EU-Mercosur Agreement: A New Era

EU-Mercosur Agreement: A New Era

The recent provisional green light for the free trade agreement between the European Union and Mercosur countries (Brazil, Argentina, Uruguay, and Paraguay) marks a historic turning point for the internationalization of Italian companies. The deal, which aims to create a trade area of 720 million consumers, promises to dismantle decades-old tariff barriers and consolidate Italy’s role as a strategic partner in Latin America.

Opportunities for Italian Companies: Export and Competitiveness

For Italian businesses, this agreement represents an unprecedented growth driver. Estimates suggest that the elimination of customs duties will allow European companies to save over 4 billion euros annually. Specifically, Italian exports to this region, currently valued at approximately 7.4 billion euros, could see a potential increase of several billion euros in the coming years.

The Italian sectors poised to benefit most from tariff reductions include:

• Machinery and Equipment: Current tariffs, reaching 20-35%, will be progressively eliminated, boosting our primary export sector.
• Automotive and Components: Drastic reduction of duties on vehicles (currently at 35%) and spare parts.
• Chemicals and Pharmaceuticals: Removal of tariff barriers (currently up to 18%) for high value-added products.
• High-Quality Agri-food: The agreement guarantees the protection of 57 Italian Geographical Indications (such as Grana Padano, Parmigiano Reggiano, and Balsamic Vinegar of Modena), countering the "Italian Sounding" phenomenon and opening new market shares for wines and spirits.

Strategic Information for Import and Export

The agreement goes beyond tariffs, introducing clear rules to facilitate exchange:

1. Customs Simplification: Leaner procedures to reduce administrative time and costs.
2. Public Procurement: Italian companies will be able to participate in government tenders in Mercosur countries on equal footing with local firms.
3. Access to Raw Materials: Italy will have preferential access to critical raw materials and "green" products, essential for the ecological and industrial transition.

Hubs and Events for International Networking

For foreign operators and South American buyers, Italy remains the ideal stage to connect with manufacturing excellence. Upcoming events such as Marca in Bologna, Mido in Milan, and SamuExpo in Pordenone represent privileged meeting points to establish long-lasting B2B partnerships, now facilitated by a more favorable and secure regulatory framework.

Commentary by the President of FederCamere, Maurizio Carnevale

The approval of the UE-Mercosur agreement is an extraordinary achievement for the Chamber system and the entire Italian productive fabric. After over twenty years of negotiations, our companies—especially SMEs—finally have a fast track to a market with enormous potential and deep historical ties to Italy. This is not just about reducing costs; it is about establishing common standards and protecting the authenticity of our products. For an Italian company, exporting to Brazil or Argentina will become simpler and safer, while for South American partners, it will be easier to access our technology and expertise. FederCamere is ready to support this transition, providing businesses with the necessary tools to navigate this new free trade area, which we consider vital for our global competitiveness.