EU–Mercosur Deal to Cut Wine Tariffs Up to 35%, Opening 270 Million-Consumer Market for Portugal

The Regional Wine Commission of Alentejo (CVRA) has welcomed the recent approval of the trade agreement between the European Union and Mercosur, viewing it as a strategic step for Portugal’s wine sector. The agreement, which will be signed in Paraguay, provides for the gradual elimination of customs duties on European wines, currently set between 18 and 35 percent. This move opens access to a market of approximately 270 million consumers, with more than 210 million Portuguese speakers, most notably in Brazil.

Brazil is already the leading Mercosur destination for wines from Alentejo, a region in southern Portugal known for its robust reds and fresh whites. In 2025, exports of Alentejo wines to Brazil reached about four million liters, despite high tariffs that have limited growth. The CVRA believes that reducing these barriers will allow producers to expand their presence and increase sales in a market where Alentejo wines already enjoy strong recognition among consumers.

Luís Sequeira, president of the CVRA, emphasized that the reputation of Alentejo wines in Brazil is a key factor for future growth. He stated that even with significant tariffs, Alentejo wines have maintained high visibility and demand. The new agreement is expected to create more balanced competition conditions and enhance the competitiveness of Portuguese wines across Mercosur countries.

The CVRA also highlighted that this development comes at a time when international trade faces uncertainty due to geopolitical tensions and rising protectionism. The organization sees the agreement as a clear signal of openness and cooperation between Europe and South America. It aligns with the goals set out in the Alentejo Wines Strategic Plan 2026–2031, which aims for sustained export growth by focusing on origin value, product differentiation, and establishing Alentejo as a leading global wine region.

The Confederation of Portuguese Farmers (CAP) also commented on the agreement’s significance for Portugal. CAP noted that sectors such as wine, olive oil, fruit, and processed tomatoes stand to benefit directly from reduced tariffs and fewer administrative barriers. For wine alone, current customs duties range from 18 to 35 percent; olive oil faces a 10 percent tariff; fruit and prepared tomatoes are subject to similar rates. CAP pointed out that Brazilian consumers value Portuguese gastronomy and recognize the quality of national products, giving Portugal an advantage over other EU member states.

However, CAP also raised concerns about sensitive products on the import side, such as beef, pork, poultry, rice, and honey. The agreement sets a reduced tariff quota for beef imports from Mercosur countries at 99,000 tons—about 1.4 percent of European consumption and less than half the average volume currently imported from Mercosur before the deal. CAP stressed that the EU has included strict safeguard clauses to protect European producers and ensure fair competition.

The agreement requires compliance with EU sanitary and phytosanitary standards, enhanced control mechanisms, environmental commitments, and allows for suspension of trade preferences if agreed rules are not met. CAP called for constant monitoring of markets and rigorous enforcement to ensure European farmers are not disadvantaged in sensitive sectors.

Portugal’s Minister of Agriculture and Maritime Affairs, José Manuel Fernandes, praised the approval by EU member states last week. Speaking in Lisbon, he recalled his efforts in the European Parliament to advance this agreement and described it as highly positive for both sides. Fernandes noted that Portugal currently has a trade deficit of 500 million euros with Mercosur countries; he expects the new deal will help close this gap by boosting exports in key sectors like wine.

The EU–Mercosur agreement is expected to facilitate greater exports from Europe—including vehicles, machinery, wines, and spirits—to South America while easing entry into Europe for products such as meat, sugar, rice, honey, and soybeans from Mercosur countries. The deal marks a significant development for Portuguese agriculture and wine producers seeking new opportunities in international markets.