The real revenue of the Brazilian manufacturing industry grew again in November 2025, but the sector’s labor market continues to decelerate. Industrial indicators released this Monday (Jan. 19) by the National Confederation of Industry (CNI) show that employment in the sector fell for the third consecutive month, despite a recovery in activity.

According to CNI, the slowdown in employment intensified from September onward, reflecting the effects of monetary tightening and the gradual weakening of industrial activity in the second half of the year.

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Main industry figures for November:

• Real revenue: 1.2 percent increase compared to October;
• Industrial employment: 0.2 percent drop, the third consecutive contraction;
• Employment since September: accumulated decline of 0.6 percent;
• Employment for the year: 1.7 percent increase between January and November 2025.

According to Marcelo Azevedo, manager of Economic Analysis at CNI, employment responded to the improvement in activity that began in 2023 and peaked in 2024, but started to lose momentum with the increase in the Selic rate, which began last year. The Selic rate is the economy’s basic interest rate and is currently at 15 percent per year. It is also the main instrument used by the Central Bank to control inflation.

“Only after months of weaker results in industrial activity did employment begin to be affected,” Azevedo explains, emphasizing that layoffs and rehiring are costly for industry, which depends on skilled labor.

Labor Market: Brief relief, negative annual balance

Other labor market indicators improved in November, after a series of negative results, but continue to accumulate losses for the year.

Real wage bill:

Increase of 1.5 percent in November, after four consecutive declines;
Decrease of 2.3 percent year to date.

Average real income:

Increase of 1.6 percent in the month;
Decrease of 4 percent from January to November.

Loss of momentum

Despite revenue growth in November, industrial activity continues to show signs of a year-to-date slowdown.

Accumulated revenue in 2025:

Increase of only 0.3 percent

Hours worked in production:

Decrease of 0.7 percent in November;
Increase of 0.9 percent year to date.

Installed capacity utilization (ICU):

A 0.6 percentage point decrease in November, to 77.5 percent;
2.4 percentage points below the level of November 2024.

According to CNI, the gradual reduction in revenue growth throughout 2025 reinforces expectations of an industrial slowdown, especially in the second half of the year, amid high interest rates and less dynamic demand.

Petrobras’ oil production reached 2.40 million barrels per day (bpd) in 2025, an 11 percent increase compared to the previous year, the company said.

The result exceeded the upper limit of the target (+4%) established in the 2025-2029 Business Plan by 0.5 percentage points (p.p.).

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When considering total oil and natural gas production, the result exceeded the upper limit of the target (+4%) by 2.8 percentage points, reaching 2.99 million barrels of oil equivalent per day (boed), representing an 11 percent increase compared to 2024 production.

Commercial oil and natural gas production reached 2.62 million boed, exceeding the upper limit of the projected target (+4%) by 0.9 percentage points.

Pre-salt layer

The company also set new annual records in the pre-salt layer: total own production reached 2.45 million boed, and associated production reached 3.70 million boed. Production in the pre-salt layer accounts for 82 percent of Petrobras’ total output.

South American and European authorities used the occasion of the signing ceremony of the free trade agreement between Mercosur and the European Union, held on Saturday (Jan. 17) in Paraguay, to defend multilateralism and free trade as engines of economic development.

In his speech, the President of the European Council, António Costa, said that the signing of the treaty, negotiated over the past 26 years, reaffirms the belief of the member states of both regional blocs in fair trade and multilateralism.

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“With this agreement, we send a clear message to the world in defense of rules-based free trade and [in favor of] multilateralism and international law as the basis of relations between countries and regions,” said the president of the council.

Costa considered that, although it took a long time, the treaty “arrives at an opportune moment […] because this agreement is a bet on openness, exchange, and cooperation, in the face of [threats of] isolation and the use of trade as a geopolitical weapon. […] With it, we do not aspire to create spheres of influence, but rather spheres of shared prosperity, based on trust, cooperation, and respect for the sovereignty of our democracies. We do not intend to dominate or impose, but rather to promote and strengthen the links between our citizens and our companies in order to create wealth sustainably, while protecting the environment and environmental rights.”

