Mercosur-EFTA Agreement: A Framework for Multilateralism and Global Free Trade
- Antonio Carlos Faustino
- Sep 18
- 3 min read
On September 16, 2025, Brazil hosted the signing of a historic agreement in Rio de Janeiro between Mercosur and the European Free Trade Association (EFTA), comprised of Switzerland, Norway, Iceland, and Liechtenstein. This pact establishes a free trade zone encompassing approximately 300 million people and a combined GDP of over US$4.3 trillion . AP News More than just a tariff reduction, the agreement represents a strengthening of multilateralism and a strategic response to growing global protectionism.
🌐 The Global Context and Relevance of the Agreement
The current international landscape is marked by trade tensions, especially after the imposition of tariffs by the US government under President Donald Trump. In this context, Mercosur, comprised of Brazil, Argentina, Paraguay, and Uruguay, sought to diversify its trade partnerships, aligning itself with developed economies committed to free trade. EFTA, in turn, represents an alternative to the European Union, offering greater flexibility and less internal political resistance.
The agreement covers not only goods and services, but also investments, intellectual property rights, government procurement, and sanitary and phytosanitary measures. It also promotes cooperation in areas such as animal welfare and sustainable agriculture . The European Free Trade Association (EFTA)
📊 Expected Economic Impacts
Preferential Market Access: More than 97% of exports from both blocs will have preferential access, benefiting products such as South American meat and Swiss chocolate batimes.com.ar .
GDP Increase: It is estimated that Brazil could see a US$507 million increase in its GDP by 2044 Evrim Ağacı .
Foreign Investment: The agreement could attract up to US$660 million in new investments to Brazil Evrim Ağacı .
Market Diversification: With reduced dependence on the US, Mercosur expands its trade relations with developed and emerging economies.
🤝 Multilateralism in Times of Protectionism
In a world where protectionism is on the rise, agreements like the Mercosur-EFTA Agreement stand out as examples of effective multilateralism. Brazilian Vice President Geraldo Alckmin emphasized that, in times of global uncertainty, the signing of the agreement demonstrates the potential for strengthening free, rules-based trade .
Furthermore, the agreement could serve as a model for future negotiations, including the long-awaited ratification of the Mercosur-European Union agreement, which faces internal challenges in Europe.
🔍 Mercosur-EFTA Agreement and Future Perspectives
Mercosur has already initiated negotiations with other strategic partners, such as the United Arab Emirates, Canada, Mexico, and India, aiming to expand its network of trade agreements. These initiatives reflect a strategy of diversifying and strengthening international relations. Reuters .
📝 Conclusion
The agreement between Mercosur and EFTA is not only an economic achievement, but also a political milestone that reinforces the commitment to multilateralism and free trade. In times of growing protectionism, initiatives like this are essential to ensure fairer and more balanced international trade.
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References
AP NEWS. Mercosur and EFTA sign free trade deal in Rio de Janeiro. Available at: https://apnews.com/article/640e0a5189a0e5fb882a178608369c16 . Accessed on: September 18, 2025.
EFTA. Mercosur. Available at: https://www.efta.int/trade-relations/free-trade-network/mercosur . Accessed on: September 18, 2025.
BATIMES. Mercosur and EFTA sign free trade deal in Rio de Janeiro. Available at: https://batimes.com.ar/news/economy/mercosur-and-efta-sign-free-trade-deal-in-rio-de-janeiro.phtml . Accessed on: September 18, 2025.
EVRIMAGACI. Mercosur and EFTA forge historic free trade pact. Available at: https://evrimagaci.org/gpt/mercosur-and-efta-forge-historic-free-trade-pact-501067?srsltid=AfmBOorccKZ8ny7fGMIs5_FtZarhye6aUnFw_h8iArMsPYFyRdOh04XE . Accessed on: September 18, 2025.
TRIDGE. Mercosur and the European EFTA bloc sign a free trade agreement. Available at: https://www.tridge.com/news/mercosur-and-the-european-efta-bloc-sign-af-wcchvo . Accessed on: September 18, 2025.
REUTERS. Brazil expects Mercosur-UAE trade deal by end 2025, minister says. Available at: https://www.reuters.com/world/middle-east/brazil-expects-mercosur-uae-trade-deal-by-end-2025-minister-says-2025-09-16/ . Accessed on: September 18, 2025.
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