The time has come: As the European Commission announced in March, the new free trade agreement between the EU and the Mercosur countries (Brazil, Argentina, Uruguay, and Paraguay) will enter into force, at least provisionally, on May 1st. This creates one of the world's largest free trade zones, with a market of over 700 million consumers, giving EU companies a tremendous global competitive advantage. They will benefit from lower tariffs in a region where most other countries face high tariffs and other trade barriers. The agreement reduces Mercosur's often prohibitive tariffs on EU exports, including those for key industrial goods such as cars (currently 35%), machinery (14-20%), and pharmaceuticals (up to 14%). Over 90 percent of bilaterally traded goods are expected to be tariff-free in the long term. According to estimates by the European Commission, the agreement will increase annual EU exports to Mercosur by up to 39% (€49 billion), thereby securing more than 440,000 jobs across Europe. Trade with Mercosur already supports more than 600,000 jobs in the EU.
According to the Federal Ministry for Economic Affairs and Energy, the agreement is of great macroeconomic and strategic importance for Germany. It sends a sustainably positive signal against protectionist tendencies and in favor of a rules-based trade policy. Around 12,500 German companies already export to Mercosur, almost 75% of which are small and medium-sized enterprises.
For Thuringian companies, Brazil is the most important Mercosur market. LEG supports Thuringian exporters in making the most effective use of the currently emerging market opportunities.
At the Hannover Messe trade fair, the Federation of German Industries (BDI) and the Brazilian Confederation of Industry organized the "42nd German-Brazilian Business Days." Thuringia was represented by several companies and its own stand. The high-level event was opened by German Chancellor Friedrich Merz and Brazilian President Lula da Silva and offered Thuringian companies an ideal platform to network and forge new business partnerships. In his speech, Chancellor Friedrich Merz described Brazil as Key partners in an increasingly difficult world and Bridge builder among the BRICS countries.
Also present was Thuringia's foreign affairs representative, Dietmar Sukop, who normally supports Thuringian companies in developing the entire Brazilian market from his base in Porto Alegre. He is available to Thuringian companies for assistance with, for example, establishing Contact in Brazil or obtaining market information. Further information and Contact details can be found on our website Website.
From October 31 to November 7, a delegation from Thuringia, led by Minister of Economic Affairs Colette Boos-John, will travel to Argentina and Brazil to further strengthen relations with these markets. Specifically, they will visit the economic hubs of Buenos Aires, Porto Alegre, and Rio de Janeiro. Further information can be found in the [link/document/etc.] Website.
