The Senate approved this Wednesday (June 17, 2026), as a matter of urgency, the text of the free trade agreement between the countries of the European Free Trade Association, a bloc formed by Iceland, Liechtenstein, Norway and Switzerland. The draft legislative decree that endorses the treaty () will be forwarded for promulgation.
The agreement determines the tariff liberalization of the industrial and agricultural sectors, taking into account the specificities of each market.
The text was reported by the senator (PSD-MS), who chairs the CRE (Foreign Relations Commission). He highlighted that more than 97% of exports between the 2 blocs should benefit from preferential access conditions, with reduction or elimination of tariffs and mechanisms aimed at facilitating trade.
Another point highlighted by the rapporteur is the preservation of important instruments for Brazil, including safeguards related to the SUS (Unified Health System), policies to support micro and small companies, innovation and technological development.
Before being voted on in plenary, the agreement had been approved by Parlasul (Brazilian Representation in the Mercosur Parliament) and the Chamber of Deputies. The matter was considered urgently, following a request from party leaders.
BENEFITED SECTORS
Signed in Rio de Janeiro in September 2025, the agreement is divided into 16 chapters and covers trade in goods, commercial defense, safeguards, technical barriers, sanitary and phytosanitary measures, services, investments and intellectual property. It also deals with government procurement, competition, sustainable development, dispute settlement and institutional arrangements.
In relation to trade in goods, tariff exemptions are expected for approximately 97% of Brazil’s transactions with EFTA and a gradual reduction in rates to 1.2%. Agricultural products such as dairy products, chocolates and infant formula were included in the form of tariff quotas.
On the EFTA side, countries will eliminate 100% of import tariffs in the industrial and fishing sectors once the agreement comes into force. Considering the agricultural and industrial sectors, free trade access to Brazilian products will reach almost 99% of the exported value.
Brazil will still be able to benefit from agricultural quotas offered by Switzerland, Liechtenstein and Norway for products such as beef, poultry meat, corn, corn flour, honey and vegetable oils, among others.
SANITARY BARRIERS
The agreement aims at the system of pre-established lists, which facilitates the export of meat and other foods by allowing prior recognition by Brazil’s health inspection structure.
It also aims at regionalization procedures for products of animal origin and technical cooperation mechanisms between health authorities of the 2 blocks.
Among the EFTA countries, Norway has already completed the parliamentary process necessary to ratify the agreement, which provides for a bilateral entry into force mechanism, allowing countries that have completed their internal procedures to begin their application without needing to wait for simultaneous ratification by all members of the two blocs.
EFTA is a commercial and free trade organization created in 1960. Together, the 4 countries in the group have a population of 15 million people and a GDP of US$1.4 trillion, making it one of the highest per capita GDPs in the world.
INTERNATIONAL INSERTION
When reading his report, Nelsinho Trad highlighted that the agreement occupies a prominent position in Mercosur’s international insertion strategy and in Brazilian trade policy. “More than opening a new market, the instrument consolidates Mercosur’s rapprochement with high-income developed economies, located among those with the highest GDP per capita in the world, and does so in the wake of the understanding reached with the European Union”he stated.
The senator also highlighted that, in addition to the suppression of tariffs, the text advances on services, investments, government purchases, intellectual property, competition, technical barriers, sanitary measures and sustainable development, paying attention to regulatory transparency and trade facilitation: “This breadth reveals the purpose of attacking not only tariff costs, but also regulatory obstacles that, in practice, burden the exporter the most, in favor of a more stable and predictable business environment”.
Nelsinho Trad thanked the Swiss and Norwegian ambassadors for their commitment so that the agreement could move forward. He also cited the vice-president of the Republic, (PSB), in addition to the team of advisors from the Ministry of Development, Industry and Foreign Trade.
This text was originally published by Agência Senado, on June 17, 2026. The content is free for republication, citing the source, and was adapted to the standard of Poder360.
