Economic Innovation and Reducing Duties Stimulate Competitive Actions The new headquarters for the EU- Mercosur agreement has been established by the European Confederation of Trade Associations Euratex, which collaborated with Brazilian and Argentine industrial associations. The main objective is to create a platform dedicated to rules of origin, customs procedures, and regulatory barriers that are crucial for ensuring the safety and quality of products transported through the Latin American market. For Italy, the situation has improved thanks to the presence of Confindustria Moda, the only Italian association adhering to Euratex, which has already signed an understanding with the Brazilian Confindustria on Brazil. Additionally, the reduction of duties on textiles and European raw materials, which was at 35% before, took place over eight years, starting from May 1, 2026.

This agreement has allowed for a reduction of 3.9 percentage points on product prices, which were already very low before the agreement. However, changes in transportation costs have had an immediate impact on the competitiveness of Italian companies, enabling them to offer high-quality products at more competitive prices compared to their international competitors. Additionally, Mercosur initiated tariff reductions on European textiles and clothing after demonstrating the origin preference of the goods.

Italian companies can achieve this advantage only if they show their preferred origin of goods, which is declared by exporters with the number REX assigned by customs authorities upon request alone. A new collaboration platform between Euratex, Abit, and Fita has been successful in facilitating communication between exporters and importers, thereby improving security and transaction speed. This agreement not only makes it easier for Italian enterprises to access Mercosur markets but also stimulates new innovations in production and service offerings for Italian businesses. The EU-Argentina Mercosur agreement was promoted by Euratex, which launched the EU-Argentina Tissue Dialogue with Brazil and Argentina.

The dialogue takes place continuously with alternating meetings both in person and remotely, including origin rules, customs procedures, normative barriers, fair competition, traceability of products, which the sector is waiting for EU digital product passport regulations. However, if the reduction of duties on imports from Mercosur textiles, clothing, and footwear threatens a serious harm to European production, it can be restored.