The Mercosur–EU Agreement: What Is the Impact on Brazilian Geographical Indications?
Introduction
The Mercosur–European Union Agreement is a free trade treaty concluded between the two economic blocs, negotiated over more than two decades. Signed on January 17, 2026, the treaty still depends on approval by the Brazilian National Congress in order to produce effects within the Brazilian legal system. Its voting has already been approved by the Chamber of Deputies and will now proceed to the Federal Senate, in order to complete the legislative process and incorporate the treaty into domestic law.
Among the broad range of matters governed by the agreement — with strong emphasis on tariff and customs issues — provisions relating to geographical indications stand out.
Geographical Indications
A geographical indication (GI) represents the recognition of the prestige and reputation achieved by a specific geographical area in relation to a product developed within its territorial boundaries which, precisely because it originates from that locality, possesses characteristics and particularities that distinguish it from others.
In Brazil, “geographical indication” is an umbrella concept subdivided into two categories: indicação de procedência (indication of source/provenance) and denominação de origem (designation of origin), as provided for in the Brazilian Industrial Property Law (Law No. 9,279/1996).
An indicação de procedência corresponds to a geographical name that has become known as a center of production, extraction or manufacture of a particular product or service. A denominação de origem, in turn, requires a closer link with the territory, presupposing that the qualities or characteristics of the product or service derive essentially or exclusively from the geographical environment, including natural and human factors.
The Agreement’s Provisions on Geographical Indications
The Mercosur–European Union Agreement provides for the protection of 575 European geographical indications, establishing new rules regarding the use of denominations traditionally associated with these recognized GIs. In addition, 224 geographical indications originating from Mercosur countries will also be protected.
Under the terms of the treaty, protected denominations may not be used by producers established outside the recognized geographical region, even where the product presents similar characteristics.
Prohibition on the Use of Qualifying Expressions
The agreement also establishes a prohibition on the use of translations, adaptations or qualifying expressions such as “type,” “style,” or equivalent terms.
Nevertheless, transitional rules were established for certain denominations, such as “cognac” and “champagne.” In these cases, producers who were already using such terms continuously and in good faith may maintain their use on a temporary basis, provided that the true origin of the product is clearly indicated.
The transitional periods vary. The longest in Brazil (10 years) applies to “French champagne,” “Italian prosecco,” and “Bologna mortadella.”
Negotiated Exceptions
The agreement also includes specific exceptions relating to the denominations “gorgonzola,” “parmesan,” “grana padano,” “gruyère,” “fontina,” “steinhäger,” and “genever.” Producers who had already been using these denominations continuously prior to the conclusion of the treaty may continue such use.
However, important limitations were established: packaging may not contain visual or symbolic references that evoke the European origin of the geographical indications, and the Brazilian trademark must be displayed more prominently than the denomination.
Protection of Brazilian GIs in the European Union
In Brazil, 37 national geographical indications will benefit from protection within the territory of the European Union, covering products such as cachaça, Canastra cheese, Vale dos Vinhedos wines, specialty coffees, among others. Although the initial number is limited, the agreement provides for an “open lists” mechanism, allowing additional Brazilian indications to obtain protection in the future.
There is also a provision establishing mechanisms to streamline the recognition process for new Brazilian GIs in the European Union.
The Relationship Between Geographical Indications and Registered Trademarks
The Agreement introduces noteworthy provisions regarding the relationship between GIs and trademark registrations, as these legal regimes often intersect in relevant ways.
Each party must refuse a trademark application for a product identical or similar to a GI where the GI recognition request predates the trademark application. This is consistent with Article 181 of the Brazilian Industrial Property Law, which provides that “a geographical name that does not constitute an indication of source or designation of origin may serve as a distinctive element of a trademark for a product or service, provided that it does not indicate a false origin.”
With respect to prior trademark registrations, the Agreement ensures that, if acquired in good faith, they may continue to be used, renewed, and even varied. It also provides for coexistence, establishing that neither the earlier trademark nor the GI may be used in a manner that misleads consumers as to the nature of the intellectual property right involved. This reflects a concern with safeguarding legal certainty while preserving the protection afforded to each right.
Regarding well-known or highly reputed trademarks, the Agreement provides that signatory countries are not required to protect a GI where such protection could mislead consumers. This constitutes an additional safeguard aimed at ensuring coexistence between these regimes while equally protecting consumers.
Prohibition on the Degeneration of Geographical Indications
Degeneration — a concept widely studied in trademark law — refers to a situation in which an industrial property asset becomes so commonly used to designate a product or service that it is confused with the product itself. As a result, competitors marketing similar products or services may use the identifying signs of the original holder without necessarily committing infringement or unfair competition.
In this regard, Article 180 of the Brazilian Industrial Property Law contains a controversial provision concerning GI protection in Brazil: “where a geographical name has become of common use, designating a product or service, it shall not be considered a geographical indication.”
By contrast, the Agreement provides that protected GIs may not become generic within the territory of the signatory countries. This provision is appropriate, as the purpose of any geographical indication — like any industrial property asset — is precisely to become widely recognized across various market segments, which inevitably strengthens the asset and, above all, enhances its economic value.
It will therefore be interesting to observe how these two standards will be reconciled. Will the rule providing for loss of protection due to common use apply only to national indications? Will there be a difference in treatment with respect to indications protected under the Agreement? These are some of the practical questions that arise in light of the text that is now pending approval by Congress.
Conclusion
Considering the growing recognition of national geographical indications in recent years, it is expected that their expansion will accelerate further once the Agreement enters into force, encouraging producers from regions already known for particular products or services to seek recognition before the Brazilian Patent and Trademark Office.
Moreover, the Agreement is likely to contribute to the valorization of products linked to protected geographical indications, fostering regional economic development and expanding the protection afforded to producers, both domestically and internationally.
However, questions remain regarding how certain provisions will be harmonized with domestic law in order to preserve equal treatment between national indications and those protected under the international treaty at issue.
The landscape has been evolving in recent years. Public incentives and new legislative measures may help Brazil attain the leading role it deserves in the global geographical indications arena.