EU-Mercosur trade deal can boost Brazil's plastic packaging exports despite concerns: Abiplast

The European Union–Mercosur trade agreement, though met with concerns, holds the potential to boost export opportunities for Brazil's plastic packaging sector, says José Ricardo Roriz, President of the Brazilian Plastics Industry Association (Abiplast).

"Brazil is very competitive in grains and animal protein exports," said Roriz. "These types of products are packaged in plastic, and this expands our opportunity to sell more to Europe."

Brazilian beef production was anticipated to surpass that of the US in 2025, with forecasts for both beef and soybean exports also being revised to reach record-high levels.

From January to November 2025, Brazil ranked third as the third-largest supplier of chicken to the European Union, with 63,890 mt, behind the UK and Ukraine.

The outlook for Brazil's domestic industry is also positive. According to the most recent data from the Brazilian Institute of Geography and Statistics for November 2025, the national packaging industry experienced a 2.8% growth compared to the same period the previous year. Additionally, food production surged by 4% during the month, supporting market participants' positive views on increased polyethylene usage in food-related items.

From January to November 2025, food production in Brazil rose by 1.2%, driven by an increase in the production of red meat, bread, cold cuts, and cheese.

According to Abiplast's president, Brazil exports more than 70% of basic products to Europe, while the country imports high-value goods.

Protectionist measures pose potential challenges for Brazil in establishing a trade agreement with Europe. The country raised its import duty on numerous resins and chemicals to 20%, up from 12.6% in 2024. Once the agreement with the European Union is signed, these duties would no longer apply to EU imports.

Still, excessive antidumping duties, according to Roriz, such as the 43.7% tax on US PVC imports and the preliminary ADD of $199.04/mt on US polyethylene imports, may limit import opportunities while favoring the EU.

"If Brazil doesn't make adjustments, considering the trade agreement, many plastic producers in the country will start importing semi-finished goods from Europe," said Roriz.

Abiplast is also exploring the potential for increased competition among Mercosur members. Brazilian companies might relocate to countries like Argentina, where import duties are lower and pricing structures can be set at competitive levels.