MERCOSUR, EFTA sign free trade agreement

Brazilian Vice President Geraldo Alckmin said the agreement strengthens multilateralism and free trade amid global instability.

MERCOSUR (Argentina, Brazil, Paraguay, and Uruguay) and EFTA (Iceland, Norway, Switzerland, and Liechtenstein) have a combined GDP of more than 4.3 trillion USD.

Over 97% of exports from both sides will benefit under the agreement, which promises to boost trade and bring advantages to most businesses and consumers. EFTA is expected to immediately eliminate 100% of import tariffs on industrial and fishery products from MERCOSUR once the agreement takes effect. MERCOSUR will have 15 years to gradually reduce tariffs on most industrial products from its European partners. EFTA has agreed to grant immediate tariff preferences for MERCOSUR’s key agricultural exports – coffee, beef, poultry, pork, ethanol, and wine.

To take effect, the deal must be ratified by the parliament of each country, which could take until the end of 2026 or even longer.

In 2024, trade between Mercosur and EFTA exceeded 7.1 billion USD.