Mercosur-European Union Agreement

Enter the Brazilian market with the legal protection the agreement does not provide on its own.

Since 1 May 2026 the trade pillar of the agreement has been provisionally in force, and the tariff is no longer the main barrier to a European company selling in Brazil. The risk has simply moved: it now sits in the contract, in the security behind payment, and in the protection of your brand and your technology. That is what we handle, on the Brazilian side.

  • Due diligence on the Brazilian counterparty, and contracts covering jurisdiction, governing law and real security.
  • Registration and defense of trademarks, patents and know-how, with action against copying and counterfeiting.
  • Distribution and agency, your own entity in Brazil, and debt recovery.

When do European companies come to us?

A first Brazilian customer

The company is about to sell into Brazil for the first time and the order arrived before the contract. Nobody knows who the counterparty really is, what security exists, or where a dispute would be argued.

A distributor or agent in Brazil

Someone will represent the brand in the Brazilian market, with exclusivity, targets and stock, and the contract has to settle territory, termination and what happens to the customer base when the relationship ends.

A Brazilian customer who does not pay

The goods were delivered, the invoice fell due and chasing payment from abroad is going nowhere. You need to know whether there are assets in Brazil before choosing between settlement and enforcement.

A copied product or a trademark used by someone else

A similar product has appeared on the Brazilian market, or someone registered the trademark first. How fast you react here counts for more than how strong your rights are back home.

Why the work has to be done locally

The risk imbalance

A European contract does not enforce itself here

Foreign jurisdiction and governing law clauses are valid, but enforcement happens where the assets are. A contract drafted only with Europe in mind usually forces the company to start the argument over again in Brazil.

Winning the case is not getting paid

A favorable judgment is where collection begins, not where it ends. Without security put in place before the sale, enforcement depends on finding unencumbered assets, and the case can end with nothing to show for it.

The brand circulates before it is protected

Trademark and patent registration in Brazil is territorial, and whoever files first has the advantage. Samples, catalogs and trade fairs expose the product long before any protection exists.

The tariff has fallen, the paperwork obligation has not

The preference under the agreement is not automatic: it depends on proof of origin under the rule for each tariff code. Without it, the goods enter Brazil paying the full tariff.

What we do for European companies in Brazil

The areas that protect a European operation in the Brazilian market, from the first negotiation through to collection, if it comes to that.

Counterparty due diligence

Registry, corporate and asset checks on the Brazilian customer, distributor or partner, with searches for litigation, encumbrances and track record, before the company takes on any credit risk.

International contracts

Drafting and reviewing supply, sale and services contracts, setting governing law, jurisdiction or arbitration, currency, delivery terms and the consequences of default.

Security and payment protection

Structuring personal guarantees, sureties, fiduciary liens, pledges and other security recognized under Brazilian law, so the receivable is backed from the outset and does not rest on the counterparty's goodwill alone.

Trademarks, patents and know-how

Registration and defense of trademarks and patents in Brazil, licensing and technology transfer agreements, confidentiality clauses, and action against copying, counterfeiting and unfair competition.

Distribution, representation and agency

Distribution, commercial representation and agency contracts, with attention to exclusivity, territory, targets, term, termination compensation and what becomes of the customer base when the relationship ends.

Your own entity in Brazil

Incorporating a Brazilian subsidiary, choosing between a subsidiary and a branch, legal representation of the shareholder abroad, registration of the investment with the Central Bank, and the ongoing corporate obligations.

Debt recovery

Out-of-court collection, formal protest, negotiation, judicial enforcement and filing claims in the debtor's reorganization or bankruptcy, with a realistic view of what can actually be recovered in each scenario.

Tariff preference and origin

Classification by tariff code, rules of origin and the proof required for European goods to enter Brazil with the preference under the agreement, plus defense in customs queries.

Tax and regulatory side of the operation

Analysis of the tax burden on importing and selling in Brazil, choice of tax regime where there is a local entity, and the sector licenses and registrations the product needs to circulate in the country.

Who will handle your business in Brazil

A full-service Brazilian firm for those arriving from Europe.

