The free trade agreement between Mercosur and the European Union It was provisionally approved by European countries this Friday (9). The measure has the potential to reduce the price of imported products and change the consumer market in Brazil.
In the wine sector, the change will be significant. Currently, Brazil, Argentina, Paraguay, and Uruguay pay a 27 percent tax to import wine from Europe. With the agreement, this rate will be reduced to zero within 8 to 12 years.
The tariff reduction will depend on the type of product, according to the Ministry of Development, Industry, Trade and Services. (Mdic)The detailed timeline establishes a gradual transition to opening the market.
Chocolates and premium products
Chocolate imports will also see cost reductions. Currently, these products are taxed at 20 percent. The agreement provides for two timeframes for the exemption: one part will have zero tariffs in 10 years and the other in 15 years.
Experts believe that the drop in taxes should increase the presence of premium chocolate brands in the Brazilian market. However, the tax reduction does not necessarily mean that the products will be affordable for the general public.
The treaty also establishes a zero tariff for European olive oil. In Brazil, the federal government had already exempted the product from import tax in March of this year, anticipating some of the commercial effects.
Approval and signature
The Committee of Permanent Representatives of the European Union gave the green light to the text. Final approval came after the governments confirmed their votes. The official signing is scheduled for January 17th in Paraguay.
Italy, which initially showed resistance, gave its approval to the text. The Italian government was convinced by a package of guarantees from the European Union that protects the European farmers against sudden increases in imports from Mercosur.
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