After 25 years of drama, the bloc's ambassadors have given the green light. France tried to block it, but was overruled by the majority.

Ursula von der Leyen is expected to sign the treaty on Monday. Understand the behind-the-scenes details!

1️⃣ The Wait Is Over
After more than two decades of negotiations (which began in 1999), the countries of the European Union provisionally approved the trade agreement with Mercosur this Friday.

2️⃣ The central objective is ambitious: to eliminate import tariffs on 91% of goods traded between the two blocs within 10 years.

For Brazilian industry, this means buying European machinery and supplies without import tax, increasing competitiveness.

3️⃣ What Gets Cheaper?

For the end consumer, the promise is lower prices on high value-added products:

🍷 Wines and Sparkling Wines
🧀 Cheeses and Dairy Products
🍫 Fine Chocolates
🚗 Imported Cars

These items currently pay high tariffs to enter Brazil and will see a gradual reduction.

4️⃣ Luxury and Electric Cars
The automotive sector has special rules. The 35% tariff on European cars will gradually decrease over 15 years.

For electric vehicles, the protection is greater: the elimination of the tariff will take up to 18 years, a safeguard to prevent the nascent Mercosur industry from being overwhelmed.

5️⃣ Agricultural Quotas (Where the Problem Lies)
Brazil will not be able to export everything it wants.

To appease French farmers, limited quotas with zero or reduced tariffs were created:
🥩 Beef: Extra quota of 99,000 tons (7.5% tariff).
🐔 Chicken: 180,000 tons without tariff.
🍬 Sugar: 180,000 tons without tariff.
⛽ Ethanol: 450,000 tons for industry (tax-free).

6️⃣ The New Feature: "Emergency Brake"

To unlock the agreement, the Europeans included a strict safeguard clause.

If there is a sudden increase in imports that causes a variation of just 5% in local prices or volumes (previously the trigger was 8%), the EU can immediately block the entry of Mercosur products.

7️⃣ Coffee and Fruits: Clear Path
While meats face restrictions, other sectors of Brazilian agribusiness have received the "golden ticket."

☕ Roasted and instant coffee
🍇 Fresh fruits (grapes, melons, lemons)
🥤 Orange juice

These products will have tariffs eliminated, with no quota limit, facilitating their entry onto European shelves.

8️⃣ France's Defeat
The approval occurred despite strong opposition led by France.

President Emmanuel Macron campaigned against it, claiming that the economic benefits would be "limited" and that the agreement harms French farmers by exposing them to South American competition. It wasn't enough.

9️⃣ Who voted against?

Macron wasn't alone, but he couldn't form a blocking minority. Ireland, Hungary, and Poland joined France in voting "No".

Irish Prime Minister Simon Harris stated that he did not support the agreement "as it was presented," but the bloc reached the necessary qualified majority (15 countries and 65% of the population).

🔟 The Tipping Point: Italy 🇮🇹
The game-changer came from Rome.

Italy, which had doubts, signaled decisive support at the ambassadors' meeting.

Giorgia Meloni's government negotiated hard: it accepted the agreement after the European Commission promised to accelerate the release of 45 billion euros for farmers and increase resources for the Italian sector.

1️⃣1️⃣ Signing on Monday
With the ambassadors' approval, the path is clear.

The President of the European Commission, Ursula von der Leyen, is scheduled to travel to Paraguay to officially sign the treaty next Monday, the 12th.

1️⃣2️⃣ The Economic Impact
The treaty creates the world's largest free trade area.

For Brazil, it means easier access to a market of 451 million consumers, with a gradual reduction in tariffs for agribusiness and national industry.

1️⃣3️⃣ French protectionism lost to economic pragmatism (and to the subsidies given to Italy).

The signing is a geopolitical milestone, but the final battle will be ratification in parliaments.

For now, Mercosur celebrates.