Despite requests from the Brazilian government to broaden the area under review, the audit will focus on the three southern states, the first in the country to be certified as free of foot-and-mouth disease without vaccination.

The on-site audit is a decisive step in the long-running sanitary approval process required for beef shipments, one Brazil has been awaiting for decades. After the visit by the Japanese specialists, the remaining process for export authorization would be limited to paperwork. Even so, the private sector remains cautious, and a lengthy wait for market opening is still possible.

Japan imports about 700,000 tonnes of beef a year, roughly 60% of its domestic consumption, mainly from the United States and Australia, in a trade worth about $4 billion annually. Canada, Mexico, New Zealand and Uruguay also export beef to the country.

Brazil wants a share of that market because of the high prices Japanese buyers pay for beef, with average prices ranging from $4,500 to $6,800 per tonne, and also to diversify its export base, especially after China, its main customer, imposed quotas. Brazil’s meat exporters association, Abiec, declined to comment.

Brazil’s export basket to Japan is currently led by other animal proteins, notably chicken and pork, which accounted for 38.77% and 15.64% of shipments, respectively, according to Datamar data. The table below, based on DataLiner platform data, provides a more detailed breakdown of this key Asian market:

Brazilian Exports to Japan | Jan-Feb 2026 vs. Jan-Feb 2025 | TEUs

Source: DataLiner (click here to request a demo)

The delegation is made up of auditors from Japan’s Ministry of Agriculture, Forestry and Fisheries and the National Agriculture and Food Research Organization. The audit results will be reviewed by a Japanese animal health committee before a decision is made, with no deadline set.

On-site inspections

Valor has learned that the inspection will seek to test the consistency and reliability of the technical dossier Brazil submitted in response to a Japanese questionnaire, as well as the effective implementation of sanitary legislation and procedures by all parties involved. Inspectors will also assess how effective Brazil’s surveillance and control measures for foot-and-mouth disease are at the national, regional and local levels. The goal is to verify the country’s ability to prevent, detect and control the disease.

The Japanese review of Brazil’s health system would apply to a possible market opening for the three southern states, despite Brazilian requests to include at least Rondônia and Acre, which had also already been recognized as zones free of foot-and-mouth disease without vaccination. The itinerary includes visits to cattle farms, meatpacking plants, a federal agricultural laboratory, surveillance structures at airports and state borders, and agricultural defense agencies.

Once this sanitary barrier is cleared, despite Brazil’s status and the presence of its beef in more than 160 countries, the country is expected to push for better commercial access terms in Japan. Exporters currently face tariffs of as much as 38.5%, seen as high by international standards. The United States, for example, imposes a 26.4% tariff, while China applies a 12% rate within the quota set at the start of the year.

The specialists who arrived last weekend are due to meet animal health authorities in Rio Grande do Sul, Santa Catarina and Paraná. As part of the risk assessment, they will examine Brazil’s legal framework and how it is applied, livestock production and distribution conditions, establishment-level controls, traceability and animal movement controls, quarantine, laboratory diagnostics, surveillance and the response to a potential foot-and-mouth outbreak.

There is a confidentiality agreement between the Brazilian and Japanese governments barring disclosure of information on schedules, sites to be visited, preparations for the on-site inspection and other related operational details, under penalty of cancellation of the mission.

A Japanese team of sanitary specialists was already in Brazil in 2025 for a preliminary assessment that was not yet official or final, following a route similar to the current one. Talks on opening the market gained momentum after President Luiz Inácio Lula da Silva visited Japan in March last year, when Japanese Prime Minister Shigeru Ishiba committed to sending the mission.

Shortly afterward, in June 2025, Brazil was recognized by the World Organisation for Animal Health as a country free of foot-and-mouth disease without vaccination, one of Japan’s requirements for buying beef from suppliers.

Food security

Last week, Yasushi Noguchi, Japan’s ambassador in Brasília, said in an interview with Brazilian news outlet Poder360 that the country is going through a period of economic expansion and is seeking greater resilience in its supply chain. He said that, in that context, partnerships with Brazil become strategic and cited the beef market opening process.

