EU-Mercosur Agreement: European collaboration platform for textile and fashion businesses launched

The provisional trade agreement between the European Union and the Mercosur member countries (Brazil, Argentina, Paraguay and Uruguay) has been in force for a few months, and the textile and fashion sector is beginning to forge the first tangible synergies with its South American counterparts: Euratex, the European association of textile manufacturers, has in fact launched a cooperation platform with Abit (the Brazilian textile and clothing industry association) and Fita (the Argentine Textile Industries Federation). The platform, presented in Brazil during the World Congress in Fortaleza, is called the EU–Mercosur Textile and Apparel Dialogue (TAD) and was established with the aim of supporting the most effective and balanced implementation possible of the free trade agreement between the two regions, with a focus on reciprocal market access, competitive and resilient value chains, and sustainable growth.

In 2025, trade in textiles and clothing between the EU and Mercosur was worth just under 700 million euros. The largest share was accounted for by exports from the European Union, at just under half a billion, whilst imports stood at around 200 million euros. The new agreement therefore provides a basis for developing an existing relationship, improving market access, facilitating trade and encouraging new investment and collaboration throughout the supply chain. Specifically, the TAD will serve as a forum where, through two meetings a year, industry representatives will be able to discuss investments, customs procedures and regulations, as well as collaborate on issues such as traceability and sustainability ahead of the entry into force of European obligations.

“The EU–Mercosur agreement opens a new chapter for our sectors. Through this Dialogue (the TAD platform, ed.), we intend to ensure that these opportunities translate into concrete trade cooperation, more robust value chains and fair, reciprocal market access. By working together, our industrial sectors will be able to identify practical solutions, stimulate investment and build a more competitive and sustainable textile and clothing sector,” wrote Mario Jorge Machado, president of Euratex, in a statement.

The political agreement between the European Union and Mercosur, which took almost a quarter of a century to come to fruition, having begun in 2000, was reached on 6 December 2024, whilst the official signing of the Partnership Agreement and the Interim Trade Agreement took place in Paraguay on 17 January 2026. The provisional application of the trade agreement began on 1 May 2026. According to European Commission estimates, once the agreement is fully implemented, the European Union’s (total) exports to the Mercosur region will increase by around 40 per cent, amounting to an additional €48.7 billion in exports each year, 600,000 jobs created in Europe and a €77.6 billion increase in annual European GDP by 2040.

The Italian fashion industry – which, taking only the textile and clothing sector into account, exported around 37 billion euros out of a total turnover of 58.3 billion in 2025 – had already taken steps in this direction: in April 2026, in fact, on the occasion of the ‘High-level meeting on Italy–Mercosur economic relations’, Confindustria Moda and Confindustria Accessori Moda signed an agreement in Rome with the Confederação Nacional da Indústria (Cni). The aim of the memorandum is to promote ‘a shared long-term vision between Italia and Brazil, based on the development of skills, the training of the younger generations and the creation of an industrial ecosystem that is increasingly integrated and competitive at a global level, thanks in part to the Mercosur agreement, a key element of the 2035 Strategic Industrial Plan drawn up by Confindustria Moda and Confindustria Accessori Moda’. The agreement also provides for collaboration on training and “the exchange of students, lecturers, technicians and professionals, to promote innovation and sustainability in production processes”, said Giovanna Ceolini, president of Confindustria Moda Accessories, at the signing ceremony. Meanwhile, ICE-Agenzia – in collaboration with Confindustria Moda, Confindustria Accessori Moda, Assocalzaturifici and Assopellettieri – is planning an exploratory and commercial mission to Brazil, scheduled for 26–30 October 2026 in São Paulo, to facilitate Italian companies’ entry into the Brazilian market.