The Mercosur bloc and the European Free Trade Association (EFTA), which includes Norway, Switzerland, Iceland, and Liechtenstein, have successfully finalized negotiations regarding a free-trade agreement.
Foreign Minister Gerardo Werthein confirmed the news in a statement issued on Wednesday as the nation hosted the semi-annual Mercosur summit at the Palacio San Martín in Buenos Aires, stating that the deal would be finalized in the coming months. Werthein stated that the new treaty “will result in increased bilateral trade and benefits for businesses and individuals.” He observed that both blocs “share the commitment to take the necessary steps to ensure the signing of the Free Trade Agreement in the coming months of 2025.”
Argentina presently occupies the pro-tempore presidency of the South American bloc, which encompasses Brazil, Bolivia, Paraguay, and Uruguay. Guy Parmelin, Vice-President of the Swiss Confederation, stated that “the agreement opens markets for goods and services and also strengthens legal certainty for investors by introducing modern rules on public procurement, competition, and intellectual property.” “It is a fair and balanced agreement that addresses the interests of both parties,” he added.
In discussing the forthcoming actions, Helene Budliger Artieda, Switzerland’s Secretary of State for Economic Affairs, stated that “each EFTA member country has its own independent process” to adopt the agreement. “We aim to finalize the agreement promptly to initiate the process,” she stated.
Discussions between the two blocs commenced in 2017, culminating in a preliminary agreement in 2019, which subsequently entered a phase of review. In 2024, during a visit to Buenos Aires, parliamentary representatives from the EFTA bloc indicated to the Times their objective of reaching an agreement by the conclusion of that year. The announcement arrives amid Mercosur’s anticipation of advancements regarding its free-trade agreement with the European Union, a pact finalized last December following a protracted 25-year negotiation period. Nonetheless, the agreement remains subject to ratification by EU member states and encounters resistance from France.
The European Commission disclosed on Monday its intention to present the legal text of the agreement with Mercosur “in the coming days,” thereby initiating the review process and commencing discussions on ratification. “I believe there may be some resistance, some difficulties in certain countries, but the outlook for the European Union is positive,” stated Brazilian Foreign Minister Mauro Vieira on Wednesday.