The President of the European Commission, Ursula von der Leyen, reinforced Costa’s assessment, saying that the act has the potential to connect continents and create the world’s largest free trade area, with a market of 700 million people.

“We chose fair trade instead of tariffs. We chose long-term partnerships instead of isolation,” said Ursula von der Leyen.

Host of the event, Paraguayan President Santiago Peña highlighted the diplomatic pragmatism necessary to overcome 26 years of deadlock.

“We are facing a truly historic day, long awaited by our peoples, [capable of] uniting two of the most important global markets and demonstrating that the path of dialogue, cooperation, and fraternity is the only way,” Peña emphasized.

He highlighted the commitment of Brazilian President Luiz Inácio Lula da Silva – who, due to scheduling conflicts, could not travel to Asunción – and Ursula von der Leyen to the success of the negotiations. “Without President Lula, perhaps we would not have reached this day. He was one of the key figures responsible for this process.”

The President of Argentina, Javier Milei, emphasized that the agreement constitutes a starting point for the exploration of new commercial opportunities and a basis for greater regional integration, grounded in free trade. According to the Argentine president, promoting macroeconomic stability and ensuring legal predictability are indispensable conditions for prosperity and social justice.

The Uruguayan president, Yamandú Orsi, described the agreement as a “strategic partnership,” capable of improving the lives of the populations of the signatory countries by creating real opportunities. According to him, for Uruguay, it is an “indispensable condition for development,” as well as a platform to confront “threats that do not recognize borders, such as drug trafficking and other transnational illicit practices.”

Representing Brazil, the Minister of Foreign Affairs, Mauro Vieira, reiterated Lula’s statement, according to which the trade agreement between Mercosur and the European Union is proof of the strength of the democratic world and a demonstration of multilateralism. “The agreement will provide tangible gains, more jobs and investment, greater productive integration, expanded access to quality goods and services, technological innovation, and economic growth with social inclusion […] in a world plagued by unpredictability, protectionism, and coercion,” Vieira declared.

The text of the agreement still needs to be submitted for ratification by the European Parliament and the national congresses of each Mercosur member country. Its entry into force, including the trade provisions, depends on this approval.

Brazil’s National Confederation of Industry (CNI) has presented a survey indicating that the trade agreement between Mercosur and the European Union (EU) should expand Brazilian access to the global goods import market from eight to 36 percent.

The figures were released Saturday (Jan. 17), after the treaty was signed by representatives of the European bloc and Mercosur member countries at a ceremony in Asunción, Paraguay. After the signing, the text will still be submitted for ratification by the European Parliament and the national congresses of each Mercosur nation. The confederation believes that the formalization of the agreement is a turning point for Brazilian industry.

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The survey also indicates that 54.3 percent of traded products – more than 5 thousand items – will have zero tariffs in the European Union once the Mercosur–EU agreement comes into force. On Mercosur’s side, Brazil will have longer deadlines – 10 to 15 years – to reduce tariffs on 44.1 percent of products (4,400 items), ensuring a gradual and predictable transition.

“Based on 2024 data, 82.7 percent of Brazil’s exports to the EU will enter the bloc without import tariffs from the outset. On the other hand, Brazil has committed to immediately eliminating tariffs on only 15.1 percent of imports originating in the European Union, reinforcing the favorable difference for the country,” the document says.

Also according to the analysis, Brazil will have eight additional years on average to adapt to the tariff reduction, compared to the European bloc’s deadline and considering bilateral trade and the schedule set out in the Mercosur–EU agreement.

“The signing of the agreement is a historic milestone for strengthening Brazilian industry, diversifying the export basket, and integrating the country into global trade,” says the confederation.

