Textile / Fashion

Weaving connections between the EU and MERCOSUR textile industries.

Trade Volume
€ 6 Mrd
Tariff Reduction
35%→0%
Transition Period
Immediate upon entry into force of the agreement.

Key Figures

€ 6 Mrd
EU-MERCOSUR Trade Volume
35% → 0%
Tariff reduction on textiles
Applicable
Corporate Sustainability Due Diligence Directive (CS3D)
357
Protected Geographical Indications (GIs)

Opportunities

Elimination of tariffs on textiles and clothing (from 35% to 0%)
Easier access to the growing Brazilian luxury market
Reinforced protection for trademarks and designs through geographical indications
New opportunities for exporting high-value technical textiles

Risks

Due diligence requirements (CS3D) across the entire textile value chain
Traceability rules (EUDR) for leather and rubber used in fashion
Increased competition from low-cost local producers in MERCOSUR markets
Complexity of rules of origin to benefit from preferential tariffs

Strategic Recommendations

1
Invest in robust traceability systems to comply with CS3D and EUDR regulations
2
Focus on high-value, specialized textiles to differentiate from low-cost competition
3
Leverage the agreement to register and protect intellectual property (trademarks, designs) in MERCOSUR
4
Develop partnerships with local distributors to navigate the Brazilian luxury market

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