The South American market, tools to support Italian companies
From subsidized financing under Law 394/81 to the 'Latin America Measure', up to export subsidies, companies intending to enter or consolidate their presence in South American markets can access various types of public incentives
For all companies intending to enter or strengthen their presence in the Latin American region—under the provisional application of the EU-Mercosur Agreement—it is important to map the subsidized instruments made available by the Italian system, primarily through CDP, SACE, and SIMEST. This support aims to make Italian businesses more competitive in the face of international competition, which increasingly benefits from government support. The main instrument is the subsidized financing provided by Law 394/81 to cover expenses related to: market entry, certifications and consultancy, trade fairs and events, e-commerce, skills, digital and ecological transition. A non-repayable portion of between 10% and 30% is expected, along with subsidized financing rates lasting 4-6 years. Proof of the importance that the area holds for Italian trade policy is provided by a specific provision for South American countries, the Latin America Measure. The Measure is aimed at Italian exporting companies (with a minimum export turnover of 5% towards the Area), importing companies (with an import turnover starting from a minimum of 2%) and those with a stable presence in LatAm or who intend to establish one. Supply chain companies can also benefit, as they are suppliers of companies exporting to the Area. The financing term is 6 years with a two-year pre-amortization period.
Equally important are the traditional incentives provided in the form of export subsidies, which allow exporters to obtain a reduction in the interest rate for payment extensions of more than 24 months.
In Latin America in particular, the proposal for supplier credit maintains its appeal, which allows Italian exporters of goods or services to offer their buyers payment extensions at a preferential rate and, if necessary, to request a discount from their bank.
The mechanism is based on SACE assuming risk on the foreign counterparty and allows the Italian exporter to acquire liquidity and mitigate risk by transferring the SACE policy to the Institute, which then proceeds with the discount. As on other occasions, this article also describes the funding offered by an international organization such as the World Bank Group. Companies interested in exploring co-investment opportunities with the World Bank Group in Latin America and the Caribbean, and other emerging economies, can contact the Group's Rome office directly (http://www.worldbank.org/ext/en/country/italy).
Finally, worth mentioning are the important institutional initiatives implemented by the Italian system to promote the EU-Mercosur Agreement and support Italian businesses. Some of the many include the Mission of the Confindustria System (September 7-11, 2026) in Brazil and Argentina, reference countries, where - as indicated in the preparatory smart webinar - there is an untapped machinery export potential of approximately EUR one billion with the potential for growth to up to six billion, including agricultural technologies. On this topic, this is perhaps the most important event of the year and follows the Italy-Mexico Business Forum of May 22nd, preceded in March by the mission to Paraguay during which the first Italy-Paraguay Economic Forum was held. Finally, we would like to mention the signing of a Memorandum of Understanding between the Customs and Monopolies Agency (ADM) and the International Italo-Latin American Organization (IILA), which aims to strengthen cooperation between Italy and Latin America in the sensitive area of customs. ADM and IILA also collaborate with the Italian Cooperation, and Italy is financing projects with IILA totalling more than EUR 15 million.
