Brazilian Footware Sector Enthusiastic about Trade Opportunities

The long awaited formal signing of the free trade agreement between Mercosur and the European Union took place on January 19, 2026 in Asunción, Paraguay, bringing together a market of more than 700 million consumers.

According to Simone De Faria, Townsend Business Manager, “this is a strategic milestone for the Brazilian industry, especially for the footwear and plastics processing sectors. According to Abicalçados (Brazilian Association of Footwear Industries), a 62% jump in exports to the European bloc is projected over 15 years, driven by the gradual elimination of tariffs that currently reach 17% on synthetic and textile models, and by the requirement of 60% regional content to avoid Asian triangulation. This dynamic directly benefits the plastics and resins chain, the main supplier of inputs such as EVA. With tariff reductions in Europe and incentives for the use of local raw materials, an increase in demand for domestically produced polymers and adhesives is expected, while integration with the European market accelerates the adoption of sustainability and circular economy standards, strengthening the global competitiveness of Brazilian resin and its processed products.”

As reported in the January Edition of Townsend’s EVA Market Intelligence Monthly Report, Central/South American EVA import volume decreased 11.5% in December, totaling 2,076 tons at an average price of US$1,500.34 FOB, 4.3% lower than November's price. The volume for the whole year decreased 20.3% and totaled 30,957 tons. In 2025, China and Taiwan together held a market share of 38.2%, surpassing the USA and Canada which together accounted for 36.2%. South Korea came in third place with 10.3%, and Saudi Arabia in fourth had a share of 7%.   Exports from the region increased 32.7% in December, when 4,559 tons were sold abroad at US$1,746/t FOB. Exported volume rose 3.4% in 2025 compared to the previous year. The main destiny was China with almost 30% of the total.

The most prevalent and consumed type of EVA in the Central/South American region are:

LEVA (8% to 18% VA) for:

• foam applications

• extrusion/lamination

• injection molding

• industrial stretch wrap

• wire & cable

MEVA (18% to <28% VA) for:

• extrusion coating

• lamination films

• coextruded films

• heat seal layers

• hot melt adhesives

• injection molding applications

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