“Under negotiation for more than 25 years, this is the most modern and comprehensive treaty ever negotiated by Mercosur and goes beyond tariff reduction as it incorporates disciplines that increase regulatory predictability, reduce costs, and create a more favorable environment for investment, innovation, and job creation,” the entity goes on to state.

Job creation

According to CNI, in 2024, for every BRL 1 billion exported from Brazil to the EU, 21,800 jobs were created – generating BRL 441.7 million in wages and BRL 3.2 billion in production.

The compact also has positive results for the agro-industrial sector, as the negotiated quotas favor key sectors and, in the case of beef, are more than double those granted by the European Union to partners such as Canada, and more than four times higher than those allocated to Mexico. Rice quotas exceed the volume currently exported by Brazil to the bloc, expanding the potential for access to the European market.

Technological cooperation

The signing of the treaty also creates a favorable environment for expanding research and development projects focused on sustainability and technological innovation, CNI reports.

“New regulatory and market requirements are driving opportunities in industrial decarbonization technologies—such as carbon capture, use, and storage; CO₂ use and mineralization; low-emission hydrogen electrification; hybrid-flex engines; and battery and critical mineral recycling—and in the development of bio-supplies for more resilient agriculture. The articulation of these fronts strengthens technological cooperation, accelerates the transition to a low-carbon economy, and increases Brazil’s competitiveness in the European market,” the text reads.

In 2024, the European Union was the destination for USD 48.2 billion of Brazilian exports, equivalent to 14.3 percent of the country’s total exports, and remains Brazil’s second largest foreign market, behind China. In the same period, the bloc accounted for USD 47.2 billion of Brazilian imports, 17.9 percent of the total.

Almost all (98.4%) of Brazilian imports from Europe were manufacturing products, while 46.3 percent of Brazilian exports to the EU were industrial goods. Considering industrial supplies, the share of trade in 2024 was 56.6 percent of imports from the bloc and 34.2 percent of Brazil’s exports to the European Union, CNI points out.

“This complementarity contributes to the modernization of Brazilian industry, increasing its competitiveness. The EU also stands out as the main investor in Brazil. In 2023, the bloc accounted for 31.6 percent of foreign productive investment in the country, totaling USD 321.4 billion. Brazil was the largest Latin American investor in the European Union – the bloc was the destination for 63.9 percent of Brazilian investments abroad,” the study says.

“The political leadership, the personal commitment, and the passion that you have shown in recent weeks and months, my dear President Lula, have been truly enormous,” said the President of the European Commission, Ursula von der Leyen, during a meeting with Lula in Rio de Janeiro on Friday (Jan. 16). The encounter took place one day before the signing of the agreement in Paraguay, which is holding the temporary presidency of Mercosur.

The two met at the Ministry of Foreign Affairs palace to discuss the agreement, which will create one of the world’s largest trading areas, home to approximately 720 million people. The European Union’s approval of the agreement was announced last week, after more than 25 years of negotiations.

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Lula emphasized that “trade liberalization and openness only make sense if they are capable of promoting sustainable development and reducing inequalities,” recalling that trade and investment result in new jobs and opportunities.

“Political dialogue and cooperation will guarantee high standards of respect for labor rights and environmental protection,” Lula said.

Added Value

Lula added that, unlike in the past, Brazil will not restrict itself to supplying commodities - especially agricultural products - to the European Union.

“We will not limit ourselves to the eternal role of commodity exporter. We want to produce and sell industrial goods with higher added value,” he stated, adding that the agreement provides incentives for investments by European companies in Mercosur, which includes strategic value chains for the energy transition and digital transmission.

“The best is yet to come”

European Commission President Ursula von der Leyen said that all members of the bloc should benefit from new jobs and that many opportunities will arise for the business sector on both sides.

“I know that, between our regions and our peoples, the best is yet to come. This is how we create true prosperity, which is shared prosperity. We agree that international trade is not a zero-sum game,” she noted.

