MERCOSUR and Singapore Conclude Free Trade Agreement Negotiations
During the MERCOSUR Summit held under Paraguay’s Pro Tempore Presidency, the negotiation process for a Free Trade Agreement between MERCOSUR and Singapore was concluded in Asunción, following six rounds that began in 2019.
The conclusion of negotiations was announced on July 20, 2022, by Ambassador Raúl Cano Ricciardi, Vice Minister of Economic Relations and Integration and National Coordinator, and Gan Kim Yong, Singapore’s Minister for Trade and Industry, during the 60th Ordinary Meeting of the Common Market Council.
Both parties stated that the Agreement reflects the strong commitment of MERCOSUR and Singapore to deepen their bilateral trade relationship, expand opportunities for businesses, and contribute to the well-being of their citizens.
The Parties will now begin the legal review process of the Agreement with a view to its signing and entry into force in the near future.
This Agreement marks MERCOSUR’s first with a Southeast Asian country and will expand trade flows, enhance predictability through modern disciplines, and provide improved conditions for investment.
The negotiations involved more than 100 negotiators and experts from MERCOSUR and Singapore across technical groups addressing Initial Provisions and Definitions, National Treatment and Market Access, Rules of Origin, Trade Remedies, Bilateral Safeguards, Sanitary and Phytosanitary Measures, Technical Barriers to Trade, Customs Procedures and Trade Facilitation, Services, Movement of Natural Persons, Electronic Commerce, Investment, Government Procurement, Intellectual Property, Competition, MSMEs, Legal Transparency, and the General, Final, and Institutional Provisions.
In 2021, trade between the two parties reached approximately USD 7 billion. MERCOSUR’s main exports included poultry products, ferroalloys, pork, beef, and iron ore.
Conversely, MERCOSUR’s main imports from Singapore included insecticides, integrated circuits, pharmaceuticals, and vessels.
Singapore is one of the world’s leading sources of capital, with significant investment potential. Its sovereign wealth funds rank among the top ten globally.
In 2020, Singapore’s foreign direct investment in South America, Central America, and the Caribbean totaled USD 127 billion, while its global FDI exceeded USD 930 billion.
MRE – Paraguay
