Gaushala Dharodi

Brazil Europe Trade Agreement

After years of negotiations, Brazil and the European Union have recently signed a trade agreement that promises to increase trade and investment between the two regions. The agreement aims to reduce or eliminate tariffs on a wide range of goods and services, and provide better access to markets for both Brazilian and European businesses.

The trade deal, which took two decades to negotiate, is expected to benefit both economies by boosting exports, creating jobs, and promoting economic growth. The agreement also includes provisions on sustainable development, social and environmental standards, and intellectual property rights.

According to the European Commission, the EU is Brazil`s largest trading partner, accounting for 18.9% of Brazil`s total trade in 2020. The main exports from Brazil to the EU are agricultural products (such as coffee, soybeans, and beef), raw materials (such as iron ore), and industrial products (such as aircraft and machinery).

On the other hand, the EU exports manufactured goods, machinery, and pharmaceuticals to Brazil. The EU`s trade with Brazil account for 2.5% of the EU`s total trade in 2020.

Under the agreement, Brazilian and European businesses will have access to each other`s markets, with the reduction or elimination of tariffs on a wide range of goods and services. This will make it easier for companies to trade across the Atlantic, and will also create new business opportunities for small and medium-sized enterprises (SMEs) on both sides.

The EU and Brazil have also committed to promoting sustainable development and social standards. The agreement includes provisions on the protection of workers` rights, environmental issues, and combatting illegal deforestation.

Furthermore, the agreement recognizes the importance of protecting intellectual property rights and promotes innovation. This will benefit both regions by encouraging research and development, as well as the creation of new products and services.

Overall, the Brazil-EU trade agreement is an important step in strengthening economic ties between the two regions. By reducing barriers to trade and promoting sustainable development, the agreement will create new opportunities for businesses and benefit both the Brazilian and European economies.

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