In January 2026, after more than 25 years of negotiations, Mercosur and the European Union signed two historic agreements in Asunción, Paraguay: the EMPA – EU-Mercosur Partnership Agreement and the ITA – Interim Trade Agreement.
The two treaties are distinct in nature, but operate in a complementary manner. The EMPA is the broader and more comprehensive agreement, but it depends on individual ratification by each Member State of the European Union and Mercosur. The ITA, by contrast, is an interim agreement that will apply provisionally until it is replaced by the EMPA. The ITA’s provisions are sufficient on their own to cover the commercial pillar of the new relationship between the two blocs.
Brazil completed its legislative approval process on March 17, 2026, with the enactment of Legislative Decree No. 14/2026. Subsequently, on April 28, 2026, the Brazilian Executive Branch promulgated the agreement through Decree No. 12,953/2026, thereby incorporating it into the Brazilian legal system. The ITA therefore entered into force in Brazil on May 1, 2026, with its rules already producing effects within Brazilian territory.
The ITA includes a specific chapter on intellectual property rights, within which the rules on geographical indications (“GIs”) deserve particular attention, given their direct impact on European producers and rights holders. More specifically, Brazil has undertaken to protect more than 500 European geographical indications listed in Annex 13-B of the agreement, including, for example, “Bordeaux”, “Gruyère”, “Armagnac”, “Parmigiano Reggiano”, “Grana Padano”, “Prosciutto di Parma”, “Barolo”, “Brunello di Montalcino”, “Chianti Classico” and “Fontina” – designations that, to date, are not registered in Brazil. In addition, Article 13.35(1)(e) of the ITA provides that the use of such designations must be prohibited even when accompanied by expressions such as “type”, “style” or “imitation”.
The treaty, however, provides for two exceptions (one transitional and one permanent) to preserve the rights of companies that had already been regularly using signs identical or similar to third-party geographical indications.
The temporary exception grants transitional periods for a series of denominations listed in the footnotes of Annex 13-B of the agreement. It affords producers and consumers additional time to adapt to the new rules. This regime is open: any person who, on the date of entry into force of the agreement, was using the term on a continuous basis may benefit from the transitional period. The periods vary: (i) 5 years for GIs such as “Münchener Bier”, “Comté”, “Pont-l’Évêque” and “Saint-Marcellin”; (ii) 7 years for GIs such as “Roquefort”, “Bordeaux”, “Cognac” and “Prosciutto di Parma”; and (iii) 10 years for GIs such as “Champagne” and “Mortadella Bologna”. Once these periods expire, use must cease for everyone.
The permanent exception concerns the denominations listed under Article 13.35(8) of the ITA, namely: “Genièvre”, “Queso Manchego”, “Grappa”, “Steinhäger”, “Parmigiano Reggiano”, “Fontina”, “Gruyère”, “Grana Padano” and “Gorgonzola”. This regime has no expiry date: it allows the continued use of the denomination, provided the term appears in a substantially smaller font than the trademark and without any graphic, visual or nominal reference to the European origin of the product. The critical point, however, lies in Article 13.35(9), which expressly states that this exception regime applies exclusively to producers listed in Annex 13-E of each Mercosur country. In other words, those not on the list are not entitled to the exception regime.
For years, numerous applications for registration of European GIs have been pending without resolution before the Brazilian Patent and Trademark Office. With the entry into force of the ITA, these proceedings are expected to advance more swiftly. In addition, the temporary and permanent exceptions objectively determine which companies may continue using each geographical indication, and under what conditions.
The Intellectual Property team at Salusse, Marangoni, Parente Jabur Advogados is available to assist you and to answer any questions you may have. Please contact us at contenciosopi@smabr.com or by telephone at +55 (11) 3146-2400.
