30 January 2024

On 7 December 2023, Minister for Foreign Affairs Dr Vivian Balakrishnan and Ministers from the four MERCOSUR Member States signed the MERCOSUR-Singapore Free Trade Agreement (“MCSFTA”) at the 63rd Summit of Heads of State of MERCOSUR and Associate States in Rio de Janeiro, Brazil.

MERCOSUR is a Latin American bloc comprising Argentina, Brazil, Paraguay, and Uruguay. Collectively, it represents the eighth largest economy in the world, with a combined GDP of US$2.7 trillion and a market of 272 million people.

The signing of the MCSFTA follows from the announcement by Singapore and MERCOSUR of the substantial conclusion of negotiations in July 2022. The MCSFTA is the first trade deal between the MERCOSUR Member States and Singapore, and MERCOSUR’s first free trade agreement with a South-east Asian country. It is expected to deepen economic integration between these economies by facilitating greater trade flows through lowered tariff rates, establishing transparent and predictable investment conditions, and fostering cooperation in areas such as trade facilitation, entrepreneurship, digitalisation, sustainable development, security of food supply, and small and medium-sized enterprise development.

The parties will now work on their respective domestic ratification processes to bring the MCSFTA into force.

Reference materials

The press release issued by the Ministry of Foreign Affairs and the Ministry of Trade and Industry is available on both Ministry websites, www.mfa.gov.sg and www.mti.gov.sg.