MERCOSUR-Singapore Free Trade Agreement enters into force for Singapore and Paraguay

26 February 2026

On 3 February 2026, the Ministry of Trade and Industry (“MTI”) issued a press release announcing that the MERCOSUR-Singapore Free Trade Agreement (“MCSFTA”) entered into force for Singapore and Paraguay on 1 February 2026. Following the completion of Uruguay’s ratification procedure, the MCSFTA will also enter into force for Singapore and Uruguay on 1 March 2026. Ratification procedures are ongoing for Argentina and Brazil. 

The MCSFTA aims to deepen economic integration between Singapore and South American 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, food supply security, and development of small and medium enterprises. 

The MCSFTA is Singapore’s 29th free trade agreement and first trade deal with the founding MERCOSUR Member States, as well as MERCOSUR’s first free trade agreement with a South-east Asian country. MERCOSUR is an acronym for the Southern Common Market or the Mercado Común del Sur, initially established by Argentina, Brazil, Paraguay, and Uruguay, and subsequently joined by Venezuela (currently suspended) and Bolivia. 

MERCOSUR has a combined gross domestic product of nearly US$3 trillion and a population of over 295 million in 2025. Close to 200 Singapore companies are operating across the MERCOSUR markets and Singapore’s total trade in goods with the four MERCOSUR founding member states amounted to S$11.9 billion, which represented over 30% of Singapore’s total trade with Latin America in 2025. 

Reference materials 

The press release is available on the MTI website www.mti.gov.sg on this webpage.