The entry into force of the European Union-Mercosur Agreement should provide, in the medium term, a significant reduction in the taxes currently levied on a series of products exported by European countries, including Portuguese wines. This tariff reduction, when consolidated, will allow Brazilian consumers access to Portuguese wines at lower prices and in better conditions to compete with wines from Chile and/or Argentina.
Chile, Argentina and Uruguay, three Mercosur member countries, are among the main wine suppliers to Brazil, followed by European countries such as Portugal, France, Italy and Spain. Chile, the main wine exporter to Brazil, has a 42% to 43% share of the Brazilian market, while Portugal holds an 18% share of that market.