Brazil has formalized the Mercosur-European Free Trade Association (EFTA) free trade agreement, covering Switzerland, Norway, Iceland and Liechtenstein. In addition to establishing new conditions for trade in goods and services, the agreement includes specific commitments concerning intellectual property (IP).

For Brazilian companies operating or planning to expand internationally, the IP provisions add a strategic consideration when entering and protecting assets in the European markets covered by the agreement.

Intellectual property is part of the trade agreement

The agreement’s intellectual property chapter establishes commitments concerning several areas of protection, including:

  • Patents;
  • Trademarks;
  • Industrial designs;
  • Copyright;
  • Geographical indications;
  • IP enforcement and rights protection.

Including these areas in a trade agreement reinforces the strategic role of intellectual property in economic relations between Mercosur and EFTA countries.

For companies developing technologies, brands, products or other IP assets, international expansion requires consideration not only of the target market, but also of the rules governing the protection and enforcement of those assets.

63 Brazilian geographical indications to receive protection

One of the agreement’s key provisions is the protection of 63 Brazilian geographical indications in EFTA countries.

Geographical indications link specific products to a particular geographic origin and can represent a relevant asset for industries whose products derive value from their territory of production and associated reputation.

The agreement’s protections provide an additional mechanism for safeguarding these assets in covered markets, particularly for Brazilian products whose geographic origin is part of their commercial differentiation.

Implications for internationally active companies

New trade opportunities also increase the importance of intellectual property planning.

Brazilian companies considering expansion into EFTA markets may need to assess issues such as:

  • trademark protection before international expansion;
  • patent filing strategies in foreign jurisdictions;
  • industrial design protection;
  • identification of intangible assets relevant to internationalization;
  • available mechanisms for enforcing IP rights;
  • differences between Brazilian and foreign IP systems.

In this context, intellectual property becomes more than a legal step taken after a business decision. It becomes part of the planning process for international expansion.

Trade and intellectual property

The inclusion of a dedicated IP chapter illustrates the increasingly close relationship between international trade and intangible asset protection.

As economies become more dependent on technology, brands, knowledge, and innovation, protecting these assets across jurisdictions can become an important component of international business strategy.

The Mercosur-EFTA agreement therefore creates a new environment for Brazilian companies seeking to expand into EFTA markets, particularly those whose competitiveness depends on intellectual property assets.

Implementation will be gradual

The agreement will enter into force gradually for Brazil. According to the Brazilian government, implementation begins with Iceland on October 1, 2026, followed by Norway on November 1, 2026.

This gradual rollout makes it important for companies to monitor the specific rules in each market and the opportunities that arise from the new trade framework.

For businesses planning operations in these countries, the development also highlights the importance of reviewing their intellectual property portfolios and protection strategies in target markets in advance.

IP as part of internationalization strategy

The Mercosur-EFTA agreement illustrates how intellectual property is becoming increasingly integrated into international trade negotiations.

For Brazilian companies, entering new markets involves not only export and business opportunities, but also the need to identify, protect and manage intangible assets across jurisdictions.

Assessing these issues in advance can support a more structured internationalization strategy, particularly in industries where brands, technology, innovation, and product origin represent a significant portion of business value.