Dozens of financial professionals flocked to the Intercontinental Hotel in Madrid in early July 2019 to celebrate the agreement between the EU and Mercosur, the customs union between Brazil, Argentina, Uruguay and Paraguay. The landmark trade deal had been announced a few days earlier, and executives from Spanish groups Santander and Telefónica and Brazil’s Bradesco attended the event held by the Brazil-Spain Chamber of Commerce. A series of concessions had been negotiated over meat and other products and a compromise had been reached.
“We are very optimistic,” says Fernando Pierri, head of global trade services at Santander Brasil. The Spanish bank is in a privileged position, at least geographically, thanks to its strong presence not only in Europe but also in the Mercosur countries. More than one-quarter of the bank’s global earnings come from Brazil, the largest market in the region. Unlike many other international banks that have left the turbulent Brazilian market in recent years, Santander has built up its position and is now the largest foreign bank in the country (ranking fifth overall, in terms of assets, just behind the ‘big four’ of Itaú Unibanco, Banco do Brasil, Bradesco and Caixa Econômica). The bank is also active in Argentina and Uruguay.
