Florence chamber sees EU–Mercosur deal as chance to boost exports

The Chamber of Commerce of Florence believes the forthcoming free trade agreement between the European Union and the Mercosur countries could significantly strengthen export opportunities for businesses based in Florence and the wider Tuscan area.

Speaking ahead of the expected signing of the deal, the chamber’s president Massimo Manetti said that once the agreement enters into force, the institution’s role will be to help local companies take advantage of access to what would become the world’s largest free trade area. The EU–Mercosur market would include around 700 million consumers and a combined GDP of roughly €17 trillion, with tariffs removed on about 90% of goods.

High tariffs on key Florence exports

According to the chamber, current import duties in Mercosur countries remain particularly high for several products that are central to Florence’s export economy. These include tariffs of up to 35% on clothing and fashion items, 27% on wine, 14% on pharmaceuticals, 20% on industrial goods and up to 35% on cars.

Removing or reducing these barriers could make Tuscan products more competitive in markets such as Brazil, Argentina, Uruguay and Paraguay, with Bolivia also set to join the bloc.

Concerns over competition and food standards

At the same time, Manetti stressed that European producers must be adequately safeguarded. He said that farmers and other producers are asking for guarantees that prevent unfair competition and ensure consumer health standards are respected, a concern frequently raised in the EU debate over the Mercosur agreement.

Looking beyond the United States

The chamber also linked the agreement to broader shifts in global trade. Its research centre noted that after a phase of stockpiling goods in the United States in 2025 to anticipate the introduction of new US tariffs, a period of de-stocking is now expected. This could slow exports to the US, which currently absorbs about a quarter of Florence-area exports, making the search for alternative markets increasingly urgent.

Exports to Mercosur still limited

In the first nine months of 2025, Tuscan exports to Mercosur countries rose by 35.3%, from €415 million to €562 million, while imports increased by just 1.5%, mainly consisting of wood products for the paper and printing industries.

Despite the growth, exports from the Florence area to Mercosur still account for only about 0.5% of total exports. More than half of these shipments are in the fashion sector, followed by mechanical goods and pharmaceuticals. According to the chamber, the EU–Mercosur agreement could provide a strong boost to these sectors and potentially others.

The Florence Chamber of Commerce will host its Export Hub Days on 21 and 22 January, focusing on internationalisation opportunities for local businesses.

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