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Brazil's trade agreements: Mercosur, the EU, EFTA and Singapore

Argentina. For full detail on Argentina, go to The Argentine Thread.

Last verified: 2026-10-27 · Status: Changing

Brazil negotiates trade deals as part of Mercosur, the customs union it founded with Argentina, Paraguay and Uruguay, so tariffs toward third countries follow the common external tariff and common trade policy. 2026 changed the map: the EU Mercosur interim trade agreement has applied in Brazil since 1 May 2026, the Mercosur Singapore agreement since 1 August 2026 and the Mercosur EFTA agreement since 1 October 2026. Preferences apply only to goods that meet each agreement's rules of origin, set out in the annexes promulgated with each decree.

Key facts

Customs union and common external tariffMercosur Tratado de Assunção, Decreto nº 350/1991, art. 1, as of 2026-10-27 · in force
EU Mercosur interim trade agreement applies to Brazil from2026-05-01 dateDecreto nº 12.953/2026, as of 2026-10-27 · in force
Mercosur Singapore FTA in force for Brazil2026-08-01 dateDecreto nº 13.081/2026, as of 2026-10-27 · in force
Mercosur EFTA FTA in force for Brazil2026-10-01 dateDecreto nº 13.126/2026, as of 2026-10-27 · in force

The rule

1. The Treaty of Asunción created Mercosur among Argentina, Brazil, Paraguay and Uruguay as a common market with free movement of goods among the members through the elimination of customs duties and non tariff restrictions, a common external tariff and a common trade policy toward third countries. For the Argentine side of this relationship, see The Argentine Thread guide.Tratado de Assunção, promulgated by Decreto nº 350, art. 1, 1991-11-21 official text · verified 2026-10-27
2. The Interim Trade Agreement between the European Union and the Mercosur states (Argentina, Brazil, Paraguay and Uruguay), signed in Asunción on 17 January 2026, was approved by Congress through Decreto Legislativo 14 of 17 March 2026, ratified by Brazil on 18 March 2026 and applies to Brazil from 1 May 2026 under its art. 23.3; the agreement and its 13 annexes are attached to the promulgating decree.Decreto nº 12.953, arts. 1 to 3 and preamble, 2026-04-28 official text · verified 2026-10-27 · changed: New in 2026: the trade pillar of the EU Mercosur agreement started to apply to Brazil on 1 May 2026; full entry into force under art. 23.2 follows mutual notification that internal procedures are complete.
3. The Free Trade Agreement between Mercosur and Singapore, signed in Rio de Janeiro on 7 December 2023 and approved by Decreto Legislativo 147 of 22 June 2026, entered into force for Brazil on 1 August 2026 under its art. 19.13, after Brazil deposited its ratification on 30 June 2026.Decreto nº 13.081, art. 1 and preamble, 2026-07-27 official text · verified 2026-10-27 · changed: New in 2026: in force for Brazil from 1 August 2026.
4. The Free Trade Agreement between Mercosur and the EFTA States (Iceland, Liechtenstein, Norway and Switzerland), signed in Rio de Janeiro on 16 September 2025 and approved by Decreto Legislativo 146 of 22 June 2026, entered into force for Brazil on 1 October 2026 after ratification was deposited with Norway on 8 July 2026.Decreto nº 13.126, art. 1 and preamble, 2026-09-23 official text · verified 2026-10-27 · changed: New in 2026: in force for Brazil from 1 October 2026.
5. Customs may check the truth of the origin declaration and the authenticity of the certificate of origin, including by requiring the importer or exporter to document the location, operating capacity and manufacturing process of the producer, and may ask the foreign customs administration for information where a treaty allows.Instrução Normativa RFB nº 1.986, art. 3, III and IX, 2020-10-29 official text · verified 2026-10-27
AgreementSignedCongress approvalApplies to Brazil fromDecree
EU Mercosur Interim Trade Agreement17 January 2026, AsunciónDecreto Legislativo 14, 17 March 20261 May 2026Decreto 12.953, 28 April 2026
Mercosur Singapore FTA7 December 2023, Rio de JaneiroDecreto Legislativo 147, 22 June 20261 August 2026Decreto 13.081, 27 July 2026
Mercosur EFTA FTA16 September 2025, Rio de JaneiroDecreto Legislativo 146, 22 June 20261 October 2026Decreto 13.126, 23 September 2026

Mercosur agreements that took effect for Brazil in 2026 (promulgating decrees on Planalto)

Worked example

  • A Brazilian exporter of machinery to Switzerland checks the EFTA agreement annex for its HS code: shipments after 1 October 2026 may claim the preferential rate if the goods meet the agreement's rule of origin and the origin is documented as the agreement requires.
  • A German parent supplying components to its Brazilian subsidiary checks the EU Mercosur annexes: if the components qualify as EU originating, Brazil applies the agreed preferential schedule from 1 May 2026 instead of the full common external tariff.

Step by step

  1. Classify the product under the HS and NCM codes used in the agreement's tariff schedule.
  2. Look up the preference and the phase out category in the annex promulgated with the relevant decree.
  3. Check the product specific rule of origin, and keep supplier declarations and production records that prove it.
  4. Issue or obtain the proof of origin the agreement requires, and keep it for customs checks.
  5. Recheck schedules each year, since many preferences phase in over several years.

Common traps

  • Assuming EU Mercosur is fully in force: what applies since 1 May 2026 is the interim trade agreement; the broader agreement follows its own ratification.
  • Claiming preferences without proof of origin: customs may verify origin and the producer's capacity under IN RFB 1.986 art. 3, III.
  • Assuming a Mercosur partner has the same dates: the decrees above give the dates for Brazil; each Mercosur member ratifies on its own timetable.
  • Ignoring phase in: many lines are not duty free on day one.

Sources

Related pages

Related: Brazil country profile · live dashboard · central bank and release calendar · our posts on X · where Argentina is involved, see The Argentine Thread guide

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