“The whole story will only be successfully told when companies begin to feel the benefits of our agreement. Something that should happen quickly,” von der Leyen added.

She went on to say that the agreement will multiply opportunities, with clear and predictable rules, as well as standards and supply chains that, according to her, “will serve as highways for investment.”

“This agreement now concluded is the achievement of an entire generation,” the European leader highlighted, as she thanked Lula for his commitment to consolidating the agreement.

The law that established Brazil’s minimum wage in 1936, later regulated in 1940, resulted from workers’ struggles, reshaped social relations, and unsettled economic elites, according to historians interviewed by Agência Brasil. The legislation marked its 90th anniversary last Wednesday (Jan. 14).

The first article of the law states: “Every worker has the right, in payment for services rendered, to a minimum wage capable of satisfying, in a given region of the country and at a given time, their normal needs for food, housing, clothing, hygiene, and transportation.”

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According to history professor Mateus Gamba Torres of the University of Brasília (UnB), strikes demanding better working conditions took place in Brazil during the 1910s and 1920s.

“Until then, the contract was civil law-based, for the provision of services. There was no minimum wage that the employer was required to pay,” he says.

Ambiguous stance

Then-President Getúlio Vargas also faced pressure from economic elites, researchers have found, even as more money was injected into the economy. According to Professor Deusdedith Rocha of the University Center of Brasília (Ceub), Brazil’s elite adopted an ambivalent stance toward the introduction of the minimum wage.

“They both resisted and strategically adjusted to the changes of the time. Distrust in the agricultural sector was offset by the idea of social stabilization,” he explains.

Rocha adds that the minimum wage became a fundamental achievement in the regulation of labor relations.

“The worker perceived the minimum wage as fundamental to having a greater possibility of survival,” he stated.

Trade unions

Trade unions celebrate the Minimum Wage Law but argue that real wage adjustments should become a state policy, not just a government policy.

“The minimum wage is fundamental because it sets a benchmark both for categories without a minimum wage and for retirees and pensioners. It ultimately becomes an important instrument for income distribution in our country,” says João Carlos Gonçalves, general secretary of Força Sindical (Union Force).

He recalls that trade unions fought for the minimum wage adjustment to become an instrument for income distribution. “The adjustment was achieved in Congress and, as a result, the minimum wage saw a real increase, which was cut during the [Michel] Temer and [Jair] Bolsonaro governments.”

According to Gonçalves, the policy of real increases was reinstated during President Luiz Inácio Lula da Silva’s government. “Now there has been a return to a real benchmark, slightly lower, which is still important, even if smaller,” he says.

For Ariovaldo de Camargo, of the Central Única dos Trabalhadores - CUT (Unified Workers’ Central), the minimum wage “for active workers is a cushion, an important reference point, but falls short of what is needed.”

Camargo argues that a “more rapid” recovery policy is necessary.

“After the 2016 coup [that removed Dilma Rousseff from power], when we went six years without adjustments above inflation - and at times even below - it was, we can say, a discontinuous policy,” according to Camargo.

Ronaldo Leite, president of the Central dos Trabalhadores e Trabalhadoras do Brasil - CTB (Central of Workers of Brazil), also emphasizes the importance of the minimum wage. “It is a fundamental guarantee for workers. Having a constitutional floor minimally ensures the purchasing power of the working class.”

Leite notes that the Lula government reinstated the policy of increasing the minimum wage, allowing for adjustments above inflation, but acknowledges that its value has been eroded over the years.

“The minimum wage has lost much of its purchasing power compared to when it was first established. Dieese [the Inter-Union Department of Statistics and Socioeconomic Studies] calculates that the ideal value today would be BRL 7,106.83. The CTB advocates maintaining and expanding the policy of minimum wage increases to ensure that the working class experiences an improvement in living conditions,” Leite adds.

