Brazil eagerly awaits free trade agreement between Mercosur and the United Arab Emirates

Brazil hopes that Mercosur and the United Arab Emirates will reach a trade agreement by the end of the year.

That is the expectation of Brazilian Foreign Minister Mauro Vieira.

He also said that Mercosur hopes to advance negotiations with Canada, Japan, India, Vietnam and Indonesia.

The South American group, which includes Brazil, Argentina, Uruguay and Paraguay, with Bolivia in the process of becoming a full member, has been seeking potential agreements as the global trade balance shifts in the wake of US President Donald Trump's tariffs.

The United Arab Emirates is seeking to diversify its global trade relations by offering investment and trade incentives to its international partners.

Negotiations for the agreement with the United Arab Emirates began in 2024 and are primarily aimed at eliminating or reducing customs tariffs and facilitating investment and services between the two parties.

‘Mercosur is showing determination in building bridges with the world,’ Vieira said.

He spoke at a ceremony in Rio de Janeiro for the signing of an agreement between the South American bloc and the EFTA (European Free Trade Association) group formed by Iceland, Liechtenstein, Norway and Switzerland.

The agreement aims to establish a free trade area with a combined gross domestic product of more than $4.3 trillion and nearly 300 million people, the minister said.

According to Vieira, the EFTA agreement will pave the way for greater economic integration between South America and Europe and should have ‘synergies’ with the expected agreement between Mercosur and the European Union.

The trade pact with the EU was agreed in principle in December, but has faced opposition from France, Italy and Poland, which fear that the terms of the agreement will harm their farmers.

Vieira reiterated that Brazil expects the agreement to be finalised by the end of the year.