Swipe to see the whole team

How the engagement works

First contact

You reach the firm by WhatsApp or email and describe the situation, whether it is a first sale into Brazil, a distribution contract, a collection that has stalled or a copied product. We work in Portuguese, English or Spanish.

Exposure assessment

We establish who the counterparty is, what the contract currently provides, what security exists and where the trademark stands in Brazil, and we point out where the operation is exposed.

Meeting with the responsible partner

The partner in charge leads the conversation with head office in Europe, presents the strategy and lays out costs, timelines and scenarios before any decision is taken.

Scope and engagement letter

Scope, timelines and fees are agreed clearly before the work begins, with no surprises along the way.

Implementation and ongoing support

Contracts adjusted, security put in place, registrations filed and the operation monitored on an ongoing basis, in direct contact with your team in Europe.

Frequently Asked Questions

Is the agreement in force, and what does it change for companies selling into Brazil?
The trade pillar has been provisionally in force since 1 May 2026, following signature in January of that year and ratification by Brazil. In practice, tariffs come down progressively across much of the trade between the two blocs, government procurement opens up on both sides, and geographical indications are mutually recognized. The broader partnership agreement, covering the political and cooperation pillars, still depends on the European Parliament and on ratification by the member states.
Can I keep European jurisdiction and governing law in a contract with a Brazilian customer?
In international business-to-business contracts, choosing foreign law and a foreign forum, or arbitration, is as a rule accepted in Brazil. The practical question is a different one: if the debtor's assets are in Brazil, collection ends up here, and a foreign judgment has to be recognized by the Superior Court of Justice before it has any effect, which adds time and cost. A foreign arbitral award goes through recognition as well. That is why the choice of forum is decided case by case, looking at where the assets are.
Which security actually works against a Brazilian customer?
It depends on the size of the deal and on what the counterparty can offer. The most common are personal guarantees from the shareholders, a bank guarantee, credit insurance, a chattel or real estate fiduciary lien, and a pledge. The central point is to put the security in place before delivery, with the formalities Brazilian law requires, and not after payment falls overdue. Security that is badly documented tends to be as weak as none at all.
Do I need to register my trademark in Brazil if it is already registered in Europe?
Yes. Trademark protection is territorial, and a European registration has no effect in Brazil. The Brazilian system favors whoever files first, with few exceptions, so a third party can register your mark here before you do. The same reasoning applies to patents and industrial designs. It is one of the first steps to take, ideally before showing the product at trade fairs, in catalogs or in negotiations.
Do I need a Brazilian company in order to sell here?
Not necessarily. You can export to a Brazilian importer or distributor with no local entity at all. Companies usually incorporate a subsidiary when they want to control pricing and the sales channel, invoice locally, import in their own name, hire staff or bid for public contracts. Where there is a shareholder abroad, the law requires a legal representative resident in Brazil, and the incoming capital must be registered with the Central Bank so that profits can be remitted and the investment repatriated.
My Brazilian customer has not paid. Is it worth pursuing collection in Brazil?
The answer starts with an asset search, not with a filing. We check for assets, litigation, encumbrances and signs of insolvency before recommending anything. Where there is something to collect against, we can proceed by negotiation, formal protest or enforcement, and a secured instrument moves considerably faster. Where no traceable assets exist, we say so plainly, because litigating with no prospect of payment only adds cost.
Does the tariff drop to zero automatically for European goods?
No. Two conditions have to come together. The product's tariff code must sit in a bracket that has already been reduced, because some lines went to zero when the agreement took effect while others follow timetables running several years. And the origin must be proven under the rule specific to that code, with the required documentation. Without both, the goods clear customs at the full tariff, and the difference can be assessed later.
What languages does the firm work in, and from where?
We work in Portuguese, English and Spanish, with remote meetings for head offices and teams in Europe and direct contact with your own lawyers and accountants abroad. Doering Darcie Advocacia e Consultoria is a Brazilian firm, with offices in São Paulo and Porto Alegre and practice throughout the country, which means your operation is handled by people working inside the same system in which it will be argued.
Doering & Darcie

Doering & Darcie

A modern practice built on four decades of tradition.

Get in touch