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

27 March 2026

On 2 March 2026, the Ministry of Trade and Industry (“MTI”) announced that the Free Trade Agreement between the Southern Common Market (“MERCOSUR”) and Singapore (“Agreement”) entered into force, on a bilateral basis, between Uruguay and Singapore on 1 March 2026. This constitutes a significant milestone for MERCOSUR as it strengthens its international integration and opens a strategic gateway to the Asia Pacific region, while consolidating Singapore as a key partner in deepening economic ties with Latin America.

The Agreement represents an important step in Uruguay’s strategy to diversify markets and strengthen its international economic projection, particularly towards South-east Asia. It is Singapore’s first trade deal with the founding MERCOSUR member states. The new-generation Agreement incorporates modern disciplines in trade in goods and services, investment, government procurement, intellectual property, electronic commerce, and micro, small, and medium-sized enterprises. Its implementation is expected to contribute to increased bilateral trade, enhanced regulatory predictability, and the creation of favourable conditions to attract investment.

In the area of trade in goods, the Agreement provides for the elimination of import tariffs by MERCOSUR on approximately 96% of products within a period of up to 15 years, with more than 25% of tariff lines liberalised immediately. It also strengthens cooperation in sanitary matters and non-tariff measures, facilitating effective market access.

Reference materials

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