Singapore deepens Latin America ties as MERCOSUR trade pact takes effect for Brazil

The ministry noted that Brazil is MERCOSUR’s largest economy and one of Singapore’s largest trading partners in the region. Singapore is also Brazil’s largest trading partner in Southeast Asia. 

The agreement aims to deepen economic integration between Singapore and the four South American economies by reducing trade barriers, strengthening investment conditions and enhancing cooperation in areas such as digitalisation, government procurement, sustainable development, trade facilitation and food security.

Under the pact, MERCOSUR members will eliminate import tariffs on about 96 per cent of products over a period of up to 15 years, with more than a quarter of tariff lines liberalised immediately.

The agreement could also create new opportunities for Singapore businesses operating in Latin America in sectors such as manufacturing, infrastructure, energy, agri-commodities, hospitality and digital solutions.

In an Instagram post, Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong said the agreement would allow Singapore businesses to “gain better access to overseas markets” and expand, creating new opportunities and supporting “good jobs here at home”.

The pact could also support Singapore’s efforts to diversify its food import sources. Brazil and other Latin American countries are major exporters of agricultural products, and Singapore is looking to increase imports of products including meat, fruits, vegetables and “superfoods” as part of its food resilience strategy.