Brazil is an important trading partner for the EU. The backbone of future bilateral trade relations will be the EU-Mercosur Association Agreement currently being negotiated, which aims at creating a free trade area between the two blocs.

Due to its size (8.512.000 km² and 184 million inhabitants) and the significance of its market, Brazil represents both an important market for EU exporters and investors as well as an important source of imports.

The EU is Brazil's main trading partner, whilst Brazil represents the EU's main trading partner in Latin America (and the 11th trading partner worldwide). Trade with Brazil totalled €39 billion in 2013, the EU importing roughly 23 billion and exporting roughly 16 billion. Trade with the EU represents 26% of Brazil's external trade and around 1,8% of total EU trade.

In 2013, the main components of EU imports from Brazil were primary products (63%) of which agricultural products accounted for 40% while manufactured products represented 33% (6,5% for machinery and 8,4% for transport equipment). The main component of EU exports to Brazil continued to be manufactured products (88%), mainly made up of machinery and transport equipment (53%), chemicals (20%) and automotive production (12%). EU exports of primary products to Brazil only accounted for 6,8%.

Brazil, partly due to a favourable investment climate, is also a very important destination for European investments, absorbing a total stock of EU investment of €51 billion in 2013. EU investment is located in areas as diverse as telecoms, energy, financial services, the automotive industry, the agro-industry and the retailing sector.

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