Bilateral trade agreements are a key element on the world economic chessboard. They go beyond enabling trade between two countries: they help reduce tariffs and barriers, foster economic growth, create jobs, and strengthen strategic sectors. Moreover, they open doors to new markets, diversify trading partnerships, and speed up negotiations, often superseding the complexity of multilateral agreements.
On the global stage, trade agreements are also diplomatic tools. They promote cooperation between nations, align rules and regulations, and make economies more resilient in times of crisis. For a country such as Brazil, they represent opportunities to strengthen political and economic relations, adding to development and international integration.
In December 2024, the issue of trade agreements came to the fore with the advancement in negotiations between Mercosur and the European Union (EU) after 25 years of debate. This agreement is one of the largest trade partnerships between economic blocs, encompassing more than 770 million consumers.
For Mercosur, the agreement intends to boost exports of agricultural and agro-industrial products to European markets. At the same time, the EU obtains privileged access to industrialized goods and services in Latin America. In addition, the pact strengthens political ties and fosters greater global integration of the Mercosur national economies.
Its impact is not just economic. It reinforces Mercosur’s strategic position on the international stage by connecting South American countries with one of the world’s most sophisticated and demanding markets.
Although the Mercosur-EU agreement is a milestone, Brazil cannot ease its pace. In 2025, the country must seek out new strategic partnerships, and one of the most promising candidates for that is the United Arab Emirates (UAE).
The UAE is a significant trade hub in the Middle East, linking markets in Asia, Africa, and Europe. In 2023, the country was in the 28th position among Brazilian export destinations, and in the first half of 2024, it rose to 13th position with a remarkable 74% increase in Brazilian exports compared to the same period the previous year.
In addition to goods such as food products, meat, and grains, a trade agreement with the Emirates could also ease the flow of services (such as air transportation and tourism), taking advantage of the growing interest in businesses and travels between the regions.
This partnership would strengthen Brazil as a strategic player outside the usual axis of negotiations with North America, Europe, and China. It would diversify trade relations and attract investment to key sectors, promoting more balanced and sustainable growth.
However, the opportunities aren’t just in faraway regions. Brazil has a natural partner within Latin America: Mexico. As the two largest economies in the region, both countries can cooperate to strengthen regional economic integration, promoting trade and reducing dependence on foreign markets.
As a member of the United States–Mexico–Canada Agreement (USMCA), Mexico provides privileged access to the largest global markets. This connection could be strategic for Brazilian products to reach North America.
Currently, Brazil and Mexico already have in force the Economic Complementation Agreement (ACE 53), which ensures tariff preferences. Deepening this agreement would make Brazilian products more competitive in the Mexican market and vice versa, opening new possibilities for companies in both countries.
The search for trade agreements reflects the role Brazil wants to play on the global stage. Whether it regards expanding partnerships with large blocs (such as the EU) or exploring strategic markets (such as the UAE and Mexico), the goal is evident: to diversify, grow, and become a critical trading partner.
Brazil has the potential and resources to take a major position in international trade, and it is time to strengthen these ties now. After all, trade agreements are not just about economic exchange, but about building bridges to the future.