In March 2011, Brazil signed a Trade and Economic Cooperation Agreement (ATEC) that many analysts see as a first step towards a free trade agreement. Since 2010, Brazil has also insisted on a free trade agreement with Mexico. Brazil is one of the countries that, according to the latest European Commission report, has resorted to a large number of potentially restrictive measures. The Mercosur countries (Southern Common Market) (Argentina, Brazil, Uruguay and Paraguay) and the European Free Trade Association (EFTA), a bloc made up of Switzerland, Norway, Iceland and Liechtenstein, have successfully concluded an exploratory dialogue and preliminary negotiations for a free trade agreement (FTA). Brazil is Latin America`s largest economy and its trade with the EU accounts for 30.8% of the EU`s total trade with Latin America in 2016. While Brazil was one of the main Latin American architects of the defeat of the free trade agreement, its economic policy has, in many cases, been in favour of signing free trade agreements. Given its dominant position in Mercosur and on the continent in general, it has focused its efforts on securing such agreements in the institutional for a of which it is a member. This is the best result of the enthusiasm shown by Brazilian exporters in this free trade agreement, delighted by the prospect of further exports to these high purchasing power markets. Similarly, the EFTA, strongly influenced by Switzerland, has shown particular interest in greater access to new markets in mercosur countries. Enabling trade: Implementation of the Trade Facilitation Agreement in BrazilHow could Brazil free up billions of trade growthAs Brazil would be affected by major trade agreements? Why is Brazil`s economy closed to trade? The rapid adoption of a discussion with EFTA by the mercosur joint market group is an indication of the priority that all Mercosur members have given to these negotiations. In many cases, these trade agreements are being pursued as part of the administration`s policy to expand agrofuel (ethanol) markets. The project will then focus on a study on fair and fair trade in Brazil and will hold a second forum in December 2018. Brazil negotiates a free trade agreement with the EU under the Mercosur Group.
As part of the agreement and the cheaper market access that this will achieve, it is estimated that Brazilian exports of different products from a wide range of economic sectors are constantly increasing. In addition, non-tariff barriers will be removed to facilitate trade between the two regions. A future association agreement between the EU and Mercosur should promote the integration of trade between Mercosur countries and create new trade and investment opportunities with the EU, eliminating direct investment and non-tariff and non-tariff direct investment. The EU is negotiating a free trade agreement with Brazil as part of the EU negotiations on the association agreement with Mercosur countries (including Argentina, Uruguay and Paraguay). The EU encourages Brazil to remove tariff and non-tariff barriers and promote a stable and more open regulatory environment for European investors and traders. To a large extent, to reverse this negative trend, policymakers have acted to encourage exports and focus on free trade agreements with countries and blocs outside the Latin American region. By opening trade with new markets and negotiating new agreements, Brazil is preparing for broader global coverage with new global partners, which will ultimately improve its trade relations and contribute to the growth and stability of the Brazilian economy.