Brazil's Vice President Geraldo Alckmin stated on Friday that the trade agreement between Mercosur and the European Union is anticipated to be in effect by the end of May 2023. He expressed confidence that the Brazilian Senate will approve the agreement within the next two weeks, allowing President Luiz Inácio Lula da Silva to sanction it as early as March. This timeline suggests a swift movement towards formalizing the agreement, which has been discussed for years.

Alckmin detailed that the government has already submitted a presidential decree proposal to regulate necessary safeguards within the agreement. These safeguards aim to temporarily suspend the reduction of import tariffs in cases of sudden increases in foreign purchases or a surge in imports. This measure is intended to alleviate concerns from certain sectors of the agribusiness and industry, which are wary of potential competitiveness losses resulting from the trade opening.

The expected passage and implementation of the EU-Mercosur agreement mark a significant step in enhancing trade relations between Brazil, other Mercosur countries, and the EU. As the agreement seeks to lower trade barriers, it holds the promise of boosting economic growth and increasing exports; however, it also underscores the need for balance between expanded commerce and the protection of domestic industries, particularly those facing potential challenges in a more open marketplace.