EU-MERCOSUR: STRATEGIC OPPORTUNITIES AND PRACTICAL
IMPLICATIONS FOR ITALIAN BUSINESSES
Key takeaways from the DG TRADE Italian Edition discussion – 26 May 2026

INDEX

• Executive Summary
• Market Access, Competitiveness and Regulatory Simplification
• Sector-Specific Implications and Strategic Considerations for Italy
• Conclusions

Executive Summary

The DG TRADE Italian Edition discussion on 26 May 2026 provided a practical overview of what the EU-Mercosur Agreement could mean for Italian businesses, placing the debate within a broader geopolitical and commercial context. The discussion made clear that the agreement is being framed not only as a trade instrument, but also as a strategic response to Europe’s declining competitive position in parts of Latin America, particularly in comparison with China’s growing economic footprint in the region.

A central message from the speakers was that the agreement would create opportunities for European exporters by reducing both tariffs and administrative barriers, while preserving EU regulatory standards. For Italian businesses, this could translate into stronger market access, improved protection for geographical indications, and a more predictable commercial environment in sectors where Italy has established strengths. At the same time, concerns around sensitive agricultural imports were directly addressed, with assurances that EU food safety requirements and market safeguard mechanisms remain fully in place.

Market Access, Competitiveness and Regulatory Simplification

Much of the discussion focused on the practical implications of the agreement for European companies seeking to expand in Mercosur markets. Speakers emphasized that the commercial value of the agreement goes well beyond tariff reductions. A major advantage lies in the reduction of non-tariff barriers that often make exporting costly and slow, including duplicative technical checks, burdensome certification procedures, and import authorization processes that create uncertainty for businesses.

The agreement was also presented as a strategic tool to strengthen Europe’s competitive position in Latin America at a time when Chinese firms have become increasingly embedded in the region. According to the speakers, European businesses currently face a structural disadvantage in markets such as Brazil and Argentina, where China has consolidated its presence while European market share has weakened. Because China does not currently benefit from an equivalent trade arrangement with Mercosur, the agreement could improve the relative position of European exporters, particularly in sectors such as automotive manufacturing, fashion, wine, and industrial goods where Italian companies are especially active.

Sector-Specific Implications and Strategic Considerations for Italy

A more technical part of the discussion focused on rules of origin, which will determine whether products qualify for preferential tariff treatment. Speakers acknowledged that these requirements can be complex and differ significantly depending on the sector, especially where supply chains rely on components sourced globally. This means that businesses will need to assess carefully whether their products can effectively benefit from the agreement in practice.
For Italy, the agreement was presented as especially relevant for industries that rely on quality, brand value, and product authenticity. The protection of geographical indications was highlighted as a concrete gain, with products such as Parmigiano Reggiano expected to benefit from stronger recognition and protection in Mercosur markets. Agricultural sensitivities were also openly discussed, particularly concerning beef imports, with the Commission underlining that monitoring tools and safeguard measures are intended to mitigate risks for vulnerable European sectors. The discussion also briefly addressed Mercosur’s evolving political composition, including Bolivia’s prospective accession and Venezuela’s continued suspension, both of which may shape future developments.

Conclusions

The discussion framed the EU-Mercosur Agreement as a strategic attempt to combine economic opportunity with geopolitical positioning, offering new openings for European businesses while seeking to preserve the regulatory safeguards and market protections that remain central to the EU’s trade approach:

• • The EU-Mercosur Agreement is being positioned as both a commercial opportunity and a strategic instrument to strengthen Europe’s presence in Latin America.

• • For Italian businesses, the most immediate potential benefits lie in improved market access, reduced administrative barriers, and stronger protection for high-value branded products.

• • Real commercial gains will depend on companies’ ability to navigate technical implementation issues, particularly rules of origin and product-specific compliance requirements.

• • While sensitivities remain in agriculture, the Commission’s message was that regulatory protections and monitoring mechanisms are designed to ensure that market opening does not come at the expense of EU standards or vulnerable sectors.

