Even in smaller Mercosur members such as Paraguay, commercial development is quickly overtaking urban areas.
On the 28th June 2019, the EU and Mercosur (South American common market) agreed a trade deal, the Mercosur countries involved are Brazil, Argentina, Uruguay and Paraguay.
A few strange suggestions regarding temporary exports have appeared and we wanted to add clarity. The first point to note is that nothing has yet happened, much legal work and treaty ratification by EU members is required.
This is neatly shown by a related EU website entry of a blank page stating “This document will be updated soon” and a .gov.uk page headed “Guidance Withdrawn”. The UK entry perhaps the least predictable given Brexit.
If we leave the EU, even when ratified, nothing is this deal looks likely to apply to UK exports and at present we have no trade deals with Mercosur members. The fact that the EU deal took 20 years is not too encouraging, yet we can still trade.
Use Of ATA Carnets
Of the four countries, Brazil are the only ATA carnet member. Even if we leave the EU, use of carnets to Brazil can continue as before, the ATA carnet is a more or less worldwide document, not an EU creation.
If you are travelling to Brazil from an EU country, you are likely to need a carnet for some time, perhaps on a permanent basis for a range of items. Tariff removal is not the same as document removal and the early stage focus looks to be on industrial products.
Argentina, Uruguay and Paraguay are not ATA carnet members. Whilst we have seen odd reports of them allowing admittance on carnets intended for Brazil, this is sporadic and unreliable. Their temporary import procedures need to be used.
All four Mercosur countries are members of the World Trade Organisation and do have procedures in place to a reasonable international standard. They also all have experience of trading with UK companies.
Beckoning Opportunity
Brazil is a leading member of Mercosur and the world’s 7th largest economy. They have a reputation for complex regulatory systems and are ranked 109th for ease of doing business, although carnets to Brazil generally work out okay.
They and other members are open for business and have growing needs. The intention is that most import tariffs will go for EU members but as a gradual process, neither will the border be literally open in the sense the EU itself is.
We don’t doubt that customs procedures will be simplified and improved. This could help everyone, including ex EU members, if that comes about for the UK. A few thoughts should however be kept in mind.
The deal is not yet functioning and will take time to do so. ATA carnets are still required and valid but only as they were before, still a useful route to showcase in a large economy, film in wonderful locations, or establish long term connections.
Given the developing position, if you are travelling to Brazil, or the region, by all means call our staff for up to date information.