MercoPress. South Atlantic News Agency

Mercosur-EFTA deal ready to be signed next week

The ceremony will take place in Rio de Janeiro, chaired by Brazil's FM Mauro Vieira

The Southern Common Market (Mercosur) is to sign a Free Trade Agreement (FTA) with the European Free Trade Association (EFTA) next Tuesday in Rio de Janeiro, it was announced on Friday. EFTA groups Norway, Switzerland, Iceland, and Liechtenstein, which will now partner with Argentina, Brazil, Paraguay, Uruguay, and Bolivia.

Gathering in the former Brazilian capital for the occasion will be the Mercosur foreign ministers, chaired by host Mauro Vieira, since Brazil currently holds the bloc's rotating presidency.

The comprehensive understanding covers various sectors, including trade in goods and services, intellectual property, government procurement, and sustainable development. It will provide EFTA a market of over 270 million consumers, while Mercosur countries will benefit from reduced tariffs and access to some of the world's wealthiest economies.

Negotiations began in June 2017 in Buenos Aires and concluded after 14 rounds of talks in July of this year.

The deal is expected to strengthen economic ties between the two blocs. According to Uruguay's Deputy Foreign Minister Valeria Csukasi, it offers “great opportunities” for its export sectors, noting that Norway already imports 80% of its meat from her country. “These are great opportunities for Uruguay's productive and export sectors,” she said.

“For Brazil, the consolidation of the customs union, the diversification of Mercosur's economic and trade partnerships, and the modernization and deepening of existing regional agreements are essential objectives amid an unstable and complex international scenario. The Brazilian presidency will also emphasize the importance of supporting Bolivia's full accession to the bloc,” a statement read.

Established in 1960, the European Free Trade Association (EFTA) is an intergovernmental body representing around 15 million people, with a combined gross domestic product (GDP) of approximately US$1.4 trillion. Based on GDP per capita, Liechtenstein ranks as the world's second-wealthiest nation, boasting an average annual income of US$186,000 per person. Switzerland follows closely, holding the fourth position with a per capita income of US$104,500. Iceland and Norway also feature prominently among the countries with the highest average incomes globally.