The South American trade bloc Mercosur and the European Free Trade Association (EFTA) have concluded negotiations on a comprehensive free trade agreement that will grant more than 97% of exports from both sides improved market access, ministers announced Wednesday during a Mercosur summit in Buenos Aires.
The agreement, still subject to parliamentary approval and legal review, will establish a trade zone encompassing nearly 300 million people with a combined GDP exceeding $4.3 trillion, according to a joint statement by the two blocs.
“Both parties will benefit from improved market access for more than 97% of their exports, which will increase bilateral trade and benefit companies and citizens,” the statement said.
The EFTA comprises four non-EU nations: Norway, Iceland, Switzerland, and Liechtenstein. Mercosur includes Brazil, Argentina, Uruguay, Paraguay, and Bolivia, which is in the process of becoming a full member.
Negotiations between the two blocs began in 2017. Reuters had reported last year that the EFTA deal was one of the most likely agreements Mercosur would sign in 2025.
At a joint press conference, foreign ministers expressed their commitment to completing the final steps needed for the treaty’s signing. Brazilian Foreign Minister Mauro Vieira said Brazil was prepared to move “as quickly as possible” and hoped to finalize the deal during the second half of 2025 when it assumes the rotating Mercosur presidency.
The agreement with EFTA runs parallel to Mercosur’s ongoing efforts to finalize a long-delayed trade deal with the European Union, agreed in principle in December 2024. That deal still needs translation and ratification by all 27 EU member states and has faced political resistance from some countries, notably France.
“I believe there may be some resistance or difficulties in certain countries, but the outlook from the European Union is positive,” Vieira said.
