MercoPress. South Atlantic News Agency

Paraguay's Lower House gives nod to Mercosur-Singapore FTA

This agreement provides strategic access to the large Asian market, Latorre argued

Paraguay's Lower House on Monday approved the Free Trade Agreement between the South American Common Market (Mercosur) and Singapore signed in December 2023 in Rio de Janeiro. The deal had already been approved by the Senate. The understanding seeks to increase accessibility and transparency for businesses engaging in electronic transactions and public procurement.

The document features provisions allowing both signatories to use anti-dumping and other safeguard measures to protect their interests. In addition, it promotes fair competition and aligns domestic intellectual property laws with international standards.

It also simplifies customs procedures to reduce costs and time for imports and exports, while also including sanitary and phytosanitary measures to protect human, animal, and plant health.

“This agreement, which was negotiated by the President of the Republic during his visit to that country, not only represents the opening of the market, but also provides strategic access to the large Asian market, a market that values quality but is also extremely important in terms of import volume,” House Speaker Raúl Latorre noted.

Industry, Trade, Tourism, and Cooperativism Committee Chairman Héctor Figueredo (ANR-Paraguarí) pointed out that the document was being promoted by the Executive Branch, through the Foreign Ministry, and recommended its approval. “Its objective is to establish principles that support its free and efficient development with greater accessibility, transparency, and security for users and companies that carry out electronic transactions in the same way,” explained Figueredo.

Supporters of the agreement, particularly in Paraguay, believe it will open new markets for agricultural products and provide a strategic entry point into the wider Asian market. After its approval, the bill will be sent to the Executive Branch for final ratification.