The minimum wage in effect this year is BRL 1,621.00.

Dieese is supported by the labor movement. It conducts research on the cost of living, employment and unemployment, and issues related to the world of work and workers.

The official program for Rio de Janeiro’s street Carnival begins this weekend on January 17 and runs until February 22.

Rio’s tourism company Riotur reports that 462 parades are scheduled throughout the period, expected to attract around 6 million revelers, including locals and tourists, who will fill the streets, squares, and avenues across the city. A record 803 street parties are registered.

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“The start of the street Carnival marks a symbolic and very important moment for the city, when Rio reaffirms the value of this cultural expression that originates in the neighborhoods, occupies public spaces, and expresses the diversity, creativity, and identity of Rio’s residents. It is a pluralistic Carnival that brings together traditional celebrations and large street parties engaging with different audiences, ages, and parts of the city,” said Riotur President Bernardo Fellows in a statement.

The company also reports that this year’s street Carnival will have an extensive and decentralized schedule.

“The idea is to offer options for audiences of all ages and profiles – including street parties for children and families, in addition to those aimed at revelers seeking large gatherings, prominent musical attractions, and experiences with a strong cultural impact,” the statement reads.

Rio’s downtown area has the largest number of parades – a total of 135 scheduled performances – followed by the South Zone, with 99 parades, mainly on the Copacabana beachfront.

Attending a ceremony marking the 90th anniversary of the minimum wage in Brazil, President Luiz Inácio Lula da Silva said on Friday (Jan. 16) that its current value is too low.

“We are not praising the value of the minimum wage – the minimum wage is really low in Brazil. We are praising the fact that back in 1936 a president created the possibility of establishing a wage that would guarantee workers their basic rights,” he declared.

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Among the rights mentioned by Lula in his speech are the right to housing, food, and education, as well as the right to come and go.

“Since it was created, the minimum wage has not fulfilled the requirements of the law’s intent,” he said during the ceremony in Rio de Janeiro.

New value

The new minimum wage – BRL 1,621 – came into effect on January 1 this year. The increase was 6.79 percent, or BRL 103, from 2025’s BRL 1,518.

The new minimum wage is expected to inject BRL 81.7 billion into the Brazilian economy. The calculation considers the effects on income, consumption, and tax collection, even in a scenario marked by stricter fiscal constraints.

The acupuncturist’s profession is now regulated in Brazil. The law that governs the professional practice of this ancient Chinese medicine therapy was enacted by President Lula and published this week.

“A set of techniques and therapies consisting of stimulating specific points on the human body through the use of appropriate needles and specific instruments and procedures,” acupuncture aims to “maintain or restore the balance of the physical and mental functions of the human body,” the piece of legislation reads.

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The professional practice of this technique is primarily granted to those who hold a higher education degree in acupuncture, issued by a recognized institution.

The exercise of the profession is also open to those with a degree in a similar or equivalent course overseas, provided it is validated and registered with the competent authorities, as well as to higher education health professionals who hold a specialist title in acupuncture recognized by the applicable federal councils.

Authorization

Non-licensed professionals who have been practicing acupuncture continuously for at least five years are also authorized to practice the activity, provided they can prove their experience.

After the new law was signed, the Planalto presidential palace released a statement saying that the new rules guarantee the right to use isolated and specific acupuncture procedures as part of the regular practice of other health professions, as allowed by the relevant professional councils.

“In such cases, the professional must undergo a specific extension course taught by a recognized educational institution,” the government reported.

The United States will suspend, starting January 21, the issuance of immigrant visas to citizens of 75 countries, including Brazil. The measure was announced in a statement issued on Wednesday (Jan. 14) by the US State Department. Tourist visas will continue to be issued.

Besides Brazil, the list includes several other countries, such as Russia, Iran, Iraq, Colombia, Uruguay, Cuba, Haiti, and Yemen.

