EU-Mercosur Sector
Wine & Spirits
Brazil's 20–27% tariff on EU wines and spirits will be eliminated over 10–12 years. Geographic Indications protect Champagne, Prosecco, Cognac, and 100+ more names.
Tariff reduction schedule
| Product | MFN | Year 0 | Year 4 | Year 10 | Final |
|---|---|---|---|---|---|
| Sparkling wine (incl. Champagne, Prosecco) | 27% | 21.6% | 13.5% | 2.7% | 0% |
| Still wine (bottled, < 2L) | 27% | 21.6% | 13.5% | 2.7% | 0% |
| Still wine (bulk, > 2L) | 20% | 16% | 10% | 2% | 0% |
| Vermouth and aromatized wine | 20% | 16% | 10% | 2% | 0% |
| Cognac, brandy, grappa | 20% | 16% | 10% | 0% | 0% |
| Whisky | 20% | 16% | 10% | 0% | 0% |
| Gin | 20% | 16% | 10% | 0% | 0% |
| Vodka | 20% | 16% | 10% | 0% | 0% |
| Liqueurs | 20% | 16% | 10% | 0% | 0% |
Spirits reach 0% faster (8 years) than wine (12 years). All rates are linear reductions from MFN.
Oenological practices recognized
A significant non-tariff win: Brazil will recognize EU oenological practices under the agreement. This means:
- Winemaking additives approved in the EU are accepted in Brazil without separate testing
- Labeling — EU wine labels are accepted with minimal adaptation (Portuguese back-label required, but no need to reformulate label content)
- Certification — EU wine certification (V I 1 document) accepted by MAPA as proof of origin and compliance
- Blending practices — EU blending rules accepted (e.g., percentage declarations on varietals)
Wine and spirits GIs
The agreement protects over 100 wine and spirits Geographic Indications in Brazil:
France
- Champagne
- Bordeaux
- Bourgogne
- Côtes du Rhône
- Cognac
- Armagnac
- Alsace
- Beaujolais
Italy
- Prosecco
- Chianti
- Barolo
- Amarone
- Brunello di Montalcino
- Grappa
- Lambrusco
- Franciacorta
Spain & Portugal
- Rioja
- Cava
- Jerez / Sherry
- Porto / Port
- Madeira
- Vinho Verde
- Ribera del Duero
- Priorat
End of "Champanha" and "Proseco" in Brazil
Brazilian sparkling wine producers currently using names like "Champanha" or "Proseco" have a 7-year transition period to rebrand. After 2033, only French Champagne can be sold as "Champagne" in Brazil, and only Italian Prosecco as "Prosecco." This creates clear brand differentiation for EU producers.
Regulatory requirements
- MAPA registration — wine imports require MAPA establishment approval and a health certificate (V I 1 document from the EU country of origin).
- ANVISA labeling — Portuguese back-label required with: alcohol content, origin country, importer details, volume, lot number, and allergen information. "Contains sulfites" mandatory for wines with >10mg/L SO₂.
- Import License (LI) — non-automatic license via Siscomex, processed by MAPA. Typically 10–15 days.
- IPI + Selective Tax — alcoholic beverages are subject to IPI (currently 10–60% depending on product) and will transition to the Selective Tax (IS) under the tax reform. The IS is designed to maintain current effective rates.
Market context
Brazil is Latin America's largest wine market, consuming approximately 400 million liters annually. Key data:
- Import share: ~30% of wine consumed in Brazil is imported (Chile leads, followed by Argentina, then EU)
- Growth segment: premium and super-premium wines are growing fastest — exactly where EU producers are strongest
- Price sensitivity: the 27% tariff makes EU wines significantly more expensive than Chilean wines (0% under Mercosur-Chile FTA) and Argentine wines (0% within Mercosur)
- Post-agreement impact: as EU wine tariffs fall, EU producers become price-competitive with Chilean and Argentine competitors for the first time