The workshop “Basket Bond Regione Lazio: Beyond Traditional Credit”, hosted last week at GA‑Alliance’s Rome office, turned discussion into a practical roadmap for local SMEs. Technical presentations, real‑world case studies and a roundtable with institutional representatives and market participants demonstrated how the Basket Bond can become a tangible instrument to finance growth, internationalisation and financial consolidation.

Why the Basket Bond matters for SMEs

• Access to long‑term capital — The Basket Bond enables companies to secure financing with longer maturities than traditional bank loans.
• Diversification of funding sources — Collective issuances allow SMEs to reduce reliance on bank credit and attract institutional investors.
• Strengthening governance and reputation — Participation in an issuance requires transparency and standardisation, which improve corporate governance and market perception.

How it works in practice

• Securitisation and public guarantee — Technical sessions explained how securitisation converts receivables into tradable securities and how public guarantees mitigate risk, making the securities more attractive to institutional investors.
• Stable returns and mitigated risk — The combination of structure, rating and guarantees delivers a risk/return profile aligned with professional investors’ requirements.
• Practical examples — Case studies illustrated pricing, maturities and placement mechanisms.

The operational role of arrangers

• Key arrangers — CDP, Mediocredito Centrale, Banca Finint and Banca Finnat Euramerica outlined the essential operational steps: structuring the issuance, setting pricing, market placement and post‑issuance management.
• Arrangers’ added value — Their experience is crucial to translate corporate needs into effective financial solutions and to secure market success.

Testimonials and value for companies

• Support for growth plans — Participant testimonies highlighted how the Basket Bond model can finance productive investments and international expansion projects.
• Operational Q&A — Questions from attendees clarified practical aspects for SMEs: eligibility requirements, impact on financial structure and implementation timelines.

GA‑Alliance’s role as Legal & Tax Advisor

Francesco Sciaudone, Managing Partner of GA‑Alliance, described the legal role of arrangers and the firm’s contribution in supporting issuances. With experience in approximately 200 issuances, GA‑Alliance emphasised the importance of specialised legal support to manage contractual complexity, compliance and relationships with institutional investors.

Roundtable speakers and principal contributors

• Francesco Sciaudone — Managing Partner, GA‑Alliance
• Roberta Angelìlli — Vice President, Regione Lazio
• Giulio Bastia — Co‑General Manager, Banca Finnat Euramerica
• Giuseppe Biazzo — President, Unindustria Roma – Frosinone – Latina – Rieti – Viterbo
• Angelo Camilli — Vice President Credit, Finance and Tax, Confindustria
• Vincenzo Paolo Carbonara — Head of Alternative Finance, CDP
• Toni Ciolfi — Councillor, Ordine dei Commercialisti di Roma
• Lorenzo Coletta — Head of Minibond and Basket Bond, Mediocredito Centrale
• Massimo Fabiano — Head of Business Development Corporate Debt, Banca Finint
• Andrea Martina — Partner, GA‑Alliance
• Giovanni Sabatini — Senior Advisor, GA‑Alliance
• Fabrizio Sadun — Head of Public Affairs Italy, GA‑Alliance
• Paola Sepe — Counsel, GA‑Alliance

Key takeaways

• The Basket Bond is a practical solution for SMEs seeking medium‑ to long‑term capital while retaining flexibility.
• Structure and public guarantees make the securities more attractive to institutional investors.
• An experienced arranger and specialised legal counsel are decisive factors for a successful issuance.

We thank the speakers and the nearly 100 participants for a substantive, action‑oriented discussion that laid the groundwork for new financing opportunities across the Lazio region.

Our Team

BANKING AND FINANCE

The Venezuelan Central Bank (VCB) established the interest rates applicable to the obligations derived from employment relationships (59.36% and 47.68% - March 2025) and to operations with credit cards (60.00% annual maximum lending rate and 17.00% annual minimum lending rate April 2025). (Official Gazette of 04/14/2025. Official Notice. Entry into force: Upon publication in the Official Gazette).

