A new chapter for Singapore–Brazil trade relations

A new chapter for Singapore–Brazil trade relations

A significant milestone has been reached today as the MERCOSUR–Singapore Free Trade Agreement (MCSFTA) enters into force between Singapore and Brazil.

Brazil’s participation marks an important step in strengthening Singapore’s economic engagement with Latin America. As MERCOSUR’s largest economy and one of Singapore’s key trading partners in the region, Brazil offers substantial opportunities for businesses looking to expand across markets.

The MCSFTA will progressively eliminate import tariffs on approximately 96% of products, while more than 25% of tariff lines will be liberalised immediately. This will create greater market access for Singapore companies across sectors including manufacturing, energy and digital solutions, while opening new opportunities for businesses from MERCOSUR in Singapore and beyond.

The Agreement also goes beyond trade in goods, promoting cooperation in areas such as SME development, digitalisation, sustainable development, food supply security and government procurement. It can also contribute to Singapore’s food resilience by facilitating access to a wider range of agricultural and food products from Latin America, including meat, fruits, vegetables and other products.

With nearly 200 Singapore companies already operating across MERCOSUR markets, the agreement provides an important platform for businesses on both sides to deepen their presence and explore new opportunities.

This milestone also builds on the strong and growing relationship between Singapore and Brazil, as both countries look towards 60 years of diplomatic relations in 2027.

We look forward to seeing the MCSFTA translate into stronger business connections, greater investment and deeper economic ties between Singapore, Brazil and the wider MERCOSUR region.