Singapore signed a free trade agreement with the MERCOSUR trade bloc, which includes Brazil, Paraguay, Argentina, and Uruguay. This is Singapore’s first FTA with these countries and with the Mercosur bloc.
The deal is expected to boost trade, with over 100 Singaporean companies already operating in the MERCOSUR markets. The agreement includes flexible rules for the origin of goods and fair treatment for companies competing for government contracts.
Singapore’s Free Trade Agreement with MERCOSUR
Singapore has entered into a free trade agreement with the MERCOSUR trade bloc, which includes Brazil, Paraguay, Argentina, and Uruguay. This marks Singapore’s first FTA with both the individual countries and the Mercosur bloc as a whole. Notably, Venezuela’s membership in the bloc was suspended in 2016.
Trade and Economic Potential
The MERCOSUR bloc has a collective population exceeding 295 million people and a GDP of US$2.2 trillion. Singapore’s trade with the bloc accounts for half of its trade with Latin America, amounting to approximately S$10 billion (US$7.5 billion) in 2022.
Business Opportunities and Investment
More than 100 Singaporean companies are actively operating in MERCOSUR markets, particularly in sectors such as energy, agri-business, manufacturing, hospitality, and infrastructure. Additionally, there are over 100 MERCOSUR companies registered in Singapore, showcasing the mutual business opportunities and investment between the two regions.
The FTA also offers key highlights such as flexible rules of origin for Singapore-based exporters and non-discriminatory treatment for competing in government contracts.
The FTA covers a wide range of areas, including trade in goods, services, and investment. It also includes provisions on intellectual property, competition, and government procurement.
The FTA is expected to boost trade and investment between Singapore and MERCOSUR. It is estimated that the FTA will increase Singapore’s exports to MERCOSUR by 15% and its imports from MERCOSUR by 10%. The FTA is also expected to create new jobs and opportunities for businesses in both regions.
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