New trade agreement – a game changer for Norwegian companies in Brazil

Beaches, carnival, football and coffee often spring to mind when Norwegians think of Brazil. But South America's largest country also has important trade ties with Norway.

'Brazil is Norway's third-largest investment market. As much as 90 per cent of Norwegian investment outside Europe and the US goes here – ten times the amount invested across Asia,' says Thomas Conradi Granli, our Country Director in Brazil.

Outside Norway, only Sweden has more local employees working for Norwegian subsidiaries. Norwegian subsidiaries create around 30,000 direct jobs in Brazil – and many more indirectly.

'That says a great deal about the scale and footprint of Norwegian companies here in South America's largest economy,' Granli says.

As early as the 19th century, dried and salted cod travelled south from the Norwegian coast, while coffee was shipped north in return. Today, Norway imports products including soya for salmon farming and raw materials for aluminium production, while fertilisers and other chemical products, seafood and, not least, technology and services for the offshore, maritime and energy sectors travel in the opposite direction.

Industrial giants such as Yara, Hydro, Equinor and Statkraft lead Norway's strong business presence in Brazil. Several smaller companies in the energy, offshore and maritime services sectors have also succeeded in one of the world's largest offshore markets.

'At the same time, Brazil has a significant need for new technology that reduces emissions, and Norwegian companies are now investing heavily in the green transition of their value chains,' Granli points out.

Read more: 'Many Norwegian companies have significant opportunities in South America'

The new free trade agreement will open up opportunities for even more sectors. Norway and the other EFTA countries have agreed a trade deal with Brazil, Argentina and the other Mercosur countries which, once ratified, will remove tariffs on half of Norway's goods exports to these countries.

Tariffs on other goods will be phased out gradually. In addition, services across a range of sectors will receive equal treatment, giving Norwegian service providers the same market access as local businesses.

Our Export Centre can help Norwegian companies take advantage of the agreement's tariff benefits, including through in-depth advisory on rules of origin and the documentation required to access markets in MERCOSUR countries.

He highlights several areas that offer particularly strong opportunities for Norwegian companies:

- Zero tariffs on industrial machinery create opportunities for companies in sectors such as the circular economy. Norway's furniture and design industry could also gain more room to grow in this populous market, where Nordic aesthetics are highly regarded. Health technology, digital services and consultancy are other sectors where Brazil has significant needs and Norwegian companies have a strong position, Granli points out. 

- Offshore and maritime technology and services will remain the largest market for Norwegian exporters for a long time, and the agreement will enable Norwegian companies to gain an even greater market share in Brazil. For fish exports, the agreement improves market access for Norwegian salmon. Tariffs will also be removed from several categories of chemical products, including fertilisers.

Together with our colleagues in Brazil, Granli supports Norwegian companies by providing local specialist expertise and networks. In addition to our main office in Rio de Janeiro, we recently opened an office in Sao Paulo.

'This puts us in an even stronger position to serve the consumer market and onshore industries as new opportunities emerge. We are ready to open doors for many more Norwegian companies looking to expand into Brazil,' says Granli.

He adds that the agreement has not yet been ratified, but this will probably happen during 2026.

Beerenberg is one of the innovative Norwegian companies that has already established a strong foothold in Brazil. The company recently became part of the global Altrad Group and is a leading provider of advanced maintenance and modification solutions for the oil and gas industry.

'Brazil has a growing offshore production sector and a strong focus on safe, sustainable operations. This makes us very optimistic about our opportunities here,' says Kent Moore, head of Beerenberg's Brazil office.

In Brazil, the company has a presence in Rio de Janeiro and in the oil and gas hub of Macaé, putting it in a strong position to serve the market with its robotic surface treatment technology.

'Robotic technology enables us to deliver offshore maintenance more safely, effectively and efficiently,' says Moore.

The robots developed by Beerenberg's Norwegian subsidiary, Remotion, carry out work in confined spaces and underwater, including hull maintenance. Beerenberg also offers a solution from another Norwegian robotics company, Surface Dynamics, which can maintain flare towers and vertical structures. Together, these solutions provide the Brazilian offshore market with a unique package of robotic solutions.

They also supply Oryza-Sil, an advanced insulation material that keeps pipes and equipment at the right temperature while reducing energy consumption.

'We also offer mechanical work and decommissioning services, enabling us to support offshore installations throughout their entire lifecycle,' says the head of our Brazil operations.

He says that we played a vital role when they established operations in Brazil.

They now hope the free trade agreement will strengthen their position even further.

'Although the details are not yet entirely clear, we expect the new agreement to reduce import costs for robotic systems and related technologies. This will clearly strengthen our ability to deliver innovative solutions in Brazil,' says Moore.

EMerald Geomodelling is also delighted with the new trade agreement. The company provides 3D models of ground conditions for construction projects, helping to identify geotechnical challenges and deposits of critical minerals. Its solution reduces risk, time and costs in infrastructure and mining projects.

Their solution combines local and international elements. It is based on machine learning technology developed in Norway, with some components provided by subcontractors who collect data locally in Brazil.

EMerald made its first sale in Brazil in 2021 and opened its own office there the following year.

- There are significant opportunities. Brazil is one of the world's largest infrastructure markets, typically involving major 'greenfield projects' – in other words, new developments – which are well suited to our solution.

With technology that is unique in its niche, they are well positioned in the market.

'Our ambition is to be the natural choice for projects with significant geological risk,' he says.

Although the market is large, he makes no secret of the challenges involved in establishing a presence as a foreign supplier. This is where our local experts have proved invaluable.

Granli, who worked in Brazil's maritime offshore sector for more than ten years before joining us, is ready to work with our local team to support Norwegian companies looking to expand into the region.

'We are here to help companies reduce risk and focus on the right opportunities, so that even more of them can succeed in this exciting market,' Thomas concludes.