Indexbox | 18 June 2026

Brazil and Uruguay approve MERCOSUR-EFTA free trade agreement

 On June 17, the legislatures of Brazil and Uruguay approved the ratification bill for the free trade agreement between MERCOSUR and the European Free Trade Association (EFTA), according to a statement from MERCOSUR. The Brazilian Senate and the Uruguayan Chamber of Deputies gave final approval to the accord within hours of each other, marking further progress in the incorporation process by the member states.

Uruguay's Senate had granted partial approval to the treaty on June 16, and Brazil's Chamber of Deputies had done so on June 10. The agreement, signed between MERCOSUR and EFTA—which comprises Iceland, Liechtenstein, Norway, and Switzerland—represents a milestone in the bloc's external relations agenda.

The free trade pact is expected to create new business opportunities for economic agents in both MERCOSUR and EFTA countries, including the large number of small and medium-sized enterprises in each region. It will provide greater market access through modernized regulations and procedures. Traders from MERCOSUR and EFTA nations will benefit from increased predictability and legal certainty in commerce.

The treaty will establish a free trade area encompassing nearly 300 million people, with a combined gross domestic product exceeding $4.3 trillion, and will improve market access for more than 97% of their exports. This adds to the market of the European Union, with which a corresponding agreement has been in force since May 1.

Negotiations began with an initial round in July 2017 in Buenos Aires and concluded after 14 rounds of talks. The agreement enters into force bilaterally as each country ratifies it. Although the two parliaments have approved the accord, ratification by all signatory member states is still pending.