Brazil’s agriculture ministry said Tuesday that the European Union has moved to block the country’s animal product exports from September, a potentially severe blow to one of Brazil’s most important agricultural markets. The decision, reported by Brazilian media, came just days after the long-negotiated EU-Mercosur free trade agreement tentatively took effect on May 1, a deal that aims to create a trans-Atlantic market worth an estimated $22 trillion.

The Brazilian ministry said it received the EU’s move “with surprise.” According to Brazilian media, the EU claimed it had not received documentation proving that animal products from Brazil and other suppliers were free of antimicrobial substances used to stimulate animal growth. The head of Brazil’s mission at the EU is scheduled to meet with the bloc’s animal products authorities on Wednesday “to seek explanations about the decision,” the ministry statement added.

The trade pact, signed in January by the Mercosur nations—Brazil, Argentina, Paraguay, and Uruguay—was provisionally enacted by European Commission President Ursula von der Leyen, effectively bypassing the European Parliament. It now faces a legal challenge before the European Court of Justice; if the court rules against it, the agreement will be halted. European farmers and environmental groups have strongly opposed the deal, warning that it would expose them to unfair competition from South American producers with lower regulatory standards.

The economic stakes for Brazil are high. According to the Brazilian government’s association for animal products, EU countries were the third-largest market for Brazilian beef in 2025, after the United States and China. Any sustained disruption would compound pressures on the country’s agricultural sector, which has relied on expanding export markets to fuel growth.