Singapore deepens Latin America ties as MERCOSUR trade pact takes effect for Brazil

Singapore has deepened its economic ties with Latin America as a free trade agreement with the MERCOSUR bloc, including Brazil, Paraguay, and Uruguay, officially took effect for Brazil and Singapore. This marks Singapore's 29th free trade agreement and its first with the core MERCOSUR members.

The MERCOSUR-Singapore Free Trade Agreement is designed to reduce trade barriers and enhance investment conditions between Singapore and the four South American economies. MERCOSUR, with a combined GDP of nearly $3 trillion and a population over 295 million, will eliminate import tariffs on approximately 96% of products over 15 years. This move is expected to create new opportunities for Singaporean businesses in sectors like manufacturing, infrastructure, and digital solutions.

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gain better access to overseas markets

Deputy Prime Minister Gan Kim Yong highlighted that the agreement will grant Singapore businesses better access to overseas markets, fostering expansion and supporting job creation. The pact also aligns with Singapore's strategy to diversify food imports, potentially increasing purchases of meat, fruits, vegetables, and "superfoods" from Brazil and other Latin American countries.

Trade between Singapore and the MERCOSUR bloc reached over 30% of Singapore's total trade with Latin America in 2025, with nearly 200 Singaporean companies already operating in MERCOSUR markets. Tech giant Sea's Vice President Junjie Zhou noted the agreement's potential to help small and medium-sized enterprises (SMEs) expand globally by lowering trade barriers and deepening digital cooperation.

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strategic market