On Tuesday, the Brazilian Representation in the Mercosur Parliament approved the free trade agreement between Mercosur and the European Union. This treaty is significant as it potentially creates the largest free trade zone in the world by gradually reducing or eliminating tariffs on more than 90% of the trade between the two blocs. Following this approval, the text will be sent to the Chamber of Deputies for further deliberation.

The urgency of the agreement comes amidst uncertainties related to U.S. tariff impositions, prompting Brazilian officials to prioritize this trade agreement as a means of securing predictable international trade relations. Hugo Motta, the President of the Chamber, indicated that the proposal should be voted on within the week, highlighting the government's commitment to solidifying trade ties with the EU in light of these challenges.

The agreement was initially signed in January in Paraguay and reflects a broader strategy to enhance Brazil's trade partnerships. The approval by the Brazilian Parliament is a crucial step towards realizing the economic benefits anticipated from this pact, which could lead to increased investment and economic growth for both Mercosur and the EU.