Skip to content
Subscriber Only

As Threat of European Wine Looms, Brazil Industry Seeks Aid

  • Fund to help local producers to start in 2020, officials say
  • Plan is to finance innovation and competitiveness measures
Luiz Argenta winery in Serra Gaúcha
Luiz Argenta winery in Serra GaúchaSource: Luiz Argenta

Brazilian winemakers will receive a hand from the government to face rising international competition as a trade deal between the European Union and Mercosur further opens the door to more traditional producers from the other side of the Atlantic.

Already pressured by Argentine and Chilean wines that come into Brazil free of taxes and are often cheaper than the local product, Brazilian producers say the national industry may not survive when European competitors also benefit from a free trade deal. In a bid to mitigate the potential damage, the government pledged to create a fund to help modernize the local wine industry, according to two government officials familiar with the discussions.