Overview
- Mercosur and the EFTA states signed the agreement on September 16 in Rio de Janeiro after eight years of talks and 14 negotiation rounds.
- EFTA will eliminate 100% of import tariffs on industrial and fisheries goods from Mercosur immediately once the pact takes effect, while Mercosur will phase down most industrial tariffs over up to 15 years.
- Both sides say more than 97% of their exports will gain improved market access under the deal.
- The treaty covers goods and services trade, investment, intellectual property, public procurement, competition, rules of origin, trade remedies, sanitary and phytosanitary measures, technical barriers to trade, legal and horizontal issues, dispute settlement, and a trade-and-sustainable-development chapter.
- Entry into force depends on parliamentary approvals in each signatory, and the agreement can apply bilaterally as individual states ratify, a process officials say could extend into late 2026.