Paraguay leads negotiations between Mercosur and Singapore

RIO DE JANEIRO, BRAZIL – Earlier this week, negotiations resumed for an Economic Partnership Agreement between Mercosur and the Republic of Singapore. This agreement aims to broaden and deepen the economic and trade relations already existing between the bloc and one of the most successful economies of the Asian continent.

The meetings are being held in Paraguay’s capital, Asunción, and mark the first face-to-face meetings since the COVID-19 pandemic. The negotiations held in Paraguay will end on April 8. The Republic of Paraguay, currently holding the pro tempore presidency of Mercosur, is the general coordinator of the negotiations as such.

The Ministry of Finance of our country, through its Directorate of Integration, is coordinating the group called National Treatment and Market Access (NTMA) with the support of the Ministry of Foreign Affairs.

The Ministry of Finance leads central issues for the regional bloc and the Paraguayan economy in this group. Negotiations are underway, for example, on the possible elimination of import tariffs, temporary admission, food safety, import and export licenses, the formation of a committee on trade in goods, and the analysis of the offers of goods already exchanged between the parties.

According to World Economic Forum (WEF) indicators, the Republic of Singapore is currently the most competitive country globally, with the greatest economic freedom worldwide. It has the fourth-highest Human Development Index (HDI) in the world and has the highest GDP per capita in Asia.

Paraguay and Singapore are highly complementary economies because Paraguay imports goods such as petroleum derivatives, air conditioners, refrigerators, and freezers, which are abundant in Singapore, while exporting beef, essential oils, oily fruits, among other items of great interest to the Asian nation.

The Integration Directorate of the Ministry of Finance emphasized that the benefits, in terms of boosting trade in services, investment, economic cooperation, and integration into regional and global production value chains, would be highly visible and beneficial for Paraguay if the agreement is concluded. At least 12 negotiators from Mercosur member states participated in the market access working group in this fourth round of negotiations.

The fifth round will take place next May in Singapore. The intention of the pro tempore Paraguayan presidency of Mercosur is to close the negotiations satisfactorily for both parties in July of this year.