Ep. 2463 Lamberto Frescobaldi | On the Road with Stevie Kim
On the Road with Stevie Kim
Episode Summary
<think> I need to create a concise content analysis of the provided podcast transcript about the EU-Mercosur trade agreement, focusing on Italian wine producers. The analysis should follow a specific format with sections for Key Themes, Summary, Key Takeaways, Notable Quotes, and Follow-up Questions. First, let me understand what the podcast transcript is about: The podcast features an interview with Lamberto Frescobaldi, who is the president of Union Italiana Vini (Italian Wine Union). They're discussing the EU-Mercosur trade agreement and its implications for Italian wine producers. Mercosur refers to the trade bloc comprising Argentina, Brazil, Paraguay, and Uruguay (note: the transcript incorrectly mentions Mexico as part of Mercosur, but Mexico is not part of Mercosur - it's part of a separate agreement). Key points from the transcript: - The agreement will eliminate tariffs on Italian wine exports to Mercosur countries, which currently face 35% duties - The tariff reduction will happen gradually over 8 years (though some sparkling wines above $8 will see immediate tariff elimination) - Mercosur includes countries with large populations (Brazil, Argentina, etc.) that together with EU would cover about 700 million people - Currently, South America imports only 0.6% of Italian wine production, but this could grow to 3-4% which would be significant - The agreement also opens EU markets to Mercosur agricultural products (like poultry), which concerns some European producers - Frescobaldi argues Europe should focus on value-added transformation rather than raw materials - Small wineries can also benefit from the agreement through specialized importers - The agreement includes sustainability and food safety commitments - The agreement is imminent but still needs to be signed Now, I'll cross-reference this with the search results to ensure accuracy: From search result [1] and [2], I see that: - The EU and Mercosur reached a political agreement in December 2024 - The Commission transmitted the agreement to the Council in September 2025 - It's described as eliminating tariffs on over 91% of EU goods exported to Mercosur - The agreement covers a market of over 750 million consumers From search result [3]: - The agreement would involve a population of 780 million - It would eliminate 93% of tariffs to the EU from Mercosur and 91% of tariffs on EU exports to Mercosur - For wine specifically, it would remove duties that are currently at high levels From search result [5]: - The agreement includes protections for geographical indications (GIs) for European products - It has provisions related to deforestation-free products Now I'll create the content analysis following the requested format: **Content Analysis** **Key Themes** 1. Tariff elimination for Italian wine exports to Mercosur countries (currently 35% duties) 2. Gradual implementation timeline (8 years for full tariff elimination) 3. Market expansion opportunities for Italian wine producers in South America 4. Concerns about competition from Mercosur agricultural products in EU markets 5. Differentiated opportunities for both large and small Italian wineries **Summary** The podcast features Lamberto Frescobaldi, president of Union Italiana Vini, discussing the EU-Mercosur trade agreement's implications for Italian wine producers. The agreement, which eliminates current 35% tariffs on Italian wine exports to Mercosur countries (Argentina, Brazil, Paraguay, Uruguay), represents a significant market opportunity despite gradual implementation over 8 years. While currently South America imports only 0.6% of Italian wine production, Frescobaldi believes this could grow to 3-4%, which would be economically meaningful. He addresses concerns about Mercosur agricultural products entering EU markets, arguing Europe should focus on value-added transformation rather than raw materials production. Frescobaldi emphasizes that both large and small wineries can benefit through specialized import channels, and notes the agreement includes sustainability and food safety provisions. The agreement is described as imminent but still requires formal signing. **Key Takeaways** - Current 35% tariffs on Italian wine exports to Mercosur will be gradually eliminated over 8 years (with some exceptions for premium sparkling wines) - South American market currently represents only 0.6% of Italian wine exports but has potential to grow significantly - The agreement creates opportunities for both large and small Italian wineries through specialized import channels - European producers express concerns about Mercosur agricultural products (like poultry) entering EU markets - The agreement includes provisions for food safety standards and sustainability commitments - Cultural exchange and maintaining Italian identity while expanding globally are emphasized as important aspects **Notable Quotes** - "If, from one side, we're opening the door, they are opening the door to our products that have been transformed, like cheese, like wine, especially up to now, they are taxed with thirty five percent duties, and those are gonna go slowly but surely down to zero." - "We have to become more and more good on transforming rather than only do raw materials. This is difficult. But is putting us quite a lot of pressure indeed. But if we want to have the standard of life that we've been enjoying these days, we have to become even better on transforming." - "You wake up in the morning and you start running like hell, and you can get any place." **Follow-up Questions** 1. How will the EU ensure that Mercosur agricultural products entering European markets meet the same environmental and food safety standards as EU-produced goods? 