Mercosur-EU deal could boost competitiveness of Brazilian footwear in Europe, Abicalçados says

The entry into force of the trade pillar of the agreement between Mercosur and the European Union could open the way for gradual gains in competitiveness for Brazil’s footwear industry in the European market, according to Abicalçados. The industry association said implementation is scheduled to begin on May 1, although broader effects will depend on the pace of tariff reductions over the coming years.

According to the association, the European Union accounted for 17.4 million pairs of shoes exported by Brazil in 2025, a volume 5.2% higher than in 2024.

In container terms, this amounted to 484 TEUs of footwear exported in the first quarter of 2026. The chart below provides an overview of the footwear industry’s monthly exports to the European Union, according to Datamar data:

Footwear Exports to the EU | Jan 2023 – Mar 2026 | TEUs

Source: DataLiner (click here to request a demo)

The sector’s view is that the agreement could improve the position of Brazilian footwear in a bloc that accounts for about 40% of global footwear imports.

At present, the import tariff applied by the European Union to footwear ranges from 3.5% to 17%, depending on the tariff line. According to Abicalçados, the elimination of those tariffs for products originating in Mercosur will take place gradually over a period of up to 10 years, which means the more relevant effects are likely to emerge in the medium and long term.

In the association’s view, one of the main effects of the agreement 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, the opening could help restore the competitiveness of Brazilian footwear in a high-value market with strong import demand.

Abicalçados also points to a key issue related to rules of origin. The association argues that, without this kind of safeguard, 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 mitigate that risk, the text of the agreement includes regional content requirements.

In the case of lower-value footwear, the rule cited by the association requires a minimum regional content of 60%, taking into account domestic inputs and production costs within the area covered by the agreement, while also prohibiting the use of uppers imported from non-participating countries. According to the sector, that framework is intended both to limit triangulation and to encourage greater regional integration of the production chain.

Source: Abicalçados

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