Singapore and UAE Expand South-South Trade with Landmark Mercosur and Mauritius Agreements

Singapore signed a landmark Free Trade Agreement with the Mercosur bloc, which comprises Argentina, Brazil, Paraguay, and Uruguay, according to the Ministry of Trade and Industry Singapore and reports from The Straits Times and Reuters. This agreement represents Mercosur’s first trade pact with a Southeast Asian nation. The deal aims to facilitate trade by lowering tariffs, streamlining customs procedures, and fostering cooperation in the digital economy, trade facilitation, and investment. It provides Singaporean businesses with enhanced access to a market of over 270 million people.

According to the Ministry of Trade and Industry Singapore, the agreement with Mercosur is a strategic step to deepen economic engagement with South America. The Straits Times reported that the deal will help Singaporean companies navigate South American markets more efficiently by reducing administrative barriers and establishing clear rules for investment. Reuters noted that the inclusion of digital economy provisions reflects the modern priorities of both trading partners.

In another significant development for South-South trade, the United Arab Emirates and Mauritius signed a Comprehensive Economic Partnership Agreement (CEPA) on June 11, 2026. According to Gulf News, Bloomberg, and the UAE Ministry of Economy, this agreement marks the UAE’s first bilateral trade deal with an African nation. The agreement is designed to accelerate bilateral trade, eliminate or reduce tariffs on a wide range of goods, and enhance market access for services. It also aims to encourage joint investments in sectors such as tourism, financial services, and logistics.

The UAE Ministry of Economy emphasized that the CEPA will play a crucial role in driving non-oil trade, which is a key component of the UAE’s economic diversification plans. Bloomberg reported that the focus on logistics and financial services is expected to position Mauritius as a strategic hub for UAE investments entering the wider African continent. These agreements reflect a growing trend of emerging economies establishing direct trade links to diversify their economic partnerships and reduce reliance on traditional trade routes.