Italian industry, Export, Potential for our economy, Agreement between the EU and Mercosur
“We must seize this moment. The potential for our economy is substantial, the Latin American area is culturally close to us, the common roots are important. We can perceive the affinities and the desire to do business with Italian companies. We must move now, as Italy and as Europe. And it is essential to implement the agreement between the EU and Mercosur: it would open up preferential access for our companies to an area of 270 million consumers. Otherwise we leave the field open to others, starting with China which is already expanding its presence.” Thus the Vice President of Confindustria.
The Vice President of Confindustria, who led the business delegation during the visit of the Vice Prime Minister and Minister of Foreign Affairs and International Cooperation to the two Latin American countries, said that: “The Foreign Minister has decided to closely follow countries with high potential like Argentina and Brazil, at a time when entire global value chains are being reconfigured. Our exports are reaching great goals, but we need to define strategies to identify new outlet markets and strengthen our share of those in which we are already present, increasing exports and strengthening industrial collaborations”.
Argentina and Brazil are two different countries, but both have created great development expectations and open up new perspectives: “If Milei’s efforts to reduce inflation and modernize the economy produce concrete results, the country could experience a significant turning point. Our presence is very different in the two countries: in Argentina there are around 250 companies and trade is around 2 billion euros; in Brazil there are around 1000 and the trade is five times higher, around 10 billion euros.
We must support SMEs, also enhancing the precious pioneering function performed by large ones, especially those that have been rooted in this market for some time. From the meetings with the Argentine and Brazilian business organizations, great expectations emerged towards us which we intend to follow up concretely with targeted initiatives”.
There are many sectors where greater collaboration can be achieved, even if “in both there is a great availability of raw materials and minerals, precious for transitions and our production system can provide processes, technologies, machinery and know-how.
A winning combination.
But there are also great opportunities in other sectors, such as agri-food, machinery, infrastructure, obviously energy, but also telecommunications, steel and water treatment. In fact, I am pleased that some of our important associations such as Ance, Anima and Federunacoma participated in the mission”.
Regarding the winning characteristics of Italian companies, the Vice President of Confindustria recalled that “our companies have absolute excellence and have great adaptability.
Compared to our competitors, we are able to provide tailor-made products to meet customer needs together with a great capacity for innovation.
It’s what overseas businesses facing major restructuring need.
Even in training there can be collaborations and we talked about it: Argentina and Brazil have a young society that needs to be trained.
It can be a resource for us for the skills we lack.”
Finally, the Vice President touched on a very important topic for Italian companies which is the signing of the EU-Mercosur agreement: “We would like the definitive conclusion to be reached and for the agreement to enter into force, overcoming the resistance of some important European partners .
The duties that still penalize commercial relations would be reduced and the two regions would be provided with a framework for collaboration on many fundamental issues with an impact on European exports to the Mercosur area which the EU has estimated at over 50% compared to an increase in imports by a fifth, or 10%, creating 390,000 more jobs in Europe.
I repeat: if we miss this moment, we risk being caught off guard in the future by the advance of others.”
October 10, 2024
Source Confindustria
