The EU-Mercosur Trade Agreement: opportunities, challenges, and the role of Portugal

The free trade agreement between the European Union and Mercosur is one of the most ambitious economic agreements between the two blocs, which has important ramifications for economic integration, trade relations, and foreign direct investment. The development of Mercosur and its economic ties to Europe are examined in this thesis. Portugal is highlighted in particular because of its historical connections to Brazil and its pro-investment fiscal and economic policies, which make it a strategic hub for relations between Latin America and Europe. Additionally, the movement of human and industrial capital from Brazil to Portugal is analyzed, evaluating the major economic sectors and the increasing number of Brazilian startups in Portugal. Lastly, the thesis uses a SWOT analysis to examine the opportunities and problems of the EU-Mercosur agreement. The results indicate that the EU-Mercosur agreement has a lot of potential to improve trade liberalization, interregional cooperation, and geopolitical positioning, but it also has ongoing issues with environmental sustainability, protectionist pressures, and political opposition. The study ultimately argues that the agreement’s success will depend on both regions' ability to balance their economic goals with their social and environmental obligations, thus redefining the future of interregional trade governance.