The recent Mercosur-European Union agreement concluded after 25 years of negotiations, is poised to impact Brazil's citrus industry, particularly in the realm of orange juice exports. Cepea researchers highlight the anticipated gradual elimination of export tariffs on orange juice to the European bloc as a critical aspect of the deal. Presently, orange juice exports to the EU are subject to tariffs ranging between 12.2% and 15%, as per CitrusBR. These tariffs are slated for removal throughout 7 to 10 years under the new agreement.
<p>Brazil, as the leading global exporter of orange juice, finds in the EU its most significant market. Comex Stat data for the 2023/24 harvest season shows the EU accounting for about 55% of Brazil's total export revenue from orange juice. With the agreement, Mercosur, led by Brazil due to its dominant production volume, is expected to supply half of the EU's orange juice imports, enhancing Brazil's competitive position in the international market.
Source: Datamar News