(ANSA) – ROME JAN 17 – The Association Agreement between the European Union and Mercosur will result in “concrete opportunities for economic growth and exports” for Italy, according to the European Commission, with special benefits for “small and medium-sized businesses and the quality agri-food sector.”
Below is a summary.
– ECONOMIC AND COMMERCIAL IMPACT: Trade with the Mercosur countries already generates 3.4 million jobs in Italy, which is equivalent to 1 in 7 jobs.
The total value of trade in goods and services between Italy and Mercosur amounts to €16.4 billion, and the agreement will eliminate tariffs on 91% of products, opening a market currently protected by high tariffs.
Italian exports will benefit from the progressive elimination of tariffs in key sectors: machinery and electrical equipment (exports: €3.1 billion), currently subject to tariffs ranging between 14 and 20%; chemical and pharmaceutical products (1.2 billion) and optical and medical instruments (349 million), with current tariffs of up to 18% that will be eliminated; steel and metal products (534 million) and plastics (359 million), where tariffs will be eliminated (12-18%).
– ITALIAN AGRI-FOOD: Italian exports in the sector, which currently amount to 489 million euros, will benefit from substantially reduced or zero tariffs.
The agreement recognizes and protects 57 Italian geographical indications (GI) in the Mercosur market, including Parmigiano Reggiano, Prosciutto di Parma, Balsamic Vinegar of Modena, Prosecco and Grappa.
Legal protection against imitations will allow these products to be sold at a higher value, estimated between 2 and 30%. Three times higher than generic products.
– SERVICES AND SMEs – The agreement opens new markets in the services sector, where Italy exports 1.9 billion euros annually (mainly tourism, trade and transport).
Access and operations will be facilitated in the financial, telecommunications, transportation and digital sectors.
SMEs, which represent 98% of Italian exporters, will benefit from simplified customs procedures, reduced administrative burdens and specific support to access public tenders.
According to EU estimates, Italian exports of services to Mercosur amount to 1.9 billion euros annually.
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