Italian exports to Mercosur rise 21% to €745 million as EU trade deal takes effect
Brazil accounted for nearly four-fifths of Italian exports to the South American bloc in May, while Uruguay and Paraguay recorded the highest percentage increases. The figures coincide with the first month of provisional application of the EU–Mercosur trade agreement, although a longer data series will be needed to measure its impact.
Italian goods exports to the four Mercosur countries reached €745 million in May 2026, an increase of 21.1% from the same month a year earlier, according to figures released by Italy’s leading industrial organisation.
The General Confederation of Italian Industry — Confederazione Generale dell’Industria Italiana, known as Confindustria — published the results based on data from Italy’s national statistics institute, Istat.
The increase coincided with the first month of provisional application of the EU–Mercosur Interim Trade Agreement, which took effect on 1 May and covers the European Union’s commercial relationship with Argentina, Brazil, Paraguay and Uruguay.
Brazil dominated the country breakdown. Italian exports to Latin America’s largest economy reached €582 million, representing approximately 78% of the total and an annual increase of 22.3%.
Based on the reported figures, shipments to Brazil increased by roughly €106 million from May 2025, meaning that the country generated most of the approximately €130 million expansion recorded across the four Mercosur markets.
Exports to Argentina reached €111 million, rising by only 0.6% year on year. The country accounted for approximately 15% of Italy’s exports to the bloc during the month, but contributed little to the overall increase.
The highest growth rates were recorded in the two smaller markets. Italian exports to Uruguay climbed 72.2% to €37 million, while shipments to Paraguay almost doubled, rising 95.6% to €15 million.
Together, Uruguay and Paraguay represented around 7% of the monthly total. Their rapid expansion therefore signals stronger commercial activity from comparatively low starting points rather than a transformation in the geographical concentration of Italian exports.
Brazil remains the centre of Italy’s Mercosur trade
The May figures reinforce Brazil’s position as the principal destination for Italian products within Mercosur.
In 2025, Italian exports to the South American bloc totalled approximately €7.5 billion, while imports reached €6.9 billion, according to Confindustria. Brazil received €5.8 billion of those Italian exports and Argentina around €1.2 billion.
The concentration reflects the scale of the Brazilian economy, its industrial base and demand for European machinery, technology, pharmaceutical products, consumer goods and equipment used in energy and infrastructure.
However, the performance of a single month cannot establish how much of the increase resulted directly from the trade agreement. Export orders, production and shipping decisions may have been made before its provisional application began.
Many tariff reductions are also being introduced progressively. The agreement provides immediate relief for some goods, initial reductions for others and longer phase-out periods depending on the product.
Beyond tariffs, the framework expands access to public procurement, introduces clearer rules for services and licensing, and begins addressing technical and non-tariff barriers. These provisions could become particularly relevant for Italian companies supplying machinery, industrial systems and regulated products.
The May result should therefore be interpreted as an initial indicator rather than definitive evidence of the agreement’s long-term effect.
More than 90 companies prepare for Argentina and Brazil mission
The figures were released ahead of a major Italian business mission to Argentina and Brazil scheduled for 7–11 September.
Confindustria will lead a delegation of more than 90 Italian companies, headed by its president, Emanuele Orsini. The initiative is being organised with the Italian Trade Agency, ICE, in coordination with the Italian embassies in Buenos Aires and Brasília and the Italian chambers of commerce operating in both markets.
The mission will begin in Buenos Aires on 7 and 8 September, continue in São Paulo on 9 and 10 September, and conclude with institutional meetings in Brasília on 11 September.
Its programme will focus on five areas:
Agri-food products
Pharmaceuticals and medical technology
Industrial machinery and equipment for energy and mining
Digital technologies
Energy transition and sustainable infrastructure
The participating companies will hold business-to-business meetings with importers, distributors, investors and potential industrial partners. The agenda will also include discussions with regulators, financial institutions and government officials.
Confindustria estimates that the still-untapped potential for Italian exports to Argentina and Brazil exceeds €1 billion, with the possibility of generating an additional €6 billion over the longer term.
The organisation is presenting market diversification as a strategic priority for Italian industry at a time of rising tariffs, geopolitical fragmentation and changes in global supply chains.
This strategy extends beyond selling additional products. Italian companies are also seeking local partnerships, participation in public tenders and integration with Mercosur manufacturing, energy and infrastructure supply chains.
The first monthly figures provide an encouraging starting point. But the durability of the expansion will depend on whether growth spreads beyond Brazil, which products benefit from tariff reductions and whether Italian companies can convert improved market access into recurring commercial relationships.
The decisive measure will not be one month of export growth, but the ability of Italian businesses to build a broader and more permanent presence across Mercosur as the agreement moves from legal implementation to commercial execution.
