EU-Brazil Tech Alliance
European Union and Brazil Forge Digital Alliance, Aiming to Reduce US Tech Reliance
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The European Union and Brazil signed a formal digital partnership on June 11, making Brazil the fifth country to join the EU's growing network of trusted tech allies, Reuters reported. The deal covers data flows, cybersecurity, connectivity, and the protection of minors online.
EU officials said the move is part of a broader push to cut reliance on U.S. technology. Henna Virkkunen, the EU's Executive Vice-President for Tech Sovereignty, pointed to what she called "the kill switch element" — the risk that a foreign power could unilaterally shut off cloud or AI services during a geopolitical crisis, according to Reuters.
Brazil Becomes Fifth Member of EU Digital Club
Brazil joins Canada, Japan, South Korea, and Singapore as formal EU digital partners. The EU's Chief Technology Officer, Hanna Veikkinen, traveled to Brazil to finalize the agreement. She highlighted Brazil's "market potential of 160 million internet users" as a key reason for the partnership, according to GuruFocus.
The groundwork was laid earlier this year. On January 26, Brazil and the EU issued mutual data adequacy decisions — meaning each side formally recognizes the other's data protection rules as equivalent. That ceremony in BrasÃlia was attended by Brazil's Vice President Geraldo Alckmin and EU Commissioner Michael McGrath, according to Market Screener.
A Decade of Alignment Between Brazilian and EU Law
Brazil's digital shift did not happen overnight. The 2013 Snowden revelations — which showed U.S. surveillance of Brazilian leaders — pushed Brazil toward digital independence. That led to the 2018 Lei Geral de Proteção de Dados, or LGPD. The LGPD was modeled closely on the EU's own data protection law, the GDPR.
In May 2026, President Lula da Silva signed a presidential decree on platform accountability and child safety online. Analysts at Digital Policy Alert noted the decree mirrors the EU's Digital Services Act almost exactly. Brazil is also debating Senate Bill 2338, an AI law built on the same "risk-based" framework the EU uses — a clear rejection of the looser U.S. approach.
EU Builds a Data Corridor That Bypasses the U.S.
Together, the EU and Brazil cover 670 million people, according to the European Commission. Officials say the deal creates the world's largest zone of free and safe data flows between democratic partners. The BELLA submarine cable — running directly from Sines, Portugal, to Fortaleza, Brazil — gives the two sides a physical link that bypasses U.S.-based internet routes.
Brazil has also committed R$23 billion (about $3.9 billion) to its national AI plan, aimed at building homegrown technology rather than importing it from abroad. EU Commissioner McGrath framed the broader partnership as a "global benchmark," saying, "Fundamental rights don't stop at borders."
Washington Pushes Back as Latin America Shifts Toward EU Model
The U.S. is not pleased. According to leaked State Department cables reported by Market Screener, Secretary of State Marco Rubio directed diplomats to "counter" data sovereignty initiatives. Washington's position is that such laws are "authoritarian" and "protectionist," and that they disrupt global data flows and raise costs.
The ripple effects could spread fast. With Brazil now aligned with the EU regulatory model, analysts expect Chile and Colombia to follow suit to keep their data systems compatible with the region's new standard. Meanwhile, market analysts warn the EU's broader Tech Sovereignty Package could hit companies like Microsoft and Super Micro Computer as governments shift toward local alternatives, according to GuruFocus.
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