Brazil ratifies Mercosur trade agreements with EFTA and Singapore

Brazil has completed the ratification of Mercosur’s free trade agreements with the European Free Trade Association, or EFTA, and Singapore, reinforcing its strategy of expanding market access for Brazilian products.

The ratification instruments were deposited on June 30 with the government of Paraguay, which held Mercosur’s rotating presidency in the first half of the year. The step concludes Brazil’s domestic stage in both processes.

The information was confirmed on Thursday (2) by Brazil’s Foreign Ministry, Ministry of Agriculture, and Ministry of Development, Industry, Trade and Services.

The agreements expand access for Brazilian exports to strategic markets in Europe and Asia and strengthen the country’s policy of diversifying trade partnerships.

European market

Signed in Rio de Janeiro in September 2025, the Mercosur-EFTA agreement covers Iceland, Liechtenstein, Norway and Switzerland. Together with the South American bloc, the agreement creates a market of more than 280 million consumers.

Once the treaty takes effect, about 99% of the value of Brazilian exports to EFTA countries will have preferential market access. In 2025, trade between Brazil and EFTA totaled US$7.8 billion, including US$3.8 billion in Brazilian exports, up 22.9% from the previous year.

The agreement also provides for tariff elimination on nearly all industrial and fishery products, as well as quotas for Brazilian agricultural goods such as meat, corn, honey and vegetable oils.

Brazil currently imports significantly more from the bloc than it exports to it. In the first five months of 2026, Brazil exported a total of 699 TEUs to the bloc, while importing 2,463 TEUs. See below the main goods imported from EFTA:

EFTA Imports | Jan-May 2026 | TEUs

Importações da EFTA | Jan-Mai 2026 | TEUs

Source: DataLiner (click here to request a demo)

Asian access

Signed in December 2023 during the 63rd Mercosur Summit, the agreement with Singapore is the bloc’s first free trade deal with a Southeast Asian country.

For Brazil, the treaty takes effect on August 1 and grants zero tariffs for 100% of Brazilian exports to Singapore.

In 2025, trade between Brazil and Singapore reached US$10.7 billion. Brazilian exports totaled US$7.4 billion, generating a trade surplus of US$4.1 billion. The main products sold included fuel oils, machinery, and beef, pork and poultry.

In addition to tariff reductions, the agreement broadens 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

Both agreements were approved by Brazil’s Congress and enacted in June.

According to the Brazilian government, once Mercosur’s agreements with the European Union, EFTA and Singapore take effect, the share of Brazil’s trade covered by tariff preferences will rise from 12% to 31.2%.

Consultation on Japan

Alongside efforts to expand Brazil’s trade agreement network, the Ministry of Development, Industry, Trade and Services opened a public consultation on Thursday (2) on a possible free trade agreement between Mercosur and Japan.

Contributions may be submitted until August 15 through the Brasil Participativo platform and will be used to help shape Brazil’s position in future negotiations between Mercosur and the Japanese government.

According to the ministry, the initiative seeks to identify opportunities, priorities and potential sensitivities among productive sectors before negotiations begin. Mercosur and Japan together have about 400 million people, a combined gross domestic product of roughly US$7 trillion and bilateral trade of US$11.5 billion in 2025.

Source: Agência Brasil

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