Brazil’s trade relationship with the European Union has undergone a significant shift in 2026, driven largely by increased crude oil exports.
According to Fundação Getulio Vargas’ Icomex report, Brazil’s trade balance with the EU moved from a US$1 billion deficit in January–September 2025 to a US$6.1 billion surplus in the same period of 2026.
This represents a US$7.1 billion improvement, the largest contribution among Brazil’s principal trading partners to the increase in its overall trade surplus.
Crude oil played a central role in this development. In September, petroleum represented approximately 34.1% of Brazilian exports to the EU, with export value increasing by 139% year-on-year.
The trend reflects changing international energy supply patterns, including European efforts to diversify crude oil sources amid geopolitical instability.
Impact on Brazil
Stronger European demand may create opportunities involving:
- crude oil trading and export contracts
- tanker chartering and maritime transportation
- oil terminal and storage services
- port infrastructure and cargo-handling operations
- shipping logistics and scheduling
- financing and insurance arrangements
The increase in crude oil exports also reinforces the strategic importance of reliable maritime infrastructure and efficient international logistics.
Legal & Contractual Implications
Companies participating in international oil trade should assess:
- crude oil sale and purchase agreements
- pricing benchmarks and adjustment mechanisms
- cargo specifications and quality disputes
- maritime chartering and demurrage provisions
- sanctions and trade-compliance requirements
- credit support and payment guarantees
- marine insurance and allocation of transportation risks
- contractual flexibility in response to changing trade routes
Importantly, FGV does not attribute the recent increase in Brazilian exports to the implementation of the Mercosur–EU trade agreement.
The current expansion is more closely associated with international energy-market developments and the redirection of European demand toward alternative suppliers.
Photo: Canva
