From May 1st, 2026 the Interim Trade Agreement (ITA) The EU-Mercosur agreement has entered into a phase of provisional implementation with Argentina, Brazil, Paraguay and Uruguay. (while Bolivia remains excluded for the time being).
For Italian companies, therefore, this is no longer an agreement to be observed only in the future, but of one of the most important free trade agreements of the European Union that will be in effect in 2026. The first tariff reductions are already in effect, and, depending on the product, the tariffs will be gradually reduced or eliminated over the coming years.
The agreement covers a market of approximately 270 million consumers in Mercosur and provides for the progressive elimination of tariffs on more than 90% of the products exported by the EU to the area.
The potential for Italy is particularly significant. In 2025, Italian trade with the Mercosur area reached 14.7 billion euros. (+7.3% over 2024), While Italian exports reached 7.6 billion, driven mainly by machinery. (33,4%), means of transport (13,8%) and pharmaceutical (9,9%).
But the advantage is not automatic. To really take advantage of the agreement, it is necessary to check, product by product:
In this article we analyze what has changed since May 1st, 2026, which Italian sectors can benefit most from the agreement and how to turn the reduction of tariffs into a real business opportunity.
On January 17, 2026, the European Union and Mercosur signed two separate instruments in Asunción, available on the official page of the European Commission on’EU-Mercosur Agreement:
From On May 1st 2026, ITA is applied provisionally between the EU and Argentina, Brazil, Paraguay and Uruguay, After completing the internal procedures required in the four South American countries.
The Interim Trade Agreement will subsequently be replaced by the full partnership agreement when the latter has completed the most elaborate ratification process foreseen at the European level.
It is also important to clarify another point.
The Bolivia, Although it joined Mercosur in 2024, It is not currently within the scope of commercial application of the EU-Mercosur agreement.
For companies that are building a regional strategy, therefore, Argentina, Brazil, Paraguay and Uruguay must be analyzed separately from Bolivia.
The most immediate change concerns the Customs duties. The Mercosur will progressively eliminate tariffs on approximately 90% of tariff plans, While the European Union will liberalize a similar quota for imports from the South American region, progressive elimination means that not all products benefit from the same advantage at the same time.
For some goods the duty was eliminated from the very first day. For others a reduction process has begun that may take some time:
There are also tariff quotas (import quota at zero or reduced duty), Exceptions and specific regimes.
The reduction of the duty is only valid if the preferential origin is respected. European It can be demonstrated. Before changing prices and commercial strategies, it is therefore advisable to verify:
Otherwise, the risk is to build a commercial strategy based on a tariff advantage that cannot subsequently be used.
The European Commission also allows the submission of an application for preferential treatment even after customs clearance, under certain conditions and generally within two years of release for free circulation.
For companies that regularly export to the area, however, it is much more efficient to properly structure the origin. before shipment.
The agreement comes at a time when trade relations are already significant. In In 2025, Italian trade with the Mercosur countries reached 14.7 billion euros, up 7.3% compared to the previous year. Italian exports to the area amounted to 7.6 billion euros. The composition of exports highlights some of the sectors in which Italy can benefit most from the new commercial phase:
However, the weight of the individual markets is very different.
The Brazil absorbs about 76.6% of Italian exports to the Mercosur, followed by:
This data already highlights a first strategic implication: There is no single Mercosur strategy.
The agreement is common, but the size, demand, regulation and commercial channels remain profoundly different from country to country, making it necessary to structure a Dedicated growth path for key markets such as Brazil.
It is still too early to attribute the trend in trade solely to the agreement. However, the initial data indicate a strong trade dynamic.
According to the Farnesina, in the two-month period May-June 2026, Therefore, immediately after the start of the provisional application, the exchange of goods between the EU and Mercosur was equal to 21.79 billion euros, against 18.30 billion in the same period in 2025. The growth was therefore of about 3.5 billion euros, equivalent to 19%. In the first seven months of 2026, Italian trade with the area reached approximately 8.8 billion euros.
These data do not yet allow for measuring the structural effect of the agreement, but they do show a very dynamic commercial context.
The machinery sector It is probably one of the most important for Italian companies. Before the agreement, numerous categories of machinery and equipment exported from the EU were subject to tariffs ranging between 14% and 20%.
With the implementation of ITA, the tariffs will be gradually eliminated on 93% of European exports of machinery and equipment, Generally over a period of ten years. A first reduction of between approximately 1.3 and 1.7 percentage points has already been implemented since May 1st. For Italian companies active in:
in addition to those defining new strategies for exporting agricultural machinery and technologies for the agro-industry.
The central theme then becomes understanding. How much the lower tariff changes the competitive comparison with local suppliers, Chinese, American or Asian.
Even a seemingly limited reduction can be significant when it comes to high-value installations.
Automotive and components
The automotive sector is one in which the initial effect is particularly evident. Before the agreement, European cars could be subject to a duty of 10%. 35%. From May 1st:
For Italy, the opportunities concern not only finished vehicles but also:
The automotive sector is one in which the initial effect is particularly evident. Before the agreement, European cars could be subject to a duty of 10%. 35%. From May 1st:
For Italy, the opportunities concern not only finished vehicles but also:
Pharmaceuticals are also among the sectors that could potentially benefit. In some cases, European pharmaceutical products were subject to tariffs of up to 100%. 14%. For about 90% of EU exports, a ten-year tariff elimination process has now begun.
