Mercosur-Singapore Free Trade Agreement (MCSFTA)

About this agreement

The Mercosur-Singapore Free Trade Agreement (MCSFTA) is the first trade deal between the MERCOSUR Member States – Argentina, Brazil, Paraguay, and Uruguay – and Singapore, and MERCOSUR’s first Free Trade Agreement with a Southeast Asian country. The MCSFTA deepens economic integration between Singapore and the four South American economies by facilitating greater trade flows through lowered tariff rates, establishing transparent and predictable investment conditions, and fostering cooperation in areas such as trade facilitation, entrepreneurship, digitalisation, sustainable development, security of food supply and SME development.

The English text of the MCSFTA has been signed. The Spanish and Portuguese texts are being translated and will thereafter be adopted by the Parties. As such, the MCSFTA has NOT YET ENTERED INTO FORCE. The MCSFTA will enter progressively into force between Singapore and each MERCOSUR member state that ratifies the agreement in accordance with the conditions set out in Article 19:13 of Chapter 19. Updates on this process will be provided here.

8 December 2023

Signing of the MCSFTA at the 63^rd Summit of Heads of State of MERCOSUR and Associate States in Rio De Janeiro, Brazil.

Key benefits

Legal text
• The Legal Text consists of one tariff schedule for MERCOSUR and one Rules of Origin schedule for all member countries.
Rules of Origin
• Rules of Origin are product-specific for every tariff line.
• Singapore exporters can enjoy flexible rules of origin for their goods to qualify for preferential tariffs when imported by MERCOSUR state.
Regional cumulation
• Allows for Cumulation, where production undertaken on non-originating materials in a member territory can contribute toward the originating content of a good.
Tariff elimination
• Eliminates import tariffs on approximately 96% of products over 15 years, offering immediate tariff free access for around 25% of products.
Trade in Services
• More favourable business environment grants market access and same treatment as MERCOSUR state service suppliers for Singapore service suppliers in sectors like computer and R&D services, and construction.
Services and Investment
• Greater clarity in market entry conditions, and enhanced stability and predictability for investors and investments between MERCOSUR and Singapore.
Government Procurement
• Singapore companies are ensured fair and non-discriminatory treatment in competing for government contracts. This gives companies an equal opportunity to gain access to MERCOSUR Government Procurement market.
Customs Procedures and Trade Facilitation
• Simplified procedures and increased transparency, for more efficient clearance of goods.
Micro, Small and Medium Enterprises (MSMEs)
• Facilitates cooperation in capacity building to help Singapore and MERCOSUR MSMEs internationalise and develop entrepreneurial skills.
E-Commerce
• Promotes digital trade facilitation (e.g., electronic authentication, paperless trading, and domestic electronic transaction framework).
• Enhances trust in the digital economy (e.g., online consumer protection and minimising unsolicited commercial electronic messages).

Eligibility

You can explore the following steps to check if your product is eligible to enjoy this FTA’s tariff concessions.

Your product’s preferential rate

Check the Tariff Schedule for the preferential rate.
Refer to Annex 2-A “Elimination of Customs Duties” for specifications on the obligations with regard to the elimination, through successive reductions, of Customs duties.

Your product’s rule of origin

Rules of origin are a set of criteria which determine a product's originating status in each respective FTA.

It is put in place to ensure that only goods originating from the FTA partner countries will benefit from tariff concessions.


Is your product obtained/produced entirely within Singapore?		Your product is considered wholly obtained in Singapore

Check if your product falls under the list of Product Specific Rules



Is your product obtained/produced entirely within Singapore?

	Your product is considered wholly obtained in Singapore

Check if your product falls under the list of Product Specific Rules

Apply

Under the MCSFTA, exporters will simply need to self-certify that the exported product meets the MCSFTA rules of origin criteria to qualify for preferential tariff treatment. There is no standardised format for the self-certification; however, certain minimum data requirements identifying the goods must be fulfilled, as detailed in Annex-3D Minimum Data Elements.