Vietnam celebrates free trade agreement with EFTA
Translated from the Spanish original. Read the original
Director of Pulso Internacional
Vietnam, Mercosur and EFTA: simultaneous negotiations
It could be said that, in three-way negotiations, Mercosur, the European Free Trade Association (EFTA), made up of Norway, Switzerland, Iceland and Liechtenstein, and Vietnam are in the midst of a process of trade integration.
In August 2026, Mercosur began negotiations on a Free Trade Agreement (FTA) with Vietnam. The South American bloc has already concluded its agreement with EFTA, and while the Argentine Senate unanimously approved the ratification bill on August 27, 2026 and sent it to the Chamber of Deputies, approval by the latter is still pending. Meanwhile, Brazil enacted the decree bringing into force the Mercosur-EFTA agreement on September 24, 2026, with phased implementation beginning with Iceland on October 1, 2026.
Within EFTA, in Switzerland, on October 13, 2026, a coalition of Swiss civil society organizations formally launched in Bern the collection of signatures to call a referendum to block the free trade agreement between EFTA and Mercosur, approved by the Swiss Parliament just three weeks earlier.
FTA between Vietnam and EFTA
On October 18, 2026, EFTA and Vietnam signed a comprehensive free trade agreement (FTA) in Hanoi. The FTA is an agreement covering numerous areas, including trade in goods, trade in services, rules of origin, intellectual property rights and small and medium-sized enterprises (SMEs), among others. The agreement aims to strengthen trade relations between the EFTA States and Vietnam through the elimination or reduction of customs tariffs, trade facilitation and the promotion of sustainable development.
In 2025, bilateral trade between EFTA and Vietnam amounted to €4.8 billion. Electrical machinery, fish, pharmaceutical products and mechanical machinery were the main exports from the EFTA States to Vietnam, while electrical machinery, footwear and apparel, and mechanical machinery were the main imports. These import categories have recorded particularly strong growth over the past ten years, with average annual growth rates above 10% in all cases.
References:
- The Mercosur-EFTA Agreement entered into force in Brazil
- Negotiations begin between Mercosur and Vietnam
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Director of Pulso Internacional
Lawyer specializing in international trade and productive investment, with more than 25 years of experience in international trade negotiations as an adviser to governments and to companies going international. At Pulso Internacional we analyze foreign trade, bringing clarity and international context so that your company can export and invest more.
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