“We are taking steps to move into the next stage and hope this process will accelerate so that we can decide on opening the beef market,” he said in the interview with Poder360. Asked about other states that could eventually be assessed, he said that would depend on the outcome of the inspection in the South and that, afterward, Japanese officials could speak with Brazilian authorities to “see what the next step will be.”

Source: Valor International

The next step is the consultation process that the U.S. Trade Representative (USTR), must complete before publishing the results of its investigation into trade practices Washington considers unfair. The outcome could lead to penalties against Brazil, including the imposition of new tariffs.

At this stage, a delegation from Lula’s government is expected to be invited to Washington to be briefed on the USTR’s preliminary conclusions. According to three people following the matter who spoke to Folha, that is expected to happen between April and May.

Holding the consultations during that period would clear the way for the USTR to publish its final findings by July.

The investigation, based on Section 301 of the Trade Act of 1974, was opened by the USTR in July 2025 as one of the measures announced by Trump in response to what the Republican described as a “witch hunt” against former President Jair Bolsonaro.

The U.S. government included several fronts in the probe: digital trade and electronic payment services; “unfair or preferential” tariffs; anti-corruption laws; intellectual property protection; access to the ethanol market; and illegal deforestation.

The targets range from longstanding U.S. complaints, such as Brazilian tariffs on ethanol imports, to Pix, Brazil’s instant payment system. U.S. credit card companies argue that Brazil’s central bank gives Pix preferential treatment, a claim Lula’s government denies.

As Folha reported at the time, the U.S. investigation has the potential to inflict additional damage to Brazil, beyond the tariff hikes imposed by Trump last year, and carries the risk of sanctions that would be difficult to reverse.

Also under the justification of alleged political persecution against Bolsonaro, Brazil was hit by Trump’s tariff wave, which raised surcharges to as much as 50% on a range of products.

Inflationary effects in the United States and the gradual rapprochement between the Lula and Trump administrations, which culminated in two meetings between the presidents in late 2025, led to an expansion of exemptions from those tariff hikes.

In addition, in February the U.S. Supreme Court ruled that the use of the International Emergency Economic Powers Act, or IEEPA, to justify broad tariffs against U.S. trading partners was unlawful, further easing pressure on Brazil.

Any sanctions based on Section 301, however, could renew Washington’s pressure on Lula’s government.

According to specialists cited in the report, such measures rest on firmer legal ground in the United States and would be much harder to challenge in court than the tariff hikes imposed earlier.

In theory, the United States could adopt different kinds of penalties, both tariff and non-tariff, if the USTR concludes that Brazil maintains unfair trade practices.

In a recent investigation involving China, for example, the United States imposed surcharges on products from the Asian country. In a separate Section 301 investigation, the USTR also recommended measures to restrict Chinese investment in sensitive sectors of the U.S. economy.

Beyond the investigation opened in 2025, Brazil has also come under scrutiny in another USTR action launched this year to assess whether products made with forced labor are entering the U.S. market.

That process covers practices in about 60 countries and was launched a few weeks after the Supreme Court decision that struck down Trump’s broad tariff measures. According to specialists, the U.S. objective is to target trade links between partners and China.

The Trump administration’s plan is for this second investigation to move on an accelerated timetable, with the USTR’s conclusions published in a shorter period than the traditional timeframe of about one year.

Source: Folha de S. Paulo

The government officials, from Canada, Argentina and Brazil, told Reuters they expect the deal to be concluded in 2026, with one noting that talks were progressing well and could be wrapped up before September.

The Argentine government official said that the agreement ​is expected to be signed in September or October, marking roughly a year since negotiations formally restarted.

Another diplomat, based ​in Brazil, also told Reuters negotiations are going at a record speed and extremely well, confirming the ⁠countries will probably reach a deal this year.

Canadian Prime Minister Mark Carney is expected to visit Brazil in the next quarter, ​said this source. Although neither government plans to announce an agreement during the visit, it may serve as a push to finalize ​one as soon as possible, the source said.

