Since 2017, the Common Market of the South (Mercosur) has held several rounds of negotiations for the conclusion of free trade agreements with Canada, the Republic of Korea, Singapore and Lebanon, according to a World Trade Organization (WTO) report.
In 2020, Brazil approved the mandate to negotiate trade agreements with Indonesia and Vietnam.
Then, in December 2021, Mercosur and Indonesia announced the start of negotiations for a comprehensive economic partnership agreement covering trade in goods and services, investment, and a wide range of non-tariff issues.
Brazil prepared impact assessment studies for future agreements with the Republic of Korea, Indonesia, Singapore and Vietnam, and those for the agreement with Canada were under preparation in June 2022.
Free trade agreements
With regard to the regional sphere, Mercosur plans to begin negotiations to establish in 2022 a new economic complementation agreement with Ecuador to replace and modernize the commitments assumed under ECA No. 59.
In 2020, it presented to some Central American and Caribbean countries a proposal for a mandate to negotiate individual trade agreements.
Brazil also gives high priority to economic and trade relations with Mexico, especially by expanding its bilateral agreement with this partner (Economic Complementation Agreement -ECA- No. 53).
In 2020, Brazil submitted to Mexico a proposal for a mandate to negotiate a new agreement covering trade in goods and non-tariff issues.
Since mid-March 2019, trade in automobiles and auto parts between the two countries has been duty-free, following the expiration of bilateral quotas under the Mercosur-Mexico Automotive Sector Agreement (ACE No. 55).
Mercosur remains Brazil’s main preferential agreement, although it is losing importance, in terms of trade value, as it accounted for approximately 5.9% (10.5% in 2017) of its total merchandise exports and 7.4% (8.5% in 2017) of its total merchandise imports in 2020.
Brazil is a founding member of Mercosur, together with Argentina, Paraguay and Uruguay; the accession of the Plurinational State of Bolivia is pending, while that of the Bolivarian Republic of Venezuela was suspended indefinitely on August 5, 2017.
This suspension does not affect the validity of the preferential trade agreement between Brazil and the Bolivarian Republic of Venezuela.