Paraguay approves the law ratifying the Mercosur-Singapore agreement, promoting trade, services, and economic cooperation across the region and Asia.
The president of Paraguay, Santiago Peña, enacted the law ratifying the free trade agreement reached in December 2023 between Mercosur and Singapore, according to Foreign Minister Rubén Ramírez.
“Paraguay is one of the first countries to enact this law, which will allow for the immediate application of these preferential trade mechanisms,” Ramírez highlighted during a press conference.
With the presidential decree, the law approving the agreement between Mercosur and Singapore officially takes effect, following prior approval by the Senate in June and the Chamber of Deputies in August 2025.
The trade pact includes 19 chapters covering key areas such as goods, services, intellectual property, sanitary and phytosanitary measures, as well as policies to promote joint economic development between Mercosur and Singapore.
Ramírez emphasized that the enactment represents a “milestone” for Paraguay, noting that Singapore serves as a strategic platform enabling Paraguayan producers and companies to expand access not only to the Asian country but also to the broader Southeast Asian market.
Mercosur, composed of Paraguay, Brazil, Argentina, Uruguay, and Bolivia, signed the agreement with Singapore on December 7, 2023, in Rio de Janeiro, marking the bloc’s first free trade deal with an Asia-Pacific country.
For the pact to take effect, member countries needed to complete internal legal procedures, which Paraguay now finalizes with the law’s enactment.
Economically, the trade balance between Paraguay and Singapore has been negative over the past five years, recording a deficit of $147.4 million in 2023, according to the Ministry of Economy and Finance.
Authorities, however, expect that the agreement’s implementation will boost export diversification and generate new investment opportunities.
