Mercosur Seals EFTA Free-Trade Pact Covering 97% of Exports

South America’s Mercosur bloc announced in Buenos Aires on 2 July that it has concluded negotiations on a comprehensive free-trade agreement with the European Free Trade Association, which groups Norway, Switzerland, Iceland and Liechtenstein. The accord was unveiled at the bloc’s 66th Common Market Council meeting.

The deal will remove or sharply reduce tariffs on more than 97% of goods traded between the two regions and extend to services, investment, intellectual property and public procurement. If enacted, it would establish a free-trade area encompassing nearly 300 million people and a combined gross domestic product of roughly US$4.3 trillion.

Textual consolidation and legal review are expected in the coming months, after which the treaty must be ratified by the parliaments of all participating countries before entering into force. Talks began in 2017 and spanned 14 negotiating rounds; a 2019 understanding stalled over environmental concerns but momentum resumed this year as Mercosur seeks to diversify trade beyond its pending accord with the European Union.