One of the most important advances in intellectual property is the protection of geographical indications of Brazilian products, which will also apply to entry into European countries. Before the deal, only 24 percent of Brazilian exports had free access to the European bloc. Today, more than 90% of Mercosur products will be subject to a 0% import tax over the next ten years and the remaining products will have privileged access through exclusive quotas. Exports to the EU are expected to increase by almost $100 billion by 2035. Despite the victory over the abolition of trips plus rules, no progress has been made towards a new approach to medical innovation or patent monopolies. The European Union is experiencing a growing dynamic of the impact on the high price of medicines and the need for a new innovative pharmaceutical system; and in Mercosur countries, long-standing debates about the innate prejudices of the TRIPS Agreement and the need for alternatives dominate the public discourse, but despite common concerns about the pharmaceutical industry, the free trade agreement does not commit to promoting needs-based research and development or incentives for innovation tailored to needs. The products that will initially benefit are agricultural products such as orange juice, fruit, coffee, sugar and meat. Some of these products have recognition of origin and protection of the geographical indication in Brazil. The agreement extends this recognition to the markets of the European Union. Among the products recognized and protected on European territory are the varieties of cachaça, coffee and wines. The agreement is also expected to increase the competitiveness of other industrial sectors such as textiles, chemicals, wood, aviation and auto parts. As regards the IP elements of the agreement, Brazil has already made significant progress in aligning it with the provisions proposed by the EU.
These affect compliance with the International Patent Cooperation Treaty (PCT) of April 1978 and, more recently, the Madrid Protocol on Trademarks in June 2019. On 10 November 2017, MERCOSUR Foreign Ministers met with the Vice-President of the European Commission, to whom they presented a comprehensive proposal for the implementation of the MERCOSUR Agreement between the European Union. Negotiations will continue in 2018. Negotiations concluded from 11 to 15 March 2019 in Buenos Aires, Argentina. On 28 June 2019, MERCOSUR and the EU agree in Brussels, Belgium, on a comprehensive trade agreement. With regard to the agreement in principle, the „chapter on intellectual property rights“, as proposed by the EU for discussion with Mercosur, aims to „facilitate the production and marketing of innovative and creative products between the parties“ and to achieve „an adequate and effective level of protection and enforcement of intellectual property rights“. At some point in this process, it will be possible to implement a provisional bilateral agreement between a single Mercosur country and the EU even before all Mercosur member states have ratified the agreement. This is important to ensure the exercise of the agreement in the various Mercosur countries, given the political uncertainties. . .