant to Article 3.30 of the Agreement.
These certificates will be issued through the Portal Único Siscomex, in a dedicated module. The allocation criteria, periodicity, and operational procedures for each product are detailed in SECEX Ordinance No. 492/2026.
The official guidance also includes clarifications regarding shipment dates, customs clearance timing, and operational requirements.
Key Medium- and Long-Term Impacts
The Agreement provides for the gradual elimination or reduction of tariffs, combined with the use of tariff-rate quotas for sensitive goods. This is expected to reduce import costs across multiple sectors, require strategic management of TRQs, and increase competition in the domestic market.
Access to tariff benefits depends on strict compliance with rules of origin, requiring supply chain traceability, robust documentation, and a review of sourcing and supply chain structures.
The impacts are particularly significant across certain sectors. In the automotive and auto parts industry2, gradual tariff reductions in a sensitive sector are expected to increase competition from European products while also creating opportunities for Brazil to position itself as a production and export platform to the European Union. In the machinery and equipment sector (capital goods), reduced import costs may directly influence investment decisions (CAPEX) and enhance the competitiveness of local industry.
In agribusiness, particularly in products such as proteins, sugar, and ethanol, preferential access to the European market is expected, although subject to tariff-rate quotas and stringent sanitary requirements, thereby increasing compliance and traceability obligations. In the chemicals and pharmaceuticals sectors, tariff reductions are accompanied by greater relevance of regulatory and intellectual property requirements. In the energy and raw materials segment, export opportunities are expected to expand, with increasing influence of ESG and environmental standards.
The Agreement also increases the relevance of non-tariff barriers, including technical standards, sanitary and phytosanitary measures, as well as environmental and labor requirements, resulting in a significant increase in regulatory compliance obligations.
In addition, the Agreement introduces gradual market access in government procurement and services, creating new opportunities for Brazilian and European companies, subject to certain limitations and safeguards.
Finally, the implementation of the Agreement coincides with Brazil's transition to the new consumption tax system (CBS and IBS), requiring a review of tax structures and supply chains, an assessment of competitiveness considering tax credits, and alignment between tax planning and customs strategies.
Conclusion
The entry into force of the EU–Mercosur Agreement establishes a new landscape for Brazil's foreign trade, combining significant market access opportunities with new regulatory, operational, and tax challenges.
Companies that adopt an integrated approach—encompassing customs, taxes, and supply chain planning—will be better positioned to capture the benefits of the Agreement while mitigating associated risks.
Article written by: João Rezende.