Singapore, Argentina deepen trade ties as key South American trade pact enters into force
The Mercosur-Singapore Free Trade Agreement eliminates import tariffs on 96% of products for up to 15 years
[SINGAPORE] The Mercosur-Singapore Free Trade Agreement (MCSFTA) – a trade pact between the Republic and a key South American bloc – entered into force between Singapore and Argentina on Sunday (Nov 1).
The move is a “significant milestone in Singapore’s economic engagement” with South America, the Ministry of Energy, Trade And Industry (METI) and Argentinian embassy in Singapore said in a joint statement on Sunday.
“Argentina’s position as a major agricultural and food producer supports Singapore’s efforts to diversify food import sources and strengthen food resilience. There are also opportunities in sectors such as energy, infrastructure, logistics, technology and services,” they added.
Argentine businesses can also leverage Singapore’s regional hub status to access opportunities in South-east Asia, both parties added.
Mercosur, or the “Southern Common Market”, was founded in 1991 by Argentina, Brazil, Paraguay and Uruguay, and represents a population of about 270 million people.
The MCSFTA is already in force between Singapore and the three other Mercosur founding member states.
Under the pact, Mercosur will eliminate import tariffs on about 96 per cent of products for up to 15 years, with around 25 per cent of tariff lines enjoying immediate tariff-free access.
The agreement also establishes common rules of origin and more transparent customs procedures, allows greater use of preferential tariff treatment and more efficient supply chain planning, and supports expedited clearance of express shipments and perishable goods.
“Beyond trade in goods, the MCSFTA creates a more conducive environment for services suppliers and investors through greater certainty, transparency and market access commitments,” METI and the Argentinian embassy in Singapore noted.
Signatories will also cooperate in entrepreneurship, digitalisation, cybersecurity, sustainable development and the development of micro, small-and-medium enterprises.
The MCSFTA builds on the Pacific Alliance-Singapore Free Trade Agreement, which entered into force in 2025, in deepening Singapore’s economic ties with South America.
