Norway is party to the free trade accord with Mercosur
In a significant move for Norwegian businesses, a free trade agreement has been signed between the EFTA states (Iceland, Liechtenstein, Norway, Switzerland) and the Mercosur countries (Argentina, Brazil, Paraguay, Uruguay). The agreement, signed on September 16, 2025, in Rio de Janeiro, Brazil, is yet to come into force, with ratification still pending.
The agreement, which marks the fifth trade agreement that the EFTA countries have signed in recent times, promises to open up new opportunities for trade and investments between Norway and the Mercosur countries. With a combined population of nearly 300 million people, the Mercosur countries will now provide better access for Norwegian companies.
Minister of Trade and Industry Cecilie Myrseth emphasised the importance of the agreement for many Norwegian companies. One such company is Kongsberg Maritime, which exports ship equipment and currently faces duties ranging from 10 to 20 percent in Mercosur countries. With the new trade agreement, these duties will be gradually reduced to zero percent.
Similarly, Brødrene Remø, a Norwegian smoked salmon exporter, currently pays nine percent duty on exports to Brazil. The new agreement provides for the gradual abolition of duty on smoked salmon, enabling the company to remain competitive with Chilean producers.
Yara, another Norwegian company exporting mineral fertilizers, currently pays up to six percent duty on exports to Brazil, Argentina, and Uruguay. With the new trade agreement, duties will be gradually reduced to zero percent.
The agreement also benefits the Norwegian shipping industry. Upon entry into force, almost all Norwegian industrial goods and seafood exports to Mercosur countries will be duty-free. Moreover, the agreement obliges Brazilian authorities to treat Norwegian and Brazilian ships equally in international cargo transport, benefiting Norwegian shipping companies covering around 40 percent of the tonnage in Brazil.
The free trade agreement will play an important role for the Norwegian shipping industry, enabling market access and equal treatment for a wide range of maritime services. Additionally, the agreement provides better conditions for Norwegian service providers and investors.
Once translated into Norwegian, the agreement will be submitted to the Norwegian parliament (Storting) for ratification. Upon ratification, the agreement will enter into force for the ratified parties.
Mercosur countries will unilaterally remove certain trade barriers as part of the new agreement. This, combined with the gradual elimination of duties for other products, is expected to lead to increased trade between Norway and the Mercosur countries.
More information about the free trade agreement with Mercosur can be found. Norway has also concluded agreements with Thailand, Kosovo, Ukraine, and Malaysia since May 2024, further expanding its global trade network.
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