Mercosur-EU Trade Pact Spurs New Digital Portal and Labeling Restrictions for Brazilian Products
The Mercosur-EU trade agreement introduces a new digital trade information portal and enforces geographic indication rules affecting Brazilian product labeling.
- • MDIC launched a digital portal to help Brazilian exporters access trade data between Mercosur and the EU.
- • The Mercosur-EU agreement could increase Brazilian exports by approximately US$7 billion.
- • Brazilian producers cannot use unauthorized European geographical terms like 'Parma' or 'Champagne' on product labels.
- • Exceptions allow select Brazilian producers to use some European product names under strict packaging rules.
Key details
The Mercosur-European Union trade agreement, set to be signed on September 17, has led to significant regulatory changes affecting Brazilian producers and exporters. To support Brazilian businesses in leveraging this agreement, the Ministry of Development, Industry, Commerce and Services (MDIC) launched the "Mercosur-European Union Opportunities Panel" on September 16. This digital platform consolidates data on trade flows, buyer countries, import tariffs, and tariff reduction schedules, enabling exporters and policymakers to access strategic information more easily. Tatiana Prazeres, MDIC's National Secretary of Foreign Trade, emphasized that the agreement, covering a market of approximately 720 million people, could increase Brazil's exports by about US$7 billion if opportunities are effectively seized.
Alongside informational support, new rules on the use of geographical indications (GIs) have been enforced. Brazilian producers will no longer be allowed to label their products with European geographical terms such as "Parma" or "Champagne" unless authorized, with unauthorized usage risking bans on these products in Brazil. The Mercosur agreement lists 222 such GI determinations, including 37 Brazilian products like cachaça and queijo da canastra. The EU, as of 2017, had around 3,500 geographical indications generating nearly $80 billion in sales, often commanding higher prices than non-GI products.
However, some exceptions were negotiated for specific cheeses and distilled beverages. For instance, Brazilian producers can use names like "gorgonzola" and certain distilled beverages, provided the brand name is more prominent than the GI term on the packaging to avoid consumer confusion. These measures aim to protect the traditional quality and distinctiveness of products on both sides while offering Brazilian trade participants clearer guidance and enhanced access to the European market.
This article was synthesized and translated from native language sources to provide English-speaking readers with local perspectives.
