Brazilian Dairy Sector Faces Challenges from Mercosur-EU Agreement

The Mercosur-European Union trade agreement is causing apprehension among Brazilian dairy producers. The agreement, which aims to gradually eliminate tariffs between Mercosur members and the EU, is seen as a potential threat to the local dairy industry's competitiveness.

The Brazilian dairy sector is particularly worried about the influx of European dairy products, which could intensify competition and put pressure on local producers. The terms of the agreement stipulate a phased reduction in tariffs, which could result in an increase in European exports to Brazil.

Producers argue that the Brazilian dairy industry might struggle to compete with European products due to differences in production costs and standards. The sector is urging the government to consider protective measures to support domestic producers during the transition period.

The agreement, negotiated over two decades, aims to enhance trade between the Mercosur bloc—which includes Argentina, Brazil, Paraguay, and Uruguay—and the EU. It is set to cover a wide range of sectors, with dairy being one of the most sensitive areas for Brazil.

Industry representatives are calling for more dialogue with the government to ensure that the interests of local producers are safeguarded. The potential impact of the agreement on the Brazilian dairy market remains a significant concern for stakeholders.