Free Trade Agreement Between Mercosur and Singapore

Law 27819, which approves the Free Trade Agreement between Mercosur and Singapore, and Decree 1010/2026, which enacts that law, were published in the Argentine Official Gazette on September 15, 2026. The Agreement was signed on December 7, 2023, during the Mercosur Summit in Rio de Janeiro, Brazil, and is Mercosur’s first Free Trade Agreement with a Southeast Asian country. It will enter into force for Argentina on the first day of the second month following the deposit of Argentina’s instrument of ratification.

The Agreement provides for tariff reductions on trade in goods between Singapore and the Mercosur countries and includes provisions on investment; government procurement; intellectual property; electronic commerce; and micro, small and medium-sized enterprises.

Key features of the Agreement include:

• Singapore will grant duty-free access to goods originating in each Mercosur country once the Agreement enters into force for that country.
• Mercosur tariff schedule, which immediately eliminates tariffs on 25.6% of its tariff lines and gradually eliminates tariffs on a further 70.2%, according to categories of 4 years (12.5%), 8 years (40.9%), 10 years (15.1%), and 15 years (1.7%), in equal annual installments beginning on the effective date. The full elimination date is January 1^st of the year corresponding to each category. The remaining 4.2% is excluded from tariff preferences.
• A commitment, subject to the exceptions provided for in the Agreement, not to increase existing customs duties or introduce new customs duties on originating goods of another Party.
• Measures to facilitate trade and simplify customs procedures.
• Rules for determining the origin of goods eligible for preferential tariff treatment.
• Provisions on services and investment.
• Institutional mechanisms to oversee implementation of the Agreement, address technical issues relating to trade in goods, and facilitate consultations between the Parties.

From a strategic perspective, the Agreement seeks to strengthen Mercosur’s trade ties with Singapore, one of Asia’s leading financial and logistics hubs. Singapore, in particular, could provide a relevant platform to expand exports and develop new investment flows between Mercosur and Southeast Asian markets, which would contribute to increased investment flows into sectors related to natural resources, energy, and regional supply chains.

Finally, the Agreement represents a further step in Mercosur’s international economic integration and establishes a broader framework for trade and investment relations with Singapore.