Brazil expects Mercosur-UAE trade deal by end of 2025, minister says

RIO DE JANEIRO, Sept 16 (Reuters) - Brazil expects South America's Mercosur bloc and the United Arab Emirates to finalize a trade agreement by the end of the year, Foreign Minister Mauro Vieira said on Tuesday.

He also said that Mercosur expects to advance negotiations with Canada , Japan , India , Vietnam and Indonesia.

The South American group, which includes Brazil, Argentina, Uruguay and Paraguay - with Bolivia in the process of becoming a full member - has been seeking potential deals as the world's trade balance shifts following U.S. President Donald Trump's tariffs.

Negotiations for the accord with the UAE began in 2024 and are aimed mostly at eliminating or reducing customs tariffs and facilitating investments and services between the two parties.

"Mercosur is showing determination in building bridges with the world," Vieira said.

He spoke at a ceremony in Rio de Janeiro for the signing of a deal between the South American bloc and the EFTA group of Iceland, Liechtenstein, Norway and Switzerland.

The agreement is set to establish a free trade area with a combined gross domestic product of more than $4.3 trillion and almost 300 million people, the minister noted.

According to Vieira, the EFTA deal will pave the way for increased economic integration between South American and Europe, and should have "synergies" with the long-awaited accord between Mercosur and the European Union .

The trade pact with the EU was agreed in principle in December, but has faced pushback from France, Italy and Poland, which fear the deal's terms would harm their farmers.

Vieira reiterated that Brazil expects the agreement to be finalized by the end of the year .