THE RELEVANCE OF THE EU-MERCOSUR AGREEMENT FOR THE AUTOMOTIVE AND MACHINERY SECTORS

Abstract

This article analyzes the impacts of the Association Agreement between the European Union and Mercosur on the competitiveness of the automotive and capital goods sectors in Brazil, considering the economic and technological asymmetries between the blocs. The research adopts a qualitative, exploratory, and descriptive approach, based on bibliographic and documentary review on regional integration, tariff liberalization, rules of origin, and global value chains. The results indicate that trade liberalization tends to favor the European industry, mainly due to its advantages in productive scale, technological innovation, and regulatory adequacy. In the automotive sector, a risk of substitution of Brazilian intra-bloc exports by more competitive European products was identified, while in the machinery segment there is a possibility of productive modernization accompanied by greater technological dependence. It is concluded that the effectiveness of the agreement for Brazilian industrial development will depend on the adoption of industrial policies, technological innovation, and the strengthening of national competitiveness.