According to the statement, the measure stems from a “comprehensive review” of US policies, regulations, and guidelines being conducted “to ensure that immigrants from these high-risk countries do not utilize US social welfare programs or become a public burden.”

The statement notes that President Donald Trump “has made it clear that immigrants must be financially self-sufficient and not represent a financial burden to Americans.”

President Luiz Inácio Lula da Silva received a phone call on Thursday (Jan. 15) from Panamanian President José Raúl Mulino. According to a statement released by the Planalto presidential palace, the two leaders discussed preparations for Lula’s visit to Panama on January 28, when he will participate in the opening of the International Economic Forum of Latin America and the Caribbean, organized by the Development Bank of Latin America and the Caribbean (CAF).

During the visit, Lula will also hold a bilateral meeting with President Mulino to discuss issues related to trade, investment, and cooperation.

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Panama is one of the countries associated with Mercosur, a bloc formed by Argentina, Brazil, Paraguay, and Uruguay.

According to the Planalto statement, Lula and Mulino exchanged views on the situation in Venezuela and reiterated the need to preserve peace and stability in Latin America and the Caribbean. They also agreed on the need to strengthen the United Nations and defend international law and dialogue.

Brazilian vehicle production - which includes automobiles, light commercial vehicles, buses, and trucks - registered a 3.5 percent increase last year, totaling 2.64 million units. The data were released on Thursday (Jan. 15) by the National Association of Automotive Vehicle Manufacturers (Anfavea).

According to the association, this growth was driven mainly by light vehicles and keeps the country among the world’s largest producers.

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Sales totaled 2.69 million units, representing a 2.1 percent increase compared with the previous year. Exports grew by 32.1 percent, with nearly 529,000 units sold during the period.

“We expected more, but it wasn’t a bad year for the sector. Still, it was a year with positive data,” said the industry association’s president, Igor Calvet.

Brazilian vice-President and Minister of Development, Industry, Trade, and Services Geraldo Alckmin, said on Thursday (Jan. 15) that possible sanctions by the US against Iran, as announced by US President Donald Trump, should not affect Brazil.

“The US has stated that it does not want trade with Iran. But Iran has 100 million people. European countries export to Iran, and most countries have some kind of export. In Brazil, our trade relationship with Iran is small,” he said.

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“Super-tariffs are not so easy to enforce. You’d have to apply them in more than 70 countries around the world, including European countries,” he added, during an interview for EBC’s radio broadcast Bom Dia, Ministro.

Alckmin recalled there has been no executive order from the Trump administration that actually imposes sanctions on Iran. “We hope those will not be applied. Because export tax is a regulatory tax. It’s a different logic. And that would apply to the whole world,” he stated.

The minister also said that Brazil has no disputes with anyone.

“In Brazil, the last war was over a century ago. Brazil is a peaceful country that acts to promote peace whenever possible. What we want is peace. War leads to death and poverty. It’s the failure of good politics.”

Alckmin described the current geopolitical scenario as a difficult time for the world and a time for Brazil to be heard more.

“We will promote peace, strengthen multilateralism, and seek to improve people’s lives through employment and increased income. This is the right path, and this is the path Brazil is following.”

*Alex Rodrigues contributed to this article.

Created to help reduce healthcare-associated infections in public hospitals in Brazil, the “Health in Our Hands” project has achieved its goal. From September 2024 to October 2025, the initiative reduced these infections by 26 percent in adult, pediatric, and neonatal intensive care units (ICUs).

With this reduction in hospital infections, Brazil’s public healthcare network, the SUS, is estimated to have saved more than BRL 150 million during this period.

The “Health in Our Hands” project was developed by hospitals participating in the SUS Institutional Development Support Program (Proadi-SUS), run by the Ministry of Health.

The project’s goal is to work in Brazilian ICUs to reduce cases of primary bloodstream infections associated with central venous catheters, ventilator-associated pneumonia, and urinary tract infections associated with urinary catheters.

