Ministers Fernando Haddad (Finance) and Simone Tebet (Planning) spoke out this Friday (9) to celebrate the announcement by the European Union for the approval of the trade agreement with Mercosur. 
Brasília – 10/14/2025 – Minister of Finance, Fernando Haddad. Photo: Lula Marques/ Agência Brasil
On social media, the Minister of Finance, Fernando Haddad, classified the agreement as historic and a signaling a future of “plurality and opportunity”.
“Historic agreement, not only for its economic significance, but above all for its geopolitical significance. A new avenue of cooperation opens up in this troubled moment, showing a new path of plurality and opportunity,” said Haddad.
The Minister of Planning and Budget, Simone Tebet, highlighted that the agreement will provide the arrival of Brazilian products to more consumers, increase investments, which could help reduce inflation in the country.
Brasília (DF), 19/08/2025 -Minister Simone Tebet. Photo: Andressa Anholete/Agência Senado
“A historic milestone for multilateralism! The Mercosur-European Union Agreement is one of the most relevant economic movements of recent decades for Brazil and Mercosur. More access to consumer markets, more investments, more integration between countries and, mainly, more products available, greater competition, helping to lower inflation even further. It will combine economic growth, employment and income with sustainability, technology and innovation”, stated the minister, in an official note.
Mercosur-EU Agreement
The President of the European Commission, Ursula von der Leyen, confirmed the approvalby the vast majority of countries that make up the European Union (EU), of the free trade agreement with Mercosur – a bloc formed by Argentina, Brazil, Paraguay and Uruguay.
The agreement provides for an immediate reduction in tariffs for machinery and transport equipment such as engines and generators for electrical energy, piston engines (auto parts) and aircraft. All represent strategic areas for Brazil’s competitive insertion.
There will also be positive opportunity for leather and furs, stonework, knives and blades, and chemicals. There will be a gradual reduction in tariffs, until zero, on various commodities (subject to quotas).
Repercussions
Through social media, President Lula stated that it was “a victory for dialogue”.
“A victory for dialogue, negotiation and commitment to cooperation and integration between countries and blocs”, stated the president.
Lula highlighted that the agreement, in addition to bringing benefits to both blocs, is “a sign in favor of international trade”. The Brazilian president was active in creating this agreement and tried to finalize it at the end of last year, when Brazil presided over the South American bloc. For Lula, the agreement between Mercosur and the European Union was a priority.
European leaders celebrate approval of the agreement.
According to the news agency Reuters, the ambassadors of the 27 EU member states indicated their governments’ positions this Friday morning, but each country must confirm its vote in writing by 5pm (1pm in Brasília) today.
Also according to Reuters, at least 15 countries, which together represent at least 65% of the total population of the European bloc, voted in favor of the signature, as required.
If the result is confirmed, the president of the European Commission, Ursula von der Leyen, could travel to Paraguay next week to ratify the agreement with the member countries of Mercosur – a bloc formed by Argentina, Brazil, Paraguay and Uruguay.
The European Parliament will also need to approve the agreement before it can enter into force.
