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Boosting trade and investment: What the EU-Brazil free trade agreement promises

The European Union (EU) and Brazil, two major global powers with a long history of economic and political ties, announced in 2019 the start of negotiations for a comprehensive free trade agreement (FTA). The talks aim to deepen the existing partnership between the EU and Brazil, which already accounts for about a quarter of global gross domestic product (GDP) and trade, and to foster sustainable growth and job creation in both regions. While the negotiations have faced some delays due to the pandemic and political challenges, the parties remain committed to reaching a mutually beneficial deal in the near future.

What is the EU-Brazil FTA?

The EU-Brazil FTA seeks to eliminate or reduce barriers to trade in goods, services, and investments between the EU and Brazil. The talks cover a wide range of issues, such as tariffs, rules of origin, customs procedures, technical standards, intellectual property, government procurement, sustainable development, and dispute settlement. The goal is to create a level playing field for businesses and consumers on both sides, while preserving high standards of quality, safety, and environmental protection.

Why is the EU-Brazil FTA important?

The EU-Brazil FTA has the potential to bring significant benefits to both parties. For Brazil, the EU is already the largest foreign investor, exporter, and trading partner, accounting for nearly 20% of its total trade. Brazil is also a key supplier of commodities and raw materials to the EU, such as coffee, soybeans, meat, and iron ore. By deepening the economic integration with the EU, Brazil can diversify its export markets, upgrade its industrial and agricultural sectors, attract more foreign investment, and improve its regulatory and governance systems. Moreover, the FTA can help Brazil to promote sustainable development, including social and environmental standards, as a condition for accessing EU markets.

For the EU, Brazil represents a strategic partner in Latin America and the world. The EU and Brazil share common values and interests, such as democracy, human rights, climate action, and multilateralism. The EU also sees Brazil as a potential gateway to the Mercosur (Southern Common Market) trade bloc, which includes Argentina, Paraguay, and Uruguay, and with which the EU reached a political agreement for an FTA in 2019. However, the Mercosur deal has faced strong opposition from civil society groups, indigenous peoples, and some EU member states, due to concerns about environmental degradation, deforestation, and human rights violations in the Amazon region. The EU-Brazil FTA can provide a more positive example of how to balance trade and sustainability, and can help to influence the Mercosur negotiations towards a more sustainable and inclusive outcome.

What are the challenges of the EU-Brazil FTA?

The EU-Brazil FTA also faces some challenges and risks, both from a technical and a political perspective. From a technical point of view, the negotiations require careful balancing of interests and compromises on sensitive issues, such as agricultural subsidies, regulatory convergence, and geographical indications. The parties need to ensure that the FTA benefits all sectors, including small and medium-sized enterprises, and that the rules are clear and enforceable. Moreover, the FTA needs to avoid negative impacts on public services, cultural diversity, and consumer rights, which are important values in both regions.

From a political point of view, the negotiations occur in a complex and uncertain context, shaped by global economic and geopolitical changes, as well as by domestic challenges in Brazil and the EU. The pandemic has disrupted trade flows and raised protectionist pressures, while the rise of populism and nationalism in some countries has questioned the benefits of globalization and multilateralism. In Brazil, the government of President Jair Bolsonaro has faced criticism for its environmental policies, human rights record, and handling of the pandemic, which could affect the trust and support of EU stakeholders for the FTA. In the EU, some member states, such as France and Ireland, have expressed concerns about the impact of the FTA on their agricultural sectors, while others, such as Hungary and Poland, have raised objections to Brazil`s stance on LGBT rights and other issues.

Conclusion

The EU-Brazil FTA is a complex and ambitious project that can bring significant benefits to both parties and to global trade and investment. However, the negotiations require careful management and broad stakeholder engagement, to ensure that the FTA reflects the interests and values of all concerned. As copy editors, we can help to make the communication and documentation of the negotiations clear, accurate, and accessible to diverse audiences, while also optimizing the SEO and readability of the content. By doing so, we can contribute to building a more transparent, accountable, and sustainable partnership between the EU and Brazil.