British Ambassador to Brazil Vijay Rangarajan said “the UK enthusiastically hails the political agreement on the free trade agreement between the European Union and Mercosur.”

The diplomat described the deal as “very relevant, liberal, and economically important. In addition to the substantial impact on trade, it is important from the international and geographic viewpoints. It also shows possibilities and potential multilateral trade arrangements.”

“I worked directly in my first mandate for the progress of this agreement, negotiated during the UK’s presidency of the European Union in 1998, so I’m very happy with the results. I congratulate the EU, Mercosur, and all the 32 countries involved as well as the negotiating teams,” he said, on the day the signing was announced.

Support for Brazil as an OECD member

Vijay Rangarajan noted he has been working alongside the Brazilian government in granting Brazil access to the OECD. “This is one of the deepest changes for both OECD and Brazil at the moment. These reforms are not always easy, but this commitment has led to clear progress,” he declared.

In a reference to Brexit—the UK’s departure from the European Union—the ambassador said Great Britain “is certainly before a complex domestic policy. Nonetheless, regardless of when or how we will leave the European Union, the UK will keep opening trade and investment, with shared rules and high standards in the best interest of common prosperity.”

Estimates

The treaty should favor business between Mercosur and the EU, boosting the Brazilian GDP by around $87.5 billion over the course of 15 years, as per estimates from the Economy Ministry.

Also according to official figures, this amount may reach $125 billion if the reduction of non-tariff barriers and the expected increase in productivity are taken into account. The expansion of investment in Brazil in the same period is likely to stand at $113 billion. In bilateral trade, Brazilian exports to the EU will amount to nearly $100 billion in gains by 2035.