Brazil and the EFTA-MERCOSUL Agreement: strategic gains in international trade

The agreement between MERCOSUL (Brazil, Argentina, Paraguay, and Uruguay) and EFTA (Switzerland, Norway, Iceland, and Liechtenstein) is one of the broadest trade opportunities Brazil has established outside the European Union. The deal connects a potential market of 300 million consumers with a combined GDP of more than USD 4.3 trillion.

As MERCOSUL’s largest economy, Brazil is expected to be the main beneficiary. Estimates suggest that 97% of Brazilian exports to EFTA will receive preferential treatment, reducing or eliminating tariffs on key sectors. Products such as beef, poultry, coffee, fruits, juices, and manufactured goods will gain improved access to high-income markets, particularly Switzerland and Norway.

According to government projections, the agreement could generate an increase of BRL 2.69 billion in Brazil’s GDP, along with higher real income and competitiveness. Another highlight is the recognition of Brazilian geographical indications (such as specialty coffees and wines), which may see additional value in EFTA countries.

Strategically, Brazil stands to diversify its trade partners and reduce its reliance on traditional markets. It also strengthens its international image by embedding commitments to sustainability, aligned with the Paris Agreement, into the treaty.

In short: EFTA-MERCOSUL is not just an economic opportunity, but a powerful global positioning tool for Brazil.