Brazil–EU Mutual Adequacy and What Comes Next

Summary: On January 25, 2026, Brazil and the EU mutually recognized each other as providing adequate personal data protection—removing, in many cases, the need for Standard Contractual Clauses (SCCs) or other transfer tools. This shifts the conversation from “copy-paste compliance” to strategy: deciding when to retire SCCs, updating cross-border transfer policies, and modernizing contractual models for future deals.

Why this matters in real transactions

Imagine you’re about to close a deal with a German business partner and your Brazilian client urgently asks for a data transfer clause. It’s always the same copy-paste: Standard Contractual Clauses (SCCs), Annex I and II in both languages, signatures on the dotted line. Now imagine this scene is finally unnecessary.

The mutual adequacy milestone (January 25, 2026)

On January 25, 2026, Brazil and the European Union mutually recognized each other as countries with adequate levels of personal data protection. It’s the first adequacy agreement signed between the EU and a Latin American country. In practical terms, it means that companies can transfer personal data between Brazil and the EU without the need for additional mechanisms, like SCCs or Binding Corporate Rules (BCRs). In strategic terms, it opens a new front of opportunities for Brazilian lawyers, especially those advising clients who export, import, invest, or operate in the EU.

A starting point, not a “compliance break”

This is a milestone and also a starting point. Mutual adequacy does not mean «relax your compliance programs»; on the contrary, it demands governance maturity and careful review.

Three concrete fronts for legal work

1.      Retiring SCCs: Not Always Automatic

The adequacy decision makes SCCs optional in many cases, but that doesn’t mean you can simply tear them up. For existing contracts that already use SCCs, lawyers will need to assess whether they should keep, revise, or remove those clauses. The answer will depend on the risks, data flows, and reliance on third countries in the processing chain. There may also be internal policies, negotiated warranties, or obligations to supervisory authorities that require formal justifications.

In practice, companies with complex processing chains (e.g., European headquarters, shared Brazilian HR services, cloud servers in the U.S.) may continue using SCCs in certain flows even after the adequacy recognition. Lawyers will need to carefully document and track this hybrid model.

2.      Reviewing Cross-Border Data Transfer Policies

Many companies, especially multinationals or those with multiple data protection obligations, have established cross-border data transfer policies («CBTPs») that classify countries into categories and associate specific safeguards for each. Brazil’s new status as an «adequate country» must now be reflected in those documents.

For instance, a Brazilian company that receives data from France and sends it to Argentina and India may now adjust internal protocols to reduce documentation and controls on the EU → Brazil leg, while reinforcing controls in the Brazil → Argentina or Brazil → India legs. These changes must be aligned with the company’s policies, contracts, and internal training materials.

3.      Adapting Contractual Models for Future Deals

The mutual adequacy decision creates a new contractual scenario. Brazilian lawyers advising international clients can now use data transfer models aligned with GDPR—without needing SCCs or complex annexes—provided both parties are located in Brazil and the EU.

This reduces transaction costs, improves legal certainty, and increases speed in negotiations involving technology services, cross-border M&A, or shared service centers. A good contractual model should still include data protection clauses—but now focused on risk allocation, DPO cooperation, and incident response coordination, rather than formal compliance with Art. 46 GDPR or Arts. 33–36 LGPD.