Mercosur signed a free trade agreement with the Nordic EFTA countries: impact on Argentina and opportunities for exporters

After nearly a decade of negotiations, Mercosur signed a free trade agreement with the European Free Trade Association (EFTA), which includes Switzerland, Norway, Iceland, and Liechtenstein . The agreement covers a trade zone of more than 300 million people and a combined GDP of over USD 4.3 trillion.

According to the Foreign Ministry, more than 97% of both sides' exports will have improved access conditions , which will increase bilateral trade and generate incentives for foreign investment. For Argentina, this represents a gateway to diversifying markets and boosting exports in agribusiness, mining, and manufacturing.

EFTA will immediately eliminate all tariffs on industrial and fishery products originating in Mercosur . Meanwhile, the South American bloc will have 15 years to gradually reduce tariffs on industrial goods imported from European countries.

In the agricultural sector, EFTA granted tariff preferences and full liberalization for products such as beef, poultry, and pork, coffee, ethanol, and wine . For Argentina, the agreement includes a safeguard: countries may apply trade restrictive measures in the event of serious balance of payments difficulties.

Argentine exports to EFTA reached USD 1.66 billion in 2024, primarily driven by Swiss demand for gold, which accounted for 37% of total mining shipments. Argentina also supplies 14% of that country's silver imports.

The agroindustrial sector appears to be one of the most favored, with greater opportunities to access high-income markets . "In addition to the quotas and opportunities for the agroindustry, what's important is the attractiveness of investment and market diversification," said Fernando Landa, president of the Chamber of Exporters (CERA).

The agreement includes the recognition of Argentine geographical indications such as "La Rioja, Argentina" for wines, "Patagonia" for wines, and "Patagonian Lamb" for lamb. This point was welcomed by the agricultural export sector, as it protects brands of origin in premium markets.

Exceptions were also established for fishing and aquaculture services, limiting the activity of foreign vessels in Argentine waters to preserve national competitiveness. Likewise, the possibility of applying measures on international maritime transport with countries with bilateral agreements in force was maintained.

The agreement still needs to be ratified by the parliaments of each country, so it could not enter into force until the end of 2026. Meanwhile, Mercosur is advancing negotiations with the United Arab Emirates and is putting the ratification of its treaty with the European Union on hold.

“ In the midst of an uncertain world, we are proving that it is possible to strengthen multilateralism and free trade ,” said Brazilian Vice President Geraldo Alckmin during the signing at the Itamaraty Palace in Rio de Janeiro.