Brazil Pushes Overhaul of Mercosur–SACU Trade Deal During Ramaphosa’s State Visit

Overview

• Vice President Geraldo Alckmin proposed revising the Mercosur–Southern African Customs Union agreement to expand tariff lines at a Brazil–South Africa business forum in Brasília.
• He said less than 10% of current bilateral flows use the pact’s tariff preferences, which constrains deeper integration.
• Alckmin reported an 11.6% year-on-year increase in bilateral trade last year, with a 2025 trade balance of US$2.3 billion, according to MDIC data.
• Brazil signaled readiness to back proposals for financing and industrial cooperation, citing opportunities in energy, critical minerals, and digital and energy transitions.
• President Lula also called for stronger national defense capabilities as ties deepen, and officials highlighted trade led by Brazilian exports of poultry and sugar and Brazilian imports of platinum-group metals.