Overview
- Vice President Geraldo Alckmin said the agreement phases out tariffs over eight years for wines and twelve for sparkling wines.
- The federal government will issue a presidential decree to regulate safeguards that can be activated if imports surge or export taxes increase.
- MDIC and Itamaraty are drafting the decree, which is expected to go to the Casa Civil for review, and it will set timelines, investigation procedures and conditions for applying measures across existing and future deals.
- Officials characterize the EU–Mercosur pact as a way to expand market access and integrate Brazil into global value chains, giving producers time to adapt.
- Studies cited by Alckmin project the wine sector’s total tax burden falling from about 40.5% to around 33% under the tax reform, with selective tax rules still to be finalized.