The EFTA and Mercosur countries have been negotiating a free trade agreement since 2017. After the parties were very close to concluding the negotiations in 2019, the negotiations were delayed. Negotiations were resumed in 2024, with the aim of concluding them in the coming months.
The agreement between the EFTA states (Switzerland, Norway, Liechtenstein and Iceland) and Mercosur (Brazil, Argentina, Uruguay and Paraguay) would have a significant economic impact on Switzerland. Switzerland has a limited domestic market. To ensure growth and thus prosperity, access to other markets is very important for our companies and therefore for Swiss workplaces. Mercosur, with its 260 million inhabitants, is already an important target market with great growth potential for the Swiss export industry. In 2024, Swiss exports of goods to the Mercosur states amounted to more than CHF 3.76 billion, while imports of goods totaled CHF 680 million (excluding gold in both cases).
In view of the high customs duties in the Mercosur states, a free trade agreement could lead to considerable customs savings of up to CHF 160 million per year. After the agreements with the EU and China, this is the agreement with the highest potential for customs savings among all of Switzerland's free trade agreements and is roughly in the same range as the agreement with India.
In addition to removing tariff barriers, the agreement would also reduce technical barriers to trade, facilitate market access for Swiss service providers and generally strengthen bilateral economic relations. The agreement would prevent Switzerland from being disadvantaged vis-à-vis the EU, which concluded a free trade agreement with the Mercosur countries in 2024. Finally, the agreement would contain a comprehensive and legally binding chapter on trade and sustainable development.
