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[BUSINESS] · Brazil, Iceland, Liechtenstein, Norway, Switzerland · 19 sources

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Brazil promulgates Mercosul-EFTA Free Trade Agreement

President Luiz Inácio Lula da Silva has promulgated the Free Trade Agreement between Mercosul and the European Free Trade Association (EFTA) via Presidential Decree No. 13.126. The agreement aims to expand trade and investment flows between the two blocs, which represent a combined market of 290 million consumers and a GDP of approximately US$ 4.3 trillion.

For Brazil, the treaty is expected to facilitate access to EFTA markets for national products, including agricultural goods like roasted coffee, which currently faces tariffs in Iceland, Switzerland, and Liechtenstein. The agreement provides for the reduction or elimination of tariffs, quotas, and specific agricultural regimes, as well as the reduction of technical barriers and unnecessary sanitary and phytosanitary measures.

Beyond trade in goods, the pact includes commitments regarding intellectual property, sustainable development, environmental protection, biodiversity, and human rights. It also establishes mechanisms for the recognition of geographical indications and improves access to government procurement markets.

Legally, the agreement enters into force for Brazil and Iceland on October 1, 2026, and for Brazil and Norway on November 1, 2026. Implementation for Switzerland and Liechtenstein depends on their respective internal processes.

Entities

Brasil · Brazil · EFTA · Luiz Inácio Lula da Silva · Lula da Silva · Mercosul · Ministry of Development, Industry, Trade and Services · Márcio Elias Rosa

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