Finland sees new opportunities with Brazil after trade agreement

Finland sees new opportunities for cooperation with Brazil following the conclusion of the Mercosur-European Union trade agreement and the approval of Brazil’s tax reform. The greatest potential lies in digitalization and artificial intelligence, Finnish Ambassador to Brazil Antti Kaski told Valor.

That assessment is also reflected in the Doing Business in Brazil Guide 2026, produced by Finland’s Embassy and Consulate in Brazil. The report highlights Brazil as Finland’s largest trading partner in Latin America, accounting for 40% of Finnish exports to the region and attracting $1.2 billion in Finnish investments, particularly in the industrial sector.

“Trade relations are very strong and close, but there is still considerable room for growth. An interesting characteristic is that they are complementary,” the ambassador said. According to Kaski, 70 Finnish companies operate in Brazil. Their main areas of activity include telecommunications, forestry machinery, mining, energy, and chemicals.

The report states that Brazil is consolidating its position as a regional hub for innovation, sustainability, and green industrial development, while emerging as a strategic market for sectors such as the bioeconomy and green industry. Kaski highlighted opportunities in digitalization and artificial intelligence, particularly through the construction of energy-efficient data centers, which are essential infrastructure for AI development.

The ambassador said progress in Brazil’s regulatory framework is critical to unlocking investment but noted that the recently signed digital partnership between Brazil and the European Union, announced on Friday (12), provides an important roadmap for future cooperation.

“The EU has this type of partnership with only four countries. It is an excellent foundation for dialogue and cooperation,” he said.

Another step in that direction, he noted, is the collaboration between Nokia and the University of Oulu with Brazilian researchers on a project to develop 6G technology.

The Mercosur-EU agreement, meanwhile, could help bring greater clarity to a challenging market such as Brazil. According to the study, the treaty is expected to create one of the world’s largest free-trade areas, encompassing more than 700 million consumers and around 25% of global GDP.

Kaski added that Brazil’s tax reform also helped simplify a complex tax system marked by high tariffs in certain sectors and bureaucratic import and export procedures.

“The message from companies is that Brazil is not a very straightforward playing field. This is where we expect the Mercosur-EU agreement to help, by providing greater clarity and more standardized procedures.”

Despite political polarization in Brazil and uncertainties associated with an election year, Kaski views the bipartisan support for the trade agreement in Brazil’s Congress as a positive sign that provides confidence for foreign companies.

“It has tremendous symbolic significance that these regions were able to conclude an international agreement, agree on trade rules, and establish political dialogue in today’s world.”

The ambassador said the treaty is part of a broader “geoeconomic” shift, in which new trade agreements are being signed amid rising protectionism and tariff disputes.

“Unpredictability, trade tariffs, and these kinds of measures do not benefit anyone. They may, however, create opportunities for other markets. The world is undergoing not only geopolitical but also geoeconomic changes. Perhaps the Mercosur-EU agreement is part of that transformation,” Kaski said.

He added that trade between Brazil and Finland is currently driven largely by business-to-business transactions, but the agreement could encourage greater circulation of consumer goods in both markets.

Today, Finnish companies are interested in moving beyond the supply of machinery and equipment to jointly develop sustainable technologies with Brazil, focusing on opportunities in bioenergy, smart grids, connectivity, and critical minerals.

Source: Valor International

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