Commercial Benefits for Products Made in Italy

The Italian Trade Agency estimates that the EU-Mercosur agreement will generate an increase in exports of USD 3.5 billion by 2036. Other advantages for Italian companies include the simplification of customs procedures and the facilitation of participation in tenders

For an initial assessment of the impact of the EU-Mercosur Agreement on the Italian system, please refer to the ICE Agency data released at the "Italy, Europe and Latin America" Economic Forum on April 27^th in Prato. In summary: an increase in exports worth USD 3.5 billion is expected by 2036, along with simplification of customs procedures and easier participation in local tenders. The sectoral opportunities most in focus these recent meetings also concern machinery, equipment, and technology for agricultural automation, irrigation systems, and precision farming solutions. For the agro-mechanical sector, it's about seizing opportunities to combine the excellence of Italian technologies with traditional exporters of agricultural commodities (such as coffee, soybeans, corn, and sugarcane) and now also food products. Like Brazil, which Thirty years ago was an importer of food and is now the second largest exporter. The same paradigm should favor our exporters of technologies for the digitalization and traceability of agricultural products. Another aspect to consider is the potential expansion of arable land. In Brazil, it is estimated that arable land could be doubled without any impact on local policies and regulations regarding deforestation. Furthermore, the Brazilian Forestry Code establishes specific requirements for the maintenance and care of forestry assets, which could constitute an opportunity for Italian manufacturers of forestry machinery. It should also be considered that the high health and safety standards that the EU imposes on Mercosur exports to the EU should encourage Mercosur agricultural companies to adapt their cultivation, harvesting, tracking, and related technologies to EU standards, also requiring them to comply with the environmental sustainability standards set out in the agreement. This offers an additional opportunity for our companies in the sector.

But the issue of the prospects opened up by the Agreement is also linked to the need do not consider these markets purely in terms of exports. As was also noted at the recent Confindustria seminar held on June 3rd in preparation for the System Mission to Argentina and Brazil scheduled for September 7^th to 11^th, the complexity and breadth of target markets may necessitate - perhaps after an initial export phase - directly managing them with a local company, preferably a reliable local partner, and thus adopting a medium- to long-term approach to the area. For companies that, due to their size, deem having a direct presence unmanageable at this time, the suggested alternative is to join the production chain of a leading exporter or one who is already present in these markets.