Mercosur-EFTA deal to lift trade ties between Brazil and Norway, eliminate tariffs

The recently concluded free trade agreement between Mercosur and EFTA — the European Free Trade Association, comprising Norway, Switzerland, Iceland, and Liechtenstein — is expected to strengthen commercial ties between Brazil and Norway, particularly in the agribusiness sector. The deal, finalized in July, is set to be signed later this year.

The agreement will reduce or eliminate import tariffs on a wide range of goods, from apples to crude oil, and simplify customs procedures. In some cases, it will introduce duty-free export quotas.

“Brazil is Norway’s top trade partner outside the EU and the U.S. Over 200 Norwegian companies operate in Brazil, and their ongoing investments in the country are expected to grow,” said diplomat Kjetil Elsebutangen, who will take up his post as Norwegian ambassador to Brazil on December 1.

Elsebutangen, a former journalist with 15 years of experience covering international relations and defense, previously worked in Brussels — home to major EU institutions and NATO headquarters.

One concrete example of trade potential is Norwegian salmon. While Brazilians are more familiar with Norwegian cod, especially during festive seasons like Easter, salmon is actually the star product of Norway’s fishing industry. Currently, a 10% tariff is levied on Norwegian salmon entering Mercosur. Under the new agreement, these duties will gradually drop to zero.

In return, Mercosur’s poultry — one of Brazil’s leading animal protein exports — will gain a quota for tariff-free entry into the Norwegian market. At present, Norway does not export fresh salmon to Brazil nor import Brazilian poultry.

Norwegian exports to Mercosur currently exceed R$6 billion. The Brazilian government estimates that by 2044, the EFTA deal will contribute R$2.69 billion to Brazil’s GDP and attract R$660 million in new investment.

However, according to Elsebutangen, the deal’s benefits extend beyond trade. “This agreement sends an important political message — that multilateralism and the rule of law deliver tangible benefits. That message is even more crucial in today’s polarized world,” he noted.

Elsebutangen emphasized that Norway’s high standard of living and development would be impossible without international cooperation. “Norway’s security, economy, and social welfare depend on a functional multilateral system. When that system is under pressure, Norway’s interests are directly affected,” he added.

Ragnhild Sjoner Syrstad, Norway’s Deputy Minister for Trade, Industry, and Fisheries, cited opportunities in sectors such as fisheries and fertilizers, while echoing the importance of multilateral stability: “Just the existence of the agreement brings predictability and stability. That alone could help companies uncover opportunities that we don’t even know about yet,” she said.

The journalist traveled at the invitation of Yara and Innovation Norway.

Source: Globo Rural

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