The deal comes as both countries prepare to mark 60 years of diplomatic ties in 2027.

The MERCOSUR-Singapore Free Trade Agreement (MCSFTA) has taken effect for Singapore and Brazil, marking the first trade agreement between Singapore and the founding members of the South American bloc and MERCOSUR’s first free trade pact with a Southeast Asian country. The agreement had previously entered into force between Singapore and Paraguay, as well as Singapore and Uruguay. The MCSFTA is designed to reduce barriers to trade and investment between Singapore and the four MERCOSUR economies—Argentina, Brazil, Paraguay, and Uruguay. Under the agreement, MERCOSUR countries will remove import tariffs on about 96% of products over a period of up to 15 years. Singapore’s goods trade with the four MERCOSUR members accounted for more than 30% of its total trade with Latin America in 2025.