Mercosur and EFTA sign free trade deal in Brazil

The Member States of Mercosur (Argentina, Brazil, Paraguay, and Uruguay) and the States of EFTA (Iceland, Liechtenstein, Norway, and Switzerland) signed a Free Trade Agreement (FTA) on September 16, 2025, in Rio de Janeiro, Brazil.

On behalf of Mercosur, the agreement was signed by Argentina’s Minister of Foreign Affairs, International Trade, and Worship, Gerardo Werthein; Brazil’s Minister of Foreign Affairs, Mauro Vieira; Uruguay’s Minister of Foreign Affairs, Mario Lubetkin; and Paraguay’s Vice-Minister of Economic Relations and Integration, Patricia Frutos. Representing EFTA were Switzerland’s Vice President, Guy Parmelin; Iceland’s Minister of Culture, Innovation, and Higher Education, Logi Már Einarsson; Norway’s Minister of Trade and Industry, Cecilie Myrseth; and Ambassador Frank Buechel on behalf of Liechtenstein.

The agreement will establish a free trade area covering nearly 300 million people and a combined GDP exceeding US$4.3 trillion. According to the text, more than 97% of exports from both blocs will benefit from improved access, which is expected to expand bilateral trade and create opportunities for businesses of different sizes, including small and medium-sized enterprises.

The FTA will include measures to facilitate customs procedures, improve rules for goods and services, and increase predictability and legal certainty for trade between the parties. The text also outlines cooperation on investment, intellectual property rights, government procurement, competition, rules of origin, trade defense, sanitary and phytosanitary measures, and technical trade barriers. It further establishes a dispute settlement mechanism and a chapter on trade and sustainable development, accompanied by a Memorandum of Understanding.

Negotiations began in June 2017 in Buenos Aires and included 14 rounds before the conclusion of the agreement. Since early 2025, both sides have accelerated discussions to update provisions in line with recent developments. The final stage included three in-person negotiation rounds in Buenos Aires, complemented by online meetings.

The Member States of Mercosur and EFTA have stated their intention to ratify the agreement without delay and ensure its entry into force as soon as possible.

Source: DatamarNews

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