The ratification by the Council of the European Union of the trade agreement with Mercosur, after more than 25 years of negotiations, represents one of the most important milestones in trade policy in recent decades for Argentina and its regional partners (Brazil, Uruguay and Paraguay). The agreement seeks to eliminate tariff barriers and create a framework of clear rules for bilateral trade, substantially expanding Mercosur exporters’ access to a market of more than 700 million consumers with high purchasing power.

For Argentina, traditionally characterized by a strong agro-industrial base, the agreement represents a historic opportunity for export expansion: it provides for the elimination of tariffs for 92% of Mercosur’s exports to the European Union and additional preferences for other goods.

However, beyond the classic commercial impact -greater exports, reduction of tariff costs and opening of markets-, the agreement has broader structural implications, linked to the transition towards low-carbon economies, digital transformation and the development of the knowledge economy, where the Argentine software industry appears as a strategic player.

Integration with environmental standards and pressure to measure emissions

Although the agreement does not establish a joint carbon market or impose an explicit climate policy, it is part of an international context in which the European Union is strengthening trade-related environmental regulations. A central example is the Carbon Border Adjustment Mechanism (CBAM), which taxes imports of emission-intensive goods under the “polluter pays” principle, with definitive compliance obligations as of January 1, 2026 for sectors such as iron, steel, cement, aluminum, fertilizers, hydrogen and electricity.

This regulatory framework encourages Argentine and Mercosur producers to measure, report and reduce the carbon footprint of their production processes, and those sectors that cannot demonstrate environmental efficiency will face higher costs in accessing the European market. Although the CBAM is independent of the trade agreement, the treaty creates a deeper integration platform that pushes for alignment with global environmental standards.

In this context, the digitization of environmental and risk management becomes a key enabler: the ability to collect data, audit processes and report reliable information is as relevant as the technological improvement itself.

Opportunities for green technology, knowledge-based services and exportable software

Expanded access to the European market not only benefits traditional physical goods, but also knowledge-intensive services, particularly those associated with technology, sustainability, traceability, energy efficiency and environmental management.

The Argentine software industry, with experience in exporting services, qualified human resources and competitive relative costs, is well positioned to offer digital solutions to medium and large European companies that are affected by environmental and reporting regulations, such as the Corporate Sustainability Reporting Directive (CSRD), mandatory as of 2026 for non-listed companies above certain size and volume thresholds.

Emissions measurement platforms, environmental risk management, CSRD reporting systems, supply chain traceability solutions, waste management and energy efficiency are emerging as high value-added exportable services.

In this sense, the EU-Mercosur agreement not only facilitates trade in goods, but also reinforces the demand for digital solutions that allow European and Latin American companies to comply with environmental standards, opening a window for software developed in Argentina to be integrated into global value chains.

Incentives for carbon markets and digital compliance solutions

The agreement creates a favorable environment for the development of domestic carbon pricing mechanisms, both voluntary and compliance. The need for transparency, measurement and verification of emissions accelerates the demand for reliable digital tools.

Here again a concrete opportunity arises for the software industry: environmental SaaS, MRV (Measurement, Reporting and Verification) platforms, mitigation project tracking systems and digital solutions for carbon markets can scale from the local market to Europe, accompanying the growing regulatory sophistication.

The European drive for sustainability acts as a market signal for private investors and multilateral agencies, which prioritize projects and technologies with technical backing, verifiable data and international integration potential.

Risks, challenges and regulatory balance

The agreement also poses challenges, where emissions-intensive sectors or those with low technological adoption may face greater competitive pressures. There is a risk that increased trade will generate negative environmental impacts if it is not accompanied by robust policies on control, land management and prevention of deforestation.

For the knowledge economy, the challenge is to align standards, information security and regulatory frameworks so that Argentine software can operate and integrate without friction in highly regulated European markets. This reinforces the need for close coordination between trade policy, environmental policy and innovation and development policy.

Conclusion

For Argentina, the agreement with the European Union represents a strategic window that goes beyond traditional trade. Convergence with a partner committed to a low-carbon transition and advanced environmental regulations generates incentives to modernize production processes, adopt clean technologies and strengthen carbon mechanisms.

In this context, the Argentine software industry emerges as a key player to transform environmental requirements into economic opportunities, exporting digital services that facilitate the measurement, management and reduction of negative environmental impacts. The articulation between trade, sustainability and knowledge economy can become one of the pillars of a smarter and more resilient international insertion for the country’s technological competitiveness.

Note by: Alejandro Diz Ramos – Manager Digital Sustainability Solutions SMS Sudamérica