The Federation of Industries of the State of Rio de Janeiro (Firjan) considers the signing of the Trade Agreement between Mercosur and the European Union, held on 28/6 in Brussels, an important landmark for international trade, by creating one of the largest areas free trade agreements. The two economic blocs have GDP that amount to about $ 20 trillion - 25% of the world's GDP - and represents a market of approximately 780 million consumers. The text is the broadest and most complex ever negotiated by Mercosur, confirming the interest of its members in advancing the process of trade liberalization.

Negotiations included topics relevant to foreign trade: tariff and non-tariff measures, including services, government procurement, intellectual property, sanitary and phytosanitary measures, technical barriers and rules of origin.

Access to Goods Markets does not imply an immediate opening. In Industrial Goods, the European Union will reduce tariffs of about 100% of trade in 10 years to zero. Being that for 80% of Mercosur's exports liberalization is immediate. Mercosur liberalizes around 90% of the trade, in addition to obtaining longer terms, up to 15 years, to gradually reduce the tariffs of sensitive sectors.

But there will be no openness without restraint. The Agreement provides for mechanisms to prevent customs fraud and establishes, in respect of origin, bilateral safeguards mechanisms which allow the temporary suspension or reduction of tariff preferences in the event of a threat or serious injury, as well as the implementation of a Dispute Settlement mechanism.

There are also issues of interest to the industrial sector: agility in foreign trade operations, interoperability of single portals, and mutual recognition of Authorized Economic Operator programs, which serve to facilitate greater trade and reduce costs. In the automotive sector, the mutual acceptance of tests for conformity assessment was determined in order to avoid double testing.

The rules of origin were flexibilized to meet the current logic of global value chains, which is increasingly imposed on the production of the industrial sector.

All these results are not immediate. The economic side of the agreement may enter into force provisionally, after approval by the European Parliament and ratification by members of Mercosur. On the other hand, the political aspect, which includes strengthening cooperation in strategic areas (science, technology and innovation, defense, infrastructure, environment and energy, cyber security, education, consumer rights and combating terrorism), will also depend on ratification by of each member of the European Union and of Mercosur.

Although the entire analysis of the impact of the agreement still depends on the disclosure of the full text and the concessions, there is great optimism for the economic resumption of Brazil and, especially, of Rio de Janeiro. The expansion of commercial opportunities and the improvement of the business environment will facilitate the attraction of foreign investments to the Brazilian market.

The Ministry of Economy already predicts that the Mercosur-European Union Agreement, in 15 years, will allow an increase between US $ 87.5 billion and US $ 125 billion in Brazilian GDP. An increase in investments of US $ 113 billion and an increase in exports to the European Union of US $ 100 billion are also expected.

Certainly this scenario will have repercussions in the state of Rio de Janeiro, allowing the strengthening of the conditions of competitiveness of the industry of Rio de Janeiro and the resumption of the path of dynamic and sustainable growth.