Brazil ratifies Mercosur trade agreements with EFTA, Singapore
Brazil has completed the ratification of Mercosur’s free trade agreements with the European Free Trade Association (EFTA) and Singapore, reinforcing its strategy to expand markets for Brazilian products.
The instruments of ratification were deposited on June 30 with the government of Paraguay, which held the Mercosur presidency during the first half of the year, thus concluding Brazil’s role in both processes. As a prerequisite for their entry into force, both agreements were approved and enacted by Brazil’s Congress last June.
The information was confirmed on Thursday (Jul. 2) by the Ministries of Foreign Affairs; Agriculture; and Development, Industry, Trade, and Services.
The agreements expand access for Brazilian exports to strategic markets in Europe and Asia and reinforce the country’s policy of diversifying its trade partnerships.
European market
Signed in Rio de Janeiro in September 2025, the Mercosur–EFTA agreement brings together Iceland, Liechtenstein, Norway, and Switzerland, creating a market of more than 280 million consumers when the South American bloc is included.
With the treaty’s entry into force, approximately 99 percent of the value of Brazilian exports to EFTA countries will have preferential market access. In 2025, trade flow (the sum of imports and exports) between Brazil and the bloc reached USD 7.8 billion, with Brazilian exports accounting for USD 3.8 billion - a 22.9 percent increase over the previous year.
The agreement also provides for the elimination of tariffs on virtually all industrial and fishery products, as well as the establishment of quotas for Brazilian agricultural products such as meat, corn, honey, and vegetable oils.
Access to Asian markets
Signed in December 2023 at the 63rd Mercosur Summit, the agreement with Singapore marks the first free trade agreement signed by Mercosur with a Southeast Asian country.
For Brazil, the agreement will take effect on August 1, guaranteeing zero tariffs on 100 percent of Brazilian exports destined for Singapore.
In 2025, trade between Brazil and Singapore reached USD 10.7 billion. Brazilian exports totaled USD 7.4 billion, resulting in a trade surplus of USD 4.1 billion. Main export products included fuel oils, machinery, and meat (beef, pork, and poultry).
In addition to tariff reductions, the agreement expands access to the services market, encourages investment, and includes a specific chapter on e-commerce - the first negotiated by Mercosur with a partner outside the region.
Trade gains
According to the Brazilian government, once Mercosur’s agreements with the European Union, EFTA, and Singapore enter into force, the share of Brazilian trade benefiting from tariff preferences will rise from 12 percent to 31.2 percent.
Consultation with Japan
In parallel with the expansion of its network of trade agreements, the Ministry of Development, Industry, Trade, and Services launched a public consultation on Thursday (2) on a potential free trade agreement between Mercosur and Japan.
Comments may be submitted through August 15 via the Brasil Participativo platform and will serve as the basis for Brazil’s position in the bloc’s future negotiations with the Japanese government.
According to the ministry, the initiative aims to identify opportunities, priorities, and potential sensitivities within productive sectors before negotiations begin. Mercosur and Japan have a combined population of about 400 million, a combined gross domestic product (GDP) of approximately USD 7 trillion, and generated USD 11.5 billion in trade in 2025.
