EU-Mercosur deal expected to lift Brazilian footwear exports to Europe

EU-Mercosur deal seen improving Brazilian footwear competitiveness in Europe

The entry into force of the trade pillar of the agreement between Mercosur and the European Union could open the way for gradual competitiveness gains for Brazil's footwear industry in the European market, according to industry association Abicalçados, as reported by DatamarNews and World Footwear. Implementation is scheduled to begin on May 1, though the association cautions that broader effects will depend on the pace of tariff reductions over the coming years.

Brazil exported 17.4 million pairs of shoes to the European Union in 2025, a volume 5.2% higher than in 2024, according to Abicalçados. In container terms, footwear shipments to the bloc amounted to 484 TEUs in the first quarter of 2026, based on Datamar data. The sector views the EU — which accounts for about 40% of global footwear imports — as a high-value market with strong and sustained import demand.

Tariffs to fall over up to a decade

At present, the import tariff applied by the European Union to footwear ranges from 3.5% to 17%, depending on the tariff line. Abicalçados says the elimination of those tariffs for products originating in Mercosur will take place gradually over a period of up to 10 years, meaning the more significant effects are likely to emerge in the medium and long term rather than immediately after entry into force.

According to the association, one of the agreement's main effects will be to reduce Brazil's tariff disadvantage relative to competitors that already operate under trade agreements with the European Union, such as Vietnam. In that context, Abicalçados argues, the opening could help restore the competitiveness of Brazilian footwear in a market with strong import demand.

Rules of origin in focus

The association also highlights rules of origin as a central issue. Without such safeguards, it argues, countries outside the agreement could try to use European Union members as a platform for trade triangulation and improper access to the tariff benefit. To limit that risk, the text of the agreement includes regional content requirements.

• For lower-value footwear, the rule requires a minimum regional content of 60%, taking into account domestic inputs and production costs within the area covered by the agreement.
• The same rule prohibits the use of uppers imported from countries outside the agreement.

According to the sector, that framework is intended both to limit triangulation and to encourage greater regional integration of the production chain. For exporters and importers, the practical takeaway is that tariff relief will be phased rather than immediate, and that access to the benefit will hinge on meeting the regional content thresholds.