2. What specific support mechanisms are being developed to help small Italian wineries navigate and capitalize on the new Mercosur market opportunities? 3. How does the timeline for implementation of the EU-Mercosur agreement compare with other recent EU trade agreements, and what factors influenced this particular timeline? Let me check the word count and make sure it fits within the 800-word limit. The analysis should be concise and follow the format exactly as requested. I'll make sure to keep it under 800 words total. </think> **Content Analysis** **Key Themes (max 5 points)** 1. Tariff elimination for Italian wine exports to Mercosur countries (currently facing 35% duties) 2. Gradual implementation timeline (8 years for full tariff elimination, with some exceptions) 3. Market expansion potential for Italian wine in South America (currently only 0.6% of exports) 4. Concerns about Mercosur agricultural products entering EU markets (particularly poultry) 5. Differentiated opportunities for both large and small Italian wineries in the new market **Summary (max 200 words)** The podcast features Lamberto Frescobaldi, president of Union Italiana Vini, discussing the EU-Mercosur trade agreement's implications for Italian wine producers. The agreement eliminates current 35% tariffs on Italian wine exports to Mercosur countries (Argentina, Brazil, Paraguay, Uruguay), representing a significant market opportunity despite gradual implementation over 8 years. While South America currently imports only 0.6% of Italian wine production, Frescobaldi believes this could grow to 3-4%, which would be economically meaningful. He addresses concerns about Mercosur agricultural products entering EU markets, arguing Europe should focus on value-added transformation rather than raw materials production, noting examples like Brazilian-raised zebu cattle transformed into premium Italian products. Frescobaldi emphasizes that both large and small wineries can benefit through specialized import channels, with some premium sparkling wines seeing immediate tariff elimination. The agreement includes sustainability and food safety provisions, though Frescobaldi notes these require proper implementation. Described as imminent but still requiring formal signing, the agreement represents both economic opportunity and cultural exchange, with Frescobaldi advocating for openness while maintaining Italian identity in global markets. **Key Takeaways (max 6 points)** - Current 35% tariffs on Italian wine exports to Mercosur will be gradually eliminated over 8 years, with premium sparkling wines above $8 seeing immediate duty removal - South American market currently represents only 0.6% of Italian wine exports but has potential to grow to 3-4%, which would be economically significant - The agreement creates specialized opportunities for small wineries through dedicated import channels, not just large producers - European agricultural sectors express concerns about Mercosur competition, particularly in poultry where production costs are lower - The agreement includes provisions for food safety standards and sustainability commitments that must be properly implemented - Cultural exchange and maintaining Italian identity while expanding globally are emphasized as crucial aspects of the agreement **Notable Quotes (max 3)** - "If, from one side, we're opening the door, they are opening the door to our products that have been transformed, like cheese, like wine, especially up to now, they are taxed with thirty five percent duties, and those are gonna go slowly but surely down to zero." - "We have to become more and more good on transforming rather than only do raw materials... if we want to have the standard of life that we've been enjoying these days, we have to become even better on transforming." - "You wake up in the morning and you start running like hell, and you can get any place." **Follow-up Questions (max 3)** 1. How will the EU enforce the deforestation-free product requirements mentioned in search results for Mercosur agricultural imports under this agreement? 2. What specific support mechanisms are being developed to help small Italian wineries navigate the regulatory and logistical challenges of entering Mercosur markets? 3. How does the implementation timeline for the EU-Mercosur agreement compare with other recent EU trade agreements, and what factors influenced this particular phased approach?
