Brazil broadens Mercosur trade ties with Canada, EFTA and Singapore

Brazil is expanding the Mercosur trade network through new agreements with Canada, the European Free Trade Association (EFTA) and Singapore. The Canada‑Mercosur deal aims to boost bilateral trade, which reached US$10.4 billion in 2025, and to open markets for Canadian fertilizers, cereals, forest products and electric vehicles. Analysts note concerns in Canada about Mercosur‑China ties potentially diverting market share.

In June 2026 Brazil ratified the Mercosur‑EFTA and Mercosur‑Singapore free‑trade agreements, completing the domestic approval stage. The EFTA pact, signed in September 2025, gives preferential access to more than 280 million consumers and is expected to raise the share of Brazilian exports enjoying tariff preferences from 12 % to 31.2 %. Trade with EFTA reached US$7.8 billion in 2025, with a 22.9 % year‑on‑year rise in Brazilian exports. The Singapore agreement, effective 1 August 2026, grants zero tariffs on 100 % of Brazilian exports, covering oils, machinery, and meat products, and includes a pioneering e‑commerce chapter. The Ministry of Development also opened a public consultation on a possible future Mercosur‑Japan agreement.