Among the destinations that received record shipments—excluding the United States and China—were Canada, India, Turkey, Paraguay, Uruguay, Bangladesh, the Philippines, Panama, Pakistan, and Norway. The trend could gain further momentum in the coming years as Brazil expands its network of trade agreements to cover its exports.

“Many companies already have diversification in their DNA. But revisiting export strategies has become necessary in light of changes in the global environment,” Tatiana Prazeres, the ministry’s foreign trade secretary, told Valor. “The global environment, marked by challenges, shifts in trade policy, and geopolitical tensions, has fostered greater pragmatism among both governments and the private sector,” said Constanza Negri, international trade and integration manager at Brazil’s National Confederation of Industry.

Government officials argue that companies’ growing search for alternative markets has helped accelerate trade negotiations, including the Mercosur-European Union agreement. Last week, Brazil’s Congress approved two Mercosur trade agreements that are part of this broader diversification strategy: accords with Singapore and the European Free Trade Association (EFTA), whose members are Switzerland, Norway, Iceland, and Liechtenstein. Taken together, the agreements increase the share of Brazil’s trade covered by trade deals from 12% to 31%.

That figure could increase further.

Mercosur is negotiating a trade agreement with Canada, which has moved from the 10th-largest destination for Brazilian exports in 2023 to the 8th-largest in 2025. According to the ministry, negotiations are also underway with the United Arab Emirates, Indonesia, Lebanon, and Vietnam.

Last week, on the sidelines of the G7 summit, President Lula discussed the potential launch of Mercosur-Japan trade negotiations with Japanese Prime Minister Sanae Takaichi. The start of those talks could be announced at the South American bloc’s summit later this month.

Brazil is also seeking to expand its existing agreements with India and Mexico. Negri highlighted the speed with which Congress approved the agreements with the European Union, Singapore, and EFTA, a departure from Brazil’s traditionally slower approach to trade liberalization. In her view, the debate is no longer about whether trade agreements are necessary, but about which agreements make the most sense for Brazil.

Prazeres argued that the Singapore and EFTA agreements are more important to Brazilian exporters than many observers realize. Although exports to those markets are heavily concentrated in crude oil and fuels, the range of products shipped there is significantly more diversified than aggregate trade figures suggest. Of the roughly 8,000 categories of goods exported by Brazil in 2025, about 2,500 were sold to Singapore, and 2,280 were exported to EFTA countries.

According to Prazeres, those figures indicate substantial room for Brazilian companies—particularly industrial exporters and producers of higher-value-added goods—to expand their presence in those markets. “There are many opportunities for companies in products that may represent only a small share of Brazil’s exports to a given country, but can make a significant difference for an individual business,” she said. Beyond trade diversification, government studies project meaningful economic gains from the Singapore and EFTA agreements.

Singapore is viewed as a gateway to Southeast Asia, one of the world’s most open and dynamic regions. The ministry estimates that the agreement could increase Brazil’s gross domestic product by R$28 billion, boost investment by R$11 billion, and expand total trade flows by $40 billion by 2040, driven by higher exports and imports. For the EFTA agreement, projections indicate a R$2.69 billion increase in GDP, an additional R$660 million in investment, and a R$3.34 billion rise in Brazilian exports. Both agreements have received strong support from industry groups for their potential to expand trade and investment opportunities.

Negri noted that the EFTA deal is especially significant because it strengthens Brazil’s ties to a market closely integrated with the European Union. She also pointed out progress in areas like investment regulations and government procurement. In contrast, the Singapore agreement is seen as a means to expand Mercosur’s access to Asian markets.

Industry groups, however, advocated stringent rules of origin to prevent trade triangulation, in which products from third countries could enter Mercosur via Singapore. “Trade relationships do not develop on a blank sheet of paper,” said Leandro Consentino, a political scientist and professor at business school Insper, emphasizing the political aspect of trade policy. “It is not solely an economic issue. There is also a significant political element, especially this year when both Brazil and the U.S. are approaching elections.”

*By Giordanna Neves and Lu Aiko Otta — Brasília

Source: Valor International

https://valorinternational.globo.com/