Overview

• The pact was signed in Rio de Janeiro by Mercosur and the four EFTA states—Iceland, Norway, Switzerland and Liechtenstein—covering a market of roughly 300 million consumers.
• Officials say more than 97% of exports on both sides will see improved market access, with a combined partner GDP topping $4.3 trillion.
• Once in force, EFTA will eliminate 100% of import tariffs on industrial and fishery products from Mercosur, while Mercosur has up to 15 years to phase down most industrial tariffs.
• EFTA will grant immediate preferences or duty-free quotas for key Mercosur farm goods including coffee, beef, poultry, pork, ethanol and wine.
• The agreement spans goods, services, investment, IP, public procurement, rules of origin, trade defence, SPS and technical standards, dispute settlement and sustainable development, and will enter into force bilaterally as each parliament ratifies, potentially stretching to late 2026.