European and South American textile industry associations have launched a joint platform to strengthen trade cooperation, expand investment opportunities and promote sustainable manufacturing as businesses seek to benefit from the European Union’s trade agreement with the Mercosur bloc.
The European Apparel and Textile Confederation (EURATEX), Brazilian Textile and Apparel Industry Association (ABIT) and Federation of Argentine Textile Industries (FITA) formally established the EU–Mercosur Textile and Apparel Dialogue (TAD) in Fortaleza, Brazil.
The initiative aims to help textile and clothing manufacturers navigate changing trade rules, improve reciprocal market access and develop more competitive supply chains linking European producers with South American markets. It will also provide a forum for addressing regulatory barriers, customs procedures, sustainability requirements and fair competition.The launch comes as the EU and Mercosur move ahead with a trade arrangement that could reshape commercial relationships between the two regions. The EU–Mercosur interim trade agreement has been provisionally applied since May 1, 2026, although the broader partnership agreement remains subject to completion of its ratification process.
According to EURATEX, bilateral trade in textiles and clothing between the EU and Mercosur reached approximately €694 million in 2025, comprising €495 million in European exports and €199 million in imports from South American partners.
The figures indicate that European textile and apparel suppliers currently hold a substantial trade surplus with Mercosur, highlighting both the existing commercial relationship and the potential for greater industrial integration.
The new dialogue is intended to help companies translate opportunities arising from the trade agreement into business partnerships, investment and more efficient cross-border production networks. The platform will bring together senior representatives from participating textile and apparel associations to discuss market developments, investment flows, rules of origin and administrative obstacles affecting international trade.
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Particular attention will be given to customs procedures and regulatory requirements, which can influence whether textile and clothing products qualify for preferential market access under the trade agreement.
The European Commission says the interim agreement establishes rules for determining product origin, with exporters required to provide appropriate origin statements when claiming preferential tariff treatment. Such provisions are particularly relevant to textile manufacturing, where raw materials, yarns, fabrics and finished garments may cross several national borders during production.
Industry representatives will also examine opportunities for cooperation in sustainability, circular production systems, supply-chain traceability and regulatory enforcement.
Mario Jorge Machado, president of EURATEX, said the agreement created an opportunity for textile businesses to develop stronger commercial relationships while ensuring that market access remained fair and reciprocal.
“The EU–Mercosur agreement opens a new chapter for our industries,” Machado said in the joint announcement.
He said the dialogue would help identify practical solutions, encourage investment and support the development of a more competitive and sustainable textile and apparel industry.
The initiative will operate through meetings held twice annually, alternating between virtual and in-person formats. Its chairmanship will rotate each year among EURATEX, ABIT and FITA.
The founding mandate was signed by Machado, ABIT President Emeritus Fernando Valente Pimentel and FITA President Luis Tendlarz.
The new cooperation mechanism follows months of engagement among European and South American textile industry organisations over the commercial implications of the EU–Mercosur agreement.
In February 2026, EURATEX, ABIT, FITA and Paraguay’s apparel manufacturers’ association AICP issued a joint statement supporting closer economic integration and predictable trade rules.
The associations said Europe’s textile and clothing industry comprised approximately 200,000 companies employing 1.2 million workers and generating nearly €170 billion in annual turnover.
Brazil’s textile and apparel sector, meanwhile, included around 25,700 companies employing 1.3 million people, with turnover of $40.9 billion. Argentina’s industry comprised approximately 4,000 companies and supported 540,000 jobs across its value chain.
The figures underline the industrial significance of the two markets and the potential for cooperation in manufacturing, technology, product development and international sourcing.
The dialogue was launched during the ABIT International Congress, held in Fortaleza on October 14–15, which brought together textile executives, policymakers and industry specialists. The event was organised in partnership with the International Textile Manufacturers Federation (ITMF) and International Apparel Federation (IAF), with discussions covering sustainability, innovation and global market opportunities.