On 28 June 2019, the EU and Mercosur trade bloc – which includes Argentina, Brazil, Paraguay and Uruguay – reached a trade agreement that could boost sales of soluble coffee from Brazil in the EU.
The agreement is particularly important for South American agricultural goods. At the moment, for instance, Brazil’s instant (soluble) coffee exports face a 9 per cent duty to enter the European market.
A spokesperson for ABICS, the Brazilian soluble industry association did not respond to questions by press time but told Bloomberg that the new deal will see the 9 per cent duty gradually reduced until it is completely eliminated in four years.
The EU is said to be the second most important market for soluble from Brazil.
ABICS told Bloomberg that exports to the EU could grow significantly as a result.