The entry into force of three new free trade agreements negotiated by Mercosur could significantly increase the portion of Brazilian foreign trade benefiting from zero or reduced tariffs.
According to estimates from the Ministry of Development, Industry, Commerce and Services (MDIC), the percentage should increase from the current 12.4% to 31.2% of the country’s trade flow.
In an interview with CNNthe vice-president and Minister of Development, Geraldo Alckmin, stated that the change results from the sum of the Mercosur–European Union, Mercosur–EFTA and Mercosur–Singapore agreements.
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According to the Ministry’s calculations, today around US$78 billion of Brazilian exports and imports have some type of preferential access, considering trade within Mercosur and treaties with countries such as Chile, Bolivia, Peru, Colombia, Ecuador, Venezuela, Israel and Egypt.
With the entry into force of the three new agreements, another US$118.7 billion of Brazilian trade would be achieved through lower tariffs, bringing the total to US$196.4 billion. This value corresponds to almost a third of the trade flow registered in 2025.
According to Alckmin, the expansion of trade covered by tariff preferences “strengthens Brazil’s international insertion and opens up new opportunities for Brazilian companies”. The vice-president also told the broadcaster that the advance represents an increase of approximately two and a half times in a short period, with a direct impact on competitiveness, investments and job creation.
The agreement between Mercosur and Singapore was signed in December 2023, but is still undergoing legal review and has not been sent to the National Congress. The treaty with EFTA, a bloc formed by Switzerland, Norway, Iceland and Liechtenstein, was concluded in September 2025.
This week, after 26 years of negotiations, the agreement between Mercosur and the European Union should be signed, with a ceremony scheduled for Saturday (17), in Asunción, during Paraguay’s rotating presidency of the bloc.
