A free trade agreement between Singapore and the South American trade bloc MERCOSUR officially entered into force for Brazil and Singapore on Saturday, August 1, 2026, the Ministry of Trade and Industry (MTI) announced.
This pact is Singapore's 29th free trade agreement and its first with the founding MERCOSUR members: Argentina, Brazil, Paraguay, and Uruguay. While the agreement had already taken effect with Paraguay and Uruguay, ratification with Argentina is still underway.
MERCOSUR represents a combined GDP of nearly US$3 trillion and a population exceeding 295 million as of 2025. Brazil, the bloc's largest economy, is also one of Singapore's biggest trading partners in the region.
MTI described the agreement as a "milestone" in Singapore's economic engagement with Latin America, coinciding with preparations to celebrate 60 years of diplomatic relations between Singapore and Brazil in 2027.
The agreement seeks to deepen economic integration by reducing trade barriers, improving investment conditions, and enhancing cooperation in digitalisation, government procurement, sustainable development, trade facilitation, and food security. It also supports Singapore's efforts to diversify its food import sources, with Brazil and other Latin American countries being major exporters of agricultural products such as meat, fruits, and vegetables.
Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong stated on Instagram that the agreement would enable Singapore businesses to "gain better access to overseas markets" and expand, creating new opportunities and supporting "good jobs here at home."
Nearly 200 Singapore companies operate across MERCOSUR markets, with trade between Singapore and the bloc's four member states accounting for over 30% of Singapore's total trade with Latin America in 2025, according to MTI.
Junjie Zhou, Vice President of tech giant Sea, highlighted that the agreement would particularly benefit small- and medium-sized enterprises (SMEs) by lowering trade barriers and fostering deeper digital cooperation, helping them reach new customers and grow across borders.
The entry into force of this agreement is expected to create a more conducive environment for long-term investment between Singapore and Brazil.
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