About This Episode
The EU Mecosur trade agreement between the European and Central South American countries is important for Italy, France, Spain, and Mexico, and will soon go down quickly. The agreement is important for Italy, France, Spain, and Mexico, and will allow small and family-owned wineries to enter the market. The importance of transformation and thanking Italian immigrants and being ambassadors of Italian products is also discussed. The agreement includes commitments on sustainability and food safety, and is a positive economic opportunity for small and family-owned wineries. The importance of being open and friendly is emphasized, and travelers should leave their suits empty to rejoin the world.
Transcript
Mercosur is the agreement between Europe and the central slash South America. So we are talking about countries, large and important as population like Brazil, Argentina, and also Mexico. So we're talking about a large population that together with Europe, it will touch seven hundred million people. That's important because we have experienced, in these months, all discussion with the United States about tariffs. So Mercosur has been planned this discussion with Europe And especially with, those countries like France, Italy, Spain, why? Because, if, from one side, we're opening the door, they're opening the door to our products that have been transformed, like cheese, like wine, especially up to now, they are taxed with thirty five percent duties, and those are gonna go slowly but surely down to zero. It's gonna take some time. Welcome to another episode of on the road edition, hosted by Stevie Kim. Each week, Stevie travels to incredible wine destinations interviewing some of the Italian wine scene's most interesting personalities, talking about wines, the foods as well as the incredible travel destinations. So welcome, everyone, and thanks for joining us today. Hello. Hello. It's only in English. Only in English. Unless you want to do in, like, Swahili or Chinese. I'm gonna I'm gonna try to polish my English. Okay. Excellent. Where are you, by the way? I'm in Oregon. This lovely winery called Domaine Roy. Oh, it's the one you just purchased, right, recently? Quite recently was, in, in July twenty twenty three. Okay. So that's very exciting. Of course, you wear many hats. Right? You're a frescovalee or in Elaya. You're a macedo. Now you have this winer in Oregon. Of course, you're you're a lot of things, and you wear different hats. But today, I absolutely need to speak to you as, Linda D'ofrescobali, the president of, uni, EKallana Vini, right, to talk about this brand new EU Mecosur trade agreement for Italian wine producers above all. Right? So Yep. What we'd like to do is to talk about a few things very briefly because I know you're from us for time, but understand what Mercosur is and they recognize the significance of the agreement. First of all, so many people may not know what exactly Mercosur. I didn't even say that is And, why is this agreement so important to Europe and for Italy? I mean, is the agreement be between Europe and the central slash South America. So we are talking about countries, large and important as population like Brazil, Argentina, and also Mexico. So we're talking about a large population that together with Europe, it will catch seven hundred million people And, why is this important? Is this important? Because we need, we have seen we have experienced in these, in these months all the discussion with the United States about tariffs we need. I think the tariffs, as many people know, harm who is receiving them, but also who is getting who is doing them. Because, prices, they go up, then at the end is the patient. So Melkazur has been endless discussion. Of course, is an endless discussion with Europe, and especially with, those countries like France, Italy, Spain, why? Because if, from one side, we're opening the door, they are opening the door to our products that have been transformed, like cheese, like wine, especially at up to now the tax that with thirty five percent duties, and those are gonna go slowly but surely down to zero. It's gonna take some time eight years that we know. Oh, eight years. Okay. I didn't realize that because I downloaded, actually, my colleague, manuela, she downloaded these pages and pages from the, which is the European com from the European Commission. So it it's actually very long. Right? So I but it it doesn't say it's going to take eight years. Yeah. There there's gonna be some wines like sparkling wine with prices above eight dollars. And that tariff is gonna go to zero right away. But straight away. Straight away. Champagne and steel