From Eu “Wine Package” to Eu-Mercosur agreement (signed): the state of the art for Studio Giuri

In a global scenario where, for years now, the only constant has been “uncertainty”, the year 2026, as it takes shape, brings two significant and impactful developments for the European wine sector. On the one hand, there is the imminent final approval of the so-called “Wine Package”, prepared by the EU Agriculture Commission in collaboration with industry representatives and political bodies of various member states, a process which, as often reported on, now only awaits its last formal step in the Plenary. On the other hand, there is the entry into force of the agreement between the EU and Mercosur, signed yesterday in Asunción, in Paraguay, after 26 years of negotiations (here are the statements from the President of the EU Commission, Ursula von der Leyen). However, the industry remains divided: while the wine sector sees mainly opportunities, much of the Italian and European agricultural world strongly opposes the deal, arguing that it doesn’t sufficiently safeguard issues such as reciprocity of rules and production standards for South American products entering Europe, raising fears of significant damage to the domestic agricultural economy as a whole (and, on this matter, tomorrow, January 20th, in Strasbourg, under the European Parliament, after previous demonstrations in recent days, there will be another major protest organized by the French Fnsea , joined by leading Italian organizations such as Confagricoltura, Coldiretti, and Cia-Agricoltori Italiani, and not only).
To provide clarity and a summary of the current state of these two crucial topics for the future of Italian wine, the Giuri Law Firm in Florence, headed by Marco Giuri, one of the leading experts in wine law, which offers its analysis. Starting with the “Wine Package”, the firm explains that it is “a set of regulatory measures and economic support from the European Union to sustain a wine sector facing market, climate-environmental, and structural challenges, through tools for production management, new labeling rules, increased funding for sustainability, promotion, wine tourism, and resilience tools”. And, if until today, the text has been unanimously approved by the Agriculture Committee of the EU Parliament (in agreement with the Council and the European Parliament), and the final plenary vote is expected during the February 2026 session before definitive adoption. “The measures of the “Wine Package” focus on several strategic points for the sector revival and resilience”, explains the Giuri Law Firm. Regarding economic support and climate risk management, it provides “up to 80% coverage of eligible costs for investments related to sustainability and climate change adaptation, as well as more flexible crisis management tools”. Concerning production control and governance, it introduces “tools to rebalance supply in line with demand, including strategic interventions such as uprooting unprofitable vineyards”. Labeling and product categories are also addressed, as the “Wine Package” includes “updates to definitions of low-alcohol or alcohol-free wines (“No-Lo”) with harmonized terms such as “alcohol free”, “0.0%”, and “reduced alcohol” for greater market clarity”. From an administrative simplification perspective, measures include “reducing bureaucratic burdens, greater flexibility in market regulations, and simplified export rules”, while the “promotion and wine tourism” chapter opens “new funding opportunities for promotional initiatives in EU and international markets and for wine tourism development, considered an economic driver for rural areas”. As mentioned, final approval is expected with the plenary vote in February, followed by publication in the Official Journal of the European Union and implementation in member states.
While the “Wine Package” seems on track, with the last plenary vote appearing little more than a formality, the EU-Mercosur agreement has been (and will remain in its implementation phase) more complex. The Giuri Law Firm recalls that it is “a trade partnership agreement between the European Union and Mercosur countries (Brazil, Argentina, Uruguay, and Paraguay). Its goal is to create one of the world largest free trade areas, progressively reducing tariffs and trade barriers, boosting European exports, particularly agri-food, wine, and industrial products - to South America”. And, despite ongoing agricultural protests, the new regulatory framework, explains the firm, “incorporates many demands made by European agricultural producers, including activation thresholds based on import volumes and price levels; the ability for the European Commission to intervene quickly in case of market imbalances; accelerated investigations for sensitive agricultural products; and constant monitoring of trade flows”. Particularly, the price drop threshold triggering safeguards has been lowered to 5%, strengthening the alert mechanism, explains the firm. It also highlights the agreement advantages for the food and wine industry: from “opening a market of over 250 million consumers” to “progressive reduction and elimination of tariffs”. Currently, European wines exported to Brazil face tariffs of up to 27% (still wines) and 35% (sparkling wines): “their gradual elimination (within 8 years) will significantly improve competitiveness”. According to Federalimentare estimates, this could mean up to 400 million euros in additional annual exports for Italian products, along with stronger protection for Geographical Indications (57 Italian ones safeguarded). For Italian wine, the agreement offers “growth opportunities in currently underpenetrated markets”, “greater attractiveness of European wine in a historically and culturally receptive area” (with significant immigration of Italian and European origin), and “potential increases in Italian market share, currently limited (around 40 million euros out of 500 million euros in Brazilian wine imports)”. In short, for Italian wine, recalls Giuri emphasizes, echoing the positive reactions of major Italian industry organizations such as Federvini and Unione Italiana Vini - Uiv, “the agreement opens major commercial opportunities, especially for wine and agri-food, introduces new and stronger protection tools compared to the past”, and although “it leaves unresolved the issue of full reciprocity of production standards, it can represent a concrete growth opportunity, provided that the promised safeguard clauses and controls are applied rigorously and continuously”.