Mercosur’s office in Montevideo and the Canadian trade ministry did not immediately respond to requests for comment.

The renewed momentum follows months of technical exchanges after Canada and Mercosur agreed last year to relaunch the talks that had been stalled since 2021. Mercosur is composed ​of Argentina, Brazil, Paraguay and Uruguay, with Bolivia expected to become a full member in 2028.

Canada has intensified efforts to diversify ​trade amid uncertainty linked to tariffs imposed by U.S. President Donald Trump and South America, especially Brazil, said this source, is a trade partner ‌Canada ⁠cannot do without. For Mercosur, a major exporter of beef, soy and minerals, an agreement with Canada would expand access to developed markets and help attract investment in key industries such as mining.

Earlier in March, trade officials from Ontario, a province central to Canada’s economy, visited Argentina and Uruguay as part of efforts to lay the groundwork for a future deal and showcase support for increased ​bilateral trade. Ontario’s Minister of ​Economic Development, Job Creation and ⁠Trade, Victor Fedeli, met with technology and mining industry representatives as part of the trip, building on a visit to Brazil late last year.

Fedeli said Ontario was stepping up outreach to South ​America partly due to what he called the “Trump acceleration” effect, noting that roughly 80% of the ​province’s trade is ⁠with the United States.

“We’re building on that momentum,” Fedeli said in an interview with Reuters in Montevideo. “The Canadian government is serious about diversifying away from the U.S., working to unlock new opportunities for trade, partnership, and investment,” he added.

The talks with Canada come after Mercosur ⁠signed a ​trade agreement with the European Union in January, following 25 years of negotiations. Earlier ​this month the European Commission said key trade elements of the accord, which has proven contentious in Europe, will apply on a provisional basis from May 1.

Source: Reuters

According to the ministry, Brazil has secured the continuation of an alternative route via Turkey for agricultural exports, and Turkish ports will remain an option for Brazilian cargoes bound for the Middle East and Central Asia. Under this arrangement, shipments can continue onward without needing to pass through the Persian Gulf.

The route was already being used by Brazilian exporters. Turkey, however, had begun requiring new sanitary rules for products subject to official veterinary controls, such as animal-origin goods. “To avoid disruption to export flows, a Veterinary Health Certificate was negotiated for products subject to veterinary controls in direct transit through the Republic of Turkey or for temporary storage before onward shipment to another country or vessel,” the ministry said.

In practice, the document allows Brazilian goods, especially animal-origin products, to cross Turkish territory or be stored temporarily in the country before moving on to their final destination.

“The measure provides greater security and predictability for Brazilian exporters at a time of instability on international routes and reinforces the Agriculture Ministry’s efforts to keep Brazilian agricultural trade operating,” the ministry said in a statement.

Source: Globo Rural

The measure aims to reduce costs for industry and ensure supply of items for which there is no equivalent domestic production.

At Thursday’s meeting, Camex cut the tariff rate to zero on 970 products. According to the Ministry of Development, Industry, Trade and Services, 779 of those already had prior exemptions, which were renewed in what the ministry described as a routine decision.

The remaining 191 items are part of a reversal of tariffs raised earlier this year on more than 1,200 electronic products, including smartphones, IT items and electronic components. In February, the government had already eliminated the tariff on 105 of those goods.

Technical criteria

According to the ministry, the reduction was granted after requests from companies claiming there was no domestic production or insufficient supply in the local market. The requests are reviewed by the government, which has up to four months to issue a final decision.

The period for new requests remains open until March 30, allowing further revisions to the list of products covered.

Other sectors

Camex also cut import tariffs to zero on a number of products from other sectors considered strategic. These include medicines used to treat diseases such as diabetes, Alzheimer’s, Parkinson’s and schizophrenia.

Agricultural inputs such as fungicides and insecticides were also included, as well as items used in the textile industry, hospital nutrition and even hops for beer production.

Economic impact

According to the government, the initiative aims to reduce production costs, ease inflationary pressures and prevent supply bottlenecks, especially in sectors dependent on imported inputs.