The Ministries of the Popular Power for National Trade and for Electric Energy issued the following resolutions:

1. Joint Resolution No. 006/2025 and 013/2025 that establishes the technical regulations on energy efficiency labeling of refrigerating and freezing appliances for household use.
2. Joint Resolution No. 007/2025 and 014/2025 that establishes the technical regulations on energy efficiency labeling of air conditioners.
   (Official Gazette of 04/02/2025. Entry into force: As from six (6) months following its publication in the Official Gazette).

TAX

The Ministry of the Popular Power for Economy and Finance resolved to delete Complementary Note 3 of Chapter 87 of article 37 of Decree No. 4.944, dated 04/24/2024, published in Official Gazette No. 6.804 Extraordinary of 04/25/2024, through which the Schedule of Customs Duties was issued. Therefore, in the case of the importation of motor vehicles and chassis with engine and of motor vehicles with no engine, the requirement of Conformity of the Mobile Source Emission Certificate and of Mobile Source Emission Certificate, respectively, was removed. (Official Gazette of 04/14/2025. Resolution No. 010/2025. Entry into force: Upon publication in the Official Gazette).

MISCELLANEOUS

The Ministry of the Popular Power for National Trade issued Resolution No. 019/2025 that establishes the technical regulations on raw material for footwear. (Official Gazette of 04/04/2025. Entry into force: As from six (6) months following its publication in the Official Gazette).

The Ministries of the Popular Power for Productive Agriculture and Lands, for Defense, for Hydrocarbons, for Internal Affairs, Justice and Peace, and for Transportation issued a joint resolution that establishes the control mechanisms for carriers and end users of mineral or chemical fertilizers in the national territory. (Official Gazette of 04/23/2025. Joint Resolution DM/No. 031/2025, DM/No. 059115/2025, DM/No. 003-2025/2025, DM/No. 018/2025, DM/No. 0020/2025. Effectiveness: From 04/01/2025 up to and including 03/31/2026).

The Ministry of the Popular Power for Transportation established the minimum and maximum rates for urban transportation service. Likewise, it established the maximum official rate for suburban routes nationwide to be charged by the providers of the public service of ground passenger transportation. The Official Request published in Official Gazette of 11/22/2024 was revoked. (Official Gazette of 04/24/2025. Official Request and Resolution No. 021. Entry into force: Upon publication in the Official Gazette).

National Recovery and Resilience Plan – Fund for Supporting Industrial Transition

New applications starting from February 5, 2025

The Fund for Supporting Industrial Transition aims to facilitate the adaptation of the Italian production system to the European Union’s policies on combating climate change.

The Fund’s operation is governed by the Ministerial Decree of October 21, 2022, issued by the Minister of Economic Development, in agreement with the Minister of Economy and Finance and the Minister of Ecological Transition.

The Director’s Decree of December 23, 2024, establishes the terms and procedures for submitting applications through the opening of a dedicated application process to support investment programs for environmental protection. The Fund has an initial allocation of 400 million euros and operates through a ranking-based evaluation procedure to determine the order in which applications are admitted for assessment. Regarding the financial allocation, 40% of the resources are designated for funding projects in the regions of Abruzzo, Basilicata, Calabria, Campania, Molise, Puglia, Sardinia, and Sicily, while 50% of the resources are reserved for energy-intensive companies.

Applications for access to the resources can be submitted from 12:00 PM on February 5, 2025, until 12:00 PM on April 8, 2025.

Applications will undergo a preliminary assessment phase in the order determined by the ranking. If the outcome is positive, they will be granted financial support within the limits of the available resources.

The incentives are provided in the form of non-repayable grants, which may range from 30% to 50%, in compliance with the maximum aid intensities established by the General Block Exemption Regulation (GBER) and Section 2.6 – Aid for Decarbonization of the "Temporary Framework" (European Commission Decision C(2024) 5008 FINAL concerning the Temporary Crisis and Transition Framework for State aid measures to support the economy following Russia’s aggression against Ukraine).

