Mercosur, European EFTA bloc conclude talks on free-trade deal

The Mercosur bloc and the European Free Trade Association (EFTA) – made up of Norway, Switzerland, Iceland, and Liechtenstein – have concluded negotiations over 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, saying the deal would be inked in the coming months.

The new treaty “will result in increased bilateral trade and benefits for businesses and individuals,” said Werthein in a statement. 

He noted 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 currently holds the pro-tempore presidency of the South American bloc, which also includes Brazil, Paraguay and Uruguay. 

Guy Parmelin, Vice-President of the Swiss Confederation, said 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 responds to the interests of both parties,” he added.

Addressing the next steps, Helene Budliger Artieda, Switzerland’s Secretary of State for Economic Affairs, said that “each EFTA member country has its own independent process” to adopt the agreement.

“We want to sign as soon as possible so we can begin the process,” she said.

Talks between the two blocs began in 2017, with an initial agreement reached in 2019, which then entered a review phase.

During a visit to Buenos Aires in 2024, parliamentary representatives from the EFTA bloc told the Times they were aiming for an agreement by the end of that year. 

The announcement comes as Mercosur awaits progress on its free- trade agreement with the European Union, which was signed last December after 25 years of negotiations. 

However, the deal still needs to be ratified by EU member states and faces opposition from France.

The European Commission announced on Monday that it will present the legal text of the agreement with Mercosur “in the coming days,” to open the review process and begin discussions on ratification.

“I believe there may be some resistance, some difficulties in certain countries, but the outlook for the European Union is positive,” said Brazilian Foreign Minister Mauro Vieira on Wednesday.

– TIMES/AFP/NA