New deal hoped to boost South American exports

The EU is to phase out tariffs on imports of footwear from Mercosur for up to ten years.

Many footwear companies that are operating in a number of South American nations are reported to be feeling optimistic about the potential benefits of a deal between the European Union (EU) and the Mercosur bloc which provisionally began on 1st May 2026. Full members of the Mercosur organisation are Argentina, Bolivia, Brazil, Paraguay and Uruguay. Venezuela is a full member but has been suspended since 1^st December 2016. Chile, Colombia, Ecuador, Guyana, Panama, Peru and Suriname are associate members.

As an example, Abicalçados (the Brazilian Footwear Industries Association) has said that the EU-Mercosur trade deal will benefit the Brazilian footwear sector in the medium and long term. Data compiled by the association revealed that in 2025, Brazilian shoemakers exported 17.4 million pairs to the EU – a total 5.2 per cent higher than in the previous year.

The agreement will see the EU phase out tariffs on imports of footwear from Mercosur for up to ten years, depending on the product category. The current tariff rates of 3.5 to 17 per cent are being reduced progressively from this point on. However, the rules of origin state that lower-value footwear must contain at least 60 per cent of regional content and the use of uppers from non-participating countries is prohibited.

Commenting on the deal, Abicalçados executive president Haroldo Ferreira said: “In terms of tariffs, it creates opportunities for competitive gains against international competitors, primarily in Asia, or for tariff alignment with countries with which the European Union already has an agreement in place, such as Vietnam, once the duty-free period ends.”

Publishing Data

This article was originally published on page 3 of the May 2026 issue of SATRA Bulletin.

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