Sao Paulo [Brazil], September 27 (ANI): Brazil has formally incorporated the Free Trade Agreement between Mercosur and the European Free Trade Association (EFTA), with President Luiz Inacio Lula da Silva promulgating the agreement following its approval by the Brazilian National Congress.

The Official Gazette of the Union published the presidential decree in an extra edition, completing the formalities required for the agreement to become part of Brazil's legal framework, as reported by Brasil 247.

The agreement will come into effect on October 1 for Brazil and Iceland, while its implementation between Brazil and Norway will begin on November 1. The application of preferential tariffs involving Switzerland and Liechtenstein will depend on the completion of their respective internal procedures.

Signed on September 16, 2025, the Mercosur-EFTA agreement is aimed at expanding and diversifying Brazil's network of trade partnerships. EFTA comprises Switzerland, Norway, Iceland and Liechtenstein and represents a market of around 15 million people, with a combined GDP of approximately USD 1.4 trillion.

According to Brasil 247, the agreement provides new market-access conditions for Brazilian products through the elimination or reduction of tariffs, quotas and other preferential treatment mechanisms.

On the EFTA side, import tariffs on industrial and fisheries products will be eliminated immediately once the agreement enters into force. Agricultural products will be subject to different market-opening arrangements depending on the product.

The agreement also contains provisions covering rules of origin, trade facilitation, services, investment, government procurement, intellectual property and sustainable development.

Brazil's Minister of Development, Industry, Trade and Services, Marcio Elias Rosa, described the agreement's entry into force as another step in the country's strategy of commercial diversification and integration into the international economy, as per the reports of Brasil 247.

Negotiations between Mercosur and EFTA were concluded in 2025 after 10 rounds of talks that began in 2017.

In Brazil, the agreement was approved through Legislative Decree No. 146 in June 2026. The government deposited its instrument of ratification with Norway on July 8.

With President Lula's promulgation, Brazil has completed the domestic legal procedures required to implement the international agreement. (ANI)