Not everything took effect at the same time

A little-discussed detail is that the agreement was divided into two parts with different timelines. The Interim Trade Agreement, which addresses market access and tariff reductions, took effect in May because it depended only on ratification by the Mercosur countries and approval by the European Union as a bloc.

The EU-Mercosur Partnership Agreement (EMPA), on the other hand, which covers political cooperation and environmental governance, requires individual ratification by each of the 27 European Union countries, including some that have expressed resistance, such as France, Poland, and Ireland.

In practice, this means that the aspect of greatest interest to those considering doing business in the region, the elimination of tariffs on thousands of products, is already underway, even as the institutional framework of the agreement continues to take shape over the coming years.

Why does Brazil remain the most logical point of entry?

Mercosur operates under a Common External Tariff (CET), which allows the bloc to negotiate with the rest of the world as a single entity. This has a direct implication for foreign companies: establishing operations in one of the bloc’s four countries facilitates access to the other three, and agreements reached by the bloc tend to benefit those already operating within it.

Brazil is home to the group’s largest economy and largest domestic market, which naturally attracts a significant number of multinationals that already use the country as a regional hub, a sort of “social proof” for those still deciding where to establish their first South American operation.

The reason for all this interest lies in the properties of these elements: rare earths are a group of 17 metals that, despite their name, are not scarce in the Earth’s crust; the challenge lies in finding them in viable concentrations and separating them, a costly and complex process.

These metals have unique chemical characteristics that no other material can replace with the same efficiency. They are found in almost everything: electric car motors, wind turbines, batteries, cell phones, screens, and even military equipment. Because the modern world depends so heavily on them, rare earth elements have become a central issue in disputes between countries.

The problem is not a shortage of these minerals on the planet, but rather the fact that everything goes through China, which extracts about 70% of the world’s rare earth elements and processes more than 90% of them, according to data from the U.S. Geological Survey (USGS). This gives the country enormous control over this market, which may pose a threat to other nations.

To avoid relying solely on China, other countries have set out to find new suppliers. That’s where Brazil comes in.

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.

This activity has developed significantly and now encompasses risk interpretation, decision validation, diligence in document integrity, and the coordination of information flows. Every corporate, tax, accounting, or operational action depends on secure processes aligned with each company’s specific guidelines, as well as strict compliance with applicable regulations. The absence of such controls may result in fines, penalties, operational restrictions, reputational risks, and, in more severe cases, direct impacts on business continuity.

Within this framework, maintaining a compliance structure integrated into both corporate practices and daily operations becomes a strategic differentiator. In addition to preventing failures and reducing vulnerabilities, compliance enhances management accuracy. Well-structured programs make it possible to standardize procedures, anticipate risks, promote appropriate responses, monitor regulatory changes, and provide assurance to international groups that rely on stability to operate in the country.

The measure restores the previous tax rates for credit, foreign exchange, insurance, and securities transactions, returning to the wording that was in effect until May 22, 2025, according to the former Decree No. 6,306/2007.

What does this mean in practice?

• Purchase of foreign currency in cash: reduced tax rate from 3.50% to 1.10%;
• Receipt of foreign loans with a term of less than 365 days: zero tax rate (previously 3.50%);
• Purchases and withdrawals abroad with cards or apps linked to payment arrangements: the new rate is 3.38%, following the scale set to reach zero in 2028;
• Foreign loans with an average term of up to 364 days, contracted directly or through the issuance of securities: return to a zero rate;
• Transfer of funds abroad by individuals, as available funds (such as transfers to their own accounts): reduced from 3.50% to 1.10%.

New IOF levies were revoked on:

• Risk-assigned credit operations (where the credit taker differs from the debtor);
• Primary acquisition of shares in Credit Rights Investment Funds (FIDCs).

In this scenario, it is not enough to innovate. You need to know how to change course quickly when the data shows that something is not working. Failing fast has become a motto in the business world. But it only really works when accompanied by another attitude: correcting even faster.

And when we talk about capital, we are not just referring to financial resources. People’s time and energy are equally important investments. Directing talent to projects that no longer make sense is a cost that few companies can afford to maintain.

This approach requires flexibility, courage, and clear communication. Teams need to understand that changing their minds is not a weakness, but a sign of maturity. That testing, making mistakes, and adjusting is part of the process. And, more than ever, they need to be aware that challenges are shared.

Among the main points of the resolution are a series of obligations to make customer service more efficient and transparent. Operators are now responsible for handling requests that are not directly related to procedure coverage, allowing beneficiaries to track these requests online, and clearly disclosing all customer service and ombudsman channels on their websites.

Since July 1, 2025, operators have also been required to provide a protocol or registration number at the end of each service call, allowing beneficiaries to track the progress of their requests through the indicated channel.

In addition, they [the operators] must provide conclusive responses within the deadlines set by ANS and submit, in writing, the justification for any coverage denials, even if the consumer does not request this clarification. As a result, operators can no longer use generic terms such as “under review” or “in process,” which are so familiar to health plan beneficiaries, as they no longer meet the standards required by the regulations.

Fraud, cyberattacks, executive liability, and legal requirements have become part of everyday corporate life. In this context, having specific insurance for this new scenario is no longer a choice but a strategic necessity.

Three types of insurance stand out for their relevance: Cyber Liability, D&O (Directors and Officers), and Professional Liability (Errors & Omissions).

These insurances offer legal and financial protection in delicate situations, such as professional failures or decisions that raise legal questions. More than just coverage, they are strategic risk management tools, reinforcing governance, supporting ESG initiatives, and helping to preserve the company’s reputation and continuity.

Learn more about each of them below.

Cyber Liability

More than just insurance against hackers, cyber liability coverage protects the company against losses caused by data leaks, operational downtime, and damage to reputation. It is an effective response to the increase in cyberattacks in Brazil and worldwide.

D&O (Directors and Officers)

This insurance protects executives and administrators from lawsuits related to decisions made in the exercise of their duties. With growing pressure for transparency, governance, and ESG practices, D&O offers peace of mind for those at the helm of businesses.