Photo: VASEP/FIS

Vietnam-MERCOSUR FTA Negotiations Begin: Bright Prospects for Pangasius Exports to Brazil

BRAZIL
Friday, November 29, 2024, 00:10 (GMT + 9)

Brazil, a key member of the Southern Common Market (MERCOSUR), boasts a population of nearly 300 million, representing 70% of South America’s total.

As Vietnam’s leading trading partner in Latin America, Brazil holds significant importance, particularly as one of the top three markets for Vietnamese pangasius exports. In the first ten months of 2024, Brazil ranked third among importers of Vietnamese pangasius, following China and the United States, reports Ms. Thu Hang, editor at the Vietnam Association of Seafood Exporters and Producers (VASEP).

Strong Growth in Pangasius Exports to Brazil

According to Vietnam Customs, Vietnam’s pangasius exports to Brazil reached $104 million in the first ten months of 2024, marking a robust 24% increase compared to the same period last year. In October 2024 alone, exports to Brazil totaled more than $15 million, up 15% year-on-year. Monthly export turnover has shown consistent growth throughout the year, with the exception of February and August.

Source: VASEP

Data from the International Trade Center (ITC) indicates that in the first eight months of 2024, Vietnam was Brazil’s largest supplier of white fish, predominantly pangasius, with a total export value of $86 million, a 54% increase over the same period in 2023. Vietnamese frozen pangasius fillets (HS code 030462) emerged as Brazil's most popular white fish product during this period, accounting for the entire category’s export value and demonstrating a 56% increase compared to 2023.

Strategic Partnership and FTA Negotiations

This year marks the 35th anniversary of diplomatic relations between Vietnam and Brazil, a milestone recently elevated to a strategic partnership. Vietnam, alongside MERCOSUR countries (Brazil, Argentina, Uruguay, and Paraguay), has initiated negotiations for a Vietnam-MERCOSUR Free Trade Agreement (FTA). A successfully negotiated FTA is expected to drive trade and investment between Vietnam and MERCOSUR countries, opening up significant opportunities for Vietnamese exports, including pangasius, in the Latin American market.

Unlocking Opportunities in Brazil and Beyond

Brazil, the world’s 7th largest economy and MERCOSUR’s economic powerhouse, represents a lucrative market with diverse culinary preferences and strong demand for seafood. Pangasius, where Vietnam enjoys a leading export position, is especially well-suited to meet Brazil’s needs. The FTA could significantly reduce tariff barriers, enabling Vietnam to gain a competitive edge in MERCOSUR, the world’s 5th largest economic bloc.

The Vietnam-MERCOSUR FTA holds the potential to not only strengthen pangasius exports but also create new opportunities for Vietnamese goods across Latin America. By leveraging this agreement, Vietnam is poised to further solidify its trade relations with Brazil and the wider MERCOSUR region.

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