The progress of the trade agreement between Mercosur and the European Union, which will enter into force provisionally on May 1, has put South America back on the radar of international companies and investors. Negotiated over more than two decades, the pact provides for the progressive reduction of tariffs and the strengthening of trade between the blocs, connecting a potential market of approximately 718 million people and a combined GDP exceeding US$22.4 trillion, according to data from the European Commission and the Brazilian Ministry of Foreign Affairs.
Against this backdrop, foreign companies are increasingly interested in expanding their presence in the region. South America combines a significant consumer market, a strong presence in global commodity chains, and a strategic position in trade relations with partners such as China and the United States. Among the bloc’s countries, Brazil stands out as a strategic hub for those seeking to expand their operations.
Why Brazil?
Brazil is the largest economy in Mercosur and remains the main gateway for foreign companies interested in expanding across South America. In 2025, the country recorded 2.3% GDP growth, reaching R$ 12.7 trillion in current values, according to IBGE data released by the federal government. This result was driven by growth in agriculture, services, and industry, which underscores the diversity and resilience of the Brazilian economy.
Regional integration is also a key factor. Mercosur, comprising Brazil, Argentina, Paraguay, and Uruguay, was created to facilitate trade among its members through tariff reductions and the coordination of trade policies. In practice, companies based in Brazil can use the country as a base to reach other markets in the region.
Benefits for foreign companies
Establishing a presence in Brazil can bring significant strategic advantages for international companies. In addition to accessing one of the world’s largest consumer markets, with over 200 million inhabitants, companies begin operating from within Mercosur’s leading economy, which expands their potential for regional operations.
This position also facilitates integration with established supply chains across various sectors, such as manufacturing, agribusiness, and services, and allows the country to serve as a base for expansion throughout South America.
Furthermore, the country boasts a dynamic business ecosystem, featuring startups, innovation hubs, and local companies that often become strategic partners for new investments.
The country offers scale, economic diversity, and regional integration.
The Pryor Global Partnership
In this context, Pryor Global acts as a strategic partner for foreign companies seeking to establish themselves in Brazil and expand their presence in South America. With experience in supporting the entry of international investors into the country, the firm advises its clients on understanding the regulatory and tax environment and defining the most appropriate structures for a secure and efficient operation.
In a scenario where Brazil is consolidating its position as a gateway to the regional market, this specialized support can be decisive in transforming expansion potential into concrete growth.
Talk to our experts and find out how we can help boost your business.
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