Singapore pierces South American bloc as MERCOSUR FTA goes live

The MERCOSUR-Singapore Free Trade Agreement entered into force on 1 February.

The MERCOSUR-Singapore Free Trade Agreement (MCSFTA) began for Singapore and Paraguay on 1 February 2026.

It is Singapore’s 29th free trade deal and its first with MERCOSUR’s founding members.

The deal will start for Uruguay on 1 March 2026. Ratification is still in progress for Argentina and Brazil.

The MCSFTA sets lower tariffs, investment rules, and cooperation in trade, digitalisation, sustainable development, food security, and support for small and medium businesses.

MERCOSUR, made up of Argentina, Brazil, Paraguay, and Uruguay, had a GDP of nearly USD $3.81t (US$3t) and a population of over 295 million in 2025.

About 200 Singaporean companies operate in these countries, and trade in goods between Singapore and MERCOSUR totaled $11.9b in 2025, over 30% of Singapore’s trade with Latin America.

The agreement was signed on 7 December 2023 at the 63rd MERCOSUR Summit by Singapore’s Foreign Minister Dr Vivian Balakrishnan and ministers from MERCOSUR.