At the same time, the measure rebalances earlier decisions to raise tariffs, which had been adopted as a way to encourage domestic production but ended up prompting calls for review from industry.

Antidumping

Camex also decided to impose definitive antidumping duties for five years on ethanolamines, a compound used in cosmetics such as hair dyes and straightening products, from China, as well as on polyethylene resins, a type of plastic, produced in the United States and Canada.

A practice regulated by the World Trade Organization, antidumping duties are imposed when a country is able to show that products are being imported at prices below production cost, harming domestic industry.

In the case of polyethylene, Camex decided, despite making the antidumping measure definitive, to keep the surcharge at the provisional levels that had been in force over the past six months.

According to the ministry, that level does not create an additional impact for downstream stages of the production chain, which serves the public interest because the product is widely used in the manufacture of packaging, toys and industrial goods.

Source: report by Wellton Máximo for Agência Brasil

According to official data, revenue from import taxes totaled R$7.17 billion in February this year—when part of the tax hike came into effect—compared to R$7.4 billion in the same month last year. The figures have been adjusted for inflation.

The controversial increase in import taxes on around 1,000 products was justified as a measure to protect the domestic industry. The move received strong negative backlash on social media.

According to the Federal Revenue Service, the drop in revenue is linked to a 1.24% decline in the value (volume) of imports and a 9.8% decrease in the average exchange rate.

In other words, with both a reduction in the quantity of imported goods and in their value in reais (due to a weaker dollar), tax revenue also declined—even with the higher tax rate.

The agency noted that only part of the import tax increase took effect in February, with the remainder implemented at the beginning of March.

When the measure was announced, the Ministry of Finance said it expected to raise an additional R$14 billion this year from the higher import tariffs.

On Tuesday, tax authorities confirmed that the final amount should come close to that figure.

Asked by journalists, Claudemir Malaquias, head of the Federal Revenue’s Center for Tax and Customs Studies, downplayed the decline in revenue. “We still have the whole year ahead of us,” he said.

Source: G1

In addition to strengthening trade with Rwanda, the openings signal growing opportunities in Africa for Brazilian producers and technical assistance services, given the continent’s strong potential for economic growth and population expansion. In 2025, Brazil exported more than $392 million in live cattle and bovine genetic material to Africa.

With this announcement, Brazilian agribusiness has reached 552 market openings since the beginning of 2023.

These results are the outcome of joint efforts between the Ministry of Agriculture and Livestock of Brazil and the Ministry of Foreign Affairs of Brazil.

Source: O Presente Rural

On the 27th, Vice President Geraldo Alckmin, is expected to take part, alongside the president of the National Confederation of Industry (CNI), Ricardo Alban, in an event in São Paulo that will use workshops to show different sectors of the economy what changes for each of them.

In the opposite direction, the agreement will also enable goods from Europe to enter Mercosur with lower tariffs. However, the opening will be very gradual, Prazeres noted. Immediately, tariffs will be set at zero for 14.5% of products currently imported from Europe. Still, 96% of these are already subject to a zero-base tariff.

After twenty years of negotiations, an initial version of the agreement was finalized in 2019 but was reopened in 2023. One of the most sensitive issues was the potential of imposing export taxes on critical minerals. Another point highlighted by the secretary is a rebalancing clause within the agreement.

Talking about the war in the Middle East, Prazeres said that the main factor in its impact is how long the conflict lasts and what people focus on: oil prices.

Even with the end of the tariff hike imposed by the United States, technical dialogue with Washington continues, she said. One outstanding issue is the Section 301 investigation, which could impose restrictions on bilateral trade. Below are the main excerpts of the interview.

What does the Mercosur-European Union agreement change for Brazil?

Tatiana Prazeres: This is the most important trade agreement in Mercosur’s history and the most relevant for Brazil since the bloc’s creation in 1991. If we add Mercosur-Singapore, Mercosur-EFTA [Switzerland, Norway, Iceland, and Liechtenstein], and Mercosur-European Union, the share of Brazilian trade covered by trade agreements rises from 12% to 31%. It is an unprecedented expansion.

 What are the impacts on the Brazilian economy?

