EU–Mercosur Agreement Moves Forward and Expands Strategic Prospects for the Brazilian Coffee Value Chain

The approval of the free trade agreement between the European Union and Mercosur marks an important step forward for Brazilian coffee and for the entire coffee value chain. The agreement, which now awaits formal signing between the blocs and subsequent ratification by the participating countries, is expected to strengthen Brazil’s positioning in the European market — one of the most strategic destinations for the global coffee sector.

The European Union already ranks among the main buyers of Brazilian coffee, both in volume and value. In a global environment marked by commercial uncertainty, tariff pressures and shifts in relations among major economies, the progress of the agreement signals greater predictability, deeper trade relations and expanded opportunities for producers, cooperatives, exporters and intermediaries.

Tariff Reduction and Incentives for Value Addition

From a coffee perspective, the agreement’s most direct impacts relate to processed products. Green coffee — which accounts for the vast majority of Brazilian coffee exports to the EU — already enters the bloc duty-free. However, categories such as soluble coffee and roasted and ground coffee are still subject to import tariffs, limiting their competitiveness in the European market.

With the implementation of the EU–Mercosur agreement, these tariffs are expected to be gradually eliminated over a period of up to four years. This shift tends to favor value addition at origin, encouraging industrial investment, innovation and the strengthening of more sophisticated commercial strategies aligned with European consumer demand.

Competitiveness and Balance in the International Market

The removal of tariffs on processed coffee also helps level the competitive landscape among major producing countries. Today, some of Brazil’s competitors already benefit from more favorable tariff conditions in Europe, particularly in the soluble coffee segment. The agreement reduces this asymmetry and creates a more competitive environment for Brazilian coffee across its different forms of commercialization.

Beyond its direct impact on prices and margins, the agreement reinforces Brazil’s attractiveness as a long-term strategic partner for roasters, industries and international groups operating in the European market.

Greater Integration Across the Coffee Chain

More than simply expanding exports, the agreement has the potential to deepen integration across the various links of the coffee value chain. Greater commercial predictability, combined with reduced tariff barriers, is likely to encourage partnerships, long-term contracts and investments in quality, traceability and sustainability — attributes that are increasingly valued in the European Union.

In this context, Brazilian coffee benefits not only from its production scale, but also from its diversity of origins, sensory profiles and supply models, which allow it to serve both traditional markets and higher value-added niches.

Regulatory Challenges and the Need for Adaptation

Despite the opportunities, the progress of the agreement also requires close attention to the regulatory frameworks adopted by the European Union. Protective mechanisms for the European market and requirements related to production standards reinforce the importance of technical alignment, transparency and professionalism throughout the value chain.

For the Brazilian coffee sector, this scenario highlights the need for planning, strategic market intelligence and coordinated action among producers, exporters and commercial partners, ensuring that the agreement translates into concrete and sustainable gains over time.

A Structural Step for the Future of Brazilian Coffee

The EU–Mercosur agreement represents a structural shift for Brazilian coffee, with impacts that go beyond the short term. By strengthening access to the European market and encouraging value addition, the agreement creates conditions for a more integrated, competitive and resilient coffee chain, better prepared for the challenges of contemporary international trade.

More than a one-off event, the agreement signals a change in the operating environment — one that requires strategy, strong relationships and a long-term vision for its full potential to be realized.

Attentive to this evolving landscape, EllerS Coffee closely monitors regulatory, commercial and strategic developments related to the EU–Mercosur agreement, analyzing their practical implications for the coffee market. In a context of structural change, qualified information, market intelligence and strong relationships across the value chain become even more essential. It is within this framework that EllerS Coffee operates, connecting origins and markets with strategic vision, transparency and a focus on building solid and sustainable commercial relationships over the long term.

Source: G1