The EU-Mercosur economic agreement, in force from 1 May 2026, reduces duties on food, machinery and clothing and relaunches the ambitions of Italian companies in Brazil. A market already covered by 1,104 companies. Here are the ones.
In such a dark historical phase for Italian companies, caught between expensive energy and trade wars, the Brazil it is a light that lights up new hopes. Not only because it is Latin America’s largest economy and by far its most important market Mercosurbut why the economic partnership agreement between European Union he South American block, which came into provisional application from 1 May 2026, opens a new phase: fewer tariff barriers, greater regulatory predictability, better access conditions to a market of 215 million inhabitants, vast, young and receptive to many Made in Italy segments.
For Italian companies the Brazil it is an already experienced market, with an industrial, commercial and financial presence established over time. He confirms it Graziano Messanaentrepreneur and president of the Italian Chamber of Commerce of Sao Paulo (Italcam), reconfirmed for the third consecutive time at the helm of the century-old organization: «Today we have 1,104 Italian companies in Brazil. In the last two years, 172 have been opened. This is the data that shows not only that the market is attractive, but also that things can be simplified compared to the past.”
The new Eldorado of Made in Italy: the estimates of the EU-Mercosur agreement
According to the Ice Agency report “The EU-Mercosur economic partnership agreement: contents and potential effects”, the Brazil it absorbs over three quarters of Italian exports directed to the area Mercosur and therefore represents the decisive market for measuring the impact of the agreement on Italian companies. The study highlights that, by 2036, Italy could benefit from an increase in exports of around 3.5 billion dollars, with particularly favorable effects for metals, machinery and equipment, motor vehicles and steel.
But the most tangible effect is already manifesting itself. Messana explains: «Among the companies that are moving immediately there are two categories. Food products, for which duties are effectively eliminated from May 1st and are already preparing price lists with lower prices.”
The agreement in fact provides for a progressive reduction or elimination of very high duties which have historically slowed down European competitiveness in South America: for example, according to ICE, duties on drinks and tobacco would go from 21.5% to zero, those on textiles and clothing from 23.5% to 2.1%, while for motor vehicles the average level would fall from 19.6% to 0.8%.
Duties cleared from May 1st: immediate benefits for machinery and food
The second category of companies that, underlines Messanaimmediately benefits from the agreement is that of the machinery manufacturers. «The so-called zero class, which provides for duties eliminated from May 1st, includes all those machines that Brazil generally it is not capable of producing, and that is the majority”, he explains Messana. «The Brazilians, when we make company visits and they show us a machine with the Italian manufacturer’s plate, are proud of it, they are convinced that their final product will come out with the right quality».
The analysis of Assolombardaupdated to 5 May 2026, strengthens this framework and translates it into a more immediately operational key for the Italian production system. According to the association, the agreement can transform into a concrete growth lever for small and medium-sized businesses and for quality agri-food. Messana he is convinced that «with the gradual application of the agreement in the coming years, we have estimated that exports will almost double, therefore essentially the 6 billion in exports to Brazil they will become 10 billion.”
There is an element that makes the Brazil particularly receptive to Italian products. “Let’s remember that there are 32 million Italian descendants,” he underlines Messana«therefore it is a community that, more than any other country in the world, is able to appreciate Made in Italy». It’s not just a question of nostalgia or cultural affinity: Made in Italy enjoys Brazil of a perception of very high quality, which translates into willingness to pay a significant premium price. A concrete example comes from the pet food sector, where the Brazil represents the second world market. Italian feed, explains the president of Italcamcost three times as much as local ones, yet are preferred by Brazilian consumers who believe in the high Italian standards of quality and control, especially for organic products. This trust is rewarded with the willingness to pay more.
Added to this is a thriving acquisition market. According to the Global M&A Report 2026 by Bain & Companyin 2025 the value of Italian M&A operations grew by 60%, confirming a renewed international ambition of Italian companies – a trend that the Brazilian market is well positioned to intercept at 360 degrees.
Food and machinery: success stories from Filippo Berio to Bacio di Latte
Italian success stories help to understand this point well. The historical cases of Fiat And Pirelli remain fundamental because they show the depth of the industrial bond between Italy and Brazil. But to tell the story Brazil today, recent or very recent cases matter even more, because they show how growth can be achieved in sectors that are very different from traditional manufacturing.
A prime example is Filippo Berioa historic oil brand born in the nineteenth century in Lucca and today part of the group Deoleowhich in Brazil has intercepted the expansion of demand for healthy products and the growing attraction towards Italian cuisine. In a market dominated by Portuguese and Spanish operators, the brand has built its growth not on production scale but on the strength of the brand, perceived quality and distribution discipline. According to data reported by the sector press, at the end of 2023 Filippo Berio reached in Brazil a 3.6% share in volume, becoming the first Italian brand in the sector in the country.
A second very instructive case is that of Very intimate and, more generally, of the group Calzedoniawhich he identified in Brazil a strategic market for retail based on desirability, Italian identity and direct control of the customer experience. The strength of chance Very intimate it lies not only in the physical expansion, but in the quality of execution. During the pandemic, the group could already count on a structured e-commerce platform integrated with the stores: in Brazil e-commerce grew by approximately 400%, transforming itself from a complementary channel into a development engine.
Even more emblematic is the story of Kiss of Milka company founded in 2011 in Sao Paulo from the initiative of Edoardo Tonolli and other founders with the idea of bringing authentic Italian ice cream to a market then dominated by industrial products. The market response was rapid and the growth extremely disciplined: over 170 points of sale including shops and kiosks, presence in more than 20 cities, around 2,000 employees and a strong concentration in the best shopping centers in the country. Kiss of Milk it is important not only because it has grown a lot, but because it has grown “Brazilian” without ceasing to be “Italian”.
We can really talk about Eldorado for Made in Italy Brazil? Bureaucracy remains complex, taxation complex, geography challenging and competition intense. But the EU-Mercosur agreement changes the relative convenience of investment and exports, reduces some structural frictions and improves Europe’s competitive positioning. If we add to this the strength of some Italian brands, the good historical stability of Italian companies on the Brazilian market, the 32 million Italian descendants who create fertile ground for Made in Italy, and the presence of recent successful cases in food, retail, energy and manufacturing, the picture that emerges is clear: the Brazil it can truly be an El Dorado for Italian companies, provided that it is approached not as a gold rush, but as a patient, long-term industrial and commercial construction.
