Argentina, Brazil, Paraguay and Uruguay have been applying the trade agreement between the European Union and Mercosur since 1 May 2026. Since that date, the four countries have charged a reduced duty on products of EU origin, and this duty falls every year until it reaches zero. The duty reaches zero in 2034 for clothing and fabrics and in 2041 for leather shoes.
A Made in Italy product, however, is not always of EU origin. A jacket sewn in Italy from fabric made in Asia is Made in Italy, but under the agreement it is not of EU origin. On that jacket the importer pays the full duty, which is the duty that applies without the agreement.
An importer who buys from several suppliers may therefore pay different duties on similar garments. In addition, if a supplier declares EU origin and later cannot prove it, customs asks the importer for the unpaid duty.
How much duty is paid in the four countries
The table shows the full duty and the reduced duty. The reduced duty applies only to products of EU origin and falls by the same amount on 1 January each year until it reaches zero.
| Product | Country | Full duty | Reduced duty in 2026 | Reduced duty from 1 January 2027 | Zero duty from |
|---|---|---|---|---|---|
| Clothing | Brazil | 35% | 31.1% | 27.2% | 2034 |
| Clothing | Argentina, Paraguay, Uruguay | 20% | 17.7% | 15.5% | 2034 |
| Wool, silk, cotton and linen fabrics | Brazil | 26% | 23.1% | 20.2% | 2034 |
| Wool, silk, cotton and linen fabrics | Argentina, Paraguay, Uruguay | 18% | 16% | 14% | 2034 |
| Leather shoes | Brazil | 35% | 32.8% | 30.6% | 2041 |
| Leather shoes | Argentina, Paraguay | 20% | 18.7% | 17.5% | 2041 |
| Leather shoes | Uruguay | 25% | 23.4% | 21.8% | 2041 |
These rates apply in the most common case. There are four exceptions.
- In Paraguay the full duty on some garments, including T-shirts and cotton trousers, is 25%. On these garments the reduced duty in 2026 is 22.2%.
- In Paraguay the full duty on leather shoes with leather soles is also 25%. On these shoes the reduced duty in 2026 is 23.4%.
- In Uruguay the full duty on some leather shoes, including sports shoes, is 35%. On these shoes the reduced duty in 2026 is 32.8%.
- In Paraguay the full duty on cotton and linen fabrics varies according to the type of fabric.
The exact duty depends on the tariff code of each product and must be checked before the order is placed.
Shoes with textile uppers and several models of rubber or plastic shoes are excluded from the agreement. The full duty continues to apply to these products.
When a product is of EU origin
EU origin, which customs authorities call preferential origin, depends on rules that differ from product to product. In the most common cases the rules are as follows.
- Woven garments, such as jackets, trousers and shirts. Weaving, cutting and sewing must take place in the European Union. The lining must also be woven in the European Union.
- Knitwear. Knitting and sewing must take place in the European Union.
- Fabrics. Weaving and at least one other process, such as spinning or dyeing, must take place in the European Union.
- Shoes. Shoes with a customs value above 35 euros must be assembled in the European Union, and the upper must not arrive from another country already attached to the sole. For shoes of lower value the rules are stricter.
In most cases the yarn can come from any country. The same applies to buttons, zips and other non-textile components. Fabrics made in a Mercosur country are treated as fabrics made in the European Union.
The agreement also provides for exceptions and small tolerances, which must be checked product by product.
Who declares the origin and who pays if it is not proven
The supplier that exports the goods declares the origin in a standard text written on the invoice or on another commercial document. Without this statement on origin, customs applies the full duty. For shipments with a value above 6,000 euros, the supplier must be registered in REX, the EU’s Registered Exporter system, and must include its registration number in the statement. The importer must keep the statement for at least three years.
Customs in the importing country may check the statement even after the goods have been cleared. In that case it asks the authorities of the supplier’s country to verify the supplier’s documents, which the supplier must keep for at least three years. If the origin is not proven within ten months, customs applies the full duty and asks the importer for the unpaid duty, even if the goods have already been sold.
The statement is a standard text and is the same for every supplier. The importer cannot tell from the statement whether the supplier is able to prove the origin. For this reason, the origin must be checked before the order is placed.
What to ask each supplier before ordering
Importers who buy large volumes already ask their suppliers for accurate shipping documents, firm delivery times and the use of the importer’s own freight forwarders. The agreement adds four questions about origin, to be asked before the order is confirmed.
- Where were the fabric and the lining made? For shoes, where was the shoe assembled?
- Which documents prove where the fabric comes from?
- Is the supplier registered in REX?
- Will the statement on origin on the invoice cover every item in the order?
For stock lots the questions must be asked for every item, because a lot may combine garments made from EU fabrics with garments made from fabrics of another origin.
The answers also help to compare offers. In Brazil, on a shipment of clothing with a customs value of 100,000 euros, a supplier that proves the origin saves the importer 3,900 euros in duty in 2026 and 35,000 euros from 2034. In the other three countries, where the full duty on almost all garments is 20%, the saving is 2,300 euros in 2026 and 20,000 euros from 2034. A supplier with a higher price that is able to prove the origin may therefore cost less, including duty, than a supplier with a lower price that does not prove it.
A single point of contact for all Italian suppliers
Every supplier has its own fabrics and its own documents, and the checks must be repeated for each one. 2306 offers importers a single point of contact for all Italian suppliers. We find the suppliers, check their quality, compliance and competitiveness, negotiate terms thanks to relationships built over more than thirty years, and manage the documentation and logistics until delivery.
Do you import clothing, fabrics or footwear from Italy into Argentina, Brazil, Paraguay or Uruguay? Write and tell us which products you are looking for. We will reply by proposing Italian suppliers that are able to prove the EU origin of their products.
The data are taken from the official text of the EU-Mercosur Interim Trade Agreement (Official Journal of the EU, L 2026/184) and from the European Commission’s Access2Markets customs database, and were last updated in October 2026.
