Uruguay activates Mercosur–Singapore FTA on a bilateral basis, opening preferential access to Southeast Asia
Deputy Foreign Minister Valeria Csukasi at the signing of the Mercosur-Singapore agreement. Photo: Foreign Ministry
The Free Trade Agreement (FTA) between Mercosur and Singapore entered into force on a bilateral basis between Uruguay and the city-state on 1 March 2026, after both sides completed domestic procedures and deposited their instruments of ratification, according to a joint statement.
The statement called the entry into force a “significant milestone” for Mercosur, saying it strengthens the bloc’s international integration and opens a strategic gateway to the Asia-Pacific, while positioning Singapore as a key partner for deepening economic ties with Latin America.
What the deal covers
Authorities described the FTA as a “new-generation” agreement, with disciplines on trade in goods and services, investment, government procurement, intellectual property, e-commerce and support for micro, small and medium-sized enterprises (MSMEs).
On goods, the agreement provides for Mercosur to eliminate import tariffs on around 96% of products within up to 15 years, with more than 25% of tariff lines liberalised immediately, the joint statement said.
Expected impact and key sectors
For Uruguay, the statement pointed to anticipated gains in “key productive sectors,” including dairy, and said the agreement strengthens cooperation on sanitary matters and non-tariff measures to facilitate effective market access.
Singapore’s Ministry of Trade and Industry (MTI) said the pact aims to deepen economic integration by facilitating trade flows, establishing transparent and predictable investment conditions, and expanding cooperation in areas such as trade facilitation, digitalisation and SME development.
Trade and corporate footprint
The parties highlighted that close to 200 Singapore companies operate across Mercosur markets and that Singapore’s trade in goods with the bloc’s four founding members accounted for over 30% of Singapore’s total trade with Latin America in 2025. In an earlier release, MTI put Singapore’s goods trade with the four members at S$11.9 billion in 2025.
Timeline and next steps
MTI said negotiations were concluded in July 2022 and the agreement was signed on 7 December 2023 at Mercosur’s summit in Rio de Janeiro.
The FTA took effect for Singapore and Paraguay on 1 February 2026 and for Singapore and Uruguay on 1 March; Argentina and Brazil will bring the deal into force bilaterally once their ratification procedures are completed.