Investment programs must relate to a single production unit of the proposing company and must aim to achieve at least one of the following objectives:

• Greater energy efficiency in business operations;
• Efficient use of resources by reducing their consumption, including through reuse, recycling, or recovery of raw materials and/or the use of recycled raw materials.

Investment programs must be exclusively aimed at improving environmental protection in business processes. Projects that result in an increase in production capacity are not eligible, except for increases due to technical requirements, provided they do not exceed 20% compared to the pre-investment situation. For aid granted under the Temporary Framework, increases must not exceed 2% compared to the previous situation.

The investment programs must be initiated after submitting the application for access to the Fund, involve eligible total expenditures between 3 million euros and 20 million euros, and be completed within 36 months from the date of grant approval (with a possible extension of no more than 12 months). Within this period, the investments covered by the supported development programs must also become operational and fully functional.

Opening of the application window for the so-called Mini Development Contracts starting February 5, 2025

Support for medium-scale financial investments related to STEP critical technologies

The so-called Mini Development Contract is an incentive promoted by the Ministry of Enterprises and Made in Italy, managed by Invitalia, to support investments aimed at the development or production of critical technologies identified by the European STEP Regulation (EU Regulation 2024/795): digital and deep-tech technologies, clean and resource-efficient technologies, and biotechnologies.

Pursuant to the directorial decree issued on December 20, 2024, by the Department for Enterprise Policies (Directorate-General for Business Incentives), detailed provisions have been established to ensure the effective implementation of the measure, supporting investments ranging from €5 million to €20 million in the above-mentioned critical technology sectors.

The Mini Development Contract provides funding for projects between €5 million and €20 million, targeting enterprises of all sizes for investment initiatives to be carried out in the regions of Basilicata, Calabria, Campania, Molise, Puglia, Sardinia, and Sicily. These investments must focus on the development and/or production of critical technologies outlined in the STEP Regulation or on strengthening their value chain to enhance supply chain security, resilience, and system productivity.

A total budget of €300 million has been allocated, sourced from the 2021–2027 National Research, Innovation, and Competitiveness Program, and distributed as follows:

• €100 million under Policy Objective 1 of the PN RIC 2021–2027, designated for SME investments
• €200 million under the STEP Policy Objective of the PN RIC 2021–2027, available for investments by SMEs and large enterprises

Eligible investments must pertain to a single production site within the following sectors:

• Digital technologies and deep-tech innovation
• Clean and resource-efficient technologies, including net-zero emission technologies
• Biotechnologies, including medicines listed in the Union's critical medicines inventory

The funding is provided as non-repayable grants, subject to the maximum aid intensities specified in the Regional State Aid Guidelines. Eligible expenses will be covered at the following rates:

• 55% for small enterprises
• 45% for medium enterprises
• 35% for large enterprises

Applications will be ranked based on an evaluation process that considers the following criteria:

• Financial independence
• Contribution of core business operations to revenue generation
• Environmental sustainability
• Level of innovation
• Employment impact

Applications may be submitted exclusively online via Invitalia’s web platform from 12:00 p.m. on February 5, 2025, until 12:00 p.m. on April 8, 2025.

Banking & Finance

The Venezuelan Central Bank (VCB) established the interest rates applicable to obligations derived from employment relationships (59.30% and 47.65% - October 2024) and to transactions with credit cards (60.00% annual maximum lending rate and 17.00% annual minimum lending rate - November 2024). (Official Gazette of 11/18/2024. Official Notice. Entry into force: Upon publication in the Official Gazette).

Tax

The National Integrated Service of Customs and Tax Administration (Servicio Nacional Integrado de Administración Aduanera y Tributaria - SENIAT) legalized the issue and circulation of liquor warranty seals. (Official Gazette of 11/25/2024. Administrative Ruling No. SNAT/2024/000113. Entry into force: Upon publication in the Official Gazette).

