After more than two decades of negotiations, the trade agreement between the European Union and Mercosur is finally beginning to yield concrete results. The entry into force on May 1, 2026, of a first phase that includes 543 products with zero tariffs, inaugurates a new era for trade between the two blocs.

The agreement is significant in scale. It creates one of the world's largest bi-regional free-trade zones, covering over 700 million people and roughly 25% of global GDP. For European exporters, it promises tariff cuts worth more than €4 billion a year. For South American producers of beef, soy, sugar, and ethanol, it unlocks preferential access to a wealthy market of 450 million consumers.

According to ApexBrasil, this tariff reduction could generate a $1 billion increase in Brazilian exports to Europe as early as 2026. This signals an immediate impact on Brazil’s trade balance and, importantly, on the appetite of companies looking to expand their international presence.

See also: The EU–Mercosur Deal: Twenty-Five Years in the Making

However, the most significant effect of the agreement may lie beyond short-term exports. The treaty has the potential to reorganize global flows of investment, industrial production, and supply chains at a time when companies are seeking to reduce geographic dependencies and increase resilience in a more fragmented international landscape.

Trade relations between Brazil and Catalonia (Barcelona) are already substantial, with Catalan exports totaling €841 million and imports reaching €1.8 billion. Within Mercosur, Brazil is currently Catalonia’s primary partner. The country accounts for 61.3% of Catalan exports to the bloc and 89% of Catalan imports originating from the region. Furthermore, 460 branches of Catalan companies, linked to 329 parent organizations, already operate within Brazilian territory.

This demonstrates that the agreement does not create a new commercial relationship from scratch, but rather reduces costs and barriers in a partnership that already possesses solid foundations and is poised to accelerate.

Brazil is the largest economy in Mercosur, representing over 70% of the bloc’s GDP, and accounts for over $280 billion in annual imports, equivalent to 72.3% of the bloc’s external purchases. This represents a highly strategic market for sectors where Catalonia boasts strong international competitiveness, such as pharmaceuticals, chemicals, plastics, industrial machinery, electrical equipment, automotive, and biotechnology.

According to Josep Maria Buades, Director of the Catalonia Trade & Investment office in São Paulo, the shift will be mutually beneficial, increasing the competitiveness of both Catalan and Brazilian products.

“With the tariff reduction, these sectors are likely to expand their competitiveness and market share. Recent studies indicate that the agreement could increase European exports to Mercosur by up to 40%, but the long-term impacts will likely extend beyond foreign trade. The most relevant potential lies in the establishment of new industrial operations, logistics centers, and technological partnerships, driven by the synergies between the two regions,” he stated.

The EU-Mercosur deal highlights a clear opportunity for trade complementarity. Brazil offers scale in grains, minerals, and energy, which perfectly complements the high-value industrialized goods exported from Catalonia. Last year’s €841.3 million in Catalan exports to Brazil included €116.5 million in pharmaceuticals, €97.7 million in machinery, €90.2 million in plastics, €89.2 million in chemicals, and €85 million in cosmetics, alongside segments linked to agribusiness, food, and industrial technology.

For Brazilian companies seeking internationalization, Catalonia is consolidating itself as one of the main gateways to Europe, Beyond excellent infrastructure, there is a deep strategic convergence between the two markets. Brazil offers scale, natural resources, renewable energy, and productive capacity; Catalonia adds technology, industrial innovation, applied research, and direct access to the European single market.

“More than just expanding exports, the EU-Mercosur agreement can accelerate a more sophisticated agenda between Brazil and Europe: cross-investments, industrial innovation, energy transition, and more resilient supply chains,” Buades commented. “For Brazil and Catalonia, this opportunity is already on the table. The challenge now is to transform it into long-term growth.”

Josep Maria Buades is the Director of the Catalonia Trade & Investment office in São Paulo.