Ministers from Mercosur Member States and Singapore sign historic trade deal to deepen economic integration.
Singapore’s Minister for Foreign Affairs, Dr. Vivian Balakrishnan, alongside Ministers from Mercosur Member States—Argentina, Brazil, Paraguay, and Uruguay—formally inked the Mercosur-Singapore Free Trade Agreement (MCSFTA) at the 63rd Summit of Heads of State of Mercosur and Associate States in Rio de Janeiro, Brazil. The signing, witnessed by the Heads of State of the Mercosur Member States, solidifies the substantial conclusion of negotiations announced by Singapore and Mercosur in July 2022.
The MCSFTA marks a historic milestone as the first-ever trade deal between Mercosur Member States and Singapore, also standing as Mercosur’s inaugural free trade agreement with a Southeast Asian country. This agreement is poised to deepen economic integration by fostering greater trade flows through reduced tariff rates, establishing transparent and predictable investment conditions, and promoting collaboration in areas such as trade facilitation, entrepreneurship, digitalization, sustainable development, food supply security, and SME development.
The signing ceremony was attended by Minister of State, Ministry of Culture, Community and Youth & Ministry of Trade and Industry, Alvin Tan. The Parties involved will now engage in their respective domestic ratification processes to bring the MCSFTA into force.
Minister Balakrishnan, reflecting on the extensive negotiations, stated, “The MCSFTA creates a new bridge between Southeast Asia and South America, bringing our regions closer together. We welcome more companies from Mercosur to establish a presence in Singapore and to access the larger Southeast Asian market.”
Minister for Trade and Industry Gan Kim Yong emphasized the shared commitment to keeping economies open and globally connected. He stated, “The MCSFTA strengthens Singapore’s growing trade-enabling architecture with Latin America, bringing tangible benefits to our companies by lowering business costs, easing tariff and regulatory barriers, and opening doors to new business opportunities, such as in e-commerce, agri-trade, and government procurement.”
Mercosur, a Latin American bloc comprising Argentina, Brazil, Paraguay, and Uruguay, collectively represents the 8th largest economy globally, with a combined GDP of US$2.7 trillion and a market of 272 million people. In 2022, merchandise trade between Singapore and Mercosur accounted for 45% (S$13.8 billion) of Singapore’s total trade with the 33 independent economies in the Latin American region, while trade in services in 2021 accounted for 40% (S$7.6 billion).
Source – MFA & MTI
