The Brazilian footwear industry sees the potential for substantial growth and increased competitiveness following the expected implementation of the EU-Mercosur trade agreement. This agreement is anticipated to eliminate tariffs for 27 countries over the next 15 years, leading to a projected 62% increase in exports, as highlighted by a study from the Institute of Applied Economic Research (Ipea). The expected tariff exemptions will benefit not only leather goods but also introduce a variety of products made from other materials into international markets, which currently see lesser demand.

Regions such as Franca (SP), Vale dos Sinos (RS), and Nova Serrana (MG) are positioned to gain from a more diversified export portfolio bolstered by cheaper products for international buyers. The agreement is set to place Brazilian footwear on a more competitive footing, enhancing the industry’s appeal in the global market, especially given that these European markets account for 40% of all imported footwear worldwide. This highlights the strategic importance of the agreement for Brazil's footwear sector, which is already a significant player in the global market.

Economist Priscila Linck, coordinator of Market Intelligence at the Brazilian Footwear Industry Association, underscores the criticality of this trade agreement for Brazil, emphasizing the EU's role as a massive bloc for imports. The anticipated change not only promises economic benefits but also positions Brazilian manufacturers to better meet the evolving demands of international consumers, thereby fostering a resilient and adaptable industry for the future.