Civil Aeronautics

The National Institute of Civil Aeronautics (Instituto Nacional de Aeronáutica Civil - INAC) issued an Administrative Ruling the purpose of which is to establish the General Conditions of Air Transportation, in relation to the rights and obligations of the passengers that contract for air transportation services, as well as the duties, rights and obligations of the operators of the service of air transportation of passengers, cargo, and mail, in national and international, regular and nonregular operations, within, from and towards the Bolivarian Republic of Venezuela and all matters concerning the civil liability for the damages affecting the users’ interests. Administrative Ruling No. PRE-CJU-GDA398-16, published in Official Gazette No. 6.228 Extraordinary of 05/18/2016, which contains the General Conditions of Air Transportation, was repealed. (Official Gazette of 11/05/2024. Administrative Ruling No. PRE-CJU-GDA-308-24. Entry into force: Upon publication in the Official Gazette).

The INAC issued the following Aeronautical Regulations: Venezuelan Aeronautical Regulation 110 (RAV 110) Safe Air Transportation of Hazardous Goods, the purpose of which is to establish the technical aeronautical rules that will govern the safe air transportation of hazardous goods. Administrative Ruling No. PRE-CJU-107-13, published in Official Gazette No. 6.099 Extraordinary of 05/23/2013, called “Air Transportation of Hazardous Goods”, was revoked. 2.- Venezuelan Aeronautical Regulation 39 (RAV 39) Airworthiness Directives, the purpose of which is to establish the requirements related to the Airworthiness Directives. Administrative Ruling No. PRE-CJU-129-23, published in Official Gazette No. 6.753 Extraordinary of 07/28/2023 that contains Venezuelan Aeronautical Regulation 39 (RAV 39), called ‘Airworthiness Directives”, was revoked. 3.- Venezuelan Aeronautical Regulation 277 (RAV 277) “Aeronautical Meteorological Service”, the purpose of which is to establish the use of the Procedures for the Aeronautical Meteorological Service that integrates the Services into Air Navigation.

Administrative Ruling No. PRE-CJU-GDA-182-19, published in Official Gazette No. 6.462 Extraordinary, dated 07/01/2019 that contains Venezuelan Aeronautical Regulation 277 (RAV 277), called “Aeronautical Meteorological Service” was revoked. (Official Gazette of 11/11/2024, 11/20/2024, and 11/21/2024. Administrative Rulings No. PRE-CJU-346-24, No. PRE-CJU-GDA-411- 24, and No. PRE-CJU-GDA-412-24. Entry into force: Upon publication in the Official Gazette).

Miscellaneous

The National Assembly issued the Law that Approves the “Agreement between the government of the Bolivarian Republic of Venezuela and the government of the People’s Republic of China relating to the Promotion and Protection of Investments”, the purpose of which is to establish, maintain, and consolidate a juridical framework that facilitates and promotes direct reciprocal cross-border investments made by investors of the contracting parties, with the purpose of promoting both countries’ productive development. (Official Gazette No. 6.852 Extraordinary of 11/13/2024). The National Assembly issued the Law of Audit, Regularization, Actions and Financing of Non-governmental Organizations and Notfor-Profit Social Organizations. Article 67 of the Law of Registries and Notaries’ Offices is repealed. All provisions that are contrary to this Law are repealed. (Official Gazette No. 6.855 Extraordinary of 11/15/2024. Entry into force: Upon publication in the Official Gazette).

The Ministry of the Popular Power for Transportation established the minimum and maximum rates for urban transportation service. Likewise, it established the maximum official rate for suburban routes nationwide to be charged by the providers of the public service of ground passenger transportation. The Official Request published in Official Gazette of 03/19/2024 and Resolution No. 014, published in Official Gazette of 03/19/2024, were revoked. (Official Gazette of 11/22/2024. Official Request and Resolution No. 049. Entry into force: As from December 1, 2024). The National Assembly issued the Simón Bolívar Organic Law against Imperialist Blockade and for Defense of the Bolivarian Republic of Venezuela. All legal or sublegal rules that conflict with the Law are repealed. (Official Gazette No. 6.859 Extraordinary of 11/29/2014. Entry into force: Upon publication in the Official Gazette).