The Free Trade Agreement between Mercosur and the European Free Trade Association (EFTA) was enacted by Brazil this Friday (Sep. 25).

The bloc of European countries consists of Iceland, Liechtenstein, Norway, and Switzerland, which are not members of the European Union. The South American group, meanwhile, includes Brazil, Argentina, Bolivia, Paraguay, and Uruguay – Venezuela has been suspended as a member state since 2017.

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According to the Planalto presidential palace, the decree published this Friday completes the process of implementing the treaty in Brazil, establishing “commitments to expand trade and investment flows between the countries of the two blocs.” Legally, it will take effect on October 1, 2026.

The treaty provides for the expansion of trade and investment between the two blocs, with the reduction of technical barriers, as well as sanitary and phytosanitary measures deemed unnecessary for trade.

In addition, it outlines streamlined customs procedures and greater access to government procurement markets.

Commitments

Signed on September 16, 2025, by President Luiz Inácio Lula da Silva, the presidential decree also establishes commitments in the areas of intellectual property, sustainable development, environmental protection, biodiversity, and human rights.

“For Brazil, the agreement expands opportunities for Brazilian products to enter the markets of EFTA countries and creates conditions for increased trade and investment flows,” an official statement by the president’s office reads.

The agreement also includes the recognition and protection of geographical indications, a mechanism designed to promote products linked to specific regions of origin.

According to the presidential palace, negotiations between the two blocs were concluded in 2025, following ten rounds that began in 2017.

The text was approved by the National Congress in June this year and ratified by the Brazilian government in July.