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.

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Tax

The SENIAT readjusted the value of the Tax Unit from nine bolivars (Bs. 9.00) to forty-three bolivars (Bs. 43.00). (Official Gazette of 06/02/2025. Administrative Ruling No. SNAT/2025/000048. Entry into force: Upon publication in the Official Gazette).

The National Assembly issued the Capital District Tax System Law. The purpose of said Law is to regulate the creation, organization, collection, control, auditing, inspection, verification, protection, and administration of the one per thousand (1x1000) tax, the rates, the electronic fiscal stamp and the penalties over which the Capital District has competence. The provisions of the Law are applicable to all of the activities that generate payment of the taxes established in this legal framework for the jurisdiction of the Capital District. The Special Law of Fiscal Stamps for the Capital District, published in Official Gazette of 05/02/2012, is repealed, as well as any other legal instrument that conflicts with said Capital District Tax System Law. (Official Gazette No. 6.909 Extraordinary of 06/02/2025. Entry into force: Upon publication in the Official Gazette).

A Decree of the Government of the Capital District issued the Regulations to the Capital District Tax System Law, with the purpose of developing the rules, application of and compliance with the tax obligations established in the Capital District Tax System Law. (Official Gazette of the Capital District of 06/26/2025. Decree No. 241. Entry into force: Upon publication in the Official Gazette of the Capital District).

A Presidential Decree suspended the application of the exemptions for the importation of the goods established in number 1 of article 17 of the Decree with the Status, Value, and Force of Law that establishes the Tax on Value Added Tax. The suspension of the exemption for said importation includes different food and products for human consumption, fertilizers, medicines and agrochemicals and active principles used exclusively for the manufacturing of the same, motor vehicles with special adaptations for disabled people, pacemakers, newspapers, books, among others. Likewise, said Decree exempted from Value Added Tax the final importation of corporeal personal property, made by the agencies and entities of the National Public Administration, as well as the importation made by natural or legal persons with their own resources, classified into the customs codes indicated in Appendix I to said Decree. The benefit of exemption prescribed in the Decree will be applied as of the date of filing of the relevant Customs Declaration for importation. The exemption benefits will apply for a period of one (1) year as from the entry into force of the Decree. (Official Gazette No. 6.918 Extraordinary of 06/30/2025. Decree No. 5.145. Entry into force: Five (5) days following its publication in the Official Gazette). Note: This Gazette has not been published in the web page of the National Printing and Official Gazette Autonomous Service yet. You may access it through the official web page of the National Integrated Service of Customs and Tax Administration (SENIAT).

Presidential Decree No. 5.146 (Decree on Customs Exemptions) established as follows:
(i) an exemption of ninety percent (90%) from import duties and ninety percent (90%) from value added tax is established for the final importation of new or used corporeal personal property, made by agencies of the National Public Administration and by natural or legal persons with their own resources, classified into the customs codes indicated in Appendix 1 to Decree 5.146. This tax benefit operates by reason of law only;
(ii) an exemption from import duties and value added tax is established for the final importation of corporeal personal property, made exclusively by the Ministry of the Popular Power for Electric Energy or its assigned agencies and entities, classified into the customs codes indicated in Appendix II to Decree No. 5.146.;
(iii) an exemption from import duties and value added tax is established for the final importation of corporeal personal property, made exclusively by the Ministry of the Popular Power for Attention to Waters or the agencies or entities assigned to it, classified into the customs codes indicated in Appendix III to Decree No. 5.146;
(iv) an exemption from import duties and value added tax is established for the final importation of corporeal personal property, made exclusively by the Ministry of the Popular Power for Mining Ecological Development or its assigned agencies and entities and the Corporación Venezolana de Guayana (CVG) or the companies assigned to it, classified into the customs codes indicated in Appendix IV to Decree No. 5.146.
(v) an exemption from import duties and value added tax is established for the final importation of corporeal personal property made exclusively by the Corporación Socialista del Cemento (CSC) and the companies assigned to it, classified into customs codes 2520.10.11.00, 4010.19.00.00, 4010.39.00.00, 6902.10.90.00, and 7325.91.00.00. The exemption benefit prescribed in the Decree will apply as of the date of filing of the relevant Customs Declaration for importation. The exemption benefits established in the Decree will apply for one (1) year as from publication of the same in the Official Gazette. (Official Gazette No. 6.918 Extraordinary of 06/30/2025. Decree No. 5.146. Entry into force: Upon publication in the Official Gazette). Note: This Gazette has not been published in the web page of the National Printing and Official Gazette Autonomous Service yet. You may access it through official web page of the National Integrated Service of Customs and Tax Administration (SENIAT).

