Rio de Janeiro, Brazil – On September 16, 2025, Mercosur and the European Free Trade Association (EFTA) officially signed a landmark Free Trade Agreement (FTA) in Rio de Janeiro, Brazil. This significant economic alliance was solidified during a meeting of Mercosur foreign ministers, presided over by Brazil's Minister of Foreign Affairs, Mauro Vieira. The EFTA comprises Switzerland, Norway, Iceland, and Liechtenstein, representing a prosperous economic zone with a combined Gross Domestic Product (GDP) of approximately US$4.3 trillion and a population nearing 300 million people.
The comprehensive agreement, which followed 14 rounds of negotiations commencing in June 2017 and concluding in July 2025, is set to eliminate or substantially reduce tariffs on nearly all trade flows, covering an impressive 97% of exports between the member nations. This includes key agricultural commodities such as Brazilian chicken meat, Argentine beef, and Norwegian salmon, heralding a new era of enhanced market access.
Minister Mauro Vieira highlighted the agreement's crucial role in diversifying Mercosur's international economic partnerships and modernizing its existing regional pacts. He emphasized the strategic importance of this diversification in navigating an increasingly complex and unpredictable global economic landscape, particularly in light of recent trade adjustments with the United States. This strategy aims to bolster regional economic resilience and reduce over-reliance on any single market.
The pact is also anticipated to significantly benefit small and medium-sized enterprises (SMEs) by offering them expanded market access and streamlined export procedures, thereby invigorating bilateral trade and yielding tangible advantages for both businesses and consumers across Mercosur and EFTA nations. The agreement's broad scope covers trade in goods and services, investment, intellectual property rights, government procurement, and sustainable development.
Notably, the intellectual property chapter includes the recognition of 63 Brazilian Geographical Indications (GIs), such as Queijo da Canastra and Cachaça, enhancing the value and identity of traditional products. For EFTA, this agreement provides access to a market of over 270 million consumers, while Mercosur countries gain from reduced tariffs and entry into some of the world's most affluent economies. Switzerland, for instance, exported goods worth over CHF 4 billion to Mercosur countries in 2024, a figure expected to see considerable growth due to this agreement, with Swiss companies anticipating substantial tariff savings of over CHF 155 million annually.
The culmination of these negotiations reflects a shared commitment to fostering robust trade relations and promoting sustainable economic development, opening new avenues for growth and cooperation between these distinct yet complementary economic regions.