Singapore and Mercosur substantively conclude Free Trade Agreement Negotiations

By Pittaluga Abogados

Singapore and Mercosur have substantively concluded negotiations on the Mercosur-Singapore Free Trade Agreement (MCSFTA). Singapore Minister for Trade and Industry Gan Kim Yong and Mercosur Ministers jointly announced the news via videoconference on the sidelines of the Mercosur Summit 2022 held in Paraguay.

The MCSFTA is a comprehensive agreement with commitments by Singapore and Mercosur to provide greater access to each other’s markets, through lower tariff rates on products traded, enhanced market access for services that companies provide, and opportunities for companies to access government procurement projects.

The MCSFTA will facilitate greater flows in investment, knowledge and innovation for people and enterprises. Beyond direct economic benefits, the MCSFTA will include cooperation initiatives that facilitate institutional linkages and capacity building efforts. 

Mercosur is a Latin American trade group comprising Argentina, Brazil, Paraguay, and Uruguay. It has a combined population of more than 295 million people and a GDP of US$2.2 trillion. As the first trade deal between Mercosur and Singapore, the MCSFTA is a stepping stone to broader and deeper engagement between the two regions, and presents more opportunities for companies to trade and invest.