During its term as the rotating presidency, the Southern Common Market (Mercosur) announced the completion of negotiations for a free trade agreement with the European Free Trade Association (EFTA), which includes Switzerland, Norway, Iceland, and Liechtenstein. The signing ceremony for this free trade agreement took place at the Brazilian Ministry of Foreign Affairs. Brazilian Foreign Minister Mauro Vieira stated, "This agreement signifies a new stage in the trade relationship between the two blocs and symbolizes the friendship between the countries of the Southern Common Market and the member countries of the European Free Trade Association."

Negotiations between the economic blocs of South America and Europe began in 2017 and went through 14 rounds of talks. To formally put this trade agreement into effect, member countries need to approve the terms. According to the Brazilian Ministry of Foreign Affairs, the agreement will establish a free trade area covering approximately 300 million people and a GDP of around $4.3 trillion. On the South American side, over 97% of imported products will receive tariff exemptions, with most immediately entering free trade, while the remaining products will have tariffs gradually reduced over a maximum of 15 years.

Economic impact studies indicate that this agreement will have a positive effect on the Brazilian economy. It is projected to increase Brazil's GDP by 26.9 billion reais, boost investments by 6.6 billion reais, raise real wage levels, and lower consumer prices. The agreement is also expected to increase Brazilian imports by 25.7 billion reais and exports by 33.4 billion reais.

The Brazilian Ministry of Foreign Affairs noted, "This free trade agreement covers trade in goods and services, investment, intellectual property rights, government procurement, health and plant inspection measures, technical trade barriers, dispute resolution mechanisms, and trade and sustainable development."

Official data shows that all tariff preferences provided by the European Free Trade Association countries will be implemented on the first day the agreement comes into effect. In the initial stage, the European Union will eliminate 100% of import duties on industrial and fisheries products from Mercosur countries.

In the sectors of agricultural products and industrial goods, Brazilian products will have access to the markets of the EFTA countries under this free trade agreement at a rate of nearly 99%. Specifically, Brazilian exports to Iceland and Liechtenstein will immediately enjoy 100% free trade treatment, with rates of 99.8% for Norway and 97.7% for Switzerland.

In the agricultural and livestock sector, the agreement provides favorable access for key export products of the Southern Common Market, including beef, pork, poultry, corn, soybean meal, sugarcane syrup, honey, roasted coffee, ethanol, unprocessed tobacco, rice, fruits, and fruit juices. Additionally, the agreement establishes a quota management mechanism to ensure the full utilization of the trade tariff preferences provided by the countries of the European Free Trade Association.