Brazilian President Luiz Inácio Lula da Silva announced the signing of the Free Trade Agreement (FTA) between Mercosur and the European Free Trade Association (EFTA) during a high-level meeting in Rio de Janeiro on September 16, 2025. The deal was signed in the presence of Brazil’s Foreign Minister Mauro Vieira, Vice-President Geraldo Alckmin, Mercosur chancellors, and representatives from EFTA member states, Norway, Switzerland, Iceland, and Liechtenstein. (Reuters)
The agreement creates a free trade area covering nearly 300 million people with a combined GDP exceeding US$4.3 trillion. It builds on Mercosur’s recent trade momentum, following the Mercosur-Singapore Agreement in 2023 and the conclusion of negotiations with the European Union in 2024. (AP News)
The Mercosur-EFTA FTA covers trade in goods and services, investment, intellectual property, government procurement, sanitary and phytosanitary measures, and sustainable development. It aims to eliminate tariffs on up to 97% of bilateral trade, boosting opportunities for exporters and investors across both regions. (EFTA)
For Brazil, the agreement strengthens its leadership in advancing multilateralism under President Lula. The deal opens new pathways for small and medium-sized enterprises, especially in agriculture, manufacturing, and services, while reinforcing Mercosur’s role as a dynamic global trade bloc. (Mercopress)
The agreement must still be ratified by all member states before entering into force. Ratification processes may spark political and environmental debates, especially around sustainability standards, but the signing marks a historic milestone in Mercosur’s external relations. (EFTA)
Sources & Accreditation
Reuters – Swiss economy minister signs Mercosur agreement in Brazil (16 Sept 2025)
AP News – Mercosur, EFTA sign free trade deal
EFTA – EFTA and Mercosur conclude negotiations
Mercopress – Mercosur and EFTA sign FTA in Rio de Janeiro
