Economy

Portugal and Mercosur: A New Era of Economic Opportunities

Portugal now has a unique opportunity to consolidate its presence in Mercosur and diversify its economy. With proper strategic planning, Portuguese companies will be able to expand their operations and strengthen business ties in one of the most promising markets in the world. The moment requires vision, preparation and...

12 Feb 2025 4 min reading

Portugal and Mercosur: A New Era of Economic Opportunities
The recent advance in negotiations between the European Union and Mercosur has brought new perspectives to the Portuguese economy. The agreement, announced in December 2024, signals a historic milestone after more than 25 years of negotiations and opens the door to greater trade integration between Portugal and the countries of the South American bloc. Despite the challenges that still exist for its ratification, Portugal sees this partnership as a strategic opportunity to diversify and expand its business.
The Importance of Preparing for Mercosur
Portuguese companies need to start preparing for this new scenario, as many of their European competitors are already moving in this direction. With the agreement, there will be greater access to raw materials from countries such as Brazil and Argentina, which can benefit several national industries, from agri-food to technology. However, in order to compete effectively in this new environment, it is essential for companies to understand the specifics of the South American market.
Brazil, for example, is a large country, composed of 27 states with diverse economies. States such as São Paulo and Bahia offer large and competitive markets, each with its own regulatory and commercial particularities. To position themselves strategically, Portuguese companies must adopt personalized approaches for each region, valuing the construction of local partnerships and adaptation to consumption patterns and specific regulations.
Opportunities and Challenges of the Brazilian Market
Portugal has maintained a strong trade relationship with Brazil, which was consolidated in 2024 with a record volume of trade. However, a large part of these transactions is still concentrated in a few sectors, such as wines, olive oils, and vehicles. There is therefore vast potential for diversification, especially in the areas of technology, energy, and infrastructure.
Brazil is one of the most protectionist markets in the world, but with the Mercosur agreement, some trade barriers can be reduced. This does not mean that the challenges will disappear completely. Bureaucracy, tax complexity, and regulatory requirements will still be factors to consider for any Portuguese company looking to establish or expand its presence in the country.
One factor that can facilitate this insertion is the growing presence of the Brazilian community in Portugal. With an increasing number of Brazilians living and investing in Portuguese territory, there is a greater proximity between the two countries, which makes Portugal a more attractive destination for investors from Brazil and, at the same time, opens doors for Portuguese companies in the Brazilian market.
The Role of APEX Brasil in Lisbon
Another significant step for the economic relationship between Portugal and Brazil is the opening of the APEX Brazil office in Lisbon. APEX Brasil, the Brazilian Trade and Investment Promotion Agency, will be a key support point for Brazilian and Portuguese companies that want to expand their business in their respective markets. This office will also represent other Brazilian institutions, such as Sebrae and Fiocruz, fostering commercial, scientific and business exchange between the two countries.
The installation of APEX Brasil in Portugal demonstrates the recognition of Lisbon's strategic position as a gateway to Europe. In addition, it reinforces the growing importance of the Luso-Brazilian relationship in sectors such as tourism, energy, construction and technology. The presence of this agency could boost bilateral investments and stimulate a more dynamic flow of trade between the two countries.
Future Perspectives
With Brazil regaining its place among the world's ten largest economies and the presidency of the G20 in 2024, its global influence is likely to grow. Portugal, in turn, is well positioned to benefit from this growth, both by strengthening its exports and by attracting Brazilian investment.
The success of this new phase will depend on the ability of Portuguese companies to adapt to the new dynamics of the South American market, as well as on the effectiveness of trade promotion and investment support policies. The opening of APEX Brasil in Lisbon represents an important step forward in this regard, offering a direct channel to facilitate business and partnerships between the two countries.
Portugal now has a unique opportunity to consolidate its presence in Mercosur and diversify its economy. With proper strategic planning, Portuguese companies will be able to expand their operations and strengthen business ties in one of the most promising markets in the world. The moment requires vision, preparation and initiative, but the long-term benefits can be highly rewarding.

Economy