“‘Health in Our Hands’ is an initiative that generates a learning movement in which everyone teaches and everyone learns and that, most importantly, addresses measures to combat the three main healthcare-associated infections in ICUs. We are talking about serious infections caused by catheters [central venous, mechanical ventilation, and urinary], which increase morbidity, mortality, and hospital costs and can be avoided with effective prevention measures,” said Claudia Garcia, the project’s general coordinator, in a statement.

Estimates indicate that healthcare-associated infections can cause up to 3.5 million deaths each year worldwide. In Brazil, preventing each of these infections helps save between BRL 60,000 and BRL 110,000.

The project aims to reduce these hospital infections by 50 percent by the end of this year.

President Luiz Inácio Lula da Silva will meet this Friday (Jan. 16) in Rio de Janeiro with the President of the European Commission, Ursula von der Leyen, and the President of the European Council, António Costa. According to the Planalto presidential palace, they are expected to discuss issues on the international agenda and the next steps for the Mercosur-European Union trade agreement, which was approved by the EU last week.

The meeting will take place at the Ministry of Foreign Affairs Palace in Rio de Janeiro and will be followed by a joint statement to the press.

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After more than 25 years of negotiations, the agreement will create a free trade zone of 720 million people and will total a Gross Domestic Product (GDP) of USD 22 trillion, according to the Brazilian government.

The ratification ceremony between the two blocs is scheduled for Saturday (17) in Asunción, the capital of Paraguay, with the attendance of European leaders and Mercosur foreign ministers. Paraguay currently holds the rotating presidency of Mercosur.

Implementation

On Tuesday (13), Lula spoke with Portuguese Prime Minister Luís Montenegro, and the two agreed to work together quickly and efficiently to implement the agreement so that their populations can see concrete results from the partnership.

Although celebrated by governments and industrial sectors, the agreement still faces resistance from European farmers and environmentalists, who criticize its potential impacts on the climate and agricultural competition. Implementation will be gradual, and its practical effects are expected to be felt over several years.

In France, for example, farmers drove tractors into Paris on Tuesday, for the second time in a week, to protest against the agreement, which, according to the demonstrators, threatens local agriculture by creating unfair competition from cheaper South American imports.

Brazilian President Luiz Inácio Lula da Silva spoke with Portuguese Prime Minister Luís Montenegro on Tuesday (Jan. 13). According to a statement from the Planalto presidential palace, the two leaders expressed satisfaction with the approval of the trade agreement between the European Union (EU) and Mercosur, which should be signed on January 17 in Paraguay. The new treaty, which took 25 years to negotiate, still needs to undergo ratification by the signatory countries.

In his talk with Lula, the prime minister is said to have congratulated the Brazilian president on his efforts to conclude the deal. The two also discussed the need for the new rules to come into force as soon as possible.

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“Both agreed that the decision of the two blocs is a major gesture in defense of multilateralism and free trade, with great political and strategic significance at this historic moment. They agreed to work together quickly and efficiently to implement the agreement so that the populations can see concrete results from the partnership,” the official note reads.

Lula and Montenegro also exchanged views on the situation in Venezuela and highlighted the need to avoid instability in South America.

The Brazilian government released an official statement on Tuesday (Jan. 13) expressing concern about the demonstrations in Iran.

The protests began on December 28 in response to rising living costs in the country. Later, protesters turned against those who have governed Iran since the 1979 Islamic Revolution.

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In response to the protests, which have now spread across the country, Iranian authorities have used lethal force against the population. According to non-governmental organizations, at least 600 deaths have been recorded.

In the statement, the Brazilian Ministry of Foreign Affairs laments the deaths and defends the Iranian people’s sovereignty in deciding the course of their country.

“By stressing that it is solely up to the Iranian people to decide, in a sovereign manner, on the future of their country, Brazil urges all actors to engage in peaceful, substantive, and constructive dialogue,” the statement said.