wines. Right. From thirty five, they're gonna go down step by step So nobody has to get too excited about it, but at least there is a a light, the end of the tunnel. And so the tariff that's gonna go down is gonna be a great opportunity for us, but also for them because they they will sell to us also their products. What is the concern for some, some of us, some French, and some Italians and also some Spanish, especially people that are doing raw materials, people that are doing chicken, for example, poultry, poetry is something that water is a lot, Europeans because, everything, hand labor in South America is cheaper, and so they're gonna come at the cheaper prices. I want to, however, say that we buy a lot of poultry, for example, from from Thailand, from Asia, well, much cheaper. So we have to face that in Europe, if we want to have a certain standard of life, we need to become more and more specialized on transforming. So when we transform, for example, a terrific product from Italy that is made with meat from, Brazil is No. Is that right? Indeed. Oh, I didn't know that. Indeed. I know it was coming from, like, Pemonteis. Not really. It comes from an animal that is raised in Brazil. It's called zebu. And because it's very has no fat whatsoever, the meat is is tender is delicious, comes to Italy, it becomes and then is sold all around the world. So we are actually doing, have important markup on the transformation, and then it goes around the world. So we have to become more and more good on transforming rather than only do raw materials. This is, difficult. Slash is putting us quite a lot of pressure indeed. But if we want to have the standard of life that we've been enjoying these days, we have to become even better on transforming. If not, we're gonna be wiped out. So listen, my question includes other stronger wine producing countries like Argentina, Chile. So how can Italian wines stand out in such a competitive environment? Look, I've seen over my experience in my life. Going around the world. Pretty much in my life, I always gone in countries where wine is produced and wine is consumed. So Mhmm. They rarely I go in places where there is no vineyards. And there is something magic about wine is that where you produce wine, you pop cork, and you don't only open bottles of that location, but you also enjoy wines from other parts of the world. So, also, thanks to the amazing, amazing courage. Because I always speak about the Italians having an amazing courage. They left Italy. They went around the world as immigrants. They left in poverty, and and they became some somebody and someone around the world, having tremendous success and becoming ambassadors of Italian. So we in Italy have to always thank them excessively and say, every time, thank you very much for your dedication. So those people that are ambassadors of products Italy. I don't think that once from any parts of Italy because, no one was much luckier than others. So we have Italians that left Italy from all over Italy. And so they took their experience, their passion of Italian products around the world, and they have become our ambassador, opening delicates and and restaurants. And so, yes, there is a great opportunity with them. They're not gonna be a huge market. Up to now, Saving. Miricazu, before having this duty, very strong. All of South America used to import zero point six percent of our production. So it's relatively tiny. Is tiny. But may go if it only becomes three percent, four percent, it's gonna be relevant. Yeah. It's gonna be significant. Yeah. Indeed. It's gonna be significant. So so let's don't underestimate. This market and things do change very, very rapidly. So those countries that one day they were a little bit difficult in terms of richness are not anymore. They're actually very wealthy country think at Sao Paulo in Brazil is very, very wealthy city, and there are opportunities for, products or anything. Of course, I'm talking as, president, you know, for, you kn
Episode Details
Keywords
Related Episodes
Ep. 2460 Cotarella Confidential: A heart-to-heart with Enrica Cotarella | On the Road with Stevie Kim
Episode 2460
Ep. 2421 Gianpaolo Giacobbo of Walk on the Wine Side | On the Road with Stevie Kim
Episode 2421
Ep. 2414 Michele Noal President of Consorzio Asolo Prosecco | On the Road with Stevie Kim
Episode 2414
Ep 2408 Antonello De Riu, Ambassador of Italy to the Republic of Kazakhstan | On the Road with Stevie Kim
Episode 2408
Ep. 2395 Spain's Ribera del Duero with Almudena Alberca MW | On the Road with Stevie Kim
Episode 2395
Ep 2389 Lia Tolaini Banville of Banville Wine Merchants | On the Road with Stevie Kim
Episode 2389