Brazil completes ratification of Mercosur free‑trade deals with EFTA and Singapore

Brazil finalized the ratification of Mercosur’s free‑trade agreements with the European Free Trade Association (EFTA) – comprising Iceland, Liechtenstein, Norway and Switzerland – and with Singapore. The ratification instruments were deposited on 30 June with the Paraguayan government, concluding Brazil’s part of the processes. The agreements were confirmed by the ministries of Foreign Affairs, Agriculture and Development, Industry, Trade and Services.

Both deals grant near‑zero tariffs for virtually all Brazilian exports. The EFTA pact, signed in Rio de Janeiro in September 2025, gives preferential access to about 99 % of the value of Brazil’s exports to the four European partners, with 2025 bilateral trade reaching US$ 7.8 billion (US$ 3.8 billion in exports). The Singapore agreement, signed in December 2023, enters into force on 1 August 2024 and provides a 0 % tariff rate for 100 % of Brazilian exports, with 2025 trade amounting to US$ 10.7 billion.

The government says the share of Brazil’s trade benefiting from preferential tariffs will rise from roughly 12 % to 31.2 % once the new agreements are active. In parallel, the Ministry of Development, Industry, Trade and Services opened a public consultation until 15 August on a prospective Mercosur‑Japan free‑trade agreement, which could affect up to 18.4 % of Brazil’s export basket (about US$ 1.7 billion). Japan‑Brazil trade in 2025 was US$ 11.5 billion, with combined GDP of the two blocs around US$ 7 trillion.