The Brazilian government reports that, so far, there are no Brazilians among the dead or injured. The embassy in Tehran is assisting the Brazilian community in Iran.

Threats

Iranian authorities accuse the US and Israel of fomenting the protests and have threatened to attack US bases.

Iranian President Masoud Pezeshkian stated that peaceful protests are tolerated in the country, but said the recent disturbances are provoked by “foreign terrorists” in an attempt to justify an invasion by the US and Israel.

Donald Trump has threatened to intervene in Iran with military forces. On Monday (12), he announced that he will impose a 25 percent tariff on “any country that does business with the Islamic Republic of Iran.”

If the measure goes ahead, Brazil could be affected. Trump’s announcement has raised concerns about potential impacts on Brazilian trade, especially in agribusiness, the main beneficiary of trade relations with Tehran. The government is awaiting the publication of the US executive order before taking a position.

Brazil maintained trade of almost USD 3 billion with Iran in 2025, even though the country accounted for only 0.84 percent of Brazilian exports.

Brazilian tourism generated BRL 185 billion in revenue from January to October 2025, setting a new record for the sector. According to the most recent survey by the Federation of Commerce, Goods, Services and Tourism of São Paulo (FecomercioSP), the year was historic for Brazilian tourism and consolidated a trajectory of consecutive growth, especially in revenue.

FecomercioSP data show that revenue in these 10 months of 2025 was the highest since the survey began in 2011. Compared to the same period in 2024, the increase stood at 6.4 percent.

Virtually all segments analyzed showed growth. Passenger air transport stood out, with revenue of BRL 48 billion and a 10.2 percent rise compared to the period from January to October 2024. The food sector also posted solid results, with revenue reaching BRL 28.3 billion, up 6.2 percent over the same period.

The largest percentage growth was recorded in the accommodation sector, which generated BRL 22.6 billion in revenue from January to October. This represents an 11.2 percent growth compared to the same period in 2024.

October 2025 also registered a record, with revenue of BRL 19.4 billion, a growth of 6.5 percent compared to the same period of the previous year.

The tenth month of the year posted the third-best result in the historical annual series, behind only January, when the sector’s revenue reached BRL 21.2 billion, and July, with BRL 19.7 billion.

In the year-to-date figures, the largest increases in revenue in the sector were recorded in the states of Rio Grande do Sul (13.5%), Amazonas (11.1%), and Bahia (9.6%).

The president of the Brazilian Central Bank, Gabriel Galípolo, on Tuesday (Jan. 13) signed an international manifesto in defense of the independence of monetary authorities and in support of US Federal Reserve (FED) Chair Jerome Powell. The initiative comes amid attacks by US President Donald Trump, who is pushing for a faster reduction in interest rates in the country.

According to the Central Bank, the joint statement “reaffirms the technical autonomy of institutions as a central pillar of global economic stability” at a time of growing political tensions surrounding monetary policy decisions both abroad and in Brazil.

Monetary autonomy

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• Brazil’s Central Bank keeps base interest rate at 15% per annum.
• Keeping interest rates at 15% worries Brazilian productive sector.

In the manifesto, central bank presidents emphasize that institutional independence is “fundamental to ensuring price stability and the well-being of citizens,” never disregarding the rule of law, transparency, and democratic accountability.

By signing the text, Galípolo positions Brazil alongside institutions such as the European Central Bank, the Bank of England, and the Bank for International Settlements (BIS) – a Swiss-based body that functions as the central bank of central banks. Monetary authorities from Canada, Sweden, Denmark, Switzerland, Australia, and South Korea also signed the document.

Powell’s term ends in May this year.

On Monday (12), Galípolo met with Brazil’s Federal Court of Accounts President Vital do Rêgo to discuss the issue. Market participants believe that publicly defending the independence of central banks works to reinforce confidence in the technical conduct of monetary policy amid a global scenario of increased volatility and uncertainty.