Prazeres: Our studies show GDP growth, export growth, import growth, wage growth, a drop in consumer prices, and an increase in investment. They also show that Brazil’s exports to other destinations increase as Brazilian industry gains access to more competitive inputs.

When will we start to see the agreement’s effects in practice?

Prazeres: It is crucial that Brazil completes its internal ratification procedures in March and informs the Europeans of this decision in the same month. From then on, if the European side also notifies Mercosur in March, the agreement will take effect as early as May.

And from that point forward, we begin exporting products with zero tariffs.

Prazeres: Yes. Of the approximately 10,000 goods negotiated, 5,000 will have zero tariffs on Brazilian exports once the agreement enters into force.

Some Brazilian sectors are concerned about competition and are asking for some form of protection. Does that make sense?

Prazeres: I believe it’s natural for concerns to emerge in some sectors, but the overall response from the private sector has been overwhelmingly positive. The timeline for removing import duties is long. When the agreement takes effect, the immediate tariff elimination will only cover 14.5% of Brazilian imports from the European Union, and 96% of those imports already have zero tariffs. The impact will be gradual and planned, allowing sectors to slowly adapt to the new trade environment.

The European Union has taken the agreement to court. Doesn’t that prevent it from entering into force?

Prazeres: The presidency of the European Commission has clearly signaled its willingness to put the agreement into provisional application. This is a prerogative of the Commission under the rules. Therefore, until the Court of Justice of the European Union rules on the agreement’s legal compatibility and the European Parliament pronounces itself on the merits, the agreement may be applied provisionally.

 And if the ruling is negative?

Prazeres: Our assessment is that there is no incompatibility, and we believe the court will reach the same conclusion. Other agreements currently in force with the European Union contain provisions that were the subject of this consultation.

How are critical minerals treated in the agreement?

Prazeres: The package we inherited in 2019 provided that we could not impose any restrictions on exports. That was one of the points the Brazilian government reopened, based on a new view of trade and industrial development. Now, if it wishes, Brazil may restrict exports of critical minerals to the European Union through an export tax.

Will that tax be imposed?

Prazeres: It does not mean we intend to use it, but we reserved policy space. At the same time, we established a preference for the European Union. None of this prevents Brazil and the European Union—and this is not a Mercosur-European Union matter—from discussing understandings regarding critical minerals, such as investment, research, and development.

How will the agreement’s rebalancing mechanism work?

Prazeres: We negotiated this agreement with the Europeans in a context in which the EUDR, the Deforestation Regulation, was advancing, in which the Europeans were working to implement a carbon border tax, and in which they were defining legislation in the areas of ESG and corporate social responsibility. Each of these measures may affect the trade concessions granted under the agreement. So it was necessary to establish a forum in which a third party could determine whether a concession had been undermined, by how much, and how compensation should be provided.

What is the next step in the formalization of the agreement?

Prazeres: There will be a formal session of the National Congress on the 17th to issue the legislative decree that marks the progress of the process. After that comes the presidential decree.

How will coordination with the private sector work?

Prazeres: As the internalization process of the agreement nears completion—and its entry into force—it is crucial for the private sector to take ownership of the agreement, see themselves in it, and identify the opportunities related to exports to the European Union, as well as imports of technology and inputs, forming partnerships, attracting investments, and participating in value chains. The agreement offers a range of opportunities, but they must now be translated into business.

What kind of support will be provided?

Prazeres: The government is organizing a series of initiatives to present the agreement and explain its provisions in technical terms, helping with this understanding—this shift, I would say, from negotiation to implementation. We should hold an event with the vice president and the president of the CNI in São Paulo on March 27, where we will conduct technical workshops on topics such as the tariff-reduction schedule and the rules of origin established in the agreement, so sectors can understand how each will change. Apex, which handles trade promotion, is working on this.

With the agreement, Brazil gains a new status in trade integration at a time when protectionism is strengthening. Did we arrive late to the party?

