Mercosur consolidated progress on its trade negotiations agenda by taking a new step beyond its regional scope. This Tuesday (September 16.09, 2025), in Rio de Janeiro, Brazil, the member states of the South American bloc (Argentina, Brazil, Paraguay, and Uruguay) and the member states of the European Free Trade Association (EFTA) (Iceland, Liechtenstein, Norway, and Switzerland) signed a Free Trade Agreement (FTA).
Joint declaration
According to the joint statement released by the Secretariat of MERCOSUR, The agreement will create a free trade area covering nearly 300 million people, with a combined GDP exceeding USD 4,3 trillion, improving market access for more than 97% of both regions' exports. Furthermore, it is expected to generate increased bilateral trade and new opportunities for businesses, including small and medium-sized enterprises, with greater predictability and legal certainty.
The agreement reflects both blocs' commitment to multilateral trade and the WTO, respecting its rules and contributing to the harmonious development and expansion of global trade.
Comprehensive scope
The agreement comprehensively covers the following details.
- Trade in goods and services.
- Investments and intellectual property rights.
- Public procurement and competition.
- Rules of origin, trade defense, and sanitary and phytosanitary measures.
- Technical barriers to trade.
- Dispute resolution.
- Chapter on trade and sustainable development, with its corresponding understanding. In a nutshell, this chapter unprecedented It integrates trade, labor, and the environment, ensuring that the economic development promoted by the FTA complies with labor, environmental, and sustainability standards. It also establishes mechanisms for cooperation between the parties and specific consultation procedures and expert panels for resolving conflicts related to these issues.
Historic FTA and bilateral trade
This comprehensive FTA marks a historic step in biregional integration, consolidating MERCOSUR and EFTA as strategic partners in global trade. According to the official figuresIn 2024, bilateral trade showed a relative balance: South American exports to Europe totaled USD 4,8 billion and imports USD 5,1 billion, representing between 1% and 1,5% of the bloc's total flows. The main exported products were gold for non-monetary use (51%), calcined alumina (23%), and soybeans excluding sowing (3%), while imports included medicines, machinery, and immunological products.
Negotiations, which began in July 2017 in Buenos Aires, took place over 14 rounds and, starting in 2025, intensified to update the treaty with the progress made through 2019. The final phase included three in-person rounds in Buenos Aires and several virtual meetings, culminating now with the signing in Brazil.
Both blocs seek to ensure the rapid ratification of the FTA and its prompt entry into force, consolidating a solid framework for economic cooperation between South America and Europe.
◼MERCOSUR-EFTA Free Trade Agreement. here
◼ Joint Declaration, here
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