The MERCOSUR–Singapore Free Trade Agreement has officially entered into force, boosting trade ties between Singapore and South America.
The MERCOSUR–Singapore Free Trade Agreement (MCSFTA) entered into force for Singapore and Paraguay on 1 February 2026. The agreement marks a major step in strengthening economic links between Singapore and the South American trade bloc .
This agreement involves Singapore and the four founding MERCOSUR member states: Argentina, Brazil, Paraguay and Uruguay. With this, the MCSFTA becomes Singapore’s 29th free trade agreement and its first with the founding MERCOSUR countries. It is also MERCOSUR’s first free trade agreement with a Southeast Asian country .
Following Uruguay’s completion of its ratification process, the agreement will also enter into force for Singapore and Uruguay on 1 March 2026. Ratification is still ongoing for Argentina and Brazil .
The MCSFTA aims to support trade growth by lowering tariffs, improving customs procedures, and creating clearer and more predictable investment rules. It also promotes cooperation in areas such as digital trade, sustainable development, food supply security, and support for small and medium-sized enterprises .
MERCOSUR has a combined GDP of nearly US$3 trillion and a population of over 295 million. Around 200 Singapore companies currently operate in MERCOSUR markets. In 2025, Singapore’s trade in goods with the four MERCOSUR countries reached S$11.9 billion, making up over 30% of Singapore’s total trade with Latin America .
The agreement was signed on 7 December 2023 by Singapore’s Minister for Foreign Affairs, Dr Vivian Balakrishnan, and ministers from the MERCOSUR member states at the 63rd MERCOSUR Summit held in Rio de Janeiro, Brazil .
Source: MTI
