Mercosur-EU deal seen boosting Brazilian toy exports

The proposed free trade agreement between Mercosur and the European Union could expand Brazilian toy exports beyond neighboring markets, which currently dominate the country’s trade in the sector.

According to the 2026 yearbook published by the Brazilian Toy Manufacturers Association (Abrinq), the industry exported $10.3 million worth of toys in 2025.

Paraguay and Argentina remain the largest destinations for Brazilian toy exports. The Paraguayan market accounted for 44.2% of shipments last year, while Argentina represented 17.3% of the total. Chile and Uruguay followed, with shares of 11.4% and 7%, respectively.

The toy market currently represents a marginal share of Brazil’s deep-sea export trade. According to Datamar data, Brazil exported 11 TEUs in January 2026 under HS Code 9503.00. This classification encompasses tricycles, scooters, pedal cars, and similar wheeled toys; dolls’ carriages; dolls; other toys; scale models; and puzzles of all kinds.

The following chart tracks the monthly history of Brazilian toy exports since January 2023:

Toy Exports (HS Code 9503.00) | Jan 2023 – Jan 2026 | TEUs

Source: DataLiner (click here to request a demo)

The state of São Paulo accounted for 64.3% of Brazil’s toy exports, according to the Abrinq report.

Abrinq President Synésio Costa said the Mercosur-EU agreement is expected to enhance the competitiveness of Brazil’s toy industry by gradually reducing tariff barriers.

“When we analyze the Mercosur–European Union agreement from the perspective of the toy industry, we see it as a structural step toward strengthening Brazil’s international presence,” Costa said.

He added that the deal could help the sector reach new trading partners while maintaining strong ties with South American markets.

“For the toy sector, this could mean greater scale, stronger incentives for innovation and new opportunities to diversify markets, without losing the importance of South America, which remains our main export axis,” he said.

Vote expected this week

Brazil’s Senate has scheduled a vote on the Mercosur–EU agreement for Wednesday, April 4.

The text is expected to be reviewed in the morning by the Senate Foreign Relations Committee, under the rapporteurship of Senator Tereza Cristina, before moving to a plenary vote later the same day.

Last week, Vice President and Development, Industry, Trade and Services Minister Geraldo Alckmin said he expects the agreement to enter into force as early as May.

Source: Estadão

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