Mercosur Summit: Mercosur-Singapore Agreement and Bolivia’s Accession to the Bloc
At the Mercosur Leaders’ Summit held on December 7 in Rio de Janeiro, there were two important events on the bloc’s trade agenda: the signing of the Free Trade Agreement between Mercosur and Singapore and Bolivia’s accession to Mercosur.
Signing of the Free Trade Agreement between Mercosur and Singapore, which provides for the immediate elimination of tariffs levied on all products imported by Singapore from Mercosur. Mercosur, on the other hand, will grant exemption to 95.8% of goods coming from the Asian country, which, however, will occur gradually, over a maximum of 15 years. This is the first free trade agreement concluded by Mercosur since 2011 and the first of its kind signed with an Asian country.
As of the entry into force of the instrument, 25.6% of this total will benefit from the elimination of tariffs. The Vice President and Minister of Development, Industry, Trade and Services, Geraldo Alckmin, highlighted that this integration strengthens economic ties between Brazil, Mercosur and the Asian region, creating opportunities for greater diversification of exports and investments. After signing, the agreement will be submitted for approval in the parliaments of Singapore and the Mercosur countries, so that it can be ratified and enter into force.
Click here to read the joint note of Brazil’s MDIC-MRE on the Signing of the Free Trade Agreement between Mercosur and Singapore: Assinatura do Acordo de Livre Comércio entre Mercosul e Singapura — Ministério do Desenvolvimento, Indústria, Comércio e Serviços (www.gov.br). More details of the agreement can be found here: https://www.gov.br/mdic/pt-br/assuntos/noticias/2023/dezembro/mercosul-e-singapura-assinam-acordo-de-livre-comercio-na-cupula-do-rio. The text of the agreement can be obtained from the Mercosur Secretariat’s website: https://www.mercosur.int/acuerdo-mercosur-singapur/
Bolivia joins Mercosur. Bolivia has been officially integrated into Mercosur. The decision still needs to be approved by the Bolivian Congress and the country has four years to complete the process and adopt the bloc’s rules. With the accession, Bolivia becomes the fifth effective member of the group. Minister Geraldo Alckmin mentioned that Bolivia’s entry into the bloc will create an even more significant space for regional integration and shared development possibilities, considering that trade continues to be mainly regional. The Minister mentions that while intra-bloc trade in the European Union represents 60% of the total, in the USMCA it represents almost 50%, and in ASEAN 25%, in Mercosur it is only 10%.
Decree No. 11,817/23, which promulgates the Protocol of Accession of the Plurinational State of Bolivia to Mercosur, was published on December 11, 2023 (available at legislacao.planalto.gov.br/legisla/legislacao.nsf/Viw_Identificacao/DEC 11.817-2023?OpenDocument)
Click here to read the Joint Communiqué of the Presidents of the States Parties to Mercosur and Bolivia: Comunicado Conjunto dos Presidentes dos Estados Partes do Mercosul e Bolívia — Ministério das Relações Exteriores (www.gov.br)
Our team is closely monitoring these Mercosur developments, as well as their technical developments and opportunities for the private sector.