This creates a potential advantage for:
The reduction of tariffs does not, however, eliminate regulatory requirements, registrations, or local authorizations.
Lower customs duty does not mean a lesser need for compliance.
Another interesting sector is textiles. According to the European Commission, some European textile products were subject to tariffs up to 35%. With the agreement, an eight-year process of complete elimination began, with a first reduction of approximately 3.9 percentage points already on the first day. For fashion, accessories and design, the reduced duty can be used in different ways:
The choice depends mainly on the positioning.
A premium brand might prefer to protect its price and improve its margins and commercial investments. A company that wants to quickly gain market share might instead use its tariff advantage to become more competitive.
L’agribusiness It is one of the most important sectors for Made in Italy. Since May 1st, some European products already benefit from the’complete elimination of the duty, Whereas for others a gradual process has begun. Among the products affected by the progressive liberalization are:
For other products, specific tariff quotas are provided. The Commission indicates, for example, new quotas for:
The tariff reduction can therefore have a significant impact on the competitiveness of certain Italian specialties.
The agreement also concerns the protection of Made in Italy products. They will be protected in Mercosur 57 Italian Geographical Indications, Within the 344 European IG’s recognized by the agreement. Among these are, among others:
The protection of Geographical Indications is particularly relevant in markets where well-known Italian denominations have historically been used for local or imitation products. For food & beverage companies, therefore, the agreement can strengthen at the same time tariff competitiveness and protection of positioning.
Limiting the agreement to tariff reduction would be reductive. ITA also introduces new opportunities for services and for the presence of European companies in the Mercosur markets. The sectors concerned include:
The agreement also expands access to Public contracts, By creating opportunities for European companies active in infrastructure, engineering, technology, industrial services and supplies. For many manufacturing companies this means that the export of a product can be accompanied by:
The commercial strategy can then evolve from the simple export of goods to the sale of Integrated solutions.
The Mercosur was already a strategic area before the agreement. Between 2019 and 2025, Italian trade with the bloc grew by 11%. 51%.
In September 2026, the Farnesina also organized a system mission in Argentina and Brazil with over 100 Italian companies, Together with ICE, SACE, SIMEST and Confindustria.
It is an important signal: the agreement is not interpreted only as a tariff issue, but as a platform to strengthen cooperation. investments, industrial partnerships, technology and commercial presence.
To turn the agreement into a real business opportunity, it is useful to adopt a structured approach. in 10 operational steps:
Correctly identifying HS and CN codes.
Understanding how much was being paid before the agreement.
Determine when the reduction will occur and when the duty will reach zero.
Check the base model, extra-EU components, and product-specific rules.
For exports exceeding 6,000 euros, verify that the registration is correct in the Registered Exporter System.
Measuring the real impact on the price in the destination market.
Understanding whether the tariff advantage changes the positioning compared to local or other country producers.
Consider whether distributors, importers or direct presence remain the most effective model.
The agreement does not eliminate registration, technical standards, health requirements, or other national regulations.
Brazil, Argentina, Uruguay and Paraguay must be evaluated individually.
The effect of the agreement should not be read solely in terms of customs savings. Its true value emerges when the tariff reduction is combined with a commercial strategy. with a strategic analysis of foreign markets.
For example, an Italian company may discover that:
The agreement can therefore also lead to reviewing decisions made in the past. Markets or products previously excluded for price reasons might today merit a new evaluation.
The EU-Mercosur Agreement has entered a new phase. From May 1st, 2026, companies can begin to concretely use the preferences provided by the Interim Trade Agreement with Argentina, Brazil, Paraguay and Uruguay. There are significant opportunities for Italian companies in sectors such as:
But the most important message is another. The benefit is not automatic and is not the same for all products.
It is necessary to verify the origin, customs code, tariff schedule and documentation, and, above all, to decide how to use the advantage obtained.
To assess the impact of the agreement on your company’s customs codes and to structure a plan of action commercial development in international markets or Local operational support In Brazil and South America, contact the Octagona consultants for a preliminary operational analysis.
The Interim Trade Agreement (ITA) is applied provisionally from May 1, 2026 between the EU and Argentina, Brazil, Paraguay and Uruguay.
Not currently. Although Bolivia is a member of the Mercosur since 2024, it is not currently included in the scope of application of the EU-Mercosur trade agreement.
No. Some tariffs have been eliminated immediately, while others are gradually reduced over several years over 4, 7, 8, 10 or 15 years. There are also tariff quotas and special categories.
The product must comply with the rules of origin stipulated by the agreement and the exporter must prepare a correct declaration of origin. For EU exports over 6,000 euros, the REX number is generally required.
Among the most interesting sectors are machinery, transportation vehicles, components, pharmaceuticals, chemicals, textiles, fashion, and agro-food products.
The agreement protects 57 Italian Geographical Indications (DOP and IGP), including Parmigiano Reggiano, Prosciutto di Parma, Grana Padano, Prosecco and numerous other products.
The agreement introduces simplifications and new disciplines in customs, SPS, services, public procurement, and intellectual property, but does not eliminate all national technical and regulatory requirements (such as INMETRO, ANVISA, or MAPA certifications in Brazil). Companies must continue to verify compliance in their individual markets.
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