Joint Press Release by the Ministry of Foreign Affairs and the Ministry of Economy – Conclusion of the free trade Agreement negotiations between MERCOSUR and Singapore – Asuncion, July 20, 2022

The MERCOSUR Ministers of Foreign Affairs and of Economy and Singapore's Minister of Trade and Industry announced, in Asuncion on July 20, the conclusion of the negotiations of the free trade agreement between the bloc and that Asian country.

Launched in 2018, the negotiations were conducted in six rounds, starting in 2019.

The announcement was made during the LX Meeting of the Common Market Council, under the Paraguayan Pro Tempore Presidency of MERCOSUR. Singaporean Minister for Trade and Industry, Gan Kim Yong, and Minister of State for Trade and Industry, Alvin Tan, virtually attended the occasion.

First of its kind with an Asian country, the agreement is modern, comprehensive and innovative. It will help attract investments to the region, insert Brazil in global value chains, and strengthen relations with one of the world's most dynamic regions. It is part of the process of Brazil's gradual rapprochement with the Asian continent, a priority for the country's foreign and economic policy.

The agreement continues the process of expanding MERCOSUR's network of trade agreements and has a wide range of disciplines. It covers tariff and regulatory issues, such as services, investments, government procurement, intellectual property, sanitary and phytosanitary measures, and commercial defense. It also provides for commitments in postal services, financial services and the movement of people.

Once in force, the agreement will guarantee immediate access of MERCOSUR to Singapore's market. In investments, it establishes a governance structure that stimulates cooperation and investment facilitation and has elements that favor investment protection.

According to estimates by the Ministry of Economy, the agreement could represent an increase of R$ 28.1 billion in Brazilian GDP, considering the values accumulated between 2022 and 2041. For the same period, an increase of R$ 11.1 billion in investments, R$ 21.2 billion in Brazilian exports to that country and R$ 27.9 billion in imports is estimated.

The flow of goods trade between Brazil and Singapore totaled US$ 6.7 billion in 2021, positioning the country as the 6th main destination for Brazilian exports of goods and the 43rd origin of imports made by Brazil. In the first half of 2022, Singapore was the 15th largest Brazilian trading partner.