A Presidential Decree issued a Partial Amendment to Decree No. 4.944, dated 04/24/2024, published in Official Gazette No. 6.804 Extraordinary, dated 04/25/2024, through which the Schedule of Customs Duties was issued. (Official Gazette No. 6.918 Extraordinary of 06/30/2025. Entry into force: Upon the elapsing of five (5) days after publication in the Official Gazette). Note: This Gazette has not been published in the web page of the National Printing and Official Gazette Autonomous Service yet. You may access it through official web page of the National Integrated Service of Customs and Tax Administration (SENIAT).

TELECOMMUNICATIONS

The National Telecommunications Commission (Comisión Nacional de Telecomunicaciones – CONATEL) issued an amendment to the Administrative Ruling containing the Conditions for Qualification of Free Use Equipment, published in Official Gazette of 06/10/2013, in order to include new equipment and frequency bands for Radio Local Area Network Devices (RLAN), Medical Implant Communication Service (MICS), Proximity Sensors for Automotive Use, and Short-Range Devices. (Official Gazette of 06/16/2025. Administrative Ruling No. 064. Entry into force: Upon publication in the Official Gazette).

CONATEL established the parameters and indicators to which the subscription broadcast service will be subject, as well as the goals to be met by the operators of said service, in order to bring about access to and provision of the same in appropriate quality conditions. Administrative Ruling No. 841, published in Official Gazette of 09/12/2006, was repealed. (Official Gazette of 06/16/2025. Administrative Ruling No. 071. Entry into force: Upon publication in the Official Gazette).

CONATEL established the measures for implementation of Protocol IPv6, as well as the goals to be met by the operators that render telecommunications services and use the Protocol IP. (Official Gazette of 06/16/2025. Administrative Ruling No. 096. Entry into force: Upon publication in the Official Gazette).

MISCELLANEOUS

The Ministry of the Popular Power for Mining Ecological Development determined the geographical areas in the State of Bolívar in which the Corporación Venezolana de Minería S.A. (CVM) and the Compañía General de Minería de Venezuela C.A. (MINERVEN) will perform the activities prescribed in article 1⁰ of the Decree with the Status, Value and Force of Organic Law that Reserves to the State the Activities of Exploration and Exploitation of Gold and other Strategic Minerals. Likewise, it determined the areas in the State of Falcón in which Carbones del Zulia S.A. (CARBOZULIA) will perform the activities prescribed in article 1⁰ of the Decree with the Status, Value and Force of Organic Law that Reserves to the State the Activities of Exploration and Exploitation of Coal and other Strategic Minerals. (Official Gazette of 06/18/2025. Resolutions Nos. 018-2025, 019-2025 y 020-2025. Entry into force: Upon publication in the Official Gazette).

A Resolution of the Ministry of the Popular Power for Productive Agriculture and Lands fixed at six (6) months the period of effectiveness of the phytosanitary and zoosanitary permits required for the importation of animals, vegetables, products and derivatives of both origins, granted by the National Institute of Integral Agricultural Health (Instituto Nacional de Salud Agrícola Integral - INSAI). Said period of effectiveness will begin on the date of issue of the relevant phytosanitary or zoosanitary permit. The permits in force by the date of publication of the aforesaid Resolution will be valid up to the expiration date established in the same. Resolution DM/No. 022/2023, published in Official Gazette of 11/22/2023, is repealed. (Official Gazette of 06/11/2025. Resolution DM/No. 043/2025. Entry into force: Upon publication in the Official Gazette).