Prazeres: The international scenario is indeed complex. At the same time that a series of restrictive trade measures is proliferating, it is also a moment when countries seek stability and legal certainty. It is also a time when important international agreements are being signed, such as the one between India and the European Union, just to cite one example. Perhaps concerns about barriers encourage a parallel movement toward seeking reliable partners and diversifying markets.

After the U.S. Supreme Court struck down the tariff hike, does the meeting between President Lula and U.S. President Donald Trump still need to happen?

Prazeres: On that, I will leave the political figures to make the assessment. But from a trade perspective, there was already a significant drop in our exports to the United States in the first two months of the year. The tariff hike ended on March 1. Products that had been subject to a 50% tariff are now tariff-free, so sectors such as timber, furniture, and footwear are preparing for a recovery in sales.

Does the technical-level dialogue with the United States continue?

Prazeres: Yes. The Brazilian government remains interested in negotiating with the United States, and we are closely monitoring developments related to Section 301. The situation with the United States today is positive, but the landscape is very fluid, and our goal is to increase dialogue to encourage more trade and investment. Our exports to the United States are below 10%. It is not in our interest for our participation in the world’s largest economy to be so small.

How does the war in the Middle East impact us?

Prazeres: The situation remains very fluid. No one knows how long the conflict will last, and time is a key factor in assessing the impacts. Analysts say that 40 days is a crucial threshold because inventories could be depleted, and the effects of the conflict could intensify significantly. Regarding global impacts, the oil shock is the primary concern, but there is also a logistics crisis affecting freight, insurance, and maritime fuel. This has consequences for global inflation.

And the impact on Brazil?

Prazeres: Our focus is on the impact on fuel prices, followed by exchange rates. It is natural that in a crisis like this, the dollar appreciates, but the outcome for the Brazilian currency remains uncertain. There is also discussion about inflation and interest rates. Additionally, the fertilizer component is linked to our foreign trade. We have been examining chicken, corn, and sugar, given the importance of the Middle Eastern market.

As a net exporter of oil, could Brazil benefit from the conflict?

Prazeres: Oil was the main export item in both 2025 and 2024, so higher prices contribute, on the one hand, to export revenues. But they also make the petroleum products that Brazil imports more expensive. We export more crude oil than we import products, so that is another factor we need to observe. However, the overall balance of the situation is definitely not positive.

Source: Valor International

The internalization of the agreement into Brazilian law follows efforts by Lower House Speaker Hugo Motta and Senate President Davi Alcolumbre to fast-track its passage through Congress.

In the presence of Vice President Geraldo Alckmin and Foreign Minister Mauro Vieira, Alcolumbre declared the legislative decree enacted, formally incorporating the agreement into Brazil’s legal framework.

“This is undoubtedly a historic session of the National Congress. As of today, the European Union, the world’s largest economic bloc, joins Mercosur to create one of the largest trade agreements in recent history. After more than 26 years of negotiations, a dynamic market emerges, encompassing over 718 million people and a GDP of R$116 trillion,” Alcolumbre said.

Signed on January 17, the agreement was reviewed by Brazil’s Congress in exactly two months. During the session, Alckmin thanked lawmakers for the swift approval.

The vice president, who also serves as minister of Development, Industry, Trade and Services, announced that the ministry signed a joint work plan on Tuesday with the Inter-American Development Bank (IDB) to support implementation of the deal.

During congressional deliberations, the Parliamentary Agricultural Front (FPA) raised concerns about potential negative impacts on domestic producers. The European Union has established safeguard measures that can be triggered if tariff reductions under the agreement harm internal production—provisions that were not initially mirrored by Brazil.

Following negotiations led by Senator Tereza Cristina and Nelsinho Trad, head of the Senate Foreign Relations Committee, the Executive branch issued a decree enabling similar safeguards to protect Brazilian industries.

The agreement provides for the reduction or elimination of import tariffs on goods traded between Mercosur and EU countries. Measures range from immediate tariff elimination to gradual phase-outs over up to 12 years. Despite opposition from France, the European Parliament is expected to apply the agreement provisionally, according to Ursula von der Leyen. Argentina and Uruguay have already ratified the deal.

Source: Valor International