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

27 August 2026

On 1 August 2026, the Ministry of Trade and Industry (“MTI”) announced that the MERCOSUR-Singapore Free Trade Agreement (“MCSFTA”) entered into force for Singapore and Brazil on 1 August 2026.

The signatories to the MCSFTA are Argentina, Brazil, Paraguay, Uruguay, and Singapore. Earlier in the year, the MCSFTA entered into for Singapore with Paraguay on 1 February 2026 and with Uruguay on 1 March 2026. Ratification procedures are ongoing for Argentina.

The MCSFTA aims to deepen economic integration between Singapore and the four 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, government procurement, entrepreneurship, digitalisation, sustainable development, food supply security, and development of small and medium enterprises.

Under the MCSFTA, MERCOSUR will eliminate import tariffs 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 greater market access.

As highlighted in the MTI press release, this development is a significant milestone in Singapore’s economic engagement with Latin America, with Brazil being MERCOSUR’s largest economy and one of Singapore’s largest trading partners in Latin America, while Singapore is Brazil’s largest trading partner in South-east Asia. The agreement also builds on the strong momentum in Singapore-Brazil economic cooperation over the past year and further strengthens bilateral relations as both countries look ahead to commemorating 60 years of diplomatic relations in 2027.

Reference materials

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