Paint producers in Europe see an opportunity for exports to the Mercosur countries that focus on higher quality and higher standards, said participants in a recent Spanish government webinar on EU-Mercosur trade.

The webinar was produced by España Exportación e Inversiones (ICEX) on March 10, 2026. It was chaired by Julián Conthe Yoldi, the director general de política comercial within the Ministerio de Economía, Comercio y Empresa, with participation from ICEX offices in Argentina, Brazil, Paraguay and Uruguay.

Less Regulation Equals Lower Prices

Less regulation for paints and coatings in Mercosur leads to lower-priced competition, surmised one participant in the webinar, Gustavo Pita, a Spanish export sales representative of Corporação Industrial do Norte (CIN), based in Maia, Portugal. CIN is identified by Dunn & Bradstreet as the largest paint manufacturer in Portugal.

“It was commented on several occasions [during the webinar] that many industrial products from Mercosur are usually cheaper, partly because they operate under less demanding regulatory frameworks than European ones. This was presented as an opportunity for European companies to be able to offer products with higher standards of quality and certification,” Pita wrote in a LinkedIn post following the webinar.

“However, there is one reality that was not mentioned: our highly regulated products compete in markets where those same requirements are not always required, which in practice means competing against cheaper alternatives,” Pita explained to CW.

“Beyond tariffs, technical regulation and quality standards become a key factor of competitiveness. In many industrial sectors, the real trade barrier is no longer just the tariff, but the regulatory framework under which products compete,” observed Pita.

Regulatory Integration Between EU and Mercosur

The key to more balanced EU-Mercosur trade lies in the progression toward normalized standards between the two, suggested Pita: “In the long term, there could be some convergence in technical standards, although experience shows that these processes tend to be slow and depend more on regulatory and policy decisions than on international trade itself.

“In short, agreements like this can open up many opportunities, but their real impact will depend not only on trade, but also on how regulation, technical standards and industrial integration between Europe and Mercosur evolve,” Pita suggested.

Trade and regulation matters within Mercosur are managed by the Mercosur Secretariat, in Montevideo, Uruguay. In anticipation of the treaty, “The Secretariat’s technical profile has been strengthened with the establishment of several specialized units, including: the FOCEM Technical Unit (UTF), the MERCOSUR Foreign Trade Statistics Technical Unit (UTECEM), the International Cooperation Technical Unit (UTCI), and the MERCOSUR Communication and Information Unit (UCIM),” the Mercosur website states.

Regulation harmonization within the region is managed by the Regulatory and Documentation Sector (SND), in Montevideo. The SND “Compile[s] national regulations through which the Member States incorporated MERCOSUR regulations into their respective national legal systems,” the unit states.

Until this point, the Secretariat has worked at the normalization of member countries in several areas of paint and coatings trade. These include: GMC Res. Nº 39/19 (plastic/polymeric coatings), GMC Res. 48/23 (metal containers), and GMC Res. 40/15 (paper/paperboard coatings), focusing on reducing heavy metals and aromatics.

The most recent Secretariat resolution in the sector involving silicone use in food and materials was announced in December 2025, involving “GMC/Res. No 34/2025 ‘Mercosur Technical Regulation on Silicones for the Manufacture of Materials, Packaging, Coatings and Equipment Intended to Come into Contact with Food’ (Modification of GMC Resolution Nos. 27/99 ‘Adhesives’, 28/99 ‘Positive list for elastomers’ and 02/12 ‘Positive list for plastics’).”

Mercosur Norms Led by Brazil

The EU-Mercosur trade agreement was ratified on Jan. 9, 2026, approving a free trade agreement with Latin America’s Mercosur region, including Brazil, Argentina, Paraguay and Uruguay, affecting some $128 billion in annual two-way trade (see CW January 2026).

The paint and coatings sector in Mercosur, led by Brazil, is already well-regulated in some segments, particularly automotive. “Paint quality in the Mercosur region (primarily Brazil, Argentina, Paraguay, and Uruguay) is characterized by a mix of high-standard industrial coatings, particularly in the automotive and decorative sectors, and stringent, evolving regulatory standards for safety and environmental compliance,” an AI search indicates, citing international trade inspection agency SGS.

Brazil has also been leading the charge for industry quality standards for many years under the national trade association’s Programa Setorial de Qualidade (PSQ-Tintas). This effort by the Associação Brasileira dos Fabricantes de Tintas (Abrafati) is based on the voluntary testing of sample from most paint and coatings manufacturers in the country.

The PSQ “is aimed at combating inferior quality products in the market, ensuring that labeled paints meet the performance requirements in terms of coverage, durability, and resistance. The program maintains strict supervision of the market to ensure consumer protection by requiring manufacturers to adhere to established technical standards [as promulgated by] the Associação Brasileira de Normas Técnicas (ABNT),” Abrafati states.

“In 2024, the scope of industry improvements of the PSQ program included initiatives linked to the Sectoral Sustainability Program (PSS), complementing quality assurance with environmental responsibility,” Abrafati noted.

Trade Growth Potential within EU-Mercosur

The growth of trade in paints and coatings between the EU and Mercosur could be substantial. The Latin America region represents an estimated 8.8% by volume and 7.4% by value distribution of the global paint and coatings industry, according to Chemquest’s June 2025 Global Market Analysis for the Paint & Coatings Industry (2024-2029).

Decorative architectural is the largest segment in Latin America in terms of both volume and value, and is expected to remain a primary market, with Brazil retaining approximately 50% of the regional sales, ChemQuest found.

The largest Mercosur player in the sector, Brazil, imported more than $1.5 billion worth of paints and coatings in 2024, levying import tariffs that typically range from 10% to 35%, according to industry estimates.

Portugal, where Portuguese spoken in Brazil originated, exported an estimated $1.6 million worth of non-aqueous paints and coatings to Brazil in 2024, under Harmonized Code 320890, according to the World Integrated Trade Solution (WITS). Portuguese non-aqueous paint and coatings exports in 2024 to Argentina amounted to $162,000, according to WITS data. Exports to Uruguay in 2024 amounted to $18,000, WITS reported.

Portugal exports of exports of aqueous paints and coatings (HC320910) to Brazil in 2024 were $7,000, WITS data shows.

Spain’s exports of non-aqueous paint and coatings (HS 320890) to the Mercosur region were similar, WITS data show. Exports to Argentina were $2.3 million in 2024, followed by $1.6 million to Brazil, and $205,000 to Uruguay, and $25,000 to Paraguay, WITS data indicates.

Spanish exports of aqueous paints and coatings (HC320910) to countries in the region were $1.4 million to Brazil, followed by $214,000 to Argentina, and $116,000 to Uruguay, WITS data shows.

WITS was developed by the World Bank in collaboration with the United Nations Conference on Trade and Development (UNCTAD) and in consultation with organizations such as International Trade Center, United Nations Statistical Division (